House · HR 2965 · 119th Congress
Small Business Regulatory Reduction Act of 2025
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Summary
This bill requires the Small Business Administration to keep its total new regulatory costs for small businesses at zero or below each year. Any new rule that adds costs must be offset by cutting costs from existing rules. The SBA must also report to Congress each year on rules from other agencies that affect small businesses.
In Favor
Small businesses spend real money following federal rules, and those costs add up fast. This bill forces the SBA to cut old regulatory costs before adding new ones, keeping the total burden at zero. That discipline protects small business owners from facing higher compliance costs each year without any relief.
Against
Rules often help small businesses more than they cost them. This bill only counts costs and ignores benefits, which could block useful rules like emergency aid programs. It also has no exception for national emergencies or urgent needs, which could tie the agency's hands when small businesses need help most.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
The bill requires the Small Business Administration to keep its yearly rule-making costs to small businesses at zero or below. It also requires an annual report to Congress on how other federal agencies affect small businesses through their rules.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The bill stays focused on SBA rule-making costs and reporting. The bill explicitly states no extra money is authorized to carry out its requirements.
Who Is Affected
Who benefits, and who bears the cost?
Small businesses would face no new net rule-making costs from the SBA. The SBA itself takes on a new duty to track and balance those costs each fiscal year.
Cost & Funding
Is it affordable and responsibly funded?
The bill authorizes no additional funds to carry out its requirements. The SBA must absorb the work of tracking and balancing rule-making costs using its existing budget.
Risks & Implementation
What could go wrong in practice?
The bill requires SBA to offset any new rule cost by cutting an equal cost elsewhere, which may limit the agency's ability to carry out rules that Congress requires. The bill includes no exception for national emergencies or other special circumstances.
For the actual bill text, see congress.gov.
AI-generated · Published 5/31/2026