WASHINGTON, D.C. (Dec. 5, 2024) – The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, commends lawmakers for passing H.R. 7198, the Prove It Act. The legislation would strengthen the requirements for government agencies to analyze the impact of regulations on small businesses and increase small business engagement in the regulatory process. NFIB sent a letter to the U.S. House of Representatives in support of the legislation, which was considered an NFIB Key Vote for the 118th Congress.

“Small business owners have consistently ranked ‘unreasonable government regulations’ as one of the top problems facing their businesses,” said Adam Temple, NFIB Senior Vice President of Advocacy. “Unfortunately, the regulatory burdens flowing out of Washington continue to rapidly increase and small businesses are desperate for relief. The Prove It Act is a critical step in minimizing the impact of onerous regulations and red tape small businesses face while increasing their engagement in the regulatory process. We are pleased lawmakers in the House recognized these concerns and passed this bill.”

The Prove It Act seeks to address the loopholes in the Regulatory Flexibility Act (RFA), which is a priority for small businesses. A White Paper analysis by the NFIB Small Business Legal Center explores the lack of RFA compliance by administrative agencies and what Congress can do to reinvigorate the RFA as a legitimate constraint on the one-size-fits-all agency rulemaking.

NFIB previously sent a letter of support to members of Congress explaining why the legislation would be beneficial to small businesses. NFIB also led a coalition letter with 50 trade associations urging Congress to fulfill the intent of the RFA through legislation like the Prove It Act.