February 19, 2025
Congress reintroduces legislation to minimize redtape and compliance burdens for small businesses
What it means: The Prove It Act would provide relief to small businesses by easing regulatory burdens and protecting their valuable time. In addition, this legislation presents further opportunity for small business owners to describe the impact of burdensome regulations on their businesses.
Our take: “This legislation not only remedies the loopholes in the Regulatory Flexibility Act (RFA), but it empowers small businesses to take part in the rulemaking process and provide much-needed feedback,” said Dylan Rosnick, Principal of Federal Government Relations.
Take Action: Send a personalized message to your Senator explaining the difficulty of regulatory compliance costs.
The Prove It Act was introduced in response to federal agencies’ persistent failure to comply with the Regulatory Flexibility Act (RFA). While the intent of the RFA was to protect small businesses from burdensome regulations by requiring government agencies to assess the impact of their regulatory actions, a White Paper from the NFIB Small Business Legal Center found an overwhelming lack of compliance by federal agencies. These compliance failures have prompted lawmakers to push for stronger accountability measures by introducing the Prove it Act.
According to the NFIB Research Center’s Small Business Problems & Priorities, unreasonable government regulations remain a top problem facing small business owners. Compliance with excessive regulatory mandates takes away valuable time and resources from business owners. The Prove It Act seeks to remedy these constraints by strengthening requirements for federal agencies when analyzing the economic impact of regulations on small business.
NFIB continues to express support for the Prove it Act and is actively challenging overregulation on behalf of small business. Read NFIB’s letter of support to the U.S. House of Representatives and letter to the U.S. Senate.
Take Action: Send a personalized letter to your elected officials.
NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.
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