Small Business Regulatory Reduction Act of 2025
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- Crpt 119Hrpt111
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- Crpt 119Hrpt111
Summary
House Report 119–111 of the 119th Congress, 1st Session, dated May 21, 2025, submitted by the Committee on Small Business to accompany H.R. 2965, the Small Business Regulatory Reduction Act of 2025. The committee reports the bill favorably with an amendment in the nature of a substitute. The amended text requires the SBA Administrator to keep the agency's small business regulatory budget at not greater than zero from fiscal year 2026 and directs the Office of Advocacy to report annually on the costs of other agencies' rules affecting small businesses. The report states the committee ordered the bill reported on April 30, 2025 by a roll call vote of 15 ayes to 11 nos, with two amendments failing 11 ayes to 15 nos. Minority views signed by Ranking Member Nydia M. Velázquez oppose the bill, citing the Paycheck Protection Program as an example.
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“Small Business Regulatory Reduction Act of 2025.”
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119TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 119–111
SMALL BUSINESS REGULATORY REDUCTION ACT OF 2025
MAY 21, 2025.—Committed to the Committee of the Whole House on the State of
the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2965]
The Committee on Small Business, to whom was referred the bill
(H.R. 2965) to require the Administrator of the Small Business Ad-
ministration to ensure that the small business regulatory budget
for a small business concern in a fiscal year is not greater than
zero, and for other purposes, having considered the same, reports
favorably thereon with an amendment and recommends that the
bill as amended do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 3
IV. Committee Consideration ........................................................................... 3
V. Committee Votes ......................................................................................... 3
VI. Section-by-Section of H.R. 2965 ................................................................. 7
VII. Congressional Budget Office Cost Estimate ............................................. 7
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 7
IX. Oversight Findings & Recommendations .................................................. 7
X. Performance Goals and Objectives ............................................................ 7
XI. Statement of Duplication of Federal Programs ........................................ 8
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 8
XIII. Federal Mandates Statement ..................................................................... 8
XIV. Federal Advisory Committee Statement ................................................... 8
XV. Applicability to Legislative Branch ........................................................... 8
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XVI. Statement of Constitutional Authority ...................................................... 8
XVII. Minority Views ............................................................................................ 9
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The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Small Business Regulatory Reduction Act of 2025’’.
SEC. 2. SMALL BUSINESS ADMINISTRATION RULEMAKING COSTS TO SMALL BUSINESS CON-
CERNS.
(a) DEFINITIONS.—In this section:
(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the Administrator of
the Small Business Administration.
(2) RULE; RULEMAKING.—The terms ‘‘rule’’ and ‘‘rulemaking’’ have the mean-
ings given those terms in section 551 of title 5, United States Code.
(3) SMALL BUSINESS.—The term ‘‘small business’’ has the same meaning as
the term ‘‘small business concern’’ under section 3 of the Small Business Act
(15 U.S.C. 632), unless an agency, after consultation with the Office of Advocacy
of the Small Business Administration and after opportunity for public comment,
establishes one or more definitions of such term which are appropriate to the
activities of the agency and publishes any such definitions in the Federal Reg-
ister.
(4) SMALL BUSINESS REGULATORY BUDGET.—The term ‘‘small business regu-
latory budget’’ means the cost to a small business of a rulemaking conducted
by a Federal agency, including the cost resulting from the issuance of any new
rule and the cost resulting from the modification or repeal of an existing rule.
(b) REQUIREMENT.—In fiscal year 2026 and each fiscal year thereafter, the Admin-
istrator shall ensure that the small business regulatory budget for the Small Busi-
ness Administration for the applicable fiscal year is not greater than zero.
(c) ADVOCACY REPORT.—Not later than 60 days after the end of fiscal year 2025,
and annually thereafter, the Chief Counsel for the Office of Advocacy of the Small
Business Administration shall submit to Congress a report regarding rules issued
by Federal agencies other than the Administration during the preceding fiscal year
that have an impact on small businesses, which shall—
(1) include the total small business regulatory budgets for the preceding fiscal
year for each Federal agency;
(2) include each such rule issued during the preceding fiscal year; and
(3) be disaggregated by the Federal agency that issued each such rule.
SEC. 3. NO ADDITIONAL FUNDS.
No additional funds are authorized to be appropriated to carry out this Act.
I. PURPOSE AND BILL SUMMARY
On April 17, 2025, Rep. Van Duyne, along with Rep. King-Hinds,
introduced H.R. 2965, the Small Business Regulatory Reduction Act
of 2025. H.R. 2965 requires the Small Business Administration
(SBA) to ensure that for each fiscal year the cost to small busi-
nesses of the Administration’s rule making, including the modifica-
tion or repeal of a rule, is not greater than zero. The SBA Office
of Advocacy must also report the costs of regulations issued by
other federal agencies that have an impact on small businesses.
II. NEED FOR LEGISLATION
H.R. 2965 provides needed relief to Main Street as they recover
from four years of overregulation under the Biden-Harris Adminis-
tration. The bill ensures that the burdens of federal regulations on
small businesses are minimized, creating a government-wide report
detailing the regulatory costs on small businesses.
This bill codifies President Trump’s Executive Order (EO) 14192
‘‘Unleashing Prosperity Through Deregulation.’’ 1 Additionally, H.R.
2965 ensures that the SBA’s total cost of new regulations is not
more than zero dollars. Further, the bill directs the Small Business
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Office of Advocacy to calculate the annual cost of rulemaking for
1 Exec. Order No. 14,192, 90 F.R. 9065 (2025).
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3
each Federal agency. Both of these legislative requirements codify
the requirements in EO 14192.
III. HEARINGS
On April 1, 2025, the Committee on Small Business held a hear-
ing examining matters related to H.R. 2965 entitled ‘‘The Golden
Age: Unleashing Main Street Through Deregulation.’’
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on April 30, 2025, and ordered H.R. 2965,
as amended, to be reported favorably to the House of Representa-
tives by a roll call vote of 15 ayes to 11 nos. During the markup
three amendments were offered.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 2965, as amended, to the House of
Representatives at 6:18 PM.
The Committee considered the following amendments to H.R.
2965:
• Representative Van Duyne offered an amendment in the
nature of a substitute. This amendment was adopted by voice
vote.
• Representative Olszewski offered an amendment to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
• Representative Morrison offered an amendment to the
amendment in the nature of a substitute. The vote on the
amendment failed 11 ayes to 15 nos.
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VI. SECTION-BY-SECTION OF H.R. 2965
Section 1—Short title
This Act may be cited as the ‘‘Small Business Regulatory Reduc-
tion Act of 2025.’’
Section 2—Small Business Administration rulemaking costs to
small business concerns
This section requires the Administrator of the SBA to ensure
that the small business regulatory budget for a fiscal year is not
greater than zero. Additionally, it requires a report on regulations
issued by other federal agencies that have an impact on small busi-
nesses.
Section 3—No additional funds
No additional funds are authorized to be appropriated to carry
out H.R. 2965.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to clause 3(d)(1) of House rule XIII, the Committee
adopts as its own the cost estimate prepared by the Director of the
Congressional Budget Office pursuant to section 402 of the Con-
gressional Budget Act of 1974. The Committee has requested but
not received from the Director of the Congressional Budget Office
a cost estimate for the Committee’s provisions. Once available, the
cost estimate will be published in the Congressional Record.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
mittee does not believe that there will be any additional costs at-
tributable to this legislation. H.R. 2965 does not direct new spend-
ing, but instead reallocates funding independently authorized and
appropriated.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
Business with respect to the subject matter contained in H.R. 2965
are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
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With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the performance goals
and objectives of H.R. 2965 requires the SBA Office of Advocacy to
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report to Congress on rules issued by Federal agencies that have
an impact on small businesses.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 2965 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
AND LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal man-
dates prepared by the Director of the Congressional Budget Office
pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
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XVII. MINORITY VIEWS
A regulatory budget seeks to impose an arbitrary cap on total
regulatory costs. Any new rule that levies a cost could not be im-
plemented unless an existing rule with an equal dollar amount is
repealed. The first Trump Administration implemented a regu-
latory budget that allowed zero or negative new costs for regula-
tions.
Under H.R. 2965, the definition of a regulatory budget would
only include costs, not benefits. The practical effect would be SBA
would be inclined to either stop issuing rules or opt for rules that
impose the least costs on small businesses, despite the benefits.
Moreover, the agency could block new proposals enacted by Con-
gress if the Administrator determined that the rule would not fit
into its regulatory budget.
It is important to note regulations can also benefit small busi-
nesses. Oftentimes, the benefit of the regulation is greater than the
cost to small businesses. This bill would only look at one side of
the ledger. In a real-world situation, no small business would ever
make an investment in a new product or equipment if it looked
solely at the cost. For example, the Paycheck Protection Program
(PPP) would not have been implemented during the pandemic be-
cause of the costs associated with the program. Moreover, there is
no exception in this bill for national emergencies.
Committee Democrats offered two amendments to the bill. Rep.
Johnny Olszewski, Jr. (D–MD) offered an amendment to carve out
an exemption for rules related to workforce development and small
rural business programs. Mr. Olszewski shared he is happy to work
together to fix our regulatory system, however noting that the Coa-
lition of Sensible Safeguards, a coalition of more than 200 labor,
scientific research, faith, community health, and environmental
groups said the bill is unworkable, he offered the amendment to ex-
empt rules related to workforce development programs and those
that benefit rural small business owners. Republicans defeated this
amendment.
Similarly, Rep. Kelly Morrison (D–MN) offered an amendment to
carve our rules pertaining to veterans. The Ranking Member ex-
pressed support for the amendment stating, we owe a lot to our na-
tion’s veterans and cannot take a chance with the unintended con-
sequences a regulatory budget would have on them. Despite Demo-
crats support for our nation’s veterans, the Republicans defeated
this amendment.
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In sum, Committee Democrats opposed the measure because it is
unworkable and would grind the legislative process to a halt.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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