Sen. Ernst Introduces Prove It Act to Give Small Businesses Power to Challenge Federal Regulations
The Prove It Act of 2025 is currently being reviewed by the Senate Committee on Small Business and Entrepreneurship. The committee recently held hearings to discuss the bill, which shows it is still actively moving through the early stages of the process. There are no further votes or meetings scheduled at this time.
While it has support from small business advocates, it adds significant hurdles to the federal rulemaking process that often face opposition in a divided Congress.
Federal employees at regulatory agencies face new procedural requirements and potential review challenges for rules they develop. Agencies must now analyze indirect costs on small businesses, publish guidance documents online, cooperate with SBA reviews, and ensure 10-year reviews are completed on time or risk having rules automatically expire. This adds workload without any new funding to support it.
“No additional funds are authorized to be appropriated for the purpose of carrying out this Act or the amendments made by this Act.”
Committee on Small Business and Entrepreneurship. Hearings held.
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
Dozens of trade associations, including the Owner-Operator Independent Drivers Association, are advocating for the Prove It Act (HR1163). The bill would allow small businesses to ask for a review of agency work and exempt them from regulations if agencies fail to comply with the review process.
The National Pork Producers Council and over 70 other organizations urged House leadership to schedule a floor vote on H.R. 1163. The bill aims to strengthen the Regulatory Flexibility Act by ensuring agencies assess direct and indirect costs of proposed regulations before they are finalized.
The Prove It Act would require federal agencies to analyze the impact of their regulatory actions. It creates a way for small businesses to raise concerns when regulators do not consider both direct and indirect costs, potentially exempting them from rules if agencies fail to comply.
Document Type
Congressional Bill
Official Title
Prove It Act of 2025
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