NEWS | NSBA Urges House to Advance the Prove It Act to Strengthen Small Business Regulatory Protections, Reduce Burdens
- NSBA
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NSBA will continue to support opportunity and accountability for the small-business community, including advancement of common sense solutions to enhance protections and reduce cumbersome regulatory burdens.
ANALYSIS | Strengthening small-business protections in the rulemaking process is key to reducing compliance costs, limiting paperwork burdens, and creating a more stable environment for growth - an NSBA Priority Issue for the 119th Congress.
FEB. 11, 2026 | This week, the National Small Business Association (NSBA), alongside more than 80 national trade associations and small business organizations, sent a letter to House Majority Leader Steve Scalise (R-La.) urging swift passage of H.R. 1163, the Prove It Act of 2025, legislation aimed at strengthening the Regulatory Flexibility Act (RFA) and reducing disproportionate regulatory burdens on small businesses.
The coalition thanked House leadership for prioritizing regulatory relief and emphasized the need for long-term reforms to prevent what it described as regulatory “pendulum swings” that create uncertainty for small businesses attempting to plan, invest, and grow.
The letter cites data indicating that over the past four years, small businesses faced significant increases in regulatory compliance costs and paperwork requirements. While recent reductions in regulatory costs have provided some relief, the coalition stressed that durable statutory reforms are necessary to ensure agencies consistently account for the impact of regulations on small businesses.
Originally enacted in 1980, the Regulatory Flexibility Act was designed to require federal agencies to assess and minimize the economic impact of regulations on small entities. However, multiple reports, including analyses from the National Federation of Independent Business, the House Small Business Committee, and the SBA Office of Advocacy, have found widespread agency noncompliance with the law’s requirements. These findings include failures to adequately examine economic costs and improper certifications that rules do not significantly affect small businesses.
The Prove It Act of 2025 would strengthen small-business input in the regulatory process and enhance accountability by ensuring agencies fully analyze and justify the impact of regulations on small entities. The bill has already advanced through the House Judiciary Committee and the House Small Business Committee and previously passed the House in the 118th Congress.
NSBA and the coalition urged the House to move quickly to pass the legislation, arguing that stronger enforcement of the RFA is essential to reducing unnecessary red tape and protecting small businesses from one-size-fits-all regulations.
NSBA will continue advocating for policies that provide certainty, accountability, and meaningful regulatory relief for America’s small businesses.
Read the full letter here.
