PRESS | House Committee Approves Bill to Rein In Corporate Transparency Act, CTA

NSBA
2 days ago
2 min read

NSBA applauds Congress for taking steps to repeal the Corporate Transparency Act (CTA).

FOR IMMEDIATE RELEASE

Thursday, April 23, 2026

CONTACT Molly Brogan

Washington, D.C. – On Tuesday, April 22, 2026, the House Committee on Financial Services voted to advance the Repealing Big Brother Overreach Act (H.R. 425), legislation that would exempt domestic companies from the beneficial ownership information (BOI) disclosure requirements mandated by the Corporate Transparency Act (CTA). This action enables the legislation to be considered by the full chamber at a later date. 

The bill essentially codifies the current regulatory posture adopted by the Treasury's Financial Crimes Enforcement Network (FinCEN), which is only enforcing BOI requirements against foreign-owned companies at this time.

“I applaud the Financial Services Committee for approving this bill which takes a step forward in ensuring America’s small businesses aren’t harmed by the deeply flawed CTA,” stated NSBA President and CEO Todd McCracken. “While any step to pull-back the CTA is welcome, NSBA will continue our legal fight over the law which now awaits action at the U.S. Supreme Court.”

In related news, the Washington Post Editorial Board recently criticized the CTA as an unconstitutional “compliance mess”.

According to the piece:

“This has created significant compliance costs, more than $1 billion a year by one estimate, with little to no public benefit.

“One might think it would be easy to report a corporation’s owners, but the law’s murky definition of ownership includes anyone with “substantial control” of a corporation’s operations. For a small business with, say, 10 employees, that could be everyone.”

Last week, NSBA filed with the Supreme Court of the U.S. a Petition for Writ of Certiorari in our ongoing lawsuit over the CTA, and now awaits a decision from the Supreme Court on whether or not they will intervene and issue a final ruling on the CTA.

Click here for NSBA’s CTA Resource page.

Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. NSBA's 65,000 members represent every state and every industry in the U.S. Please visit www.nsbaadvocate.org, or follow us at @NSBAAdvocate.

###