REGULATORY RUNDOWN | April 28-May 12

Your direct connect to Congress and insider look at Washington - subscribe to NSBA's Regulatory Rundown to be early on the latest Small-Business policy updates from D.C.

The Regulatory Rundown: April 28-May 12

White House sends topline budget request to Congress. On May 2, the White House sent President Trump’s topline discretionary budget for fiscal year 2026 to Congress, which serves as a policy blueprint outlining the administration’s priorities and providing a starting point for congressional action. The budget calls for deep cuts, including a 33% reduction to the Small Business Administration (SBA), elimination of the Minority Business Development Agency, and Economic Development Administration.

____

DOL issues guidance on employee, independent contractor status. On May 1, the Department of Labor's (DOL) Wage and Hour Division (WHD) issued a field assistance bulletin providing guidance on determining employee or independent contractor status under the Fair Labor Standards Act (FLSA). According to DOL, agency review of the 2024 final rule (which is being challenged in federal court) is pending, but in the interim, "agency investigators are directed not to apply the 2024 rule's analysis in current enforcement matters." 

The field assistance bulletin clarifies that WHD will enforce the FLSA in accordance with the traditional seven-factor analysis that does not elevate any specific factor in determining employee or independent contractor status, but rather focuses on "the total activity or situation." Note, however, that DOL "may still exercise enforcement authority in individual cases deemed appropriated by [WHD] or a designee."

A DOL fact sheet that is consistent with WHD's new enforcement position is available here."

RELATED | NEWS | Department of Labor (DOL) Issues Guidance on Employee, Independent Contractor Status

____

Loeffler endorses bill to double 7(a), 504 loan limits for manufacturers. On May 1, SBA highlighted Administrator Kelly Loeffler’s endorsement of legislation introduced by Sen. Joni Ernst (R-IA) and Rep. Roger Williams (R-TX) that would double the individual loan limit for 7(a) and 504 small business manufacturing loans from $5 million to $10 million.

Loeffler’s endorsement follows SBA’s announcement of a new funding opportunity that will provide three eligible applicants up to $1.1 million total to deliver training and technical assistance to support small manufacturers in the agency’s Empower to Grow Program.

____

GSA launches FAR overhaul website, “OneGov” strategy. On May 6, the General Services Administration (GSA) launched a Federal Acquisition Regulation (FAR) overhaul website, on which the FAR Council will publish simplified and streamlined FAR rules. The effort to simplify and streamline was directed by a recent executive order.

The website launch follows other developments in procurement reform, including GSA’s launch of its “OneGov Strategy,” which “calls for deeper, direct engagement with [original equipment manufacturers] to ensure more transparent pricing, streamlined acquisition, and improved cybersecurity protections.”

____

FTC, DOJ issue letter directing identification of anticompetitive regs. On May 5, the Federal Trade Commission (FTC) and Department of Justice (DOJ) Antitrust Division issued a joint letter directing agency heads across the federal government “to create a list of anticompetitive regulations that reduce competition, entrepreneurship, and innovation.” The letter, which advances a recent executive order directing all agency heads to provide these lists, follows a recent request for information launched by the FTC “inviting members of the public to comment on how federal regulations can harm competition in the American economy.”

____