The National Federation of Independent Business (NFIB) has expressed approval following the passage of H.R. 7198, known as the Prove It Act, by lawmakers. This legislation aims to enhance the requirements for government agencies to assess how regulations affect small businesses and seeks to increase their involvement in the regulatory process. The NFIB had previously communicated its support for this bill to the U.S. House of Representatives, identifying it as a key vote for the 118th Congress.
Adam Temple, NFIB Senior Vice President of Advocacy, stated: “Small business owners have consistently ranked ‘unreasonable government regulations’ as one of the top problems facing their businesses.” He further noted that "the regulatory burdens flowing out of Washington continue to rapidly increase and small businesses are desperate for relief." According to Temple, "The Prove It Act is a critical step in minimizing the impact of onerous regulations and red tape small businesses face while increasing their engagement in the regulatory process." He added, "We are pleased lawmakers in the House recognized these concerns and passed this bill.”
The Prove It Act targets loopholes within the Regulatory Flexibility Act (RFA), which remains a priority issue for small businesses. An analysis by the NFIB Small Business Legal Center highlights deficiencies in RFA compliance by administrative agencies and suggests actions Congress can take to reinforce RFA's role as a check on uniform agency rulemaking.
In addition to sending a letter of support to Congress members explaining why this legislation benefits small businesses, NFIB also spearheaded a coalition letter with 50 trade associations urging legislative action like the Prove It Act to uphold RFA's intent.
