The U.S. House of Representatives has passed the bipartisan Prove It Act, a measure designed to require government agencies to thoroughly analyze the impact their regulations have on small businesses. The legislation, H.R. 7198, is aimed at strengthening requirements for agencies to consider the economic implications for small enterprises before implementing new regulations.

Adam Temple, NFIB Senior Vice President of Advocacy, commented on the passage of the bill, stating: “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. We are pleased lawmakers in the House recognized these concerns and passed this bill.”

This legislation was considered an NFIB Key Vote for the 118th Congress. The NFIB had previously expressed support by sending a letter to members of Congress and leading a coalition letter with 50 trade associations urging legislative action that aligns with the Regulatory Flexibility Act (RFA).

The NFIB Small Business Legal Center's White Paper analysis highlights issues related to administrative agencies' compliance with the RFA and suggests ways Congress can strengthen its role as a constraint.

Small business owners are encouraged to take action by sending personalized messages to their Senators about regulatory compliance costs.