The National Federation of Independent Business (NFIB) has expressed support for new legislation aimed at repealing the Corporate Transparency Act (CTA). This initiative, reintroduced by Senator Tommy Tuberville and Representative Warren Davidson, seeks to alleviate what NFIB describes as burdensome requirements imposed on small businesses. The organization argues that the CTA mandates small businesses to register in a federal database accessible to law enforcement without a subpoena.

Jeff Brabant, NFIB Vice President of Federal Government Relations, stated, "The Corporate Transparency Act is an unconstitutional power grab that targets more than 32 million small businesses." He emphasized the need for Congress to act decisively to provide long-term relief from this requirement.

The CTA's implementation was initially set for January 1, 2025. However, it faced legal challenges led by NFIB through the case Texas Top Cop Shop, Inc., et al. v. Garland, et al., which resulted in a temporary halt of its enforcement. In December, the U.S. District Court for the Eastern District of Texas granted a preliminary injunction against enforcing the CTA's Beneficial Ownership Information (BOI) reporting requirements.

Subsequently, there were multiple court decisions regarding this injunction. On December 23, the U.S. Court of Appeals for the Fifth Circuit allowed enforcement by blocking the injunction but reinstated it three days later on December 26. Following these developments, on December 31, the U.S. Justice Department sought intervention from the Supreme Court to stay this injunction.

Should Congress fail to repeal or if courts do not declare it unconstitutional, over 32 million small businesses will be subject once again to compliance with these regulations—an outcome that NFIB is actively working against alongside other members of Congress who have submitted an amicus brief opposing any stay on the injunction.