Summary#
This bill, called the Prove It Act of 2025, changes parts of Title 5 that deal with how agencies analyze and review rules that may affect small businesses (called "small entities" in the bill).
Key parts:
- Agencies must include, when feasible, any reasonably foreseeable potential indirect costs a proposed rule may impose on small entities in the initial regulatory flexibility analysis. Indirect costs include costs to small entities that do business with directly regulated entities or that become subject to other agency rules because of the proposed rule.
- The bill adds a new review process (section 605A) that lets any small entity, a group of small entities, or an organization that represents small entities petition the Chief Counsel for Advocacy at the Small Business Administration to review an agency certification that a proposed rule will not have a significant economic impact on a substantial number of small entities.
- The petition process includes: requirements for what must be in a petition, options for consultation with the Chief Counsel, a prima facie screening (with a 10-day notice if the petition does not merit further review), and a full review when warranted. The full review must consider which small entities are affected, the adequacy of economic data, and economic implications. The Chief Counsel must publish full-review results in the Federal Register and on the Office of Advocacy website within 30 days of starting a full review.
- During a full review the Chief Counsel must convene a meeting that can include the petitioner, appropriate agency representatives, and the Administrator of the Office of Information and Regulatory Affairs (OIRA).
- If the Chief Counsel finds that the proposed rule would have a significant economic impact on a substantial number of small entities, the agency must perform an initial and a final regulatory flexibility analysis under sections 603 and 604.
- If an agency fails to attend the required meeting or otherwise fails to assist in the full review as the Chief Counsel determines, the final rule shall not apply to small entities.
- The bill treats a challenged agency certification as final agency action for purposes of judicial review once the Chief Counsel either ends review after the prima facie determination or publishes the full-review results.
- Agencies must publish guidance documents and related materials for any rule they determine is likely to have a significant economic impact on a substantial number of small entities on regulations.gov or a similar site, and allow comments on those documents.
- Section 610 (the 10-year review of rules) is amended to require agencies to consider the indirect costs noted above when reviewing rules. If an agency fails to complete the required 10-year review, the Chief Counsel for Advocacy must notify the agency that the rule has ceased to be effective, the agency must publish that notice and solicit comments, and if the agency decides to reinstate the rule it has 180 days to complete the review. After that review, the rule may be reinstated without going through the usual notice-and-comment rulemaking under section 553. The amendment applies to final rules issued during the five years before enactment or after enactment.
- The bill states that no additional funds are authorized to carry out the Act.
What it means for you#
- Small businesses and trade groups: You may be able to file a petition with the Office of Advocacy to challenge an agency's certification that a proposed rule will not significantly affect small entities. You can ask for a review and may participate in a meeting during the review. Agencies must post guidance documents and allow comments for rules likely to significantly affect small entities.
- Federal agencies: Agencies must include foreseeable indirect costs for small entities in certain analyses, respond to petitions and meetings with the Chief Counsel when a full review is ordered, publish guidance materials online for high-impact rules, and follow new procedures under the 10-year review system.
- Public and rulewriters: The bill directs publication of review results and guidance documents in places intended to be accessible, such as the Federal Register and regulations.gov.
Expenses#
- The text of the bill states: "No additional funds are authorized to be appropriated for the purpose of carrying out this Act or the amendments made by this Act."
- No publicly available information on estimated implementation costs or budgetary effects is included in the bill text or provided metadata.
Proponents' View#
No publicly available information.
Opponents' View#
No publicly available information.