SBA blocked from issuing rules that cost small businesses anything

What it does

This bill requires the Small Business Administration to ensure that new SBA rules impose zero net cost on small businesses starting in fiscal year 2026. It also mandates annual reporting on the regulatory costs that OTHER federal agencies impose on small businesses, broken down by agency. The bill does not appropriate new money and does not restrict other agencies' rulemaking authority—only the SBA's own rules.

Why we flagged it

The bill's operative mechanism is a zero-cost mandate on SBA rulemaking, paired with a reporting requirement on other agencies' regulatory costs. It is not a deregulation bill per se—it does not repeal rules—but a cost-containment constraint on future SBA rules.

What the text implies

• A zero-cost mandate may prevent the SBA from issuing rules that protect small businesses from fraud, discrimination, or unsafe practices if compliance costs are unavoidable—the bill does not distinguish between protective and burdensome rules.
• The reporting requirement on other agencies' regulatory costs may create political pressure to weaken rules issued by EPA, OSHA, CFPB, and other agencies, even though the bill does not directly restrict their authority.
• The term 'small business regulatory budget' is defined as the cost to small businesses of a rulemaking, including costs from modification or repeal of existing rules—this may incentivize the SBA to repeal protective rules to achieve zero net cost.
• The bill does not define how the SBA will measure or enforce the zero-cost requirement, creating ambiguity about what counts as a 'cost' and whether indirect or long-term benefits can offset compliance expenses.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Small businesses may benefit from reduced SBA regulatory burden, a concrete public benefit. However, the bill's mechanism—a zero-cost mandate on SBA rulemaking—may prevent the SBA from issuing rules that protect workers, consumers, or the environment if those rules carry compliance costs. The net effect depends on whether SBA rules typically protect or burden small businesses, which the text does not clarify.

Who stands to gain

• small businesses (reduced compliance costs from SBA rules)
• industries subject to SBA oversight (if the zero-cost mandate prevents protective rulemaking)

Named in the bill

Small Business Administration (SBA), Administrator of the SBA, Office of Advocacy of the SBA, Chief Counsel for the Office of Advocacy, Federal agencies (EPA, OSHA, CFPB, etc.), Small business concerns

Where it stands

5 cosponsors: 5 Republicans.

• Apr 17, 2025 — Introduced · Congress.gov: “Introduced in House”
• Apr 17, 2025 — Referred to House Committee on Small Business and Senate Committee on Small Business and Entrepreneurship · Congress.gov: “Referred to the House Committee on Small Business”
• Apr 30, 2025 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• Apr 30, 2025 — Reported out of committee · Congress.gov: “Ordered to be Reported (Amended) by the Yeas and Nays: 15 - 11”
• Dec 3, 2025 — Passed the House · Congress.gov: “On passage Passed by the Yeas and Nays: 223 - 190 (Roll no. 310).”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.