Prove It Act of 2025

The Prove It Act would strengthen existing small business protections by requiring federal agencies to more thoroughly analyze how their regulations affect small businesses. Specifically, the bill would require agencies to evaluate both direct and indirect costs of proposed rules, including paperwork and compliance time. It would also allow small businesses to petition the Small Business Administration's Office of Advocacy to review agency decisions that claim regulations won't significantly impact small entities. If the Office of Advocacy determines the agency's analysis was inadequate, the agency would be required to conduct a full regulatory impact assessment.

The bill aims to address what supporters say is widespread agency non-compliance with the existing Regulatory Flexibility Act, which has required such analysis since 1980 but is often overlooked. Proponents argue that small businesses bear disproportionately higher regulatory compliance costs per employee than larger competitors and that this legislation would give them a stronger voice in the regulatory process. The bill has passed committee review and is eligible for a floor vote, though it would still need Senate approval and presidential signature to become law.