Press Releases

Washington, D.C. – Today, Congressman Nathaniel Moran (TX-01), Congressman Brad Finstad (MN-01), and Congresswoman Yadira Caraveo (CO-08) introduced the bipartisan Prove It Act. This legislation strengthens protections for small businesses that were established in the Regulatory Flexibility Act by forcing federal agencies to take into consideration the direct and indirect costs placed on small businesses through their regulations.

Specifically, the Prove It Act requires federal agencies to analyze the impact of their regulatory action and limit these impacts for small entities by:

•                       Creating a way for small businesses to raise concerns when regulators do not consider both the direct and indirect costs their regulations place on them;

•                       Allowing small businesses to ask their chief advocate in government to review agencies’ work and make the government prove they are fully compliant with already existing laws;

·                      If regulators fail to comply with this review process, then small businesses will be exempt from the agency’s regulations altogether; and

•                       Ensuring small businesses can easily access preexisting guidance documents online and create a way for small businesses to directly raise questions or concerns with their regulators.

“The federal overreach imposed on family-owned and small businesses can be crippling,” said Congressman Moran. “East Texas businesses deserve to be heard, and that’s why I have introduced the Prove It Act with Congressman Finstad. The bipartisan Prove It Act of 2024 ensures that small businesses are not crushed by burdensome regulations and gives them a voice in the decisions that can make or break their livelihood.”

“As a small business owner, I know firsthand that southern Minnesota’s family-owned businesses need less government regulation from Washington bureaucrats, not more,” said Congressman Finstad. “The Prove It Act makes sure our small businesses aren’t saddled with unnecessary and overburdensome regulatory mandates, which is why I am proud to introduce this important, bipartisan legislation with my colleagues today.”

“Colorado is home to more than 600,000 small businesses. Small business owners work hard to put food on their tables and serve our communities, but they need our help,” said Congresswomen Caraveo. “I am proud to help lead the bipartisan Prove it Act, to defend small entities’ time and money from government overreach and burdensome regulations.”

Full text of the legislation can be found HERE.

The Prove It Act is supported by the Job Creators Network, U.S. Chamber of Commerce, National Federation of Independent Business, and the Independent Community Bankers Association.

Background:

The Regulatory Flexibility Act (RFA) was signed into law in 1980 and requires federal agencies to analyze and take into account the economic impact regulatory actions have on certain entities, especially small businesses, small non-profits, and local jurisdictions of government. If found to have a significant impact, the government is directed to seek a less burdensome alternative.

The RFA has been a record of saving these entities more than $200 billion and has served as a critical injunction to crippling federal regulation. Unfortunately, recently, federal agencies have abandoned this statute and, in some cases, have not met the requirements set out by the RFA. The Prove It Act gives small businesses a voice again in the decision-making process when it comes to burdensome government overreach.

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