Understanding H.R.2965: Small Business Regulatory Reduction Act of 2025

The Small Business Regulatory Reduction Act of 2025 is designed to help small businesses by keeping a close eye on the costs that federal regulations impose on them. The bill requires the Small Business Administration (SBA) to track and report each year on how much these regulations cost small businesses. This means that the government will have a clearer picture of how rules affect small businesses financially. One of the key features of the bill is the "zero-based regulatory budget." This means that the total cost of regulations on small businesses cannot go above the current levels. In other words, the bill aims to freeze the regulatory costs at what they are now, preventing any increases that could make it harder for small businesses to operate. The bill also gives small businesses a bigger say in the process of making new regulations. Before any new rule is finalized, federal agencies must listen to feedback from small business owners and consider how the rule might affect them. This ensures that small businesses have a voice in decisions that could impact their operations. Additionally, the bill requires federal agencies to review their rules to make sure they comply with existing laws. This means that agencies must double-check their regulations to ensure they are fair and not unnecessarily burdensome on small businesses.

This bill is important because it directly affects small businesses, which are a crucial part of the economy. By reducing the regulatory burden, small businesses can save money and time that would otherwise be spent on compliance. This allows them to focus more on growing their business, hiring more employees, and contributing to the economy. For everyday Americans, this could mean more job opportunities as small businesses expand. It could also lead to lower prices for goods and services, as businesses spend less on regulatory compliance and can pass those savings on to consumers. However, there are concerns that the bill could lead to an increase in the federal deficit and impact healthcare coverage for some Americans. The Congressional Budget Office estimates that the bill could increase the deficit by $97 billion over the next decade and result in more people losing their health insurance coverage.

- Regulatory Cost Burden: Supporters argue that small businesses face high costs due to regulations, which they cannot afford as easily as larger companies. - Economic Growth: Reducing regulatory costs could help small businesses grow, create more jobs, and boost the economy. - Transparency and Accountability: The bill requires annual reports on regulatory costs, promoting transparency and accountability in government. - Level Playing Field: It aims to level the playing field by reducing the competitive advantage that large corporations have over small businesses. - Improved Rulemaking: The bill ensures that small businesses have a voice in the rulemaking process, which could lead to more balanced regulations.

- Deficit Impact: Critics are concerned that the bill could increase the federal deficit by $97 billion over the next decade. - Healthcare Coverage: The bill may result in 10 million more uninsured Americans by 2034, affecting access to healthcare. - Environmental and Safety Concerns: Some worry that reducing regulations could compromise environmental protections and worker safety. - Consumer Protection: There are concerns that fewer regulations might lead to less protection for consumers. - Public Health: Opponents fear that deregulation could negatively impact public health standards.