H.R. 1163 · On the floor · Government Operations and Politics

Prove It Act

Sponsor: Brad Finstad (R-MN)

What it does

• Require federal agencies to include reasonably foreseeable indirect costs on small entities when conducting regulatory flexibility analyses.
• Mandate agencies to certify within 10 days to the Small Business Administration's Office of Advocacy when they claim a rule will not significantly impact small entities.
• Allow small entities to petition the Office of Advocacy to challenge agency certifications, with the Office empowered to require full regulatory flexibility analyses if it finds significant impact.
• Prohibit finalized rules from applying to small entities if the agency fails to participate in or assist the Office of Advocacy's review process.

Official summary

Prove It Act of 2025 This bill expands the requirements for federal agency rulemaking with respect to small businesses, organizations, and governmental jurisdictions. Specifically, when conducting an initial regulatory flexibility analysis, agencies must include, where feasible, any reasonably foreseeable indirect costs the proposed rule may impose on small entities. Further, if an agency certifies that an initial regulatory flexibility analysis is not required because the rule will not have a significant economic impact on a substantial number of small entities, the agency must provide such certification within 10 days to the Office of Advocacy of the Small Business Administration. A small entity or group of small entities may petition the Office of Advocacy to review such certification. The petition must include specified information, such as the issues the petitioner believes should be addressed and a proposed solution to the issues raised. If the Office of Advocacy ultimately determines, upon a full review of the petition, that the proposed rule would have a significant economic impact on a substantial number of small entities, the agency promulgating the rule must perform an…

Latest action

May 4, 2026: Placed on the Union Calendar, Calendar No. 552.

Committee: House Judiciary