Small Business Regulatory Reduction Act of 2025

The Small Business Regulatory Reduction Act of 2025 would require the Small Business Administration (SBA) to ensure that the “small business regulatory budget” it faces in any fiscal year is not greater than zero, starting in FY2026. The bill defines the small business regulatory budget as the cost to small businesses of a federal agency’s rulemaking, including both new rules and changes to existing rules. In effect, this would constrain SBA rulemaking so that, in a given year, it does not add net costs to small businesses from its regulatory actions. The act also requires an annual Advocacy Report from the SBA’s Office of Advocacy (Chief Counsel) detailing, by agency, the total small business regulatory budgets and the specific rules that generated those costs. No additional funds are authorized to implement the Act.