The Prove It Act of 2025 would require federal agencies to demonstrate that any new regulation aligns with existing laws and considers the direct and indirect effects on small businesses. The bill was partially spurred by a blitz of regulations from the Biden administration, which enacted over $1.8 trillion in regulations that created 356 million new hours of paperwork, according to the American Action Forum.
Ernst and Finstad touted the positive effects the bill would have on small businesses.
“As chair of the Senate Committee on Small Business and Entrepreneurship, unleashing Main Street by slashing red tape is a top priority,” Ernst told the Washington Examiner. “We are curbing the bloated bureaucracy and empowering job creators to innovate and lead us forward. If Washington thinks more regulations are needed, it will have to prove it.”
“As a member of the House Committee on Small Business, I am committed to protecting Main Street business owners in southern Minnesota from costly and burdensome regulations,” Finstad said in a statement. “The Prove It Act, which passed the House of Representatives in the 118th Congress with bipartisan support, is commonsense legislation that gives small business owners a seat at the regulatory table and holds federal agencies accountable for the impacts of their regulations. I’m proud to reintroduce this important legislation and look forward to continuing to fight against overregulation.”
The Prove It Act is worded to primarily target small businesses.
The bill would create a way for small businesses to raise concerns when regulations are enacted without considering the effect on them, would allow small businesses to request a review of existing regulations to ensure they are fully compliant with the law, exempt small businesses from regulations if agencies fail to comply with the review process, and would establish an easy way for small businesses to raise regulatory concerns with regulators.
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To begin a new review process, small businesses would raise their concerns with the chief counsel for advocacy of the Small Business Administration.
The bill is part of Ernst’s work as chairwoman of the Small Business Administration and founder of the Senate DOGE Caucus.
