H.R. 2965 explained  ·  119th Congress  ·  Pending in Congress

Small Business Regulatory Reduction Act of 2025

Create a free account or sign in to follow H.R. 2965 and get alerts. Policy area: Commerce Create a free account or sign in to follow the Commerce policy area and get alerts. ▲ 320 days since action Sponsor: Beth Van Duyne, TX-24, R → Congress.gov

Cosponsors: 5 (0 D, 5 R) · per Congress.gov, 2026-10-10

Introduced: 2025-04-17

Latest action (2025-12-04): Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.

What H.R. 2965 does, in plain terms

Small Business Regulatory Reduction Act of 2025 This bill requires the Small Business Administration (SBA) to ensure the annual small business regulatory budget for the SBA in each fiscal year is no greater than zero. The small business regulatory budget is the cost to a small business of a federal rulemaking, including the cost resulting from the issuance of any new rule and the cost resulting from the modification or repeal of an existing rule.

Official summary by the Congressional Research Service, via Congress.gov.

Constitution Index

“VFA Constitution grade”

A

Constitutionally sound

Graded 2026-10-09

SI-generated grade · five published checks · not individually reviewed by a person · methodology

The Small Business Regulatory Reduction Act of 2025 is fully constitutional. It operates within Congress's enumerated power to structure and fund the Small Business Administration, imposes no restriction on individual rights, and actually reduces the federal regulatory burden on small businesses, thereby enhancing individual sovereignty and decentralization.

  • ✓ Passes · Enumerated powers
    Congress has broad authority under Article I, Section 8, Clause 18 (the Necessary and Proper Clause) to organize and set the budget for federal agencies, including the Small Business Administration. This bill merely directs the SBA to set its regulatory budget at zero, which is a permissible exercise of Congress's power over the internal operations of the executive branch. It does not regulate com…
  • ✓ Passes · Bill of Rights
    The bill does not infringe any provision of the Bill of Rights. It does not restrict speech, religion, press, assembly, petition, arms, quartering, search and seizure, self-incrimination, due process, trial rights, jury rights, cruel and unusual punishment, or unenumerated rights. It imposes no criminal penalties or civil liabilities on individuals.
  • ✓ Passes · Individual sovereignty
    This bill enhances individual sovereignty by reducing the regulatory costs imposed on small businesses. Small business owners retain greater control over their property, labor, and economic decisions when the government imposes fewer compliance costs. The government has no compelling interest in imposing regulatory costs on small businesses beyond what is necessary, and this bill reduces that burd…
  • ✓ Passes · Decentralization
    The bill passes all four decentralization questions. (1) An individual or family could handle their own business affairs without federal regulatory costs. (2) Local communities and counties can regulate small businesses without federal involvement. (3) States can regulate small businesses without federal involvement. (4) This action does not consolidate decision-making upward; it actually reduces …
  • ✓ Passes · Due process and takings
    The bill does not bypass due process or take property without just compensation. It does not impose any penalties, fines, or seizures. It merely sets an internal budget constraint on the SBA's rulemaking costs. No person's property is taken, and no procedural rights are affected.

Sources: Congress.gov: HR 2965 summary

Report an error in this grade
No account needed. Or email hello@valuesforamerica.com. How reports are handled.

What should pass

“VFA SI Solution”

No solution yet

A sourced SI draft appears here once it passes automated checks (Constitution citation, source verification, independent SI critic). How publication works.

Share card

1200×675 PNG for X, Threads, LinkedIn and messages. Free to share with a link back to this page.

For journalists and bloggers

“Embed this grade”

Free to use with the link back. The badge and card update when the grade changes. Embed terms →

VFA Constitution grade for H.R. 2965

← Back to the Republic