Real bill currently in Congress c/o S/119/5178
Small Business Regulatory Flexibility Improvements Act
Latest action (2026-07-30): Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
The Framers
“Founders’ Verdict”
Confidence 0.75
Synthesis
The bill is constitutional only if it does not unduly burden the Executive's rulemaking authority under Article II, Section 3, or exceed Congress's enumerated powers under Article I, Section 8, particularly with respect to the Tenth Amendment and the rights of states and small entities.
This bill is constitutional as it merely amends existing procedural requirements for federal rulemaking under the Administrative Procedure Act, which Congress has clear authority to enact under the Necessary and Proper Clause to ensure the efficient execution of its own laws. The requirement for analysis of impacts on small entities does not exceed Congress's power to regulate the manner in which executive agencies carry out delegated legislative functions, as it does not alter the substantive scope of any federal power but only adds a procedural step. The bill respects the separation of power…
This bill seeks to expand federal regulatory analysis, which may intrude upon the reserved powers of the states and the people under the Tenth Amendment. While ensuring accountability in rulemaking is a legitimate concern, the Constitution grants Congress only enumerated powers; any expansion of federal oversight over small entities must be strictly necessary and proper to a delegated power, such as interstate commerce under Article I, Section 8. If the bill imposes new federal mandates that exceed these bounds or unduly burden small enterprises without clear constitutional authority, it would…
The proposed amendment to the Regulatory Flexibility Act, requiring complete analysis of impacts on small entities, is generally consistent with the constitutional design of limited and accountable government. However, its constitutionality depends on whether it respects the separation of powers and does not impose an undue burden on the Executive's rulemaking authority. The power to regulate commerce and other enumerated powers (Article I, Section 8) must be exercised with due regard for the rights of the states and the people, as small entities often represent local interests. The requiremen…
This bill, which imposes additional procedural requirements on federal agencies to assess impacts on small entities, is a constitutional exercise of Congress's enumerated powers. The power to regulate commerce among the several states, as vested in Congress by Article I, Section 8, Clause 3, extends to the regulation of economic activities that substantially affect interstate commerce. The requirement that agencies analyze the effects of their rules on small entities is a reasonable means to ensure that such regulations do not unduly burden the commercial activities of these entities, thereby …
What should pass
“AI Consensus Solution”
Small Entity Regulatory Accountability and Transparency Act of 2025
To require federal agencies to conduct a thorough analysis of the potential impacts of their rules on small businesses and other small entities before issuing them, ensuring that regulatory burdens are minimized and alternatives are considered.
Bipartisan rationale: Democratic priorities honored: Protects small businesses and disadvantaged entities from disproportionate regulatory burdens, promotes transparency and public participation in rulemaking, and ensures agencies consider alternatives that reduce costs for vulnerable stakeholders. Republican priorities honored: Reduces unnecessary federal red tape, imposes cost-benefit analysis and accountability on agencies, limits new spending by using existing funds, and includes a sunset to prevent permanent expansion of bureaucracy.
Vote-count path: ~300 House votes: 180 Democrats (pro-small business, regulatory reform) + 120 Republicans (anti-red tape, sunset provisions); ~70 Senate votes: 45 Democrats + 25 Republicans (from oversight-minded and small business caucuses).