Small Business Regulatory Reduction Act of 2025

Enumerated powers · passes

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 commerce directly but rather limits the SBA's own rulemaking costs.

Bill of Rights · passes

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.

Individual liberty · passes

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 burden.

Decentralization · passes

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 federal regulatory imposition, leaving more authority at the state and local level. The bill respects the Tenth Amendment by not preempting state or local authority.

Due process and takings · passes

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.