Prove It Act

The "Prove It Act of 2025" aims to increase transparency and accountability in federal regulatory decisions affecting small businesses. It amends Title 5 of the U.S. Code to require agencies, when conducting an initial regulatory flexibility analysis , to consider all reasonably foreseeable potential indirect costs that a proposed rule may impose on small entities, including those not directly regulated but still impacted. A key provision establishes a new review process under the Chief Counsel for Advocacy of the Small Business Administration. Small entities or their representatives can now petition the Chief Counsel to review an agency's certification that a proposed rule will not have a significant economic impact on a substantial number of small entities. The Chief Counsel will conduct a prima facie review, and if merited, a full review involving a meeting with the agency and petitioner. If the Chief Counsel determines that a rule will significantly impact small entities, the agency must then perform a full initial and final regulatory flexibility analysis. A significant penalty is introduced: if an agency fails to cooperate with the Chief Counsel's full review, the final rule shall not apply to small entities . Furthermore, the bill mandates that agencies publish all guidance documents and relevant materials for rules likely to significantly impact small businesses on a public website like regulations.gov, allowing for public comments. It also strengthens the 10-year periodic review of rules, requiring agencies to consider indirect costs. If an agency fails to conduct this review, the Chief Counsel will notify them that the rule has ceased to be effective , requiring the agency to publish this notification and solicit comments for reinstatement.