Small Business Regulatory Reduction Act of 2025

The Small Business Regulatory Reduction Act of 2025 aims to alleviate regulatory burdens on small businesses by establishing specific requirements for the Small Business Administration (SBA) and enhancing transparency regarding federal agency rulemakings. A key provision mandates that, beginning in fiscal year 2026, the SBA Administrator must ensure the agency's own small business regulatory budget does not exceed zero. This "small business regulatory budget" is defined as the total cost incurred by small businesses due to any rulemaking conducted by a federal agency, encompassing costs from new rules, modifications, or repeals. Furthermore, the bill requires the Chief Counsel for the Office of Advocacy of the SBA to submit an annual report to Congress. This report will detail the regulatory impact of rules issued by other federal agencies on small businesses, including their total small business regulatory budgets, disaggregated by agency. The legislation clarifies that no additional funds are authorized for its implementation, emphasizing a focus on existing resources for regulatory oversight and reporting. This comprehensive approach seeks to limit the direct regulatory costs imposed by the SBA while also providing Congress with crucial information on the broader regulatory landscape affecting small businesses.