Legis Daily

Prove It Act of 2025

USA119th CongressS-495| Senate 
| Updated: 11/19/2025
Joni Ernst

Joni Ernst

Republican Senator

Iowa

Small Business and Entrepreneurship Committee, Homeland Security and Governmental Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
The "Prove It Act of 2025" aims to significantly increase transparency and accountability in federal regulatory decisions that affect small businesses. It amends title 5, United States Code, to strengthen requirements for agencies to thoroughly assess the economic impact of proposed rules on small entities, particularly by including reasonably foreseeable potential indirect costs in their initial regulatory flexibility analyses. These indirect costs cover impacts on small businesses that interact with directly regulated entities or are otherwise affected by a rule's ripple effects. A central provision establishes a new process allowing small entities to petition the Chief Counsel for Advocacy of the Small Business Administration to review an agency's certification that a proposed rule will not have a significant economic impact. If the Chief Counsel's full review determines the rule will have such an impact, the agency must then perform a full regulatory flexibility analysis. A significant penalty is introduced: if an agency fails to cooperate with the Chief Counsel's review, the final rule shall not apply to small entities . The legislation also requires agencies to publish all guidance documents and relevant materials for rules likely to have a significant economic impact on small entities, allowing for public comments. Furthermore, it strengthens the periodic review of existing rules by requiring agencies to consider indirect costs during their 10-year reviews. If an agency fails to conduct a required periodic review, the Chief Counsel will notify the agency that the rule has ceased to be effective , prompting the agency to publish a notification and solicit comments for reinstatement. This applies to rules issued within the last five years or after enactment.
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Timeline

Bill from Previous Congress

S 116-1339
Prove It Act of 2019

Bill from Previous Congress

S 117-2074
Prove It Act of 2021

Bill from Previous Congress

S 118-1411
Prove It Act of 2023

Bill from Previous Congress

S 118-1863
PROVE IT Act of 2024
Feb 10, 2025
Introduced in Senate
Feb 10, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
May 21, 2025

Latest Companion Bill Action

HR 119-1163
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.
Nov 19, 2025
Committee on Small Business and Entrepreneurship. Hearings held.
  • Bill from Previous Congress

    S 116-1339
    Prove It Act of 2019


  • Bill from Previous Congress

    S 117-2074
    Prove It Act of 2021


  • Bill from Previous Congress

    S 118-1411
    Prove It Act of 2023


  • Bill from Previous Congress

    S 118-1863
    PROVE IT Act of 2024


  • February 10, 2025
    Introduced in Senate


  • February 10, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • May 21, 2025

    Latest Companion Bill Action

    HR 119-1163
    Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.


  • November 19, 2025
    Committee on Small Business and Entrepreneurship. Hearings held.

Government Operations and Politics

Related Bills

  • HR 119-1163: Prove It Act of 2025
Administrative law and regulatory proceduresAdministrative remediesGovernment information and archivesSmall businessSmall Business Administration

Prove It Act of 2025

USA119th CongressS-495| Senate 
| Updated: 11/19/2025
The "Prove It Act of 2025" aims to significantly increase transparency and accountability in federal regulatory decisions that affect small businesses. It amends title 5, United States Code, to strengthen requirements for agencies to thoroughly assess the economic impact of proposed rules on small entities, particularly by including reasonably foreseeable potential indirect costs in their initial regulatory flexibility analyses. These indirect costs cover impacts on small businesses that interact with directly regulated entities or are otherwise affected by a rule's ripple effects. A central provision establishes a new process allowing small entities to petition the Chief Counsel for Advocacy of the Small Business Administration to review an agency's certification that a proposed rule will not have a significant economic impact. If the Chief Counsel's full review determines the rule will have such an impact, the agency must then perform a full regulatory flexibility analysis. A significant penalty is introduced: if an agency fails to cooperate with the Chief Counsel's review, the final rule shall not apply to small entities . The legislation also requires agencies to publish all guidance documents and relevant materials for rules likely to have a significant economic impact on small entities, allowing for public comments. Furthermore, it strengthens the periodic review of existing rules by requiring agencies to consider indirect costs during their 10-year reviews. If an agency fails to conduct a required periodic review, the Chief Counsel will notify the agency that the rule has ceased to be effective , prompting the agency to publish a notification and solicit comments for reinstatement. This applies to rules issued within the last five years or after enactment.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 116-1339
Prove It Act of 2019

Bill from Previous Congress

S 117-2074
Prove It Act of 2021

Bill from Previous Congress

S 118-1411
Prove It Act of 2023

Bill from Previous Congress

S 118-1863
PROVE IT Act of 2024
Feb 10, 2025
Introduced in Senate
Feb 10, 2025
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
May 21, 2025

Latest Companion Bill Action

HR 119-1163
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.
Nov 19, 2025
Committee on Small Business and Entrepreneurship. Hearings held.
  • Bill from Previous Congress

    S 116-1339
    Prove It Act of 2019


  • Bill from Previous Congress

    S 117-2074
    Prove It Act of 2021


  • Bill from Previous Congress

    S 118-1411
    Prove It Act of 2023


  • Bill from Previous Congress

    S 118-1863
    PROVE IT Act of 2024


  • February 10, 2025
    Introduced in Senate


  • February 10, 2025
    Read twice and referred to the Committee on Homeland Security and Governmental Affairs.


  • May 21, 2025

    Latest Companion Bill Action

    HR 119-1163
    Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.


  • November 19, 2025
    Committee on Small Business and Entrepreneurship. Hearings held.
Joni Ernst

Joni Ernst

Republican Senator

Iowa

Small Business and Entrepreneurship Committee, Homeland Security and Governmental Affairs Committee

Government Operations and Politics

Related Bills

  • HR 119-1163: Prove It Act of 2025
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Administrative law and regulatory proceduresAdministrative remediesGovernment information and archivesSmall businessSmall Business Administration