S. 495 · Where this bill is now
In committee
Introduced in the Senate, Feb 10, 2025
What this bill does
In plain words · AI-written from the official summaryGives small businesses more voice in federal rules
When federal agencies create new rules, they have to think harder about how those rules might affect small businesses, nonprofits, and local governments. This bill requires agencies to spell out indirect costs when they can, and if an agency says a rule won't hurt small entities, they have to tell the Small Business Administration within 10 days. Small businesses can then ask the SBA to review that decision, and if the SBA disagrees with the agency, the rule can't apply to small entities unless the agency does a full analysis.
How it affects you
If you run a small business, own a nonprofit, or work for a local government, this bill gives you a clearer path to challenge federal rules you think will hurt you economically. You'd have the chance to petition the Small Business Administration's Office of Advocacy to take a second look at an agency's decision, and you could see the reasoning behind guidance documents that come with new rules. The rules themselves wouldn't change unless the SBA sided with you, but you'd have more of a say in the process.
Read the official summary (Introduced in Senate, Feb 10, 2025)
Prove It Act of 2025
This bill expands the requirements for federal agency rulemaking with respect to small businesses, organizations, and governmental jurisdictions.
Specifically, when conducting an initial regulatory flexibility analysis, agencies must include, where feasible, any reasonably foreseeable indirect costs the proposed rule may impose on small entities.
Further, if an agency certifies that an initial regulatory flexibility analysis is not required because the rule will not have a significant economic impact on a substantial number of small entities, the agency must provide such certification within 10 days to the Office of Advocacy of the Small Business Administration. A small entity or group of small entities may petition the Office of Advocacy to review such certification. The petition must include specified information, such as the issues the petitioner believes should be addressed and a proposed solution to the issues raised.
If the Office of Advocacy ultimately determines, upon a full review of the petition, that the proposed rule would have a significant economic impact on a substantial number of small entities, the agency promulgating the rule must perform an initial and final regulatory flexibility analysis for the rule. Additionally, if the agency does not participate or assist in the full review process, the finalized rule shall not apply to small entities.
The bill also requires agencies to publish, and allow for comments on, all guidance documents with respect to any rule an agency determines is likely to have a significant economic impact on a substantial number of small entities.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 495
A BILL
Prove It Act of 2025
Sponsor: Sen. Joni Ernst (R-IA) · Introduced Feb 10, 2025 · Government Operations and Politics · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Nov 19, 2025: “Committee on Small Business and Entrepreneurship. Hearings held.”