Prove It Act

Bill Number

H.R. 1163

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2026-05-04: Placed on the Union Calendar, Calendar No. 552.

Last Updated

2026-06-11T18:52:02Z

AI-Generated Summary

Purpose

The Prove It Act (H.R. 1163) aims to increase transparency and accountability in federal rulemaking by ensuring agencies better assess and disclose impacts on small businesses (defined under existing law as independent businesses with fewer than 500 employees or meeting industry-specific size standards). It strengthens the Regulatory Flexibility Act (RFA), which requires agencies to evaluate rules' effects on small entities.

Key Provisions

• Enhanced Initial Regulatory Flexibility Analysis (Section 2):
• Agencies must include indirect costs (e.g., on small businesses buying from/selling to regulated entities or affected by ripple effects) in proposed rules' analyses where feasible.
• Agencies must notify the public within 10 days of certifying a rule has "no significant economic impact on a substantial number of small entities" (no-IRA certification).
• Creates new Section 605A: Small businesses or their representatives can petition the SBA's Chief Counsel for Advocacy to review no-IRA certifications.
• Petitions require contact info, issues with certification, supporting data, and proposed alternatives.
• Optional consultations (limited to process guidance).
• Prima facie review (initial check) within 10 days: Dismiss or proceed to full review.
• Full review (if warranted): Assesses affected entities, data quality, and economics; includes a meeting with stakeholders; results published in Federal Register and SBA website within 30 days.
• If review finds significant impact, agency must conduct full initial and final RFA analyses.
• Penalty for agency non-cooperation: Final rule does not apply to small entities.
• Enables judicial review of certifications as final agency action.

• Publication of Guidance (Section 3):
• For rules likely impacting small businesses significantly, agencies must post all guidance documents (interpretations of the rule) on regulations.gov (or similar site) and allow public comments.

• Periodic Rule Reviews (Section 4):
• Adds indirect costs to factors for 10-year reviews of existing rules.
• If agency misses review: Rule ceases to be effective; SBA notifies agency; agency publishes notice and seeks comments.
• Reinstatement possible after comments and review within 180 days (bypassing standard notice-and-comment process).
• Applies retroactively to rules issued up to 5 years before enactment.

• Funding (Section 5):
• No new funds authorized; uses existing resources.

Significant Changes to Existing Law

• Expands RFA's section 603 to mandate indirect cost analysis (previously focused on direct impacts).
• Adds petition/review process (new section 605A) for challenging no-IRA certifications, with timelines and penalties absent before.
• Requires guidance publication and feedback (new section 609(f)), improving access.
• Strengthens section 610 reviews with automatic rule suspension for non-compliance and retroactive application.
• Makes certifications judicially reviewable sooner via SBA process.

Potential Impacts

• Government Agencies: Increased workload for analyses, reviews, meetings, and publications; risk of rules not applying to small businesses or suspension; must respond faster.
• Small Businesses/Citizens: Easier to challenge rules, access guidance, and provide input; potential reduced regulatory burden if impacts identified.
• International Relations: Minimal direct impact, though could slow rules affecting trade/export compliance for small firms.
• Overall: May delay rulemaking but enhance protections; no added costs since no new funding.

Main Stakeholders

• Small entities (businesses, groups, or reps): Gain petition rights and feedback mechanisms.
• SBA Chief Counsel for Advocacy: New central role in reviews, meetings, and enforcement.
• Federal agencies (e.g., EPA, FDA): Must comply with expanded analyses, reviews, and penalties.
• Office of Information and Regulatory Affairs (OIRA): Involved in full reviews.
• Courts: Expanded judicial review options under Administrative Procedure Act.

Notable Legal, Constitutional, or Political Implications

• Legal: Bolsters RFA enforcement without creating new rights; prima facie and full reviews add administrative checks; penalties (e.g., rule inapplicability) are novel but tied to cooperation failures; judicial review treats SBA decisions as final agency action, streamlining challenges.
• Constitutional: Aligns with non-delegation and due process by increasing oversight of agency power; no apparent separation-of-powers issues.
• Political: Promotes deregulation for small businesses; could lead to fewer/milder rules but faces criticism for burdening agencies or politicizing SBA reviews. Retroactive elements may prompt legal challenges to existing rules.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Finstad, Brad [R-MN-1]

Cosponsors (30)

Rep. Hageman, Harriet M. [R-WY-At Large], Rep. Moran, Nathaniel [R-TX-1], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Meuser, Daniel [R-PA-9], Rep. Nunn, Zachary [R-IA-3], Rep. Steil, Bryan [R-WI-1], Rep. Stauber, Pete [R-MN-8], Rep. Flood, Mike [R-NE-1], Rep. Fischbach, Michelle [R-MN-7], Rep. Carey, Mike [R-OH-15], Rep. Thompson, Glenn [R-PA-15], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Calvert, Ken [R-CA-41], Rep. Weber, Randy K. Sr. [R-TX-14], Rep. Bacon, Don [R-NE-2], Rep. Bean, Aaron [R-FL-4], Rep. Balderson, Troy [R-OH-12], Rep. Van Duyne, Beth [R-TX-24], Rep. Carter, Earl L. "Buddy" [R-GA-1], Rep. Crank, Jeff [R-CO-5], Rep. Taylor, David J. [R-OH-2], Rep. Ciscomani, Juan [R-AZ-6], Rep. Mann, Tracey [R-KS-1], Rep. Kennedy, Mike [R-UT-3], Rep. Schmidt, Derek [R-KS-2], Rep. Miller, Carol D. [R-WV-1], Rep. Valadao, David G. [R-CA-22], Rep. Hinson, Ashley [R-IA-2], Rep. Lawler, Michael [R-NY-17], Rep. Sessions, Pete [R-TX-17]

Recent Actions

• 2026-05-04: Placed on the Union Calendar, Calendar No. 552.
• 2026-05-04: Reported (Amended) by the Committee on Judiciary. H. Rept. 119-108, Part II.
• 2026-05-04: Reported (Amended) by the Committee on Judiciary. H. Rept. 119-108, Part II.
• 2025-05-21: Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 14 - 12.
• 2025-05-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-108, Part I.
• 2025-05-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-108, Part I.
• 2025-05-21: Committee Consideration and Mark-up Session Held
• 2025-04-30: Ordered to be Reported (Amended) by the Yeas and Nays: 15 - 11.
• 2025-04-30: Committee Consideration and Mark-up Session Held
• 2025-02-10: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-10: Referred to the Committee on the Judiciary, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-10: Introduced in House
• 2025-02-10: Introduced in House

Bill Versions

• Prove It Act of 2025 — issued 2025-02-10 — PDF (13 pages)
• Prove It Act — issued 2026-05-04 — PDF (30 pages)

Related Bills

• S. 495 (119th Congress)