On Tuesday, the House Committee on Small Business will mark up seven bills aimed at addressing $1.7 trillion in regulatory burdens imposed on small businesses by the Biden-Harris administration.

The committee's focus comes after a report highlighted the overwhelmingly harsh impact of these regulations, resulting in hundreds of millions of hours spent on compliance by small businesses, as the Washington Examiner reports.

The legislative effort aims to amend the Regulatory Flexibility Act (RFA) and to help ensure small businesses have a stronger voice in the regulatory process.

The report, released in May, found that federal agencies under the Biden-Harris administration imposed an extensive regulatory burden on small businesses.

According to the findings, small businesses had to comply with 312 million hours of paperwork due to new regulations, which are seen by many as stifling small businesses, particularly those on Main Street America.

Federal Agencies Criticized for Failing Small Businesses

In response to these findings, the House Committee on Small Business is seeking legislative changes to improve transparency and accountability in the rulemaking process. The legislation is designed to reform the way federal agencies approach regulations impacting small businesses, with a focus on amending the Regulatory Flexibility Act of 1980.

Fifty trade groups criticized the administration, accusing it of ignoring the requirements of the RFA. They cited 28 specific instances in which federal agencies failed to assess the economic impact of their rules on small businesses. This failure, they argue, left businesses burdened with excessive regulations without proper oversight or review.

The House Committee found that in many cases, agencies improperly certified rules that affected small entities, saying they would not significantly impact businesses. Furthermore, these agencies did not check for conflicts or duplications in rules, and often bypassed congressional oversight or failed to provide crucial information during the rulemaking process.

Legislation to Strengthen Small Business Input

The committee has placed significant emphasis on strengthening protections for small businesses. In particular, the bipartisan Prove It Act is designed to increase small business input in regulatory decisions and ensure that all regulatory impacts are fully accounted for.

This legislative proposal would give small businesses more influence in the regulatory process by requiring federal agencies to conduct thorough impact assessments before implementing new rules. Proponents of the Prove It Act believe it will significantly reduce the bureaucratic hurdles faced by small businesses, creating a more transparent and balanced approach to regulations.

"The regulatory burden placed on Main Street America throughout the Biden-Harris administration is hard to comprehend," said Rep. Roger Williams, Chairman of the House Committee on Small Business. He stressed that the committee’s efforts to pass these seven bills aim to alleviate the undue pressures placed on small businesses.

Targeting Transparency and Accountability

In addition to the Prove It Act, other legislative proposals focus on improving the overall transparency and accountability of the regulatory process. The goal is to ensure that federal agencies are fully aware of the economic consequences of their regulations and that they adhere to the requirements set forth in the RFA.

The seven bills being considered by the committee will also aim to hold federal agencies accountable for failing to properly assess the economic impact of their regulations. This includes ensuring that agencies do not bypass congressional oversight or avoid providing key information during the rulemaking process. These bills are designed to close the gaps that allowed regulatory burdens to be imposed without proper scrutiny.

Trade Groups Demand Better Oversight

The criticism from trade groups has brought to light the extent of the regulatory overreach. In their assessment, these groups pointed out that agencies frequently ignored the RFA’s mandate to assess the impact of regulations on small businesses. This has created significant challenges for many small business owners, who often lack the resources to navigate complex regulatory requirements.

The House Committee’s May report identified four major ways that federal agencies have failed small businesses in the rulemaking process. These failures include improperly certifying that rules do not affect small entities, neglecting to review rule conflicts, bypassing oversight, and withholding information needed for adequate assessments.

In response to these findings, lawmakers have prioritized legislative efforts to amend the RFA and introduce measures that ensure federal agencies follow proper procedures when regulating small businesses.

Conclusion: Lawmakers Push for Regulatory Reform

The House Committee on Small Business is set to take significant action against the regulatory burden imposed on small businesses under the Biden-Harris administration. With seven bills on the table, lawmakers are seeking to address the $1.7 trillion in regulatory costs and the millions of hours spent on compliance. By focusing on transparency, accountability, and small business input, these legislative proposals aim to reform the regulatory process and alleviate the pressures on Main Street America.

The Prove It Act and other bills emphasize the need for federal agencies to fully account for the economic impact of their regulations and ensure small businesses are not disproportionately affected by burdensome rules.

As the House Committee moves forward with these legislative proposals, the goal is to create a fairer and more balanced regulatory environment for small businesses across the country.