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Small Business Regulatory Flexibility Improvements Act

6/11/2025, 8:05 AM

Summary of Bill HR 421

Bill 119 hr 421, also known as the "Regulatory Flexibility Act," aims to amend chapter 6 of title 5, United States Code. The main goal of this bill is to ensure that there is a thorough analysis of the potential impacts on small entities when new rules are proposed. This means that before any new regulations are put into place, a comprehensive evaluation will be conducted to determine how they may affect small businesses and other entities.

The bill also includes provisions for other purposes, which may include additional measures to support small businesses and ensure that they are not disproportionately burdened by new regulations. Overall, the focus of this legislation is to promote transparency and accountability in the regulatory process, particularly when it comes to considering the impact on small entities.

By requiring a complete analysis of potential impacts on small entities, Bill 119 hr 421 aims to create a more fair and balanced regulatory environment that takes into account the needs and concerns of small businesses. This bill is an important step towards ensuring that regulations are implemented in a way that supports economic growth and innovation while also protecting the interests of small entities.

Congressional Summary of HR 421

Small Business Regulatory Flexibility Improvements Act

This bill modifies the rulemaking requirements and procedures of federal agencies under the Regulatory Flexibility Act of 1980 and the Small Business Regulatory Enforcement Fairness Act of 1996, including how agencies consider economic impact with respect to small entities.

Specifically, the bill requires agencies to consider the direct, and the reasonably foreseeable indirect, economic effect of a rule on small entities when determining whether a rule is likely to have a significant economic impact. Further, the regulatory flexibility analysis for rules with a significant economic impact must include a detailed description of alternatives to a proposed rule that minimize any adverse significant economic impact or maximize any beneficial significant economic impact on small entities. The bill also expands the types of agency actions (e.g., revisions to land management plans) that are subject to a regulatory impact analysis.

The bill removes the authority for an agency to waive the regulatory flexibility analysis requirements and requires the Office of Advocacy of the Small Business Administration to issue rules for compliance with such requirements.

The bill also modifies the procedures for the (1) gathering of comments for a proposed rule, (2) periodic review of agency rules, and (3) judicial review of final rules.

Current Status of Bill HR 421

Bill HR 421 is currently in the status of Bill Introduced since January 15, 2025. Bill HR 421 was introduced during Congress 119 and was introduced to the House on January 15, 2025.  Bill HR 421's most recent activity was Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 13 - 12. as of June 10, 2025

Bipartisan Support of Bill HR 421

Total Number of Sponsors
5
Democrat Sponsors
0
Republican Sponsors
5
Unaffiliated Sponsors
0
Total Number of Cosponsors
10
Democrat Cosponsors
0
Republican Cosponsors
10
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill HR 421

Primary Policy Focus

Government Operations and Politics

Potential Impact Areas

- Administrative law and regulatory procedures
- Administrative remedies
- Business records
- Civil actions and liability
- Competitiveness, trade promotion, trade deficits
- Congressional oversight
- Economic performance and conditions
- Federal appellate courts
- Federal-Indian relations
- Forests, forestry, trees
- Government information and archives
- Government studies and investigations
- Industrial policy and productivity
- Judicial review and appeals
- Jurisdiction and venue
- Land use and conservation
- Small Business Administration
- Small business
- Tax administration and collection, taxpayers

Alternate Title(s) of Bill HR 421

To amend chapter 6 of title 5, United States Code (commonly known as the "Regulatory Flexibility Act"), to ensure complete analysis of potential impacts on small entities of rules, and for other purposes.
To amend chapter 6 of title 5, United States Code (commonly known as the "Regulatory Flexibility Act"), to ensure complete analysis of potential impacts on small entities of rules, and for other purposes.

Comments

Clayton Paul profile image

Clayton Paul

451

9 months ago

Excited to see how this will impact small businesses like mine! #HR421 #regulatoryflexibility #improvements