Prove It Act of 2025

This bill would expand federal agency requirements for rulemaking by requiring agencies to include foreseeable indirect costs to small entities in their regulatory flexibility analyses. It proposes a process where small entities could petition the Small Business Administration’s Office of Advocacy to review agency certifications that claim a rule lacks significant economic impact. If the Office of Advocacy determines a significant impact exists, the agency would be required to perform full regulatory flexibility analyses, and failure to cooperate with the review would exempt small entities from the final rule.

This bill affects federal agencies responsible for rulemaking, requiring them to expand their regulatory flexibility analyses and coordinate certifications with the Small Business Administration's Office of Advocacy. The legislation also impacts small entities, including small businesses, organizations, and governmental jurisdictions, by allowing them to petition for reviews of agency certifications regarding economic impacts. Additionally, the Office of Advocacy is affected as it must review these petitions and determine if proposed rules impose significant economic burdens on a substantial number of small entities.

• Inclusion of indirect costs in regulatory analyses. Requires federal agencies to include any reasonably foreseeable potential indirect costs a proposed rule may impose on small entities when conducting an initial regulatory flexibility analysis.
• Small Business Administration notification requirements. Mandates that agencies provide certification to the Office of Advocacy of the Small Business Administration within 10 days if they determine a rule will not have a significant economic impact on a substantial number of small entities.
• Small entity petition process for certification review. Allows small entities to petition the Office of Advocacy to review an agency's certification; if the Office finds a significant economic impact, the agency must perform full initial and final regulatory flexibility analyses.
• Enforcement of agency participation in reviews. Stipulates that a finalized rule shall not apply to small entities if the promulgating agency fails to participate or assist in the Office of Advocacy's full review process.
• Publication and comment requirements for guidance documents. Requires agencies to publish and allow public comment on all guidance documents related to rules expected to have a significant economic impact on a substantial number of small entities.

The bill expands existing federal agency rulemaking requirements regarding regulatory flexibility analyses and modifies the certification process involving the Office of Advocacy of the Small Business Administration.

The bill aims to strengthen federal agency accountability regarding the economic impact of new regulations on small businesses, organizations, and governmental jurisdictions. It seeks to achieve this by requiring more comprehensive cost analyses, establishing a formal review process for agency certifications through the Small Business Administration’s Office of Advocacy, and increasing transparency for guidance documents related to impactful rules.