House passes Prove It Act

The Prove It Act, a bill that would strengthen small businesses’ protections from “burdensome” regulations, has passed the U.S. House of Representatives.

The House advanced the bill by a vote of 208-196 on Thursday, Dec. 5.

HR7198, which was introduced by Rep. Brad Finstad, R-Minn., would require federal agencies to analyze the impact of their regulatory action on small businesses.

“Too often, small businesses across America are saddled with unnecessary and burdensome, one-size-fits-all regulations that cost business owners trillions each year,” Finstad said in a news release. “My legislation, the Prove It Act, is a commonsense, bipartisan solution that creates a pathway for business owners to advocate for themselves in the regulatory process.”

Specifically, the Prove It Act would:

• Create ways for small businesses to raise concerns when regulators don’t properly consider how the costs of the regulation will affect them
• Allow small businesses to ask for a review of the agency’s work and make the government prove it is compliant
• Stipulate that small businesses will be exempt from the regulation if the agency fails to comply with the review process
• Ensure that small businesses can easily access guidance documents and raise questions to their regulators

The Owner-Operator Independent Drivers Association supports the bill.

“Not only are small businesses the backbone of America’s economy, they’re the backbone of America’s supply chain,” OOIDA President Todd Spencer said. “Over 70% of American freight is transported exclusively by truck, and 96% of trucking is made up of small-business carriers. OOIDA and the 150,000 small-business truckers we represent support the bipartisan Prove It Act to keep government overreach and burdensome overregulation off of the backs of the men and women behind the wheel who keep our economy moving.”

Reps. Yadira Caraveo, D-Colo., and Nathaniel Moran, R-Texas, served as original co-sponsors for the bipartisan effort.

“We thank the bipartisan coalition in the House of Representatives that got this bill over the line and especially Reps. Finstad, Caraveo and Moran for their leadership on this commonsense legislation,” Spencer said.

Although the Senate is not expected to take up the Prove It Act before the end of the legislative session, passage in the House indicates positive signs for the bill in 2025. The bill would need to be reintroduced but will be greeted by Republican majorities in the House and Senate. In addition, the Prove It Act will likely be favored by President-elect Donald Trump, who has advocated for a rollback of regulations. LL