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The House voted 223–190 to pass the Small Business Regulatory Reduction Act of 2025. This legislation requires the Small Business Administration to offset the costs of any new regulations by removing or modifying existing rules.
This vote was on H.R. 2965, which seeks to limit the financial burden of government regulations on small businesses. If the Small Business Administration (SBA) introduces a new rule that increases costs, the bill requires the agency to eliminate or change other rules to ensure the total cost to businesses does not increase. It also mandates an annual report to Congress tracking how regulations from all federal agencies affect small business expenses. This was a vote on passage, which is the final step for a bill to move out of the House of Representatives. In this stage, members vote to decide if the bill should be sent to the Senate. A "yea" vote supports the bill's requirements for regulatory offsets, while a "nay" vote opposes the measure. The bill passed with a majority of 223 votes. The outcome followed a party-line pattern, with Republicans providing the bulk of the support. The bill has now been sent to the Senate, where it has been referred to the Committee on Small Business and Entrepreneurship for further consideration.
The bill has been received in the Senate, read twice, and referred to the Committee on Small Business and Entrepreneurship.
OPEN BILL →Why it matters. The bill aims to institutionalize a 'one-in, one-out' style regulatory policy for the Small Business Administration, which proponents argue is necessary to prevent regulatory creep from stifling economic growth.
Who’s affected. Small Business Owners: They would likely see a stabilization or reduction in the direct costs associated with complying with new SBA regulations. · Small Business Administration (SBA): The agency would be required to perform detailed cost-benefit analyses and find existing rules to cut whenever they propose new ones.
Democrats. The majority of the Democratic caucus opposed the bill, with 190 members voting no.
Republicans. The Republican caucus was unanimous in its support, with all 207 voting members casting 'yea' votes.
On Passage
Dec 3, 2025
The House voted 223–190 to pass the Small Business Regulatory Reduction Act of 2025.
This legislation requires the Small Business Administration to offset the costs of any new regulations by removing or modifying existing rules.
This was the final vote in the House to approve the bill. Because the bill received a majority of votes, it successfully passed the chamber and is now eligible to be considered by the Senate.
The bill has been received in the Senate, read twice, and referred to the Committee on Small Business and Entrepreneurship.
The bill aims to institutionalize a 'one-in, one-out' style regulatory policy for the Small Business Administration, which proponents argue is necessary to prevent regulatory creep from stifling economic growth.
The vote was largely divided along party lines, though a small group of 15 Democrats joined the unified Republican majority to support the bill.
The majority of the Democratic caucus opposed the bill, with 190 members voting no.
The Republican caucus was unanimous in its support, with all 207 voting members casting 'yea' votes.
One independent member voted in favor of passing the bill.