Prove It Act of 2025

S 495, the "Prove It Act of 2025," requires federal agencies to assess indirect economic impacts on small businesses when creating new regulations. It directly affects small businesses (including those indirectly impacted by regulations) and federal agencies responsible for rulemaking. Key provisions mandate agencies to include indirect costs (e.g., effects on suppliers or competitors) in regulatory flexibility analyses and establish a new process allowing small entities to petition the Small Business Administration’s Chief Counsel to review agency certifications claiming a rule won’t significantly harm small businesses. If the review finds significant impact, agencies must redo their analysis; failure to cooperate in the review process could prevent the rule from applying to small entities. The bill updates existing regulatory review procedures without creating new funding.