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Committee on Small Business Releases Report on Federal Agency Compliance with RFA

WASHINGTON, D.C. – Today, Congressman Roger Williams (TX-25), Chairman of the House Committee on Small Business, released a full staff report on the Committee’s 15-month investigation into federal agencies’ compliance with the Regulatory Flexibility Act (RFA). Chairman Williams issued the following statement.

“This 15-month long investigation conducted by our Committee demonstrates how federal agencies are not living up to the letter or spirit of the RFA,” said Chairman Williams. “This law was intended to act as a shield against the heavy hand of government for Main Street America, but it is not functioning as it should and needs to be significantly improved. As a business owner, I have first-hand knowledge of what happens when bureaucrats start implementing rules without considering the real-world consequences. Frustratingly, the executive branch expects Main Street to comply with mountains of regulations, but the government can’t even comply with the RFA by considering the best interests of small businesses. This Committee will continue to work to hold federal agencies accountable and be a strong advocate for small businesses across America.”

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Read the full RFA Report here.

Background:

The House Committee on Small Business conducted a 15-month long investigation into federal agencies’ compliance with the RFA. The RFA was meant to protect Main Street from heavy handed government and burdensome red tape. The findings of this investigation, however, reveal that it is not performing as intended and needs to be drastically improved. It has been a top priority of the Committee to fight back against unnecessary red tape, and this report represents that effort.  The Committee has sent 66 letters to 34 different federal agencies and held 13 hearings on the regulatory burdens created by the executive branch.

As of May 10th, 2024, all final rules issued by President Biden have a total cost of $1.6 trillion and nearly 290-million-man hours. When small businesses are forced to spend time complying with mountains of regulations, it takes away time they could be spending on their core missions. Moreover, many business owners have to hire teams of compliance officers, who by their very nature do not contribute to the actual mission of the company. Burdensome regulations mean resources are diverted away from hiring more employees, reinvesting in the business, and reinvesting in the communities that they serve.

To be clear, the release of this report does not signal the end of the Committee’s investigation or the fight against this regulatory onslaught. Reducing red tape and duplicative regulations remains a top priority of this Committee and will remain that way with Chairman Williams at the helm.

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