The bill
Small Business Regulatory Flexibility Improvements Act
HR. 421, 119th Congress — read as touching Private Equity & Hedge Funds.
Sponsored by
Rep. Cline, Ben [R-VA-6]
ID: C001118
Follow the money
The bill
HR. 421, 119th Congress — read as touching Private Equity & Hedge Funds.
The sponsor
Every bill has someone who introduced it. That name is where the paper trail starts.
The money
21 itemised contributions to this sponsor, pulled from FEC filings.
The alignment
This bill's text tracks the "Introduction" section, p. 627-629 of the Mandate for Leadership.
Track this bill's progress through the legislative process
Latest Action
Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 13 - 12.
June 9, 2025
📍 Current Status
Next: The bill will be reviewed by relevant committees who will debate, amend, and vote on it.
1. Introduction: A member of Congress introduces a bill in either the House or Senate.
2. Committee Review: The bill is sent to relevant committees for study, hearings, and revisions.
3. Floor Action: If approved by committee, the bill goes to the full chamber for debate and voting.
4. Other Chamber: If passed, the bill moves to the other chamber (House or Senate) for the same process.
5. Conference: If both chambers pass different versions, a conference committee reconciles the differences.
6. Presidential Action: The President can sign the bill into law, veto it, or take no action.
7. Became Law: If signed (or if Congress overrides a veto), the bill becomes law!
Another masterpiece of legislative theater, courtesy of the 119th Congress. Let's dissect this farce, shall we?
**Diagnosis:** Regulatory Capture with a side of Small Business Window Dressing.
This bill, masquerading as a champion of small businesses, is actually a Trojan horse for special interests and regulatory capture. The "Small Business Regulatory Flexibility Improvements Act" (HR 421) is a cleverly crafted attempt to create the illusion of protecting small entities while, in reality, serving the interests of larger corporations and industries.
**New Regulations:**
The bill amends the Regulatory Flexibility Act to include new definitions and requirements for regulatory analysis. On the surface, this appears to be a positive step towards greater transparency and consideration of small business impacts. However, upon closer inspection, these changes will likely lead to more complex and burdensome regulations that benefit larger corporations with deeper pockets.
**Affected Industries:**
The bill's provisions will primarily affect industries related to land management, agriculture, and natural resources. These sectors will be subject to new regulatory requirements, which may seem innocuous but will ultimately favor large-scale operators over smaller entities.
**Compliance Requirements and Timelines:**
The bill introduces new compliance requirements for federal agencies, including the development of initial and final regulatory flexibility analyses. While these analyses are intended to assess the economic impact on small entities, they will likely become a bureaucratic quagmire, delaying implementation and favoring larger corporations with more resources.
**Enforcement Mechanisms and Penalties:**
The bill does not explicitly outline enforcement mechanisms or penalties for non-compliance. However, it's safe to assume that any enforcement efforts will be lackluster, allowing larger corporations to exploit loopholes and smaller entities to bear the brunt of regulatory burdens.
**Economic and Operational Impacts:**
This bill will have a negligible positive impact on small businesses, while larger corporations will reap the benefits. The increased complexity of regulations will lead to higher compliance costs, which will disproportionately affect smaller entities. This, in turn, will stifle innovation and competition, ultimately harming consumers and the economy as a whole.
**Prognosis:**
This bill is a classic case of regulatory capture, where special interests manipulate the system to their advantage. The "Small Business Regulatory Flexibility Improvements Act" is a misnomer; it's actually a wolf in sheep's clothing, designed to further entrench the power of larger corporations and industries.
**Treatment:**
To cure this legislative disease, we need a healthy dose of transparency, accountability, and genuine small business advocacy. Unfortunately, that's not what we'll get from HR 421. Instead, we'll see more regulatory theater, with politicians and lobbyists pretending to care about small businesses while actually serving their own interests.
In conclusion, this bill is a masterclass in legislative deception. It's a testament to the boundless creativity of politicians and lobbyists in crafting legislation that appears beneficial on the surface but ultimately serves the interests of
Rep. Cline, Ben [R-VA-6]
Congress 119 • 2024 Election Cycle
No PAC contributions found
No committee contributions found
This bill has 6 cosponsors. Below are their top campaign contributors.
ID: H001096
Top Contributors
10
ID: E000071
Top Contributors
10
ID: B001317
Top Contributors
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ID: F000471
Top Contributors
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ID: W000806
Top Contributors
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ID: V000133
Top Contributors
10
Hub layout: Politicians in center, donors arranged by type in rings around them.
Showing 41 nodes and 36 connections (30 secondary connections hidden)
Total contributions: $136,400
Showing top 13 donors by contribution amount
Which industries are materially affected by specific provisions in this bill. 3 helped, 3 harmed.
Section 4(d) allows for certifications with detailed statements providing factual and legal basis, which could benefit private equity and hedge funds by providing more clarity on regulatory compliance.
Section 2(c)(1) mentions "veterans or part 232 of title 32, Code of Federal Regulations", which may imply changes to healthcare benefits for veterans, potentially affecting health insurance providers.
Section 7(c) includes outreach to small businesses, including those owned by socially and economically disadvantaged individuals, which may benefit agribusinesses with diverse ownership structures.
Section 6(d)(2)(A) mentions "impact of the proposed rule on the cost that small entities pay for energy", which could potentially affect electric utilities.
Section 6(d)(2)(A) mentions "impact of the proposed rule on the cost that small entities pay for energy", which could potentially benefit renewable energy companies.
Section 6(e)(3) assesses the impact of proposed rules on startup costs for small entities, including energy infrastructure projects, which could lead to increased regulatory scrutiny and costs.
This bill shows semantic similarity to the following sections of the Project 2025 policy document.
— 594 — Mandate for Leadership: The Conservative Promise Exemptions from Regulations for Small Business. Burdensome regulations have anti-competitive effects. In general, larger, higher-margin businesses are better able to absorb the costs of regulatory compliance than are small businesses, and under the Biden Administration, big-business lobbies have affirmatively embraced certain regulations (such as the COVID vaccine mandate for private employers) to reduce competition from smaller businesses. Research suggests that labor regula- tions may pose the highest aggregate regulatory cost for small businesses. l The labor agencies should exercise their available discretion and duties under the Regulatory Flexibility Act12 to exempt small entities from regulations where possible. l Congress should enact legislation increasing the revenue thresholds at which the National Labor Relations Board asserts jurisdiction over employers to match changes in inflation that have occurred since 1935 and better reflect the definition of “small business” used by the federal government. l Congress (and DOL, in its enforcement discretion) should exempt small business, first-time, non-willful violators from fines issued by the Occupational Health and Safety Administration. EDUCATION AND VOCATIONAL TRAINING Apprenticeships. The next Administration should return to prior policy and implement an industry-recognized apprenticeship program separate from the Registered Apprenticeship Program (RAP) and explore how best to modernize, streamline, and eliminate duplication in the RAP. For roughly 80 years, the RAP— which requires conforming to government standards and includes federal funding, tax credits, and other federal resources—has dominated apprenticeship programs in the U.S. Organizations across the political spectrum have noted that the overly burdensome requirements of RAPs have contributed to limiting them to legacy trades, failing to meet growing industry demands such as in health care and tech- nology. A 2017 study estimated that the number of occupations commonly filled through apprenticeships could nearly triple (from 27 to 74), that the number of job openings filled through apprenticeships could expand eightfold (to 3.2 million), and that the occupations ripe for apprenticeship expansion could offer 20 percent higher wages than traditional apprenticeship occupations. The Trump Administration expanded apprenticeship options through the cre- ation of the Industry-Recognized Apprenticeship Program (IRAP), and more than 130 IRAPs were created. The Biden Administration rescinded the IRAP regulations.
— 594 — Mandate for Leadership: The Conservative Promise Exemptions from Regulations for Small Business. Burdensome regulations have anti-competitive effects. In general, larger, higher-margin businesses are better able to absorb the costs of regulatory compliance than are small businesses, and under the Biden Administration, big-business lobbies have affirmatively embraced certain regulations (such as the COVID vaccine mandate for private employers) to reduce competition from smaller businesses. Research suggests that labor regula- tions may pose the highest aggregate regulatory cost for small businesses. l The labor agencies should exercise their available discretion and duties under the Regulatory Flexibility Act12 to exempt small entities from regulations where possible. l Congress should enact legislation increasing the revenue thresholds at which the National Labor Relations Board asserts jurisdiction over employers to match changes in inflation that have occurred since 1935 and better reflect the definition of “small business” used by the federal government. l Congress (and DOL, in its enforcement discretion) should exempt small business, first-time, non-willful violators from fines issued by the Occupational Health and Safety Administration. EDUCATION AND VOCATIONAL TRAINING Apprenticeships. The next Administration should return to prior policy and implement an industry-recognized apprenticeship program separate from the Registered Apprenticeship Program (RAP) and explore how best to modernize, streamline, and eliminate duplication in the RAP. For roughly 80 years, the RAP— which requires conforming to government standards and includes federal funding, tax credits, and other federal resources—has dominated apprenticeship programs in the U.S. Organizations across the political spectrum have noted that the overly burdensome requirements of RAPs have contributed to limiting them to legacy trades, failing to meet growing industry demands such as in health care and tech- nology. A 2017 study estimated that the number of occupations commonly filled through apprenticeships could nearly triple (from 27 to 74), that the number of job openings filled through apprenticeships could expand eightfold (to 3.2 million), and that the occupations ripe for apprenticeship expansion could offer 20 percent higher wages than traditional apprenticeship occupations. The Trump Administration expanded apprenticeship options through the cre- ation of the Industry-Recognized Apprenticeship Program (IRAP), and more than 130 IRAPs were created. The Biden Administration rescinded the IRAP regulations. — 595 — Department of Labor and Related Agencies l Congress should expand apprenticeship programs outside of the RAP model, re-creating the IRAP system by statute and allowing approved entities such as trade associations and educational institutions to recognize and oversee apprenticeship programs. In addition, religious organizations should be encouraged to participate in apprenticeship programs. America has a long history of religious organizations working to advance the dignity of workers and provide them with greater opportunity, from the many prominent Christian and Jewish voices in the early labor movement to the “labor priests” who would appear on picket lines to support their flocks. Today, the role of religion in helping workers has diminished, but a country committed to strengthening civil society must ask more from religious organizations and make sure that their important role is not impeded by regulatory roadblocks or the bureaucratic status quo. l Encourage and enable religious organizations to participate in apprenticeship programs, etc. Both DOL and NLRB should facilitate religious organizations helping to strengthen working families via apprenticeship programs, worker organizations, vocational training, benefits networks, etc. Hazard-Order Regulations. Some young adults show an interest in inherently dangerous jobs. Current rules forbid many young people, even if their family is running the business, from working in such jobs. This results in worker shortages in dangerous fields and often discourages otherwise interested young workers from trying the more dangerous job. With parental consent and proper training, certain young adults should be allowed to learn and work in more dangerous occupations. This would give a green light to training programs and build skills in teenagers who may want to work in these fields. l DOL should amend its hazard-order regulations to permit teenage workers access to work in regulated jobs with proper training and parental consent. Workforce Training Grant Program. The federal government spends more than $100 billion per year subsidizing higher education but close to zero supporting people on non-college pathways. l Congress should create an employer grant worth up to $10,000 per year or pro-rated portion thereof for each worker engaged in
— 757 — Small Business Administration largely duplicates private-sector venture capital to the extent that the sector receiving much of its support is software and information technology, which already receive the lion’s share of venture capital investment.65 In addition, Congress should reform the SBIC program to make its financing more favorable to capital-intense investments and small manufacturers. The Health, Economic Assistance, Liability Protection, and Schools (HEALS) Act, introduced in 2020,66 and American Innovation and Manufacturing Act, introduced in 2021,67 would allow SBIC to offer longer-term financing to manufacturers and make the program more fiscally sustainable. Small-Business Size Standard Modernization. Many small-business pro- grams both inside and outside the SBA use the SBA’s definition of “small business.” Under the Small Business Act, the SBA is tasked with defining what counts as a small business and ensuring that the definition varies from industry to industry to reflect differences in regular size by industry. However, the SBA’s small-business size standards reflect a one-size-fits-all approach under which all businesses within its size standard are considered small businesses for all eligible purposes, from gov- ernment contracting preferences to eligibility for SBA loans through private banks. At the same time, the SBA is an outlier among competing economies in not considering medium-sized enterprises along with small businesses, often referred to collectively as small and medium-sized enterprises (SMEs). Medium-sized and regional businesses are increasingly critical to maintaining competition. The next Administration should: l Encourage Congress to create a “medium-sized business” classification with its eligibility for programs confined to access to capital programs from projects for which credit elsewhere does not exist. SBA POLICY PRIORITIES FOR 2025 AND BEYOND Legislation. The new Administration can support SBA reform legislation pro- posed in Congress that aligns with key measures outlined in this chapter. It also can support legislative initiatives that would help SBA to focus on its core statutory activities such as capital access, federal contracting opportunities, and regulatory advocacy. For example: l The IMPROVE the SBA Act68 would strengthen accountability, transparency, and oversight of the SBA and aligns with many of the reforms outlined in this chapter. — 758 — Mandate for Leadership: The Conservative Promise l The Small Business Regulatory Flexibility Improvements Act69 would require federal agencies to perform more thorough RFA economic analysis and provide a rationale for proposed regulations. It also would waive fines for certain first-time paperwork violations. l The Small Business Regulatory Enforcement Fairness Act70 (SBREFA) panel process allows small businesses to provide input on agency rulemakings, gives participating small businesses greater procedural rights, and allows for judicial review of agency violations of the SBREFA panel process. SBREFA panel requirements should be extended to all federal agencies. l The Fair and Open Competition Act71 would disallow the use of project labor agreements (PLAs) in federal contracting as required in President Biden’s Executive Order 14063,72 which puts small businesses at a competitive disadvantage and works against the SBA’s governmentwide contracting goal for small businesses. l The JOBS Act 4.073 would advance regulatory improvements and modernization of various Securities and Exchange Commission (SEC) rules to enhance capital formation and access. ORGANIZATIONAL ISSUES AND BUDGET Administrator and Key Staff. The position of Administrator should not be considered a symbolic or messaging-related position as some past Administrations have viewed it. Rather, the Administrator should have the requisite experience, skills, and knowledge to ensure that the SBA fulfills its statutory authorities. Because much of the SBA’s statutory authority relates to financing and reg- ulatory policy, and in order to make the SBA a more effective agency within the Administration, the Administrator and his or her key staff should have experience in small-business finance and investment and/or administrative law. For example, during the COVID-19 pandemic, the SBA was often forced to outsource key deci- sions and administrative follow-through to the Department of the Treasury. The SBA Administrator and leadership team must share the President’s mission and vision and execute the Administration’s policies effectively. Budget The next Administration should undertake a comprehensive review of the effectiveness of its various loan and grant programs and provide a report to Congress within six months. The report should rank programs by cost-effective- ness. In the interim, the roughly $1 billion overall agency budget should be held constant until the report is considered, after which Congress should terminate
Policy matches are calculated using semantic similarity between bill summaries and Project 2025 policy text. A score of 60% or higher indicates meaningful thematic overlap. This does not imply direct causation or intent, but highlights areas where legislation aligns with Project 2025 policy objectives.