U.S. Sen. Joni Ernst (R-IA) led a field hearing in Des Moines, Iowa, to examine the impact of federal regulations on small businesses.
Ernst is the sponsor of legislation called the Prove It Act, which would require federal agencies to demonstrate that any new regulation complies with existing laws. It also requires them to consider both the direct and indirect costs placed on small businesses.
“As Biden’s federal agencies crank out regulations at lightning speed, they threaten job creation and economic opportunity on Main Street,” Ernst, the ranking member on the Senate Small Business Committee, said. “One-size-fits-all regulations don’t suit Iowa’s entrepreneurs, and that’s why I’m fighting to ensure our small businesses are heard and considered in future regulatory mandates from Washington.”
Ernst added that it would provide small businesses with a seat at the table when government regulators are weighing whether a proposed rule would have a negative impact on entrepreneurs.
“Small businesses are a vital component of Des Moines and Iowa’s economy,” Major Clark, acting chief counsel from the U.S. Small Business Administration’s Office of Advocacy, said at the hearing. “Advocacy has increasingly argued that federal agencies need to conduct more outreach to small entities during the rulemaking process and improve the quality of their small business data…it is critical for all small businesses, including those here, to express concerns to federal agencies on regulations that may impact their economic survival.”
Ernst said the Biden administration has imposed almost $400 billion in regulatory costs on businesses since he took office, which is $140 billion more than the previous two administrations combined.
“One-size regulations do not fit all businesses. Small businesses frequently encounter challenges stemming from regulations that were designed for larger enterprises,” Iowa State Rep. Shannon Latham (R-Sheffield) said. “Examples include burdensome paperwork, expensive compliance majors, and intricate reporting requirements. These issues all impede growth, discourage innovation, and often lead to disproportionate costs that hinder small business success.”
Some 10,000 small businesses nationwide and 75 small businesses in Iowa have sent letters to Congress supporting Ernst’s Prove It Act.