Hearings to examine Trump's regulatory rollback, focusing on saving Americans $907 billion and counting.

Committee on Small Business

2025-11-19

Source: Congress.gov

Summary

This meeting of the Committee on Small Business and Entrepreneurship focused on the impact of federal regulations on small businesses, with a particular emphasis on the Trump administration's deregulation efforts and the role of the Office of Advocacy in alleviating burdens. Committee members raised concerns about healthcare costs, tariffs, and support for rural businesses [ 00:25:56-00:27:57 ]

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Themes

Regulatory Burden on Small Businesses

Senator Ernst initiated the discussion by highlighting how overregulation acts as a "consistent thorn" for small businesses in Iowa, leading to wasted time and money [ 00:26:02-00:26:35 ]

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. She stated that small businesses lack dedicated staff for compliance and face significant challenges from regulations designed for larger corporations [ 00:26:40-00:26:58 ]

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. Ernst cited that the Biden administration added over 107,000 pages of rules to the Federal Register, costing an estimated $1.8 trillion and adding 256 million hours of paperwork . Dr. Mulligan affirmed that excessive regulations reduce competition by discouraging smaller companies and decrease productivity due to increased paperwork and compliance [ 00:32:48-00:33:29 ]

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. He also noted that regulators often unlawfully certify rules as not significantly impacting small businesses, leading to $100 billion in unacknowledged costs .

Trump Administration's Deregulation Efforts

Senator Ernst praised the Trump administration's efforts, noting $702 billion in total regulatory cost savings and 72.1 million hours of paperwork cuts since January [ 00:28:08-00:28:15 ]

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. She mentioned the EPA's work to update the Waters of the United States (WOTUS) rule and overturn the "harmful Obama-era endangerment finding," which she claimed saved $54 billion annually [ 00:28:46-00:29:24 ]

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. Dr. Mulligan highlighted that the Trump administration has delivered substantial regulatory relief, including zeroing out penalties on auto manufacturers for fuel economy standards and removing 16 regulations via the Congressional Review Act . He cited that stopping greenhouse gas regulations on vehicles would save small businesses approximately half a trillion dollars .

Role of the Office of Advocacy

Senator Ernst introduced Dr. Casey Mulligan, Chief Counsel for Advocacy, emphasizing the office's crucial role as a "valuable counterweight" to bureaucratic regulations [ 00:29:29-00:29:38 ]

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. She discussed her "Prove It Act" and "Red Tape Act," designed to require agencies to consider costs for small businesses and increase transparency in rulemaking . Dr. Mulligan confirmed that his office actively listens to small businesses nationwide and brings their perspectives into policy discussions . He stated that the Trump administration is supportive of Advocacy's role, and new rules, such as those concerning small business lending and WOTUS, are being developed with input from small businesses [ 00:34:33-00:34:43 ]

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Challenges Raised by Committee Members

Senator Hirono challenged Dr. Mulligan on the omission of tariffs in his testimony, arguing that they act as a significant cost driver for small businesses . Dr. Mulligan explained his role is to listen and communicate concerns, noting his confirmation and the government shutdown impacted his ability to engage earlier on trade policies [ 00:39:39-00:40:24 ]

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. Senator Booker raised concerns about rising healthcare costs, noting anticipated premium increases for small businesses and the potential loss of employees who seek health coverage elsewhere [ 00:45:26-00:45:46 ]

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. Dr. Mulligan responded that his office identifies numerous healthcare issues, often related to regulations that reduce competition and create "red tape" [ 00:46:24-00:46:45 ]

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. Senator Hawley questioned the disparity in SBA loan distribution, with only 12% going to rural businesses despite their prevalence . He also raised concerns about fraud in the 8A program and the need for an Inspector General at the SBA .

Tone of the Meeting

The tone of the meeting was generally serious and focused on policy, with a clear emphasis from the Chair on the negative impacts of overregulation and the positive effects of deregulation [ 00:25:56-00:27:57 ]

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. There were moments of notable tension, particularly during Senator Hirono's questioning of Dr. Mulligan regarding tariffs, where she expressed frustration with what she perceived as evasiveness [ 00:40:57-00:40:58 ]

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. Senator Booker conveyed urgency and concern when discussing the impending "tsunami" of healthcare cost increases for small businesses . Dr. Mulligan maintained a professional and informative demeanor, consistently reiterating his role as an advocate who listens to small businesses and conveys their concerns to policymakers [ 00:38:23-00:38:29 ]

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. The Chair often intervened to support deregulation efforts and encourage collaborative problem-solving [ 00:42:53-00:43:54 ]

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Participants

Transcript

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Committee on Small Business and Entrepreneurship to Order.  As I travel from river to river across Iowa, I hear from small businesses about the consistent thorn in their side, which is overregulation.  In fact, when asked about federal regulations, Iowans consistently tell me to bring back a simple message to Washington bureaucrats.   Stay out of our way.  For a small business, regulatory compliance is more than just a headache.  It's wasted time and money they'd rather put back into their businesses.  It forces folks to jump through hoops designed by people who have never run a payroll or had to scramble to keep their doors open and their lights on.   In Iowa, most entrepreneurs do not have extra folks on hand dedicated to compliance or a legal team to comply with regulations designed for large corporations.  Not to mention the endless time and money to fight Uncle Sam if they miss one small paperwork requirement.  Unfortunately, during the previous administration, federal bureaucrats ignored the resources and bandwidth of our small businesses.   During the Biden administration, a record-shattering 107,262 pages of rules were added to the Federal Register, which cost an estimated $1.8 trillion, with a T, trillion dollars, and added 256 million hours of paperwork onto the plates of small business owners.   During President Biden's last year in office alone, his administration issued over 3,000 final rules.   The regulatory costs of the Biden administration's reckless rulemaking were more than 15 times higher than President Trump's first term, and over three times higher than that of Barack Obama's entire presidency.
The massive mountain of paperwork hours due to bureaucratic red tape cuts into small businesses' bottom lines.  It slows job creation and balloons compliance costs.  It's simply bad for business.   Since January, the Trump administration has published $702 billion in total regulatory cost savings and cut 72.1 million hours of paperwork.  Altogether with additional deregulatory efforts, these actions so far could save American taxpayers   up to $907 billion.  And I know these savings will only grow as small businesses recover from the previous administration's regulatory onslaught.  The Trump administration is hard at work making sure agencies delete,   revoke and rescind the harmful regulations of previous administrations.  I've been pleased to work with Administrator Zeldin to help bring common sense back to the Environmental Protection Agency, where the Trump EPA has been especially busy.  Just this week, the EPA proposed an updated Waters of the United States, or WOTUS, rule to clarify what is covered by WOTUS.   This proposed rule follows my Clear Waters Act, which would codify that groundwater and waste treatment systems are not navigable waters, and end this government overreach for our farmers, landowners, and small businesses.  I am also glad that the EPA is working   to overturn the agency's harmful Obama-era endangerment finding, which allowed far-left administrations to pave the way for EV mandates and Green New Deal policies.  The Trump EPA estimates that the   Endangerment finding has been used to justify over $1 trillion in hidden taxes on small businesses and American families.  Revoking that finding would save Americans $54 billion annually.
Today our committee will hear from Chief Counsel for Advocacy, Dr. Casey Mulligan.  In any administration, the Office of Advocacy is a valuable counterweight to the sprawling bureaucratic mess that regulations create for small businesses.  Dr. Mulligan, thank you so much for your steadfast commitment to identifying regulatory pain points   that make it difficult for small businesses to grow.  It has been a personal mission of mine to end the red tape nightmare that has tormented our small business owners.  And earlier this year, I reintroduced the Prove It Act.  My bill requires agencies to consider both   the direct and indirect costs for small businesses before finalizing regulations.  It requires advocacy to formally review federal agencies' certification of rules and prove that the federal government is fully compliant with existing law.  And it gives small businesses a voice in the rulemaking process to shift the balance of power away from the administrative state and back onto the main street.   I also introduced the Red Tape Act earlier this year to expose the true price tag of Washington's red tape and end Biden's shady circular A4 scheme used to conceal the cost of federal regulations.  Just a few weeks later, President Trump issued Executive Order 14192, which mirrored my legislation and formally rescinded the Biden-era guidance.   This sort of common sense legislation, along with the deregulatory action of this administration, will truly lead to a golden age for America's small business.  I look forward to hearing from Dr. Mulligan today about further ways we can work together to reduce regulatory burdens on small firms.   Ranking member Markey is unable to make it today, so we will go ahead and we will start then with your statement.
So you, Dr. Mulligan, are recognized.  I'll give you an introduction first, but then you will have five minutes for your opening statements.   And again, I would like to extend a warm welcome today to our witness, Dr. Casey Mulligan.

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