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Ernst Fights to Rightsize Regulations for Iowa Small Businesses

In less than three years, the Biden administration has imposed almost $400 billion in regulatory costs on American businesses.

DES MOINES, Iowa – Today, U.S. Senator Joni Ernst (R-Iowa), Ranking Member of the Senate Small Business Committee, led a field hearing in Des Moines to explore the impact of federal regulations on small businesses.

Ernst’s Prove It Act would force federal agencies to demonstrate that any new regulation complies with existing laws and considers both the direct and indirect costs placed on small businesses. It would also provide small businesses a seat at the table when government regulators are weighing whether a proposed rule would have a negative impact on entrepreneurs.



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“As Biden’s federal agencies crank out regulations at lightning speed, they threaten job creation and economic opportunity on Main Street,” said Ranking Member Ernst. “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.”

“Small businesses are a vital component of Des Moines and Iowa’s economy,” said Major L. Clark, III, Acting Chief Counsel from the U.S. Small Business Administration’s Office of Advocacy. “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.”

“One-size regulations do not fit all businesses. Small businesses frequently encounter challenges stemming from regulations that were designed for larger enterprises,” said State Representative Shannon Latham (R-Sheffield). “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.”

“No one starts their own business out of a passion for paperwork. Dedicating resources to regulatory compliance makes it more difficult for small businesses to compete with large companies who can depend on big staffs and healthy budgets dedicated to outside experts…the bottom line is small businesses want to do the right thing,”said Megan Green, Counsel and Engineering Manager for Weiler Products.


In less than three years, the Biden administration has imposed almost $400 billion in regulatory costs on American businesses, almost $140 billion more in regulatory costs than the previous two administrations combined.

In Iowa, 98% of agriculture businesses, 99% of construction businesses, and 89% of manufacturers are small businesses and collectively employ over 46,000 Iowans.

10,000 small businesses nationwide and 75 small businesses in Iowa have sent letters to Congress supporting Ernst’s Prove It Act.