PASSED: Davids’ Bipartisan Bill to Protect Small Businesses from Excessive Paperwork Passes U.S. House Unanimously
Davids' first bill to pass during President Trump's second term
Today, the U.S. House unanimously passed Representative Sharice Davids’ bipartisan bill to reduce excessive paperwork for small businesses. The Protect Small Businesses from Excessive Paperwork Act, co-led by U.S. Representatives Zach Nunn (R-IA-03), Tom Emmer (R-MN-06), and Don Davis (D-NC-01), would make it easier for Main Street businesses to comply with federal law and reporting requirements. The bill was endorsed by the U.S. Chamber of Commerce.
“Small businesses are the backbone of our economy, and they shouldn’t have to spend unnecessary time and money navigating burdensome, unclear regulations,” said Davids. “That’s why I’m proud to see my bill pass the House today — ensuring small businesses have the time and support they need to comply with the law without risking their livelihoods. This is a win for Kansas entrepreneurs and small businesses nationwide, and it’s a step toward creating a more supportive environment for Main Street to thrive.”
In 2020, Congress passed the Corporate Transparency Act to crack down on foreign-operated shell companies by requiring businesses to report beneficial ownership information (BOI). However, the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) failed to properly notify small businesses of these new rules. A survey found that 80 percent of the National Federation of Independent Businesses (NFIB) members were unaware of the requirements, and compliance costs could reach $8,000 per business in the first year. Despite this, FinCEN has refused to extend the deadline.
Although these fines are not currently being enforced due to ongoing litigation, the uncertainty surrounding them has left small business owners in limbo, with penalties potentially starting as soon as next month. The bipartisan Protect Small Businesses from Excessive Paperwork Act extends the filing deadline until January 1, 2026, for small businesses while the Treasury Department educates businesses on the new reporting requirements and ensures small businesses are not overburdened with unclear and unnecessarily complicated new regulations.
“Iowa’s economy is driven by small businesses – more than half of Iowans are employed by Main Street,” said Representative Zach Nunn (R-IA-03). “Bureaucrats in D.C. sit in their ivory towers, demanding businesses comply with onerous red tape, without considering the burden it puts on businesses. By passing this legislation, we’re taking a step forward to roll back unnecessary regulations and simplify requirements for job creators while still adhering to the law.”
“The U.S. Chamber of Commerce strongly supports H.R. 736, the Protect Small Business from Excessive Paperwork Act of 2025 that would provide a commonsense, bipartisan solution to an impending regulatory disaster which, left unaddressed, will threaten millions of small business owners with steep fines and even jail time,” said Rodney Davis, Senior Vice President, Government Affairs, U.S. Chamber of Commerce.