WASHINGTON, D.C. — In testimony before the House Small Business Committee, Chief Counsel for Advocacy Casey B. Mulligan said that small businesses have too often been harmed by policies built on fiction rather than facts on the ground.
He highlighted widespread misuse of certifications under the Regulatory Flexibility Act, which are agency proclamations that a rule will not meaningfully affect small businesses. Mulligan called many of them “fictional” and a problem “bigger than was previously understood.” This unlawful practice allowed Biden administration regulators to bypass small-business review panels and avoid meaningful consideration of alternatives, the very problem the Prove It Act is designed to address.
Mulligan repeatedly emphasized that listening to small businesses comes first. Many Advocacy staff work outside Washington, meeting directly with small business owners and bringing those experiences back into policy discussions. As a result, Advocacy’s work reflects real-world conditions, not Beltway assumptions.
Pointing to healthcare policy, Mulligan cited Medicare rules that favor hospitals over independent physicians by paying more for the same services. He explained that these regulatory distortions contributed to consolidation, pushing once-independent physician practices into hospital or corporate ownership.
Mulligan said the same listening-based approach applies to trade policy. He told the Committee that fishermen in New England described how “Europeans are stealing our fish and selling them back to us,” adding that “finally we have a president who fights back against terrible trade deals.” He also described how an entrepreneur raised concerns with Advocacy about imported coffee prices, and that President Trump subsequently issued an Executive Order in November modifying reciprocal tariffs on agricultural products to exempt coffee and other commodities.
After President Biden failed to even nominate a Chief Counsel for Advocacy, last week’s hearing revealed that both parties on the Committee now agree that Advocacy is an essential part of the federal government. According to Rep. Beth Van Duyne (R-TX), “(I)t sounds like you have the most important job for small businesses in the government… and I recognize that we finally realized that we need to have a voice for our small businesses, because it seems like during the four years of the Biden administration, they got absolutely crushed.”
Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration is an independent voice for small business within the executive branch. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsel’s efforts. For more information on the Office of Advocacy, visit advocacy.sba.gov or call (202) 205-6533.