H.R. 4612: The Midnight Rule Relief Act

By at 1 March, 2016, 9:47 pm

UPDATE:  On March 1, 2016 the House Oversight and Government Reform Committee advanced H.R. 4612 by a vote of 20-17.


The Honorable Tim Walberg

U.S. House of Representatives

Washington, DC 20515


Dear Representative Walberg:

On behalf of the Small Business & Entrepreneurship Council (SBE Council) and our 100,000 members nationwide, I am pleased to support H.R. 4612, the Midnight Rule Relief Act, a bill that would prevent any Administration from promulgating major “midnight” regulations in the waning days of a president’s term in office.

New regulations are piling on at a time when small businesses continue to struggle in a tough economy. Complying with existing regulations and navigating new rules take time and significant resources, which hurts the profitability and competitiveness of many small businesses. The hyper-regulatory environment continues to perpetuate the uncertainty that has haunted small businesses since the Great Recession. Such uncertainty means less risk taking, investment, and business growth.

During good economic times and bad, federal agencies and government policies need to be especially sensitive about how proposed actions impact startups and small business growth. After all, even with their struggles and challenges, small businesses and startups still remain the engine of job creation and innovation in our nation.

SBE Council is very concerned that an anticipated regulatory rush – or “midnight regulations” – could lead to more shortcuts in a process that is meant to protect small businesses. The Mercatus Center analyzed data during the midnight regulatory period across Administrations from 1975-2006 and found regulatory analysis quality drops, and regulatory oversight by the Office of Information and Regulatory Affairs (OIRA) weakens. This results in ineffective and costly regulations.

Thank you for your continued leadership on issues important to entrepreneurs, including the introduction of H.R. 4612. Please let us know how SBE Council can help in your efforts to advance this important legislation.



Karen Kerrigan, President & CEO

News and Media Releases