President Trump delivers major relief to America’s small businesses by halting enforcement of Biden’s invasive Corporate Transparency Act, sparing millions from burdensome reporting requirements.
Key Takeaways
- Treasury Department has suspended enforcement of penalties for domestic companies that don’t comply with Biden’s beneficial ownership information reporting requirements
- The Biden-era rule would have forced an estimated 32.6 million small businesses to report personal information to the federal government
- The regulation will still apply to foreign entities, maintaining oversight where it’s most needed
- President Trump characterized the rule as “an absolute disaster for Small Businesses Nationwide”
- Treasury Secretary Scott Bessent called the suspension “a victory for common sense” and part of Trump’s agenda to reduce regulatory burdens
Trump Administration Dismantles Burdensome Small Business Regulation
The Treasury Department has announced it will no longer enforce penalties against small businesses that fail to comply with the Biden administration’s Corporate Transparency Act requirements. This regulation, implemented under the previous administration, mandated that millions of small business owners report their personal information to the federal government’s Financial Crimes Enforcement Network (FinCEN). The rule specifically targeted businesses with fewer than 20 employees, requiring owners to submit sensitive personal data including names, birth dates, addresses, and identification numbers.
The Treasury Department, now under President Trump’s direction, has determined that the rule placed an unreasonable burden on American entrepreneurs. Secretary of the Treasury Scott Bessent emphasized that while the regulation will remain on the books temporarily, American businesses can now disregard it without fear of penalties. The department is currently finalizing an emergency regulation that will formally suspend the rule for domestic companies, while maintaining requirements for foreign entities that pose a higher risk for illicit financial activities.
Presidential Support for Small Business Owners
President Trump, who has consistently championed entrepreneurs throughout his administration, celebrated the suspension of what he called an “outrageous and invasive” reporting requirement. The rule, which would have affected an estimated 32.6 million small businesses across America, represented exactly the type of regulatory overreach the Trump administration has vowed to eliminate. Trump has long maintained that excessive government regulation stifles economic growth and places unfair burdens on the business community.
“This Biden rule has been an absolute disaster for Small Businesses Nationwide. The economic menace of BOI reporting will soon be no more.” – President Donald Trump
While the Biden administration had claimed the regulatory burden would be minimal, costing about $85 per business, critics argued that the true cost came in the form of compliance time, paperwork, and potential legal exposure. The National Small Business Association described the reporting requirements as “a massive burden” and had called for legislative solutions that would address money laundering concerns without harming legitimate small businesses. Over 100,000 businesses had already filed their information before the enforcement suspension was announced.
Treasury Department Prioritizes American Business Interests
Secretary Bessent clarified that the Treasury’s action represents a strategic shift in priorities, not an abandonment of anti-money laundering efforts. The department will continue to enforce the reporting requirements for foreign entities, which present a higher risk profile for illicit financial activities. This targeted approach allows the government to maintain necessary financial oversight while eliminating unnecessary burdens on American entrepreneurs who form the backbone of our economy.
“This is a victory for common sense. Today’s action is part of President Trump’s bold agenda to unleash American prosperity by reining in burdensome regulations, in particular for small businesses that are the backbone of the American economy.” – U.S. Secretary of the Treasury Scott Bessent
Senator Tim Scott, who had previously introduced legislation to extend the reporting deadline, praised the Treasury’s decision. Scott had consistently argued that small businesses needed protection from unclear and unnecessarily complicated regulations that divert their attention and resources away from serving customers and growing their operations. The Trump administration’s decisive action goes beyond a mere deadline extension, providing complete relief from the regulatory burden for American businesses.
A Win for American Entrepreneurs
The suspension of the Corporate Transparency Act enforcement represents a significant policy shift that aligns with President Trump’s broader economic agenda. Since taking office, the administration has systematically identified and eliminated regulations that hamper business growth and job creation. This latest action provides immediate relief to millions of small business owners who would have otherwise faced complicated reporting requirements and potential penalties for non-compliance. By focusing enforcement efforts on foreign entities, the Treasury Department maintains necessary financial oversight while protecting American entrepreneurs.
The Treasury’s decision received immediate praise from business advocacy groups that had long opposed the reporting requirements. These organizations had argued that the rule created redundant paperwork, raised serious privacy concerns, and diverted resources away from business operations. With the enforcement suspension now in place, American entrepreneurs can refocus on what they do best – creating jobs, serving customers, and driving economic growth across the nation.
