SBA and USDA Partner to Create New System for Reporting Costly Federal Regulations

WASHINGTON — The U.S. Small Business Administration and the U.S. Department of Agriculture signed a Memorandum of Understanding on July 2, 2026, establishing a new formal partnership aimed at combating what the agencies term "lawfare" against farmers, ranchers, and small businesses. The agreement creates a centralized system for producers to report federal regulations they find to be costly or abusive, with the goal of identifying patterns that can lead to broader deregulatory reform.

This joint effort by the SBA and USDA addresses a long-standing pain point for many small businesses, particularly those in heavily regulated sectors like agriculture where compliance costs can stifle growth and innovation.

Under the terms of the MOU, the USDA will now operate a centralized "lawfare portal" on its website to receive complaints from businesses and individuals. According to the announcement, these submissions can involve any federal agency, not just the USDA. The department will then share these complaints with the SBA’s Office of the National Ombudsman for case management and coordination. Matters involving the USDA will be handled internally through the department's designated channels, while complaints involving other federal agencies will be referred by the SBA to the appropriate bodies for resolution.

The initiative is designed to give producers a direct line to federal agencies to report rules they believe are driving up costs and harming productivity. The USDA defines "agricultural lawfare" on its portal page as "the use of administrative, legal, and legislative government systems to adversely impact farmers, ranchers, and agricultural producers." The agency notes that this can take the form of excessive red tape, prohibitive permitting processes, the use of litigation to deter agricultural activity, and egregious civil or criminal penalties.

In a statement, SBA Administrator Kelly Loeffler said that farmers and ranchers have faced a "growing burden from costly federal regulations," which she said can be "crushing generational businesses that lack the time, money, or legal resources to fight back." The new partnership, she added, provides "a new infrastructure to deliver lasting regulatory reform."

While a portal for reporting regulatory overreach is a welcome development, its effectiveness will depend entirely on the follow-through from federal agencies. In our experience, regulatory compliance is not just a nuisance; it is a significant financial and operational drain that can divert capital and management attention away from core business activities. We have seen businesses delay expansion or hiring due to uncertainty and the high cost of navigating complex rules. This new system creates a data stream, but businesses still need a proactive strategy. It is crucial for owners to understand their specific risk exposures and build resilient processes. This is a core component of the financial risk management services we provide at C&S Finance Group LLC at csfinancegroup.com, where we help clients quantify these burdens and develop strategies to mitigate them before they become critical threats.

The MOU goes beyond resolving individual complaints. It authorizes the SBA to analyze the aggregate data collected through the portal to identify "recurring lawfare practices" and systemic regulatory issues that may be "disproportionate, inconsistent, or abusive." This analysis is intended to inform future deregulatory actions and broader policy reforms across the federal government. The partnership is a key component of the USDA's "Farmer and Rancher Freedom Framework," which aims to protect property rights and shield agricultural businesses from what the administration calls "weaponized regulation."

U.S. Secretary of Agriculture Brooke L. Rollins announced the partnership as a way to build a "government-wide shield against lawfare." The agencies emphasized that the initiative is meant to ensure that small-business owners do not have to stand alone against what they perceive as abusive or unfair enforcement practices.

Ultimately, the success of this program will be measured not by the number of complaints filed, but by the number of burdensome rules that are simplified or eliminated, leading to tangible cost savings and reduced operational friction for the businesses that form the backbone of the U.S. economy.

Moving forward, business owners and industry groups will be watching to see how efficiently the new joint complaint resolution workflow operates. The volume and nature of submissions to the USDA Lawfare Portal in the coming months will provide an early indication of the most pressing regulatory concerns for the agricultural sector. The true test of the initiative, however, will be whether the data analysis by the SBA leads to concrete proposals for regulatory change and a measurable reduction in compliance burdens.