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ASA, along with National Federation of Independent Business (NFIB), sent a letter to House and Senate leadership backing an amendment to the Fiscal Year 2027 National Defense Authorization Act (H.R. 8800) offered by Reps. Davidson (R-OH) and Fischbach (R-MN) Amendment 1223 would codify a federal exemption from beneficial ownership information (BOI) reporting requirements for U.S. small businesses and eliminate associated reporting obligations.

The BOI mandate, enacted in the 2021 NDAA, currently applies to approximately 32.6 million small businesses. Supporters of the amendment argue that recent regulatory changes by the Treasury Department have already exempted American small businesses from the requirement and that Congress should make that exemption permanent through legislation.

In March 2025, the Treasury Department issued an interim final rule exempting U.S. small businesses from BOI reporting requirements, an action the administration characterized as a major deregulatory step. Supporters of the policy estimate it reduced compliance costs by more than $128 billion. However, advocates of codification argue that without congressional action, the exemption could be reversed by future administrations, reinstating reporting obligations and associated penalties.

The House Financial Services Committee has already advanced legislation that would codify the exemption and direct the Financial Crimes Enforcement Network (FinCEN) to eliminate previously collected BOI data for affected U.S. businesses. The Davidson and Fischbach amendment would incorporate similar language directly into the NDAA.