While the Samantha Smith injunction continues to pause BOI reporting requirements, a new legislative challenge to the Corporate Transparency Act has emerged in the Senate. Let's analyze this development and its realistic chances of success.

Repealing Big Brother Overreach was first introduced by Representative Warren Davidson in the 118th Congress on April 29, 2024 wherein it was referred to the House Committee on Financial Services. However, it did not go through the committee and failed to become a law.

Thereafter, Senator Tommy Tuberville, introduced a companion bill on May 9, 2024 and went to Senate Committee on Banking, Housing and Urban Affairs. It went into two readings but it suffered the same fate since in the end of the 118th Congress on January 3, 2025, the bill did not advance beyond the committee stage and thus did not become law.

On January 15, 2025, Senator Tuberville reintroduced the Repealing Big Brother Overreach Act. As of the present, the current bill has garnered support from 21 senators and the companion bill that was reintroduced has 66 house co-sponsors.

Contents of the Bill

The Repealing Big Brother Overreach Act aims to repeal the Corporate Transparency Act (CTA), which requires small businesses to report ownership details to the government. Authors of the bill argue that small business owners need less government regulation and not more. Requirements imposed by the CTA requires that they must share personal data or pay a fine and spend time in jail does nothing but stifle increased economic growth. By repealing the law, the bill aims to take the pressure off small businesses, letting them focus on running their operations instead of dealing with more regulations.

By repealing the CTA, the authors seek to reduce government intervention, protect business owners' privacy, and remove the administrative burden that they believe stifles entrepreneurship. They also argue that it is an overstep of federal authority and that it harms the privacy and freedom of American business owners.

Understanding the Political Landscape

The bill has garnered support exclusively from Republican senators, reflecting the partisan divide on corporate transparency requirements. While Republican control of the Senate might suggest favorable conditions for the bill, the path to actual repeal faces significant challenges.

The Numbers Game: Why Repeal Faces an Uphill Battle

To understand why this repeal effort likely faces significant challenges, let's look at the numbers:

Standard Bill Passage Requirements –

House: 218 votes (simple majority of 435)

Senate: 51 votes (simple majority of 100)

After a bill has passed from both Congress, a bill should be signed by the President of the United States to become a law. A veto power is given to the president if he does not want a law to be passed. Nevertheless, the Congress is given the power to override the veto of the President provided the following votes are reached:

Veto Override Requirements

- House: 290 votes (two-thirds of the majority)

- Senate: 67 votes (two-thirds of the majority)

Historical Context Matters

The Corporate Transparency Act's history provides important context. The law was initially enacted as part of the National Defense Authorization Act for Fiscal Year 2021 (Public Law 116-283) and notably survived a presidential veto attempt.

This required:

- Securing two-thirds majority in both chambers

- Demonstrating strong bipartisan support

- Overcoming executive branch opposition

Why This Matters

The CTA's previous survival of a presidential veto is particularly significant because it demonstrated the law could command supermajority support in both chambers - the same threshold that would likely be needed for any repeal effort to succeed over potential presidential opposition.

However, it is important to note that the Corporate Transparency Act is only included in the National Defense Authorization Act. It is not a separate law but merely an addition to the said law. Hence, the overriding of the veto cannot be solely attributed to the Corporate Transparency Act alone but to the whole National Defense Authorization Act.

Looking Forward

While the introduction of the "Repealing Big Brother Overreach Act" represents continued opposition to the CTA's reporting requirements, the mathematical reality of legislative process suggests its path to success remains narrow. The fact that the CTA previously survived a presidential veto - requiring those higher two-thirds thresholds in both chambers - indicates a level of bipartisan support that would be difficult to overcome with a simple repeal effort.

Bridge to BOI continues to monitor these legislative developments while helping businesses prepare for eventual BOI compliance requirements. Follow us at Bridge to BOI for updates as this situation evolves.