[HamsterDan]

This change neither increases nor decreases the size of the government, so it's unclear how you think "party of small government" is relevant here.

[const_cast]

Colloquially, when people say "large government" they refer to the level and breadth of regulation, aka restrictions on private actors. This restricts private actors, so colloquially we say it made the government larger.

[Jensson]

This reduces government regulations on contracts, not increases, a wider range of private contracts are allowed now hence this results in "smaller government".

If you mean this makes private corporations gain leverage over workers, sure, but that isn't what "large government" means.

[hydrogen7800]

"Size" can be power, not just headcount.