DUMP Red Tape Act
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The bill would require the Small Business Administration's Office of Advocacy to set up a permanent "Red Tape Hotline" so small businesses can report burdensome federal rules, guidance, or agency actions.
The office would then have to analyze the complaints and report annually to Congress and the SBA on which agencies and rules draw the most complaints, giving small businesses a formal channel to flag regulatory burdens.
What this bill would do
What it would do
The bill would direct the Chief Counsel for Advocacy of the Small Business Administration to establish, operate, and maintain a hotline — the "Red Tape Hotline" — within 180 days of enactment. Small entities could use an email address, submission form, phone number, or other method to notify the office about the burden of complying with a rule, guidance, policy statement, or other activity of a federal agency, and the office would have to maintain an accessible website listing these submission options.
Starting one year after enactment and annually thereafter, the Chief Counsel would have to report to the SBA Administrator and Congress on the notifications received, including the most frequently cited rules and industries, a breakdown by entity type and geography, the agencies responsible, recommendations for reducing burdens, and a summary of actions the Chief Counsel has taken in response.
Key provisions
- 1Would require the Chief Counsel for Advocacy to establish, operate, and maintain a Red Tape Hotline within 180 days of enactment
- 2Would require creation of an email address, submission form, phone number, or other method for small entities to submit notifications
- 3Would require an accessible public website listing the hotline's submission methods
- 4Would require an annual report to the SBA Administrator and Congress on notifications received, affected agencies, and recommendations to reduce burdens
Who would be affected
Small businesses and other small entities that deal with federal regulatory compliance, the Small Business Administration's Office of Advocacy, which must build and staff the hotline, and federal agencies whose rules or guidance are flagged and who receive recommendations for reducing regulatory burdens.
Why it matters
Small businesses would gain a direct, formal channel to flag regulations they find overly burdensome, potentially giving their complaints more visibility with Congress and the agencies involved. The annual report would create a public record identifying which agencies and rules draw the most complaints, which could inform future regulatory or oversight action.
What would change
Changes to existing law
Amends Section 203 of Public Law 94-305 (15 U.S.C. 634c) (Sec. 2)
Adds a new subsection requiring the Chief Counsel for Advocacy to establish a Red Tape Hotline and submit annual reports on it
Agencies directed to act
Effective dates
- Deadline to establish the Red Tape Hotline
- Deadline for the first annual report on the hotline
How implementation would work
The Chief Counsel for Advocacy must build the hotline's infrastructure — a phone number, email address, submission form, and public website — within 180 days of enactment. Small entities submit complaints about specific rules, guidance, or agency activities. Starting one year after enactment, the office compiles submissions into an annual report to the SBA Administrator and Congress, identifying frequently cited rules and agencies, summarizing complaint demographics, and detailing any comments or analysis the office has already submitted to those agencies. The report also includes non-binding recommendations for agencies to reduce burdens.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill establishes a requirement for the Office of Advocacy of the Small Business Administration (SBA) to continue to operate and maintain the Red Tape Hotline, which receives notifications from small entities about the burden of complying with applicable rules, guidance, policy statements, or other activities of a federal agency.
The office must report annually to the SBA and Congress information about the notifications received through the hotline.
Legislative subjects
Administrative law and regulatory procedures; Commerce; Congressional oversight; Government information and archives; Government studies and investigations; Small Business Administration
Committee report
H. Rept. 119-383