Technical corrections only. The differences between v3 and v4 are limited to procedural updates reflecting the bill's passage in the House and referral to the Senate, including the addition of the Senate referral information and the name of the House Clerk. There are no substantive policy changes to the bill's text.
DUMP Red Tape Act
- Sponsor
- Rep. Wied, Tony [R-WI-8]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Dec 4, 2025
Bottom line
The DUMP Red Tape Act creates a formal mechanism for small businesses to report burdensome federal regulations directly to the SBA's Chief Counsel for Advocacy, aiming to identify and reduce regulatory hurdles.
What it actually does
This bill directs the Chief Counsel for Advocacy of the Small Business Administration (SBA) to establish a 'Red Tape Hotline' within 180 days of enactment. This hotline will allow small entities to report burdensome agency rules, guidance, policy statements, or other activities. The Chief Counsel is also required to submit annual reports to the SBA Administrator and Congress summarizing these notifications and providing recommendations for reducing regulatory burdens.
Proponents argue
Proponents argue that this bill provides a crucial, direct channel for small businesses, who are often disproportionately affected by regulatory burdens, to voice their concerns. They contend it will increase transparency regarding which regulations are most problematic and empower the SBA's Chief Counsel for Advocacy to make targeted recommendations for regulatory reform, fostering a more business-friendly environment and economic growth.
Opponents contend
Opponents might argue that while the intent is good, the hotline could become an administrative burden for the SBA without leading to significant, tangible regulatory relief. They may also express concern that it could be used to challenge necessary regulations or become a platform for unsubstantiated complaints, potentially politicizing the regulatory review process rather than genuinely streamlining it.
The bill is very short and clearly written, making it highly accessible for any reader to understand its core provisions quickly.
Section 2
Establishment of Red Tape Hotline and Annual Reporting
This section mandates the Chief Counsel for Advocacy of the Small Business Administration to create and maintain a 'Red Tape Hotline' within 180 days. Small businesses can use this hotline, via email, web form, or phone, to report federal agency rules, guidance, or activities they find burdensome. Annually, the Chief Counsel must report to Congress and the SBA Administrator, detailing the most frequent complaints, affected industries, responsible agencies, recommendations for burden reduction, and actions taken by the Chief Counsel.
Supporters argue
Supporters argue this provision directly addresses a long-standing complaint from small businesses about the difficulty of navigating and influencing federal regulations. By centralizing feedback and mandating public reporting, it creates accountability and a clear pathway for identifying and potentially rectifying regulatory overreach or inefficiency, thereby stimulating economic activity.
Critics contend
Critics might contend that while well-intentioned, this provision could create an additional layer of bureaucracy without guaranteeing substantive change. They may argue that the Chief Counsel's recommendations lack enforcement power, potentially leading to a system where complaints are registered but not effectively resolved, thus adding to administrative costs without delivering promised relief.
Tradeoffs
The provision balances the desire to empower small businesses with the practicalities of federal agency operations. It aims to reduce regulatory friction but introduces new administrative requirements for the SBA, and its effectiveness hinges on agencies' willingness to act on recommendations, which is not directly mandated.
The definitions for 'agency', 'rule', and 'small entity' are incorporated by reference to existing federal law (5 U.S.C. 551 and 5 U.S.C. 601).
Section 2(3)
Why it matters:This is standard legislative practice to avoid redundancy and ensure consistency with existing legal definitions, rather than an attempt to obscure information.
Case for: Using existing statutory definitions ensures legal consistency and avoids creating conflicting interpretations of key terms, streamlining the legislative process.
Case against: For a reader unfamiliar with federal administrative law, these references necessitate looking up external statutes to fully grasp the scope of the bill's applicability, adding a layer of complexity.
Estimated impact: Ensures the hotline's scope aligns with established legal frameworks for administrative procedure and small business regulation.