The Capitol LedgerEvery move in Congress, on the record
HomeBillsRecordsLedger AI

The Capitol Ledger

Built from the Congressional Record and Congress.gov. Every summary links to its source.

AboutFAQFeedbackTerms of ServicePrivacy Policy
Follow us onlineInstagram

Summaries are AI-generated from primary sources. Verify anything important against the original record.

The Capitol Ledger

Built from the Congressional Record and Congress.gov. Every summary links to its source.

The projectAboutFAQFeedback
LegalTerms of ServicePrivacy Policy
Follow us onlineInstagram

Summaries are AI-generated from primary sources. Verify anything important against the original record.

All bills
S. 4674·119th Congress·Introduced Jun 3, 2026

DUMP Red Tape Act

IntroducedCommerceSubstantive
View bill text
Sponsor
Sen. Scott, Rick [R-FL]
Committees
Small Business and Entrepreneurship Committee (primary)
Last action
Jun 3, 2026

Bottom line

The DUMP Red Tape Act establishes a formal hotline and reporting mechanism within the SBA for small businesses to report federal regulatory burdens, aiming to increase accountability and potentially streamline regulations.

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 serve as a dedicated channel for small entities to report burdensome federal agency rules, guidance, policy statements, or other activities. The Chief Counsel is also mandated to submit annual reports to Congress and the SBA Administrator, summarizing the notifications received, identifying the agencies and rules involved, and providing recommendations for reducing regulatory burdens on small entities.

Proponents argue

Supporters argue that this hotline will provide a crucial, centralized mechanism for small businesses to directly communicate the real-world impact of federal regulations, fostering greater transparency and accountability for agencies. They contend it will empower small entities by giving them a clear voice in identifying and addressing unnecessary 'red tape,' ultimately reducing compliance costs and stimulating economic growth.

Opponents contend

Critics might argue that existing channels for regulatory feedback, such as public comment periods and direct engagement with agency ombudsmen, already exist, and this hotline could simply duplicate efforts or become an inefficient repository for complaints without leading to substantive regulatory reform. They may also express concern that it could be used to disproportionately target regulations designed to protect public health, safety, or the environment.

The bill is exceptionally short and clearly written, making it very accessible for any reader to understand its provisions quickly.

Section 2, amending 15 U.S.C. 634c

Establishment and Operation of the Red Tape Hotline

prominently featuredstraightforward

This provision mandates the Chief Counsel for Advocacy of the Small Business Administration to establish, operate, and maintain a "Red Tape Hotline" within 180 days of the bill's enactment. The hotline will receive notifications from small entities regarding the burden of complying with federal agency rules, guidance, policy statements, or other activities. The Chief Counsel must provide an email address, submission form, phone number, and a publicly accessible website for these notifications. Additionally, the Chief Counsel is required to submit annual reports to Congress and the SBA Administrator, detailing the most frequently cited rules, a summary of notifications, identification of responsible agencies, recommendations for burden reduction, and actions taken by the Chief Counsel.

GroupImpactMechanismScale
GroupSmall entities (businesses, non-profits, local governments)ImpactProvides a direct and formal channel to report perceived regulatory burdens to a federal advocate.MechanismSubmission via hotline, email, web form.ScalePotentially affects any small entity subject to federal regulations.
GroupFederal agenciesImpactIncreased scrutiny and public accountability regarding the impact of their rules and activities on small entities.MechanismAnnual reports to Congress will identify agencies and recommend changes, potentially leading to pressure for reform.ScaleAffects all agencies issuing rules or guidance impacting small entities.
GroupChief Counsel for Advocacy of the Small Business AdministrationImpactNew statutory mandate to establish and operate the hotline, collect data, analyze feedback, and produce annual reports.MechanismDirect legislative directive.ScaleSignificant operational and reporting responsibilities for the Office of Advocacy.

Supporters argue

Supporters argue that this provision creates a vital feedback loop, ensuring that the concerns of small businesses regarding regulatory burdens are systematically collected, analyzed, and presented to policymakers. This formal process is seen as essential for identifying and addressing 'red tape' that hinders small business growth and innovation, leading to more responsive and efficient governance.

Critics contend

Critics might contend that this provision adds another layer of bureaucracy without guaranteeing actual regulatory relief, potentially diverting resources to complaint collection rather than proactive regulatory improvement. They might also argue that it could be weaponized to challenge legitimate regulations designed for public benefit, creating an imbalance in regulatory policy.

Tradeoffs

The tension lies between providing a dedicated, accessible channel for small business feedback and the potential for this channel to be overwhelmed by subjective complaints, or to become a platform for challenging necessary regulations. There is a tradeoff between the administrative cost of operating such a system and the tangible regulatory relief it might ultimately deliver.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

On this page

  • Executive summary
  • Key provisions
  • Follow the money
  • Critical analysis
  • Questions to ask
Ask Ledger AI about this