DUMP Red Tape Act
- 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
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.
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.