Destroying Unnecessary, Misaligned, And Prohibitive Red Tape Act
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- Crpt 119Hrpt383
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- Crpt 119Hrpt383
Summary
House Report 119–383 of the 119th Congress, 1st Session, dated November 21, 2025, submitted by the Committee on Small Business with minority views to accompany H.R. 4305, the Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act, or DUMP Red Tape Act. The committee reports the bill favorably with an amendment; as amended, it directs the Chief Counsel for Advocacy of the Small Business Administration to establish a Red Tape Hotline within 180 days and to report on it annually to the Administrator and Congress. The report states that the committee ordered the bill reported on November 18, 2025 by a roll call vote of 18 ayes to 9 nos, and that two amendments offered to the substitute failed 12 ayes to 15 nos. It includes a section-by-section analysis, required House rule statements and changes in existing law to 15 U.S.C. 634c. The minority views argue the hotline is redundant.
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119TH CONGRESS REPORT
" HOUSE OF REPRESENTATIVES !
1st Session 119–383
DESTROYING UNNECESSARY, MISALIGNED, AND
PROHIBITIVE RED TAPE ACT
NOVEMBER 21, 2025.—Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
Mr. WILLIAMS of Texas, from the Committee on Small Business,
submitted the following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 4305]
The Committee on Small Business, to whom was referred the bill
(H.R. 4305) to direct the Chief Counsel for Advocacy of the Small
Business Administration to establish a Red Tape Hotline to receive
notifications of burdensome agency rules, and for other purposes,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
I. Purpose and Bill Summary ........................................................................ 2
II. Need for Legislation .................................................................................... 2
III. Hearings ....................................................................................................... 3
IV. Committee Consideration ........................................................................... 3
V. Committee Votes ......................................................................................... 3
VI. Section-by-Section of H.R. 4305 ................................................................. 8
VII. Congressional Budget Office Cost Estimate ............................................. 8
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures 8
IX. Oversight Findings & Recommendations .................................................. 8
X. Performance Goals and Objectives ............................................................ 9
XI. Statement of Duplication of Federal Programs ........................................ 9
XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
Benefits ..................................................................................................... 9
XIII. Federal Mandates Statement ..................................................................... 9
XIV. Federal Advisory Committee Statement ................................................... 9
XV. Applicability to Legislative Branch ........................................................... 9
XVI. Statement of Constitutional Authority ...................................................... 9
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XVII. Changes in Existing Law Made by the Bill, as Reported ........................ 9
XVIII. Minority Views ............................................................................................ 14
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The amendment is as follows:
Strike all after the enacting clause and insert the following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Destroying Unnecessary, Misaligned, and Prohibi-
tive Red Tape Act’’ or the ‘‘DUMP Red Tape Act’’.
SEC. 2. ESTABLISHMENT OF RED TAPE HOTLINE.
Section 203 of Public Law 94–305 (15 U.S.C. 634c) is amended by adding at the
end the following new subsection:
‘‘(c) RED TAPE HOTLINE.—
‘‘(1) ESTABLISHMENT.—Not later than 180 days after the date of the enact-
ment of this Act, the Chief Counsel for Advocacy shall—
‘‘(A) establish, operate, and maintain a hotline, to be known as the ‘Red
Tape Hotline’ to receive a notification from a small entity relating to the
burden of complying with a rule, guidance, policy statement, or other activ-
ity of an agency that is applicable to such concern;
‘‘(B) establish an email address, submission form, phone number, or such
other method as determined appropriate by the Chief Counsel for small en-
tities to submit such notifications to such hotline; and
‘‘(C) establish a website providing such email address, submission form,
phone number, or other method in a manner that is easily accessible.
‘‘(2) REPORT.—Not later than 1 year after the date of the enactment of this
subsection, and annually thereafter, the Chief Counsel for Advocacy shall sub-
mit to the Administrator of the Small Business Administration and Congress
a report on the Red Tape Hotline that includes—
‘‘(A) the rules, guidance, policy statements, and other activities for which
notifications are most frequently received, including the affected industry
sectors for such rules, guidance, policy statements, or other activities (as
applicable);
‘‘(B) a summary of the notifications received, including the type of small
entity or other organization that submitted the notification and the geo-
graphic area and industry category from which the notification was sent;
‘‘(C) an identification of the agency that issued each such rule, guidance,
policy statement, or engaged in such other activity, including an identifica-
tion of which such rule, guidance, or policy statement such agency issued
or an explanation of which such other activity the agency engaged in, as
applicable;
‘‘(D) recommendations for each agency that issued such a rule, guidance,
policy statement, or engaged in such other activity, for reducing the burden
of such rule, guidance, policy statement, or other activity on small entities;
and
‘‘(E) a summary of actions taken by the Chief Counsel to address such
rules, guidance, policy statements, and other activities, including any such
rules, guidance, policy statements, or other activities (as applicable) for
which the Chief Counsel submitted comments or analysis.
‘‘(3) DEFINITIONS.—In this subsection—
‘‘(A) the term ‘agency’ has the meaning given such term in section 551
of title 5, United States Code; and
‘‘(B) the terms ‘rule’ and ‘small entity’ have the meanings given such
terms, respectively, in section 601 of such title.’’.
I. PURPOSE AND BILL SUMMARY
On July 10, 2025, Representative Wied introduced H.R. 4305, the
Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act
of 2025 or the DUMP Red Tape Act. H.R. 4305 directs the Chief
Counsel for the U.S. Small Business Administration Office of Advo-
cacy (Advocacy) to establish a ‘‘Red Tape Hotline’’ that allows small
businesses to submit reports of burdensome rulemakings, guidance,
and other agency actions.
II. NEED FOR LEGISLATION
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Every day, small business owners must manage federal regula-
tions that are often outdated, duplicative, or unclear as part of
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their business responsibilities. Many of these regulations are overly
burdensome, requiring high compliance costs that hurts Main
Street’s ability to grow, compete, and innovate. Advocacy serves as
a voice to support small businesses with these issues through re-
search, outreach, and regulatory efforts.
On January 31, 2025, President Trump issued Executive Orders
14192, ‘‘Unleashing Prosperity Through Deregulation’’ to ease un-
necessary regulatory burdens across the United States. In line with
the Trump Administration’s deregulatory agenda, Advocacy has
taken action to provide small businesses with more opportunities
to share the specific regulatory burdens and issues they face. On
March 10, 2025, Advocacy launched a ‘‘Red Tape Hotline,’’ an es-
sential tool for small businesses to report federal regulatory bur-
dens and how the agency activity may be impacting the small busi-
ness. The hotline further helps Advocacy compile information to as-
sess and communicate the concerns of small businesses to federal
agencies.
The DUMP Red Tape Act codifies deregulatory efforts under
President Trump’s Executive Orders by making the ‘‘Red Tape Hot-
line’’ a permanent resource for small businesses. H.R. 4305 also re-
quires Advocacy to report these submissions annually to Congress,
allowing for more effective policy making and oversight.
This bill provides American small businesses with an avenue to
share the impact that burdensome regulations have had on their
ability to start, grow, and succeed. In addition, this bill gives Con-
gress another tool to identify and address burdensome regulations
that stifle small business success.
III. HEARINGS
On April 1, 2025, the Committee on Small Business held a hear-
ing examining matters related to H.R. 4305 entitled ‘‘The Golden
Age: Unleashing Main Street Through Deregulation.’’
IV. COMMITTEE CONSIDERATION
The Committee on Small Business met in open session, with a
quorum being present, on November 18, 2025, and ordered H.R.
4305, as amended, to be reported favorably to the House of Rep-
resentatives by a roll call vote of 18 ayes to 9 nos.
V. COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of Representa-
tives requires the Committee to list the recorded votes on the mo-
tion to report legislation and amendments thereto. The Committee
voted to favorably report H.R. 4305, as amended, to the House of
Representatives at 11:49 AM.
The Committee considered the following amendments to H.R.
4305:
• Representative Wied offered an amendment in the nature
of a substitute. This amendment was adopted by voice vote.
• Representative Cisneros offered an amendment to the
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amendment in the nature of a substitute. The vote on the
amendment failed, 12 ayes to 15 nos.
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• Representative Scholten offered an amendment to the
amendment in the nature of a substitute. The vote on the
amendment failed, 12 ayes to 15 nos.
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VI. SECTION-BY-SECTION OF H.R. 4305
Section 1. Short title
This Act may be cited as the ‘‘Destroying Unnecessary, Mis-
aligned, and Prohibitive Red Tape Act’’ or the ‘‘DUMP Red Tape
Act.’’
Section 2. Establishment of Red Tape Hotline
This section requires the Chief Counsel for Advocacy to operate
and maintain an easily accessible ‘‘Red Tape Hotline’’ to receive no-
tifications from small businesses relating to the burden of com-
plying with a rule, guidance, policy statement, or other agency ac-
tivity.
Additionally, this section requires Advocacy to submit an annual
report on the Red Tape Hotline to Congress and the Administrator
of the SBA. The report must include: the specific agency activities
for which notifications are most frequently received and the af-
fected industry sectors; a summary of the notifications received in-
cluding the type of small entity, its geographic area, and industry
category; an identification of the agency and the specific rule, guid-
ance, or policy statement such agency issued or an explanation of
which such other activity the agency engaged in, as applicable; rec-
ommendations for each agency identified to reduce the burden of
such agency on small businesses; and a summary of actions taken
by the Chief Counsel to address such agency activity, including any
such rules for which the Chief Counsel submitted comments or
analysis.
VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE
Pursuant to 3(c)(3) of rule XIII of the Rules of the House of Rep-
resentatives, the Committee adopts as its own the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional Budget Act of 1974. At the
time this report was filed, the Committee has requested but not re-
ceived a cost estimate from the Director of the Congressional Budg-
et Office.
VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY,
AND TAX EXPENDITURES
Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
of Representatives and section 308(a)(I) of the Congressional Budg-
et Act of 1974, the Committee provides the following opinion and
estimate with respect to new budget authority, entitlement author-
ity, and tax expenditures. While the Committee has not received an
estimate of new budget authority contained in the cost estimate
prepared by the Director of the Congressional Budget Office pursu-
ant to section 402 of the Congressional Budget Act of 1974, the
Committee does not believe that there will be any new or increased
costs attributable to this legislation.
IX. OVERSIGHT FINDINGS & RECOMMENDATIONS
In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
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of rule X of the Rules of the House of Representatives, the over-
sight findings and recommendations of the Committee on Small
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Business with respect to the subject matter contained in H.R. 4305
are incorporated into the descriptive portions of this report.
X. PERFORMANCE GOALS AND OBJECTIVES
With respect to the requirements of clause 3(c)(4) of rule XIII of
the Rules of the House of Representatives, the goal of H.R. 4305
is to give small businesses a direct line to Advocacy to report bur-
densome regulations that are holding them back.
XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
of Representatives, no provision of H.R. 4305 is known to be dupli-
cative of another Federal program, including any program that was
included in a report to Congress pursuant to section 21 of Public
Law 111–139 or the most recent Catalog of Federal Domestic As-
sistance.
XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS,
AND LIMITED TARIFF BENEFITS
With respect to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee finds that the bill does not con-
tain any congressional earmarks, limited tax benefits, or limited
tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
the Rules of the House of Representatives.
XIII. FEDERAL MANDATES STATEMENT
The Committee will adopt as its own the estimate of the Federal
mandates prepared by the Director of the Congressional Budget Of-
fice pursuant to section 423 of the Unfunded Mandates Reform Act.
XIV. FEDERAL ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b) of the
Federal Advisory Committee Act were created by this legislation.
XV. APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to the
terms and conditions of employment or access to public services or
accommodations within the meaning of section 102(b)(3) of the Con-
gressional Accountability Act.
XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY
Pursuant to clause 7 of rule XII of the Rules of the House, the
Committee finds that the authority for this legislation in Art. I, § 8,
cl.1 of the Constitution of the United States.
XVII. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
ted is enclosed in black brackets, new matter is printed in italics,
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and existing law in which no change is proposed is shown in
roman):
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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
In compliance with clause 3(e) of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (new matter is printed in italics
and existing law in which no change is proposed is shown in
roman):
PUBLIC LAW 94-305
* * * * * * *
TITLE II—STUDY OF SMALL BUSINESS
* * * * * * *
DUTIES
SEC. 203.
(a) IN GENERAL.—The Office of Advocacy shall also perform the
following duties on a continuing basis:
(1) serve as a focal point for the receipt of complaints, criti-
cisms, and suggestions concerning the policies and activities of
the Administration and any other Federal agency which affects
small businesses;
(2) counsel small businesses on how to resolve questions and
problems concerning the relationship of the small business to
the Federal Government;
(3) develop proposals for changes in the policies and activi-
ties of any agency of the Federal Government which will better
fulfill the purposes of the Small Business Act and communicate
such proposals to the appropriate Federal agencies;
(4) represent the views and interests of small businesses be-
fore other Federal agencies whose policies and activities may
affect small business;
(5) enlist the cooperation and assistance of public and pri-
vate agencies, businesses, and other organizations in dissemi-
nating information about the programs and services provided
by the Federal Government which are of benefit to small busi-
nesses, and information on how small businesses can partici-
pate in or make use of such programs and services; and
(6) carry out the responsibilities of the Office of Advocacy
under chapter 6 of title 5, United States Code.
(b) OUTREACH AND INPUT FROM SMALL BUSINESSES ON TRADE
PROMOTION AUTHORITY.—
(1) DEFINITIONS.—In this subsection—
(A) the term ‘‘agency’’ has the meaning given the term
in section 551 of title 5, United States Code;
(B) the term ‘‘Chief Counsel for Advocacy’’ means the
Chief Counsel for Advocacy of the Small Business Admin-
istration;
(C) the term ‘‘covered trade agreement’’ means a trade
agreement being negotiated pursuant to section 103(b) of
the Bipartisan Congressional Trade Priorities and Ac-
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countability Act of 2015 (Public Law 114–26; 19 U.S.C.
4202(b)); and
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(D) the term ‘‘Working Group’’ means the Interagency
Working Group convened under paragraph (2)(A).
(2) WORKING GROUP.—
(A) IN GENERAL.—Not later than 30 days after the date
on which the President submits the notification required
under section 105(a) of the Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 (Public Law 114–
26; 19 U.S.C. 4204(a)), the Chief Counsel for Advocacy
shall convene an Interagency Working Group, which shall
consist of an employee from each of the following agencies,
as selected by the head of the agency or an official dele-
gated by the head of the agency:
(i) The Office of the United States Trade Represent-
ative.
(ii) The Department of Commerce.
(iii) The Department of Agriculture.
(iv) Any other agency that the Chief Counsel for Ad-
vocacy, in consultation with the United States Trade
Representative, determines to be relevant with respect
to the subject of the covered trade agreement.
(B) VIEWS OF SMALL BUSINESSES.—Not later than 30
days after the date on which the Chief Counsel for Advo-
cacy convenes the Working Group under subparagraph (A),
the Chief Counsel for Advocacy shall identify a diverse
group of small businesses, representatives of small busi-
nesses, or a combination thereof, to provide to the Working
Group the views of small businesses in the manufacturing,
services, and agriculture industries on the potential eco-
nomic effects of the covered trade agreement.
(3) REPORT.—
(A) IN GENERAL.—Not later than 180 days after the date
on which the Chief Counsel for Advocacy convenes the
Working Group under paragraph (2)(A), the Chief Counsel
for Advocacy shall submit to the Committee on Small Busi-
ness and Entrepreneurship and the Committee on Finance
of the Senate and the Committee on Small Business and
the Committee on Ways and Means of the House of Rep-
resentatives a report on the economic impacts of the cov-
ered trade agreement on small businesses, which shall—
(i) identify the most important priorities, opportuni-
ties, and challenges to various industries from the cov-
ered trade agreement;
(ii) assess the impact for new small businesses to
start exporting, or increase their exports, to markets
in countries that are parties to the covered trade
agreement;
(iii) analyze the competitive position of industries
likely to be significantly affected by the covered trade
agreement;
(iv) identify—
(I) any State-owned enterprises in each country
participating in negotiations for the covered trade
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agreement that could pose a threat to small busi-
nesses; and
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(II) any steps to take to create a level playing
field for those small businesses;
(v) identify any rule of an agency that should be
modified to become compliant with the covered trade
agreement; and
(vi) include an overview of the methodology used to
develop the report, including the number of small
business participants by industry, how those small
businesses were selected, and any other factors that
the Chief Counsel for Advocacy may determine appro-
priate.
(B) DELAYED SUBMISSION.—To ensure that negotiations
for the covered trade agreement are not disrupted, the
President may require that the Chief Counsel for Advocacy
delay submission of the report under subparagraph (A)
until after the negotiations for the covered trade agree-
ment are concluded, provided that the delay allows the
Chief Counsel for Advocacy to submit the report to Con-
gress not later than 45 days before the Senate or the
House of Representatives acts to approve or disapprove the
covered trade agreement.
(C) AVOIDANCE OF DUPLICATION.—The Chief Counsel for
Advocacy shall, to the extent practicable, coordinate the
submission of the report under this paragraph with the
United States International Trade Commission, the United
States Trade Representative, other agencies, and trade ad-
visory committees to avoid unnecessary duplication of re-
porting requirements.
(c) RED TAPE HOTLINE.—
(1) ESTABLISHMENT.—Not later than 180 days after the date
of the enactment of this Act, the Chief Counsel for Advocacy
shall—
(A) establish, operate, and maintain a hotline, to be
known as the ‘‘Red Tape Hotline’’ to receive a notification
from a small entity relating to the burden of complying
with a rule, guidance, policy statement, or other activity of
an agency that is applicable to such concern;
(B) establish an email address, submission form, phone
number, or such other method as determined appropriate
by the Chief Counsel for small entities to submit such noti-
fications to such hotline; and
(C) establish a website providing such email address,
submission form, phone number, or other method in a man-
ner that is easily accessible.
(2) REPORT.—Not later than 1 year after the date of the enact-
ment of this subsection, and annually thereafter, the Chief
Counsel for Advocacy shall submit to the Administrator of the
Small Business Administration and Congress a report on the
Red Tape Hotline that includes—
(A) the rules, guidance, policy statements, and other ac-
tivities for which notifications are most frequently received,
including the affected industry sectors for such rules, guid-
ance, policy statements, or other activities (as applicable);
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(B) a summary of the notifications received, including the
type of small entity or other organization that submitted
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the notification and the geographic area and industry cat-
egory from which the notification was sent;
(C) an identification of the agency that issued each such
rule, guidance, policy statement, or engaged in such other
activity, including an identification of which such rule,
guidance, or policy statement such agency issued or an ex-
planation of which such other activity the agency engaged
in, as applicable;
(D) recommendations for each agency that issued such a
rule, guidance, policy statement, or engaged in such other
activity, for reducing the burden of such rule, guidance,
policy statement, or other activity on small entities; and
(E) a summary of actions taken by the Chief Counsel to
address such rules, guidance, policy statements, and other
activities, including any such rules, guidance, policy state-
ments, or other activities (as applicable) for which the Chief
Counsel submitted comments or analysis.
(3) DEFINITIONS.—In this subsection—
(A) the term ‘‘agency’’ has the meaning given such term
in section 551 of title 5, United States Code; and
(B) the terms ‘‘rule’’ and ‘‘small entity’’ have the meanings
given such terms, respectively, in section 601 of such title.
* * * * * * *
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XVIII. MINORITY VIEWS
On March 10, 2025, U.S. Small Business Administration (SBA)
Administrator Loeffler announced an initiative, which would ‘‘cut
$100 billion in regulations through the Office of Advocacy (Advo-
cacy), launch a ‘‘Red Tape Hotline’’ for small businesses to share
feedback and submit burdensome regulations for review, among
other things.1 According to the SBA, the ‘‘Red Tape Hotline’’ would
give small businesses another mechanism to report regulations
that are costly, confusing, duplicative or outdated. Between Janu-
ary 20, 2025, and April 29, 2025, the ‘‘Red Tape Hotline’’ received
96 small business requests and Advocacy is communicating those
issues to federal agencies.2 Despite repeated requests for more spe-
cific information on the submissions, Advocacy has not shared the
topic or content with the Committee.
The Trump Administration has made rolling back regulations a
priority, and many of the proposals trace back to Project 2025.3
These Project 2025 proposals would bring the regulatory process to
a standstill, harming the health, safety, and welfare of Americans
and small businesses alike. Blanket deregulation creates confusion
and uncertainty for small business stakeholders, imposes steep
costs and ultimately hinders economic growth across multiple in-
dustries. I acknowledge poorly crafted regulations can be onerous
and burdensome for small businesses; however, it is important to
find ways to balance the shared goal of minimizing the burdens
and achieving the intended effects of regulations.
The main points of concern with the ‘‘DUMP Red Tape Act’’ are:
• The Title of the Legislation. The ‘‘DUMP Red Tape Act’’ in-
fers that regulations are inherently harmful to small busi-
nesses. The Coalition for Sensible Safeguards writes, the ‘‘one-
sided nature of this bill creates the impression that it is more
focused on advancing an ideological attack on regulations than
actually helping small businesses.’’ 4
• Lack of Transparency. The information required in the re-
port to Congress would not include the type of organization
submitting the notification to the hotline. To that end, there
would be no assurances that the individual or small business
submitting the complaint is actually a small business or a
business that has had the assistance of a trade association or
law firm who represents larger clients, with the intent of tor-
pedoing the regulation. In 2014, the U.S. Government Account-
1 Press Release, U.S. SMALL BUS. ADMIN., SBA Announces Made in America Initiative (Mar.
10, 2025), https://www.sba.gov/article/2025/03/10/sba-announces-made-america-manufacturing-
initiative.
2 OFF. OF ADVOC., First 100 Days, U.S. SMALL BUS. ADMIN. (Apr. 2025), https://
advocacy.sba.gov/wp-content/uploads/2025/04/First-100-Days_FINAL.pdf.
3 Mandate for Leadership: The Conservative Promise, THE HERITAGE FOUND. (2024).
4 Letter from Rachel Weintraub, Exec. Dir., COAL. FOR SENSIBLE SAFEGUARDS, to Roger Wil-
liams, Chair, H. COMM. ON SMALL BUS., & Nydia M. Velázquez, Ranking Member, H. COMM.
ON SMALL BUS. (Nov. 18, 2025) (on file with the H. COMM. ON SMALL BUS.).
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(14)
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15
ability Office (GAO) issued a scathing report that found Advo-
cacy lacked policies for documentation and maintaining
records. In response to the report, Advocacy wrote that the Of-
fice will continue to develop how they disseminate information
about regulatory activities in ways that are both responsive to
the GAO’s recommendations and the furtherance of Advocacy’s
mission.5 During oversight meetings with Committee staff and
the Office, Advocacy stated the Office has a process in place,
whereby the business self identifies as a small business, after
which the counsels conduct research into applicable industry
NAICS code and corresponding size standard revenue to verify
the claim.6
• Focuses Only on ‘‘Burdensome’’ Regulations. According to
the site, the ‘‘Red Tape Hotline’’ gives ‘‘small businesses own-
ers a direct way to report federal regulations that hurt their
ability to grow, compete, or innovate.’’ The message is very
one-sided, asking small business owners to describe regulations
that are confusing, costly or outdated; result in permitting or
licensing delays; are duplicative of conflicting rules; or result
in excessive paperwork or unclear guidance. It does not encour-
age small businesses to report on regulations that are bene-
ficial to their small entity, in terms of leveling the playing
field, promoting innovation, or providing clear rules of the
road. In the letter from the Coalition on Sensible Safeguards,
Ms. Rachel Weintraub further states: 7
Small businesses do not always oppose regulations or de-
sire to see them weakened. In fact, small businesses often
support regulations because they provide a level playing
field on which to compete with larger corporations that
would otherwise dominate the market. Small businesses
also tend to support agency guidance and policy documents
that provide plain-language explanations on what is ex-
pected to reduce hazards and avoid citations and penalties.
In addition, small businesses already receive unique oppor-
tunities to provide input on rules and other actions that
the public does not receive. Yet this bill seeks only infor-
mation from some small businesses about so-called bur-
dens, rather than seeking to understand how regulations
affect small businesses—both the good and bad.
• Lack of Information. Despite two specific requests at the
Committee staff level for information pertaining to the types of
requests that small businesses are sharing on the hotline, Ad-
vocacy has failed to provide the information. The submissions
could be related to tariffs and unpaid contracting invoices, in-
stead of rules. But the Committee lacked the information, and
the measure was rushed to mark-up without adequate informa-
5 U.S. GOV’T ACCOUNTABILITY OFF., GAO–14–525, SMALL BUSINESS ADMINISTRATION: OFFICE
OF ADVOCACY NEEDS TO IMPROVE CONTROLS OVER RESEARCH, REGULATORY, AND WORKFORCE
PLANNING ACTIVITIES (Jul. 2014), https://www.gao.gov/assets/gao-14-525.pdf.
6 Meeting with Hon. Casey B. Mulligan, Chief Couns., OFF. OF ADVOC., Stephanie Fekete, Dir.
of Interagency Affs., OFF. OF ADVOC., and Committee staff at H. COMM. ON SMALL BUS., in D.C.
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(Sept. 11, 2025).
7 Weintraub, supra note 4.
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tion to ensure changes are made that could improve the hot-
line.
• Message is Misleading. And the messaging from the Ad-
ministration suggesting that Advocacy is ‘‘empowered by law to
work across federal agencies to identify and eliminate rules,
policies, and procedures that disproportionately burden small
businesses and manufacturers’’ is misleading. Advocacy’s role
is to be the voice of small businesses throughout the regulatory
process, not to be an anti-regulatory czar.
• Lack of Independence From the SBA. Advocacy is an inde-
pendent office within the SBA that is responsible for advancing
the views and concerns of small businesses before Congress,
the White House, federal agencies, the federal courts, and state
and local policymakers as appropriate.8 The independence
stemmed from concerns that SBA’s Administrator reports to
the Office of Management and Budget (OMB) and at the time
was more attuned to the interests of large businesses. Con-
gress responded by passing P.L. 94–305 to enhance the Chief
Counsel’s authority by requiring Advocacy to be established as
a separate, standalone office within the SBA and requiring the
Chief Counsel to be appointed from civilian life by and with
the advice and consent of the Senate. The Small Business Jobs
Act of 2010 required a separate appropriations account for Ad-
vocacy, further enhancing its independence by requiring a sep-
arate budget and also office space, and equipment.9 Despite
the intent for independence, I believe Administrator Loeffler
has blurred the lines between the role of the SBA and the Of-
fice of Advocacy, by stating it will work with the Office of Ad-
vocacy to identify areas for deregulation to reduce unneeded
burden on small businesses. Moreover, it is the Committee’s
understanding that the SBA created and is now managing the
hotline on Advocacy’s website.
• Hotline is Redundant. Advocacy has main webpage with
the names and contact information of the counsels for specific
rules. The Office also has regional advocates in 10 regions who
identify issues and concerns of small businesses. Moreover,
there is already an anti-regulation hotline on regulations.gov.
The hotline is duplicative and redundant, especially as the gov-
ernment looks to be more efficient with taxpayer funds.
Small businesses need certainty, and the Trump Administration’s
actions are causing a tremendous amount of chaos, confusion, and
unpredictability for small businesses. Democratic Members have
sent letters to Administrator Loeffler regarding the Department of
Government Efficiency (DOGE) infiltrating SBA headquarters, staff
terminations, federal funding freeze, the relocation of six regional
offices, and tariffs. No substantive responses have been received for
any letter. Similarly, Medicaid and health care cuts and tariffs are
8 OFF. OF ADVOC., Background Paper: Office of Advocacy 2017–2020, U.S. SMALL BUS. ADMIN.
(Jan. 2021), https://advocacy.sba.gov/wp-content/uploads/2021/02/Background-Paper-Office-of-
Advocacy-2017-2020-web.pdf.
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9 CONG. RSCH. SERV., R43625, SBA OFFICE OF ADVOCACY: OVERVIEW, HISTORY, AND CURRENT
ISSUES (Mar. 30, 2022), https://www.congress.gov/crs-product/R43625.
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17
actively harming America’s main streets by reducing the workforce
and increasing operating costs.
NYDIA M. VELÁZQUEZ,
Ranking Member.
Æ
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