Red Tape Hotline for Small Firms

Full Title:
DUMP Red Tape Act

Summary#

This bill requires the Small Business Administration’s Chief Counsel for Advocacy to create and run a “Red Tape Hotline.” The hotline will let small entities report burdens from agency rules, guidance, policy statements, or other agency actions. The bill also requires an annual report to Congress and the SBA Administrator describing what is reported and recommending ways to reduce burdens.

  • Main change: adds a new duty for the Chief Counsel to establish, operate, and publicize a Red Tape Hotline within 180 days.
  • The hotline must accept reports by email, form, phone, or other methods and have an easy-to-find website.
  • The Chief Counsel must deliver the first report within one year, then yearly, listing frequent complaints, the affected industries and agencies, recommendations to reduce burdens, and actions the Chief Counsel took.
  • The report must identify which agency issued each rule or guidance and summarize who submitted complaints and where they came from.
  • The bill does not direct agencies to change rules automatically or create penalties.

What it means for you#

  • Small businesses and small non‑profits (called “small entities” in the bill):

    • You can submit complaints to the Red Tape Hotline about the cost or difficulty of following a federal rule, guidance, policy statement, or other agency activity.
    • Your report will be included in an annual summary that may lead to recommendations for reducing burdens.

  • Small Business Administration — Office of Advocacy (Chief Counsel for Advocacy):

    • Must create and run the hotline and maintain a public website with contact methods.
    • Must collect and summarize notifications and produce annual reports with recommendations and a summary of any actions the office took.

  • Federal agencies:

    • The report will identify which agency issued the rules or guidance that generated complaints.
    • The bill does not require agencies to adopt the office’s recommendations or to respond in any particular way.

  • Congress and the SBA Administrator:

    • Will receive an annual report describing trends, affected industries, agencies involved, and proposed burden‑reduction steps.

  • General public:

    • The bill could increase transparency about which rules or guidance cause compliance problems for small entities.
    • What is unclear: whether submissions are confidential, how the office will verify claims, or whether the hotline triggers formal review of rules.

  • Timing:

    • Hotline must be established within 180 days of the bill becoming law.
    • First report is due within 1 year, then annually.

Expenses#

No publicly available information.

  • The bill text does not include a fiscal estimate or budget numbers.
  • This would likely increase administrative costs for the Office of Advocacy to set up and run a hotline, maintain a website, handle submissions, and prepare annual reports.
  • Agencies identified in reports may need staff time to respond informally to inquiries that result from the report.
  • The bill does not create new fines or fees.

Proponents' View#

  • The bill appears intended to make it easier for small entities to report burdens from federal rules and guidance.
  • Supporters may argue that a dedicated hotline will surface common regulatory problems across industries and locations.
  • This could be seen as improving transparency by producing public annual reports that name agencies and affected sectors.
  • The office’s recommendations might help agencies reduce unnecessary costs or paperwork for small entities.
  • A hotline is a relatively low‑cost way to gather real‑world information about compliance burdens.

Opponents' View#

  • One concern is that the bill does not require agencies to act on the Chief Counsel’s recommendations, so the hotline may have limited practical effect.
  • The bill does not explain how the Office of Advocacy will verify or investigate complaints, which may raise questions about accuracy.
  • There is a risk of increased administrative burden on the Office of Advocacy without a clear funding source.
  • The process could invite large numbers of informal or duplicative complaints that are hard to sort and prioritize.
  • It is unclear whether submissions will be confidential or whether reporting could be used strategically to pressure agencies without formal review.