DUMP Red Tape Act

Bill Number: H.R. 4305
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Commerce
Status: Passed House
Latest Action: 2025-12-04: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
Last Updated: 2026-07-01T15:00:11Z

AI-Generated Summary

Purpose

The DUMP Red Tape Act aims to reduce regulatory burdens on small businesses by creating a dedicated reporting system for excessive or unnecessary federal rules and policies. It empowers the Small Business Administration (SBA) to collect feedback from small entities and recommend improvements to federal agencies.

Key Provisions

Establishment of the Red Tape Hotline: Within 180 days of enactment, the Chief Counsel for Advocacy of the SBA must set up and maintain a hotline (called the "Red Tape Hotline") for small entities to report burdens from federal agency rules, guidance, policy statements, or other activities.
Submission methods include an email address, online form, phone number, or other suitable options.
A user-friendly website must provide access to these submission methods.
Annual Reporting Requirements: Starting one year after enactment, the Chief Counsel must submit an annual report to the SBA Administrator and Congress, including:
Most frequently reported rules or activities, along with affected industry sectors.
Summaries of submissions, including submitter types (e.g., small businesses), geographic areas, and industry categories.
Identification of issuing agencies and specific rules or activities.
Recommendations to agencies for reducing burdens on small entities.
Details on actions taken by the Chief Counsel, such as submitting comments or analyses.
Definitions:
"Agency" refers to any federal executive department or independent agency (as defined in 5 U.S.C. § 551).
"Rule" means an agency statement of general applicability that implements or interprets law (as in 5 U.S.C. § 601).
"Small entity" includes small businesses, small organizations, and small governmental jurisdictions (also from 5 U.S.C. § 601).

Significant Changes to Existing Law

This act amends Section 203 of the Small Business Act of 1976 (Public Law 94-305, codified at 15 U.S.C. § 634c) by adding a new subsection (c). Previously, this section outlined the duties of the Chief Counsel for Advocacy, such as representing small business interests. The amendment introduces a formal, proactive mechanism for gathering and addressing regulatory complaints, which did not exist before.

Potential Impacts

On Government Agencies: Federal agencies may face increased scrutiny and receive specific recommendations to simplify or revise rules, potentially leading to streamlined regulations but also additional administrative workload.
On Citizens and Small Entities: Small businesses and organizations gain an easy way to voice concerns about compliance costs, which could reduce operational burdens, save time and money, and foster a more supportive environment for entrepreneurship.
On International Relations: Minimal direct impact, though indirect effects could arise if reduced domestic regulations improve U.S. business competitiveness globally.

Main Stakeholders Affected

Small Entities: Primary beneficiaries, including small businesses, nonprofits, and local governments that deal with federal regulations.
Small Business Administration (SBA): Gains new responsibilities for operating the hotline and reporting, enhancing its advocacy role.
Federal Agencies: Issuers of rules (e.g., EPA, FDA, OSHA) will be identified in reports and may need to respond to burden-reduction suggestions.
Congress: Receives annual reports to inform oversight and potential legislative adjustments.

Notable Legal, Constitutional, or Political Implications

Legal: Builds on the Regulatory Flexibility Act (5 U.S.C. §§ 601–612), which requires agencies to consider small entity impacts, by adding enforcement through public reporting. No new enforcement powers are granted, but it promotes transparency without overriding agency rulemaking authority.
Constitutional: Aligns with Congress's oversight role under Article I and the promotion of commerce (Article I, Section 8), without raising separation-of-powers concerns.
Political: Could appeal to pro-business interests by targeting "red tape" (excessive bureaucracy), potentially influencing future deregulation efforts, but may spark debate over balancing regulatory protections with small business needs.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Wied, Tony [R-WI-8]

Cosponsors (3)

Rep. Van Duyne, Beth [R-TX-24], Rep. Schmidt, Derek [R-KS-2], Rep. Patronis, Jimmy [R-FL-1]

Recent Actions

2025-12-04: Received in the Senate and Read twice and referred to the Committee on Small Business and Entrepreneurship.
2025-12-03: Motion to reconsider laid on the table Agreed to without objection.
2025-12-03: On passage Passed by the Yeas and Nays: 269 - 146 (Roll no. 311). (text: CR 12/02/2025 H4989-4990) (Roll call 311)
2025-12-03: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 269 - 146 (Roll no. 311). (text: CR 12/02/2025 H4989-4990) (Roll call 311)
2025-12-03: Considered as unfinished business. (consideration: CR H5011-5012)
2025-12-02: POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 4305, the Chair put the question on passage of the bill and by voice vote announced the ayes had prevailed. Ms. Velazquez demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
2025-12-02: DEBATE - The House proceeded with one hour of debate on H.R. 4305.
2025-12-02: Rule provides for consideration of H.R. 4312, H.R. 1005, H.R. 1049, H.R. 1069, H.R. 2965 and H.R. 4305. The resolution provides for consideration of H.R. 4312, H.R. 1005, H.R. 1049, H.R. 1069, H.R. 2965, and H.R. 4305 under a closed rule with one hour of general debate and one motion to recommit on each bill.
2025-12-02: Considered under the provisions of rule H. Res. 916. (consideration: CR H4989-4992)
2025-12-02: Rule H. Res. 916 passed House.
2025-12-01: Rules Committee Resolution H. Res. 916 Reported to House. Rule provides for consideration of H.R. 4312, H.R. 1005, H.R. 1049, H.R. 1069, H.R. 2965 and H.R. 4305. The resolution provides for consideration of H.R. 4312, H.R. 1005, H.R. 1049, H.R. 1069, H.R. 2965, and H.R. 4305 under a closed rule with one hour of general debate and one motion to recommit on each bill.
2025-11-21: Placed on the Union Calendar, Calendar No. 333.
2025-11-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-383.
2025-11-21: Reported (Amended) by the Committee on Small Business. H. Rept. 119-383.
2025-11-18: Ordered to be Reported (Amended) by the Yeas and Nays: 18 - 9.

Bill Versions

Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act — issued 2025-12-03 — PDF (6 pages)
Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act of 2025 — issued 2025-07-10 — PDF (3 pages)
Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act — issued 2025-12-04 — PDF (4 pages)
Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act — issued 2025-11-21 — PDF (6 pages)