Cut the Burden, Keep the Benefits Act

Bill Number

H.R. 6354

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-12-02: Referred to the House Committee on Small Business.

Last Updated

2025-12-18T16:50:10Z

AI-Generated Summary

Purpose of the Legislation

The "Cut the Burden, Keep the Benefits Act" (H.R. 6354) aims to create a dedicated reporting system within the Small Business Administration (SBA) for small businesses, small organizations, and small local governments to notify officials about government actions they view as overly burdensome. The goal is to identify these issues early, evaluate their economic impacts, and suggest ways to achieve policy objectives with less strain on these groups, while preserving the intended benefits of the actions.

Key Provisions

• Hotline Establishment: Within 180 days of enactment, the SBA's Chief Counsel for Advocacy must set up and maintain an email address called the "Cut the Burden, Keep the Benefits Hotline." This will include a user-friendly website with the email, a submission form, or a phone number to make reporting easy.
• Scope of Reporting: The hotline will collect notifications from small businesses (typically companies with fewer than 500 employees), small organizations (non-profits or similar with limited resources), and small governmental jurisdictions (local governments serving small populations) about "government actions," which include federal rules, executive orders, laws, regulations, and presidential proclamations.
• Role in Rule-Making: For notifications about rules expected to significantly affect many small entities economically, the Chief Counsel must consider and propose alternative approaches that meet the agency's goals but reduce burdens.
• Annual Reporting Requirement: Starting one year after enactment, the Chief Counsel must submit a yearly report to the SBA Administrator and Congress. The report will cover:
• Most common government actions reported, including affected industries.
• For rules: Estimated dollar benefits (from the Office of Management and Budget or the issuing agency), with qualitative descriptions if needed.
• For tariff-related executive orders or proclamations: Number of reports, cost summaries (e.g., paperwork, fees), and actions taken by the Chief Counsel.
• Overall summary of all notifications, including geography, entity types, and industries.
• Breakdown of who submitted reports (e.g., businesses vs. governments) and what actions they targeted.
• Recommendations to minimize burdens in future actions.
• Summary of the Chief Counsel's responses, such as comments or analyses submitted to agencies.

Significant Changes to Existing Law

This bill amends Section 203 of the Small Business Economic Policy Act of 1980 (15 U.S.C. 634c), which outlines the duties of the SBA's Chief Counsel for Advocacy. It adds a new subsection (c) that introduces the hotline and reporting mechanisms. Previously, the Chief Counsel's role focused on general advocacy and analysis under the Regulatory Flexibility Act (which requires agencies to consider small entity impacts in rule-making), but this expands it to include a proactive, public-facing notification system and mandatory annual congressional reports. Terms like "rule," "small business," "small organization," and "small governmental jurisdiction" are defined by reference to the Regulatory Flexibility Act (5 U.S.C. § 601), ensuring consistency without redefining them.

Potential Impacts

• On Government Agencies: Federal agencies issuing rules or actions may face more scrutiny and pressure to adopt less burdensome alternatives, potentially slowing or altering rule-making processes. The Office of Management and Budget could see increased involvement in benefit analyses.
• On Citizens and Small Entities: Small businesses, organizations, and local governments gain an accessible way to voice concerns, which could lead to reduced compliance costs (e.g., paperwork or fees) and more tailored regulations. This might ease financial strains, especially from tariffs or complex rules.
• On International Relations: Minimal direct impact, though reports on tariff-related actions (e.g., executive orders on trade) could influence U.S. trade policy by highlighting small entity costs, potentially affecting negotiations or domestic implementation of international agreements.

Main Stakeholders Affected

• Small Businesses and Organizations: Primary beneficiaries, as they can report burdens and potentially see regulatory relief.
• Small Governmental Jurisdictions: Local governments (e.g., small towns or counties) can flag impacts on their operations or budgets.
• SBA and Chief Counsel for Advocacy: Gains new responsibilities for operating the hotline and producing reports, requiring additional resources.
• Congress and Federal Agencies: Receives data to inform oversight; agencies may need to respond to recommendations, affecting their regulatory agendas.
• Representatives of Small Entities: Trade groups or advocates can submit on behalf of members.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens enforcement of the Regulatory Flexibility Act by creating a formal feedback loop, but it does not grant new enforcement powers—recommendations remain advisory. The bill ensures transparency through public reporting, which could support future legal challenges to burdensome rules under existing small business protections.
• Constitutional Implications: No apparent conflicts; it aligns with Congress's authority to oversee executive actions and promote economic welfare. It does not infringe on separation of powers, as it directs an existing agency without mandating outcomes.
• Political Implications: Positions the legislation as pro-small business by emphasizing burden reduction without eliminating benefits, potentially appealing across party lines. It could politicize regulatory reviews, especially for high-profile issues like tariffs, by requiring detailed cost-benefit disclosures in congressional reports.

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

Sponsor

Rep. Cisneros, Gilbert Ray [D-CA-31]

Cosponsors (2)

Rep. Velázquez, Nydia M. [D-NY-7], Rep. Scholten, Hillary J. [D-MI-3]

Recent Actions

• 2025-12-02: Referred to the House Committee on Small Business.
• 2025-12-02: Introduced in House
• 2025-12-02: Introduced in House

Bill Versions

• Cut the Burden, Keep the Benefits Act — issued 2025-12-02 — PDF (6 pages)