New 'DUMP Red Tape Act' Launches Hotline for Small Businesses to Report Burdensome Federal Rules

The newly proposed Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act—or the DUMP Red Tape Act—is setting up a direct line for small businesses to complain about federal regulations that are slowing them down. This bill isn’t about creating new rules; it’s about creating a centralized channel to identify and potentially eliminate old, burdensome ones.

The Small Business Complaint Department

Within 180 days of becoming law, this Act requires the Small Business Administration (SBA), specifically the Chief Counsel for Advocacy, to set up a “Red Tape Hotline.” This is designed to be a one-stop shop—via email, a submission form, or phone—where small entities can report any federal agency rule, guidance, or policy they feel is too much of a burden. Think of it as a formal suggestion box, but instead of suggesting a new flavor of coffee, you’re telling the government that a specific compliance form is costing your business too much time and money. This is important because, according to the bill, the hotline is specifically for “small entities,” which covers everything from your local hardware store to a small tech startup.

Putting Agencies on the Spot

The real teeth of the DUMP Red Tape Act come from the mandatory reporting requirements. Starting one year after the hotline goes live, the SBA’s Chief Counsel for Advocacy must submit an annual report to Congress. This isn’t just a tally of complaints; it’s a detailed breakdown. The report must identify the rules and agencies that get complained about the most, which industry sectors are feeling the pain, and where these complaints are coming from geographically. For example, if a specific Environmental Protection Agency (EPA) permitting rule is consistently flagged by construction companies in the Midwest, that detail goes straight to Congress.

What This Means for Your Boss or Your Business

If you own a small business—or work for one—this bill offers a formal, structured way to channel frustrations about government bureaucracy. For a small manufacturing shop owner, this could mean finally getting a specific, time-consuming OSHA reporting requirement flagged for review. For a small restaurant owner, it might be a complicated Department of Labor guidance that requires expensive legal interpretation. The goal is to create a data trail that Congress and the SBA can use to pressure federal agencies into streamlining or eliminating rules that are disproportionately hitting small players. The annual report also requires the Chief Counsel to provide specific recommendations to each identified agency on how to reduce the regulatory burden.

The Challenge of Getting Heard

While the intent is clearly beneficial—giving small entities a voice—the effectiveness relies on federal agencies actually listening. The bill establishes the feedback loop and the mandatory reporting, but it doesn't force agencies to adopt the recommendations. Federal agencies, which are now under increased scrutiny thanks to these reports, might push back or simply ignore the suggestions, arguing that the rules are necessary for public safety or environmental protection. However, the sheer transparency of having the most complained-about rules published and sent directly to Congress every year creates a powerful incentive for change. It turns anecdotal complaints into concrete data that policymakers can use to push for reform.