Sponsors (3)
The bill gives small businesses a clear channel and public reporting to surface regulatory burdens and pursue cost-reducing actions, but does so at the expense of added agency/taxpayer administrative costs and the risk that anecdotal reports could misdirect reforms.
Small businesses can report regulatory burdens through an accessible hotline and will be covered by an initial and annual SBA report that includes agency-specific recommendations, increasing the chance of reduced compliance costs for affected firms.
SBA and Congress receive regular, transparent data on which agencies and rules impose burdens, improving oversight, accountability, and the visibility of small-business regulatory pain points.
If hotline submissions are anecdotal or incomplete, published reports could overemphasize particular complaints and lead to recommendations that don't reflect the broader economic or regulatory impacts, producing misguided or counterproductive changes.
Federal agencies may incur additional administrative burdens responding to hotline-generated comments and analyses, requiring staff time and potentially diverting resources from other agency priorities.
Operating the hotline and producing the required reports will require SBA resources and staff time, increasing administrative costs that are ultimately funded by taxpayers.
Based on analysis of 2 sections of legislative text.
Creates an SBA Office of Advocacy Red Tape Hotline and annual reporting to collect small-entity complaints about burdensome agency rules and recommend burden reduction.
Official title: 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.
Introduced June 3, 2026 by Richard Lynn Scott · Last progress June 3, 2026
Creates a Red Tape Hotline run by the Small Business Administration’s Chief Counsel for Advocacy to collect complaints from small entities about burdensome agency rules, guidances, policy statements, or other agency activities. The Chief Counsel must provide accessible submission methods and a website within 180 days, then deliver an initial report to the SBA Administrator and Congress within one year and annual reports thereafter summarizing notifications, affected sectors/geography/submitter types, recommendations to agencies for burden reduction, and actions taken.