Sponsors (4)
The bill gives small businesses a clear, recurring channel to report regulatory burdens and provides policymakers with actionable data to reduce compliance costs, at the expense of modest taxpayer and agency resources and the risk that anecdotal input could skew recommendations.
Small-business owners can report regulatory burdens through an accessible hotline (email, web form, phone) and will receive an initial report within 1 year and annual summaries thereafter, giving them a reliable channel to surface problems.
Reports must include agency-specific recommendations to reduce identified burdens, which could lower compliance costs for affected small businesses.
Congress and the SBA Administrator receive regular data about which agencies and rules impose burdens, improving oversight and accountability of the regulatory process.
If hotline submissions are anecdotal or incomplete, reports could overemphasize certain complaints and lead to recommendations that don't reflect broader impacts, potentially producing misguided policy changes.
Operating the hotline and producing initial and annual reports will require SBA staff time and resources, increasing administrative costs funded by taxpayers.
Agencies may face increased administrative burden responding to comments or analyses prompted by hotline reports, potentially diverting agency resources from other priorities.
Based on analysis of 2 sections of legislative text.
Creates an SBA-run Red Tape Hotline and annual reporting to document small-entity complaints about federal regulatory burdens and recommend burden reductions.
Creates a Red Tape Hotline run by the SBA Chief Counsel for Advocacy to collect complaints from small entities about burdens from federal agency rules, guidances, policy statements, and other agency actions. The hotline must offer accessible submission methods (email, online form, phone, or other) and a public website within 180 days. Requires an initial report to the SBA Administrator and Congress within one year and annual reports thereafter describing notifications received (by rule/guidance/activity, affected industry sectors, submitter types, geography, and issuing agency), offering recommendations for burden reduction for each issuing agency, and summarizing actions the Chief Counsel took, including comments or analyses provided to agencies.
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