Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act of 2025; DUMP Red Tape Act
Summary
The Destroying Unnecessary, Misaligned, and Prohibitive Red Tape Act of 2025, also known as the DUMP Red Tape Act, aims to reduce the burden of agency rules on small businesses. It directs the Chief Counsel for Advocacy of the Small Business Administration (SBA) to establish a Red Tape Hotline. This hotline will receive notifications from small businesses regarding burdensome agency rules.
Expected Effects
The Act will likely lead to increased awareness of regulatory burdens on small businesses. It will also generate data on which regulations are most problematic. This data is intended to inform recommendations for agencies to address these issues.
Potential Benefits
- Provides a direct channel for small businesses to report burdensome regulations.
- Creates a centralized database of regulatory concerns.
- Requires the SBA to report on and make recommendations regarding burdensome rules.
- Could lead to the streamlining or elimination of some regulations, reducing compliance costs for small businesses.
- May foster a more business-friendly regulatory environment.
Most Benefited Areas:
Potential Disadvantages
- The hotline's effectiveness depends on the SBA's responsiveness and ability to influence other agencies.
- The reporting requirements could create additional administrative burden for the SBA.
- There's no guarantee that agencies will act on the SBA's recommendations.
- The focus on reducing red tape could potentially lead to the weakening of important regulations designed to protect the environment, workers, or consumers.
- The act does not address the underlying reasons for the regulations.
Constitutional Alignment
The Act appears to align with the spirit of promoting the general welfare, as stated in the Preamble of the US Constitution, by aiming to reduce burdens on small businesses. Article I, Section 8 grants Congress the power to regulate commerce, which implicitly includes the power to oversee and modify regulations affecting businesses. The Act does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).