To the Members of the U.S. House of Representatives:
The U.S. Chamber of Commerce writes in strong support of H.R. 4305, the “Destroying Unnecessary, Misaligned, and Prohibitive (DUMP) Red Tape Act of 2025,” scheduled for a vote in the U.S. House of Representatives as soon as this week.
This legislation, authored by Representative Tony Wied and reported out by the Small Business Committee on a bipartisan vote, codifies the “Red Tape Hotline” program established by Administrator of the U.S. Small Business Administration (SBA), Kelly Loeffler, and run by the Chief Counsel for Advocacy, Casey Mulligan, Ph.D. The “Red Tape Hotline” receives direct input from small businesses about burdensome federal rules and related compliance challenges.
According to our most recent estimate, American businesses face more than $2.15 trillion in regulatory costs, a figure equivalent to the entire GDP of Canada. Our work with the Bradley Foundation in 2017 revealed that because many regulatory costs are fixed, small businesses bear a regulatory cost burden on a per-employee basis that is roughly 20 percent higher than larger businesses with more employees. More recently, our MetLife & U.S. Chamber of Commerce Small Business Index published last December revealed that more than half of America’s small business owners view regulatory compliance costs as a barrier for growth.
Yet, there is currently no simple, governmentwide mechanism for small business owners to flag specific regulatory problems in real time and ensure those concerns are systematically reviewed by an independent advocate. H.R. 4305 fills this gap by requiring the SBA Office of Advocacy to create and maintain a “Red Tape Hotline” for small businesses to submit their regulatory concerns.
By codifying and strengthening a formal “Red Tape Hotline,” H.R. 4305 builds on existing efforts by the SBA Office of Advocacy and the Trump Administration to create direct channels for small businesses to report unnecessary or overly burdensome regulations. This approach complements existing requirements under the Regulatory Flexibility Act and other statutes by ensuring that the real-world experience of small employers is captured and communicated on an ongoing basis, rather than only during discrete comment periods.
The U.S. Chamber of Commerce commends Representative Wied and the co-sponsors of H.R. 4305 for advancing pragmatic reforms that improve the federal regulatory system without compromising legitimate public protections. The Chamber supports H.R. 4305 and urges a “yes” vote for its passage.
Sincerely,
Thomas M. Sullivan
Senior Vice President
Small Business Policy
U.S. Chamber of Commerce
