NEWS | Two New House Bills Focus on Regulatory Burdens, NSBA Priority Issues for Small Business
- NSBA
- 2 days ago
- 2 min read
NSBA applauds Congress for its work to activate our Priority Issues, including bills to reduce unnecessary, cumbersome regulatory burdens on small-business owners nationwide.
DEC. 03, 2025 | This week, House lawmakers advanced two pieces of legislation aimed at addressing federal regulatory burdens that small businesses say continue to strain their time, resources, and long-term competitiveness.
First up, Rep. Tony Wied (R-Wis.) introduced H.R. 4305, the DUMP Red Tape Act, which would permanently codify the Small Business Administration’s “Red Tape Hotline,” launched earlier this year by the SBA Office of Advocacy.
The hotline would allow small-business owners to report federal regulations they believe are overly burdensome or unclear. Under the bill, the Office of Advocacy would be required to compile these submissions and provide an annual report to Congress, increasing transparency into how regulations affect small businesses and where agencies may need to re-evaluate their approaches.
Supporters of the bill argue that a formal, ongoing reporting mechanism will help identify regulatory challenges earlier and strengthen oversight. Many small firms lack the staffing capacity or legal resources to navigate complex rulemaking, and NSBA has long emphasized that regulatory clarity and predictability are critical for small-business growth.
A second measure, H.R. 2965, the Small Business Regulatory Reduction Act of 2025, introduced by Rep. Beth Van Duyne (R-Texas), would require the SBA to ensure any regulatory action taken by the agency does not increase compliance costs for small businesses. The bill also directs the SBA to issue a government-wide annual report outlining the cost impact of federal regulations on small firms.
Proponents note that small businesses face disproportionately higher per-employee compliance costs compared to larger companies, which is a longstanding concern across industries. The proposed annual report aims to give Congress a clearer view of how federal rulemaking trends affect hiring, investment, and operational decisions for the small-business sector, which employs nearly half of America’s private-sector workforce.
Favorably passed out of the House Small Business Committee earlier this year, the bill was brought to the floor and met with an affirmative voice vote for passage; however, Rep. Nydia Velasquez (D-N.Y.) requested a recorded vote on Members' yays and nays, ultimately delaying passage until additional consideration scheduled for the afternoon of Dec. 03, 2025.
Both bills reflect ongoing efforts within Congress to examine the cumulative impact of regulation on small firms and to increase agency accountability in the rulemaking process.
NSBA will continue monitoring this legislation closely as it moves through the House and Senate, and will keep members informed on opportunities to provide input, share data, or engage in discussions with policymakers.