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Rules Committee Advances Two Small-Business Measures; Democrats Warn of Unintended Consequences
Summary
The committee advanced HR 2,965 (Small Business Regulatory Reduction Act) and HR 4,305 (Dump Red Tape Act) as part of the rules package. Supporters said the bills reduce burdens on small businesses; Democrats argued they could limit agency flexibility and duplicate existing hotlines.
The Rules Committee included two small-business bills in the rules package it reported to the House floor: HR 2,965, the Small Business Regulatory Reduction Act of 2025, and HR 4,305, known as the Dump Red Tape Act, which would codify a red-tape hotline at the Small Business Administration Office of Advocacy.
Representative Van Dine, speaking for the bills, said HR 2,965 would require the Small Business Administration to ensure that regulatory changes do not increase compliance costs to small businesses in the affected fiscal year and would require reporting to Congress on regulation costs. Supporters said the measures create a culture of regulatory discipline and give small businesses an easier way to report burdensome rules.
Democratic witnesses and members, including Rep. Velasquez, said the proposals misdiagnose small businesses’ most urgent problems — tariffs, inflation and the cost of health care — and risk hampering agencies’ ability to issue necessary rules, particularly during emergencies. Velasquez warned HR 2,965 could prevent the SBA from issuing timely disaster or pandemic-related regulations and noted the bill lacked an exception for national emergencies.
Members also debated the new hotline’s value. Sponsors said a hotline placed on the SBA front page and in Advocacy would be easier for small business owners to find than a regulation.gov submission; opponents said regulations.gov and agency hotlines already exist, that submissions were not publicly described (out of 300 submissions advocates reported, details were not yet provided to the committee), and that codifying the hotline could duplicate systems and drain resources.
The Rules Committee reported both bills under the closed rule. Lawmakers opposing the measures said they would seek amendments and information on submissions and implementation on the floor and through follow-up requests to the Office of Advocacy.
What’s next: HR 2,965 and HR 4,305 are scheduled for consideration under the closed rule reported by the Rules Committee. The Office of Advocacy has been asked to provide more information about hotline submissions prior to floor action.
