Watchdog or Lapdog? GAO Rubber-stamps Unlawful Abuse of Small Businesses

WASHINGTON, D.C. — A new investigation by President Trump’s chief advocate for small businesses caught Congress’ “Watchdog,” the Government Accountability Office, routinely whitewashing unlawful actions by the Biden Administration’s regulators. In true Orwellian fashion, sixty-five percent of the most important rules—those flagged as ‘significant’ and reviewed by Congress—were nonetheless declared too minor to require examining their impact on small businesses. These abuses cost small businesses at least $100 billion.

“Regulators punish businesses for breaking rules. But regulators must follow rules too. A vigilant watchdog would help protect citizens and small businesses from unlawful bureaucratic overreach,” said Casey B. Mulligan, Chief Counsel for Advocacy at the Small Business Administration. “By instead rubber-stamping unlawful regulator behavior, the GAO has been part of depriving small entities of their statutory rights, exposing them to capricious enforcement actions, and in just four years clearing a path for a hundred billion dollars in small-entity costs.”

Chief Counsel Mulligan revealed his findings in a letter delivered to the GAO and heads of the relevant congressional committees.

GAO opinions do not bind the Executive Branch because GAO works for Congress. But when the GAO gets the facts wrong, it can mislead Congress about what federal rules actually do—making it harder for lawmakers to oversee or overturn harmful regulations.


Created by Congress in 1976, the Office of Advocacy of the U.S. Small Business Administration is an independent voice for small business within the executive branch. Appointed by the President and confirmed by the U.S. Senate, the Chief Counsel for Advocacy directs the office. The Chief Counsel advances the views, concerns, and interests of small business before Congress, the White House, federal agencies, federal courts, and state policymakers. Economic research, policy analyses, and small business outreach help identify issues of concern. Regional Advocates and an office in Washington, DC, support the Chief Counsel’s efforts. For more information on the Office of Advocacy, visit advocacy.sba.gov or call (202) 205-6533.