(Boston, August 22) - Ranking Member Edward J. Markey (D-Mass.) today sent a letter to Small Business Administration (SBA) Administrator Kelly Loeffler demanding transparency about the so-called “DOGE AI Deregulation Decision Tool,” which is reportedly being utilized by SBA to change and remove important rules and regulations that protect small business owners. Ranking Member Markey expressed alarm that the tool is being operated without any oversight at SBA and could be utilizing confidential federal data to train it without anyone’s knowledge.
In the letter, Ranking Member Markey writes, “SBA’s rules and regulations are the foundation of the programs small businesses rely on for loans, technical assistance, and disaster relief, as many of SBA's programs are established primarily through rules and regulations. If the "Deregulation Tool” eliminates them, it will gut the services entrepreneurs depend on and dismantle protections designed to level the playing field.”
Ranking Member Markey continues, “Although AI has many promising uses, the development and deployment of AI-powered algorithms also comes with serious risks. Without proper testing and oversight, algorithms can undermine protections for civil rights, workers, the environment, consumers, and our democracy. That is unacceptable. We need transparency and public accountability, and DOGE’s “Deregulation Tool” is operating with neither.”
Ranking Member Markey requested answers to the following questions by September 5, 2025:
- Has SBA authorized the use of DOGE’s “Deregulation Tool”? When did it first come into use at SBA?
- Was the "Deregulation Tool" appropriately FedRAMP authorized?
- Which specific SBA rules or regulations has the “Deregulation Tool” identified for revision or removal?
- What internal review has SBA conducted on the “Deregulation Tool’s” recommendations? Has SBA rejected any of them?
- Who at SBA oversees the deployment and use of the “Deregulation Tool”?
- Is the “Deregulation Tool” fine tuned specifically for use at SBA? If so, how is this done and what training data is used?
- Is personal or private information used as training data?
- Are there AI systems in use elsewhere at SBA? Please provide a list of all currently in use, and in what office.
