Federal Legislation
Congress Supports Small AI Businesses
March 20, 2026
Congress has introduced bipartisan legislation, notably the Small AI Innovators Empowerment Act, directing the Department of Commerce in collaboration with NIST and the Small Business Administration to study and address challenges faced by small AI businesses. This includes examining funding access, tax incentives, regulatory uncertainties, and talent recruitment barriers. Additional bills focus on AI regulation, government data access for AI training, and AI applications in national security and infrastructure modernization.
- The Department of Commerce, NIST, and SBA will play key roles in shaping policies that support small AI enterprises, potentially influencing future procurement and funding programs.
- Procurement professionals should anticipate evolving government initiatives aimed at fostering small AI business participation in federal contracts and innovation programs.
- Contractors and vendors specializing in AI technologies may find new opportunities as agencies seek to integrate AI solutions while supporting smaller innovators.
- Understanding regulatory developments and government data access expansions will be critical for aligning proposals with federal priorities and compliance requirements.
The future of AI will be shaped not just by big tech, but also by small businesses and startups. To stay ahead of international competitors, we must support the small innovators who play a key role in this industry.
— Rep. Suhas Subramanyam
The Small AI Innovators Empowerment Act will shine light on the experiences of startups from the first dollar they raise to eventual successful exitnd all of the product development, regulatory hurdles, and other challenges they encounter in between.
— Kate Tummarello
Small AI businesses are developing, deploying, and adapting tools that improve productivity, expand access to services, and strengthen U.S. competitiveness. Unfortunately, they often face distinct and overlooked challenges in accessing capital, computing resources, and talent, while also navigating uncertain pathways for growth.
— Morgan Reed
Agencies
Department of Commerce, National Institute of Standards and Technology, Small Business Administration, Department of Defense, Department of Homeland Security