Federal News
Congress Secures Permanent Small Business Deduction
March 24, 2026
Representative Michelle Fischbach has been recognized by the National Federation of Independent Business (NFIB) for her instrumental role in securing the permanent 20% Small Business Deduction, a tax provision benefiting over 33 million small business owners nationwide. This legislative achievement supports economic growth and job creation, particularly in rural and local communities, by enabling small businesses to retain more earnings for reinvestment and expansion.
- Why this matters: The permanence of the 20% deduction provides greater financial predictability and stability for small businesses, which are key suppliers and contractors in government procurement ecosystems.
- Procurement professionals should consider the positive impact on small business capacity and financial health when planning subcontracting and supplier diversity initiatives.
- This development may encourage increased participation of small businesses in federal contracting opportunities, especially in rural areas represented by Rep. Fischbach.
- Agencies and contractors can leverage this environment to strengthen partnerships with small business vendors, supporting broader economic development goals aligned with federal procurement policies.
Making the 20% Small Business Deduction permanent was a landmark victory for Americaβs small business owners, and a culmination of numerous years of hard work.
— Brad Close, NFIB President
Small businesses are the backbone of rural communities. Ensuring that our business owners can keep more of what they earn empowers our Main Streets to grow, hire, and invest back into our neighborhoods.
— Rep. Michelle Fischbach
Agencies
United States Congress, National Federation of Independent Business