Startup News Digest 01/27/25

The Big Story: The startup policy priorities for 2025 

Today, Engine released the 2025 Startup Policy Playbook and Startup Policy Agenda. The Playbook gives members of the startup ecosystem—founders, employees, investors, and support organizations—an overview of the policy conversations happening this year and how they can get involved in amplifying the startup voice. The Agenda gives those working on policy an overview of the issues that are currently impacting—and the debates that stand to impact—startups.

There are startups in every state and congressional district across the country working with limited time and resources. Policy changes regarding everything from access to capital, to immigration, to trade (and everything in between) can radically shift the way startups make decisions about what products and services to offer, when and where to launch, and how they plan to grow. Their perspective should be—and is—incredibly important as policymakers consider technology, Internet, and entrepreneurship policy. 

Take, for instance, the efforts currently underway to revise the tax code. Changes in tax policy can help encourage people to invest in and work at early stage companies, as well as help offset the expensive but important research and development work that leads to breakthrough innovation. Congress, agencies, and the courts will touch on many other issues that impact startups over the next year. Through capital formation and workforce policy, policymakers help determine who can invest in and join the startup ecosystem. Telecommunications and trade policy determine how easily startups can reach their users across the country and around the globe. Meanwhile, balanced intellectual property and intermediary liability frameworks help startups avoid ruinous and bad faith litigation. Uniform, bright line rules around things like data privacy and AI help startups know how to build their products.

Engine’s Playbook and Agenda cover the main policy areas impacting the startup ecosystem—artificial intelligence, capital access, connectivity, platform issues, patents, privacy, talent, tax, and trade. If you’re interested in learning more about how policy can support innovation and entrepreneurship, please contact policy@engine.is, and if you’re interested in learning more and making your voice heard in D.C. please contact advocacy@engine.is.


Policy Roundup:

Global tax deal reversal to spark return of digital service tax fights. President Trump signed an executive order targeting a global tax deal for nearly 140 countries while directing the U.S. Treasury to prepare retaliatory measures against countries implementing digital services taxes (DSTs). The tax deal had led to a moratorium on new DSTs, which are disproportionately directed at U.S. companies and impact startups through increased costs for digital services on which they rely. 

Executive orders kick off Trump immigration agenda. President Donald Trump released several executive orders last Monday including immigration policy changes that signal a touch stance on immigration. The executive orders largely introduce tighter border security and deportation policies. Though the administration has signaled support for high-skilled immigration policies, they have yet to announce details and Congress has not acted to implement reforms like a startup visa or graduation green cards, forcing U.S. startups to struggle in attracting the high-skilled immigrant talent on which they rely.

President Trump revokes Biden Administration's AI executive order. Donald Trump rescinded the  Biden administration’s executive order on artificial intelligence, as his administration aims to chart a pro-innovation path on AI. The rescission leaves some programs originally set up by the order in uncertainty, like the U.S. AI Safety Institute and a pilot program providing AI resources for researchers, students, and startups.


On the Horizon  

WEDS. 1/29: The Senate Committee on Commerce, Science, and Transportation will convene a nomination hearing for Howard Lutnick to be U.S. Secretary of Commerce at 10:00 AM ET. 

WEDS. 1/29: The Senate Committee on Small Business and Entrepreneurship will convene a nomination hearing for Kelly Loeffler to be Administrator of the Small Business Administration at 2:30 PM ET.

Startup Roundup:

#StartupsEverywhere: Davis, California. After a career in corporate finance, Shweta Gandhi transitioned into the education sphere after recognizing the impact of data-driven solutions in addressing educational disparities. With experience in both nonprofit work and EdTech, she founded Strived.io, a program using AI to transform how schools utilize data for personalized learning. We spoke with Shweta about her journey, the future of AI in education, and more.