The Big Story: As Congress pushes ahead on infrastructure, startups stand to gain
Congress has the chance to move the ball forward on an infrastructure package that if passed, would provide billions of dollars for several categories of infrastructure, including roads and bridges, electric vehicles, cybersecurity, and broadband—a major win for startups. Senate Majority Leader Chuck Schumer (D-N.Y.) has set up an initial vote for next week, though negotiators are still working on the bill.
Reliable, accessible, affordable Internet is essential for the U.S. startup ecosystem and ensures that entrepreneurs across the country can launch and grow innovative small businesses. The current gaps in broadband access put opportunities out of reach for many would-be startup founders, especially in underrepresented and underserved communities. As Amanda Chocko of Lakeshore Advantage in Holland, Mich. explained earlier this year, “Attracting more companies to the region, bringing in the talent of the future, and educating our students and tomorrow’s startup founders is all reliant on access to high-speed Internet.”
Engine joined other technology groups in a letter to Congress encouraging passage of the infrastructure framework. “In order to ensure that all Americans benefit from our technology-driven economy, the federal government must make significant investments in our future,” the letter said. “Better infrastructure will help connect more Americans to digital opportunity, improve the resilience of our technology networks, move us toward a cleaner energy future, and make it easier for U.S. technology firms to create more American jobs.”
Policy Roundup:
Patent Quality Week with startup events throughout next week. Engine is hosting the inaugural Patent Quality Week, during which we’ll showcase the importance of patent quality from a variety of perspectives. As the economy continues to recover from the pandemic and abusive litigation is on the rise, it is especially important that policymakers promote balance to enable high-quality patents, deter low-quality ones, and boost innovation. Join us on July 21st to hear from startup founders on how they’ve navigated the patent system, and on July 20th for our Startup Policy Seminar highlighting how startups can get involved with policymakers and promote improvements for patent law.
Senate budget reconciliation deal could include PRO Act. Senate democrats have agreed to advance a $3.5 trillion budget reconciliation deal that would address a number of the administration’s priorities, and could be paired with bipartisan infrastructure framework. The bill will reportedly include at least parts of the PRO Act, which, if passed in the House, would limit the ability of startups to hire independent contractors by expanding the definition of employee. Immigration provisions are also reportedly on the table, including a possible pathway to citizenship for undocumented immigrants.
One year anniversary of Privacy Shield invalidation. Today marks one year since an EU court struck down the transatlantic data transfer pact known as Privacy Shield. The pact let companies process and store European users’ data in the U.S., and its invalidation has had negative consequences for U.S. startups. As members of the technology sector on both sides of the Atlantic continue to emphasize, restoring transatlantic data flows is critical.
Startup visas are key to retaining U.S. talent. The House Judiciary Committee held a hearing to address growing concerns of talent loss to the U.S. in lieu of countries with more favorable immigration policies. A startup visa would provide a streamlined way for potential immigrant founders to come to the country to launch and grow their business and would include a pathway to citizenship. We’re calling on policymakers to make this change to our immigration system to ensure the U.S. can attract and retain entrepreneurs.
Startup Roundup:
#StartupsEverywhere: Miami, Florida. Avocademy is a Miami-based education and mentoring program that prepares workers to start a career in user experience and user interface (UX/UI) design. We spoke with their founder, Maca Baigorria, to learn more about the organization’s work, the importance of workforce diversity, and what role accessibility plays in designing technology.
