The Big Story: Congressional Startup Day brings together lawmakers and their startup constituents
This week, members of Congress and startups across the country celebrated Congressional Startup Day, an annual bipartisan, bicameral celebration of entrepreneurship and an opportunity for lawmakers to connect with their startup constituents. With the support of Startup Day co-chairs Rep. Hillary Scholten (D-Mich.) and Rep. French Hill (R-Ark.), their colleagues and over a hundred startups across the country were able to discuss the pro-innovation policies needed to support startups and the broader U.S. startup ecosystem.
Startups and support organizations around the U.S. met with their lawmakers to showcase their technologies and discuss the policies that would help them succeed. Sen. Dick Durbin (D-Ill.) kicked off the week by meeting with Chicago-based HAAS Alert, a startup building life-saving road safety technology. In Greenville, South Carolina, entrepreneurial support organization NEXT Upstate hosted Rep. William Timmons (R) and local startups for a conversation on Small Business Innovation Research grants, attracting diverse talent, and angel tax credits. Washington state-based startup Stoke Space, a company specializing in reusable rockets, discussed the need for more skilled talent and better access to government contracts with Rep. Adam Smith (D). Rep. Mike Carey (R-Ohio) met with over 150 startups and entrepreneurs at the Dublin Entrepreneurial Center to learn about their businesses and underscore the importance of entrepreneurship. And Rep. Susie Lee (D-Nev.) learned about the state of venture capital in Nevada during a meeting with Startup Vegas and startup founders in the coworking space there.
It is critical for startups to have a voice in the policy debates that impact them, and Congressional Startup Day is an annual opportunity for members of Congress to connect with the innovators in their states and districts. We’re encouraged by the startups and lawmakers that took part in this year’s Congressional Startup Day and look forward to seeing their conversations bear fruit as lawmakers return to Washington, D.C. this fall.
Policy Roundup:
Government agency modernizes startup investment program. The Small Business Administration announced this week the implementation of a new rule that will make billions in loans available to VC funds and modernize the Small Business Investment Company program. The program is particularly important for underserved communities and areas located outside of traditional tech and venture hubs. Engine has long-explained how underrepresented founders face barriers within the innovation ecosystem—including accessing capital to fund their businesses to full-scale. Improvements to the program will help to direct needed capital to those who need it most, creating a more inclusive startup ecosystem.
Biden administration urges Supreme Court to overturn harmful social media laws. This week, the solicitor general urged the Supreme Court to review a pair of state social media laws following conflicting rulings in lower appeals courts. The similar state laws dictate how Internet companies must moderate content on their services, including one in Texas that was upheld by the 5th Circuit and one in Florida that was invalidated by an 11th Circuit ruling. Those laws add burdens to the already difficult task of content moderation and should be overturned as we earlier wrote to the lower courts.
United Nations blasts global tax plan, adding new hurdles. United Nations officials this week expressed their disappointment with the OECD’s global tax framework in a new draft report—alleging that the OECD’s leading position in negotiating the tax plan is exclusionary of lower-income countries and is not conducive to establishing equitable tax standards. This is the latest development in what has been a slew of hurdles the tax plan has faced since its announcement—with global governments struggling to convince their own lawmakers to adopt the plan, including the U.S. For startups, navigating global tax regulations can be time-consuming, confusing, and costly. The global tax plan, which would eliminate digital services taxes (DSTs), would help ensure companies can continue to innovate without having to navigate countless jurisdictions with unique DSTs whose costs are often passed on to startups.
Legislation to boost rural broadband introduced. Sens. Michael Bennet (D-Colo.) and Ted Budd (R-N.C.) introduced this week the Connecting Our Neighbors to Networks and Ensuring Competitive Telecommunications (CONNECT) Act of 2023—legislation that will help expand broadband connectivity to underserved rural communities by easing grant requirements and shortening timelines for small Internet providers. Engine has long-explained how critical high-speed Internet access is for entrepreneurs and businesses across the country—allowing innovators to launch companies from anywhere and connect with communities for a better, diverse, and inclusive innovation ecosystem.
