With a looming reauthorization deadline later this year, Congress has a chance to renew and improve a government funding program that can be critical to startups engaging in costly R&D.
Congress charges ahead on ‘kids’ safety,’ despite tradeoffs
Lawmakers in Congress and in state legislatures are under pressure from parents and advocacy groups to change Internet law to “keep kids safe online”.
The fate of some of the largest broadband subsidy programs, key to bridging the digital divide for all consumers, including startups and their users, depends on the outcome of the Federal Communication Commission (FCC) v. Consumers’ Research case before the Supreme Court.
This blog continues our series called “AI Essentials,” which aims to bridge the knowledge gap surrounding AI-related topics. It discusses what a foundation model is, how startups are leveraging them to drive greater innovation in the AI ecosystem, and what policymakers need to keep in mind.
The Big Story: After marathon markup, House panel advances tech bills. Following a multi-day, contentious markup, the House Judiciary Committee advanced several bills aimed at large tech companies despite concerns from companies, industry groups, and lawmakers on both sides of the aisle that the bills will have unintended consequences—including making it harder for startups to get acquired.
The Big Story: Recognizing the contributions of immigrant entrepreneurs. Throughout the month of June, we celebrate Immigrant Heritage Month and recognize the impact of the immigrant community in the U. S., including on the country’s startup ecosystem. As the nation reflects on the significant contributions of this community as a whole, it is important to acknowledge and uplift the stories of immigrant entrepreneurs and recognize the challenges these founders face.
The Big Story: As broadband subsidy program ramps up, lawmakers eye next steps. The need for universal broadband was back in the spotlight this week as lawmakers discussed the impacts of the digital divide, especially during the pandemic. At a hearing Tuesday, the House Appropriations subcommittee on financial services and general government examined the impact a lack of affordable, reliable broadband has, especially on rural communities and communities of color.
The Big Story: Endless Frontier Act advances through key Senate Committee with changes. The Senate Commerce Committee voted this week to advance a pared down version of the Endless Frontier Act, clearing it’s path for a floor vote. The bill would invest funds to prioritize research into advanced technologies and would authorize $10 billion to create at least ten regional technology hubs. While the original iteration of the legislation directed $100 billion over five years to the bill’s newly created tech directorate at the National Science Foundation (NSF), after amendment, much of this funding would be directed to other NSF activities, with a portion of funds marked toward the directorate to be diverted to the Department of Energy’s National Laboratories.
“The White House’s decision to formally withdraw the previous administration’s proposed removal of the International Entrepreneur Rule (IER) is a victory for foreign-born entrepreneurs looking to launch high-growth, job-creating companies in America. The IER signals to entrepreneurs across the world that our country is a place where their innovative ideas are welcome, allowing the U.S. to remain a global hub of innovation and competitiveness.”
The Big Story: Spotlight back on content moderation as Facebook upholds Trump ban. Internet companies' content moderation decisions are back in the spotlight this week as Facebook’s oversight board—a panel of journalists, activists, and lawyers that reviews the company’s content decisions—announced that former President Donald Trump should remain suspended from the platform, prompting criticism and threats of legislation from Republicans in Congress. Facebook banned Trump in January after the insurrection attempt on January 6th, citing the ongoing risk of political violence. The board also said that Facebook was wrong to impose an indefinite ban and called for the company to decide in the next six months whether to restore Trump’s account, permanently remove him from the platform, or suspend him for a specific timeframe.
The Big Story: Biden unveils plan to invest billions in education, child care. President Joe Biden unveiled an ambitious $1.8 trillion proposal—known as the American Families Plan—that would, in part, give Americans expanded access to education, create a federal paid family and medical leave program, and extend the expanded child tax credit included in last month’s stimulus package. In a speech before a joint session of Congress on Wednesday, Biden said the plan—along with his proposed $2 trillion infrastructure package—would help keep the U.S. at the forefront of global competitiveness.
The Big Story: Bipartisan bill would boost U.S. tech investments, R&D funding. A key Senate panel held a hearing this week to discuss bipartisan legislation meant to bolster the U.S. technology sector against the growing threat of competition from China. Members of the Senate Commerce Committee used Wednesday’s hearing to discuss how the bill, known as the Endless Frontier Act, would provide long-term investments in research and development, entrepreneurship, and technological advancements in order to solidify America’s leadership in the global innovation economy.
TLDR: Hiring full-time talent is costly and difficult when a startup is in its early stages, but recent federal efforts have created even more uncertainty for nascent companies that rely upon independent contractors to help them innovate and grow. As Congress and the Biden administration take steps that could narrow the definition of an independent contractor, policymakers must be careful to examine how this push would impact workers, startups, and small businesses across the country.
The Big Story: Boosting legal immigration will benefit startups, U.S. global leadership. As federal policymakers continue to debate much-needed updates to the nation's immigration system, a report released this week found that the U.S. risks losing its status as the world’s largest economy by 2030 if policymakers do not take steps to expand and increase legal immigration. The study, conducted by FWD.us in collaboration with George Mason University, highlighted how U.S. gross domestic product (GDP) could double by 2050 if the level of permanent and temporary immigrants was increased to more than two million each year.
The Big Story: Removing barriers to entry for women entrepreneurs. Although the number of women-founded companies across the globe has doubled over the past decade—from 10 percent in 2009 to 20 percent in 2019—women entrepreneurs still face significant roadblocks when competing in the largely male-dominated technology sector. The gender disparity in the technology sector, driven in part by systemic sexism and responsibilities like child care and family caregiving, makes it more difficult for women entrepreneurs to break into the space with their own unique ideas and visions. Women represent just 11 percent of venture capital investment partners across the U.S., and women-led companies raise an average of 13 percent less in funding than their male counterparts. Women-led startups received only 2.8 percent of VC funding in 2019, while Black and Latino women founders combined to receive just 0.64 percent of total VC investments. That’s why it’s so critical for the startup community and policymakers to confront the challenges women entrepreneurs face and ensure that a diverse range of individuals are able to pursue entrepreneurship.
The Big Story: House passes legislation extending pathway to citizenship for Dreamers. House lawmakers voted yesterday to approve legislation that would give approximately 2.3 million Dreamers—undocumented immigrants brought to the U.S. as minors—certain protections from deportation and would provide a pathway to citizenship if they meet certain criteria. The bill’s passage is a critical step for millions of talented immigrants who help drive innovation and job creation across the tech sector.
Today’s House vote in support of the American Dream and Promise Act is a victory for the millions of undocumented immigrants who were brought to the U.S. as children in search of a better life. Dreamers help drive U.S. innovation by launching startups, creating new jobs, and serving as critical sources of talent for the tech sector. By protecting Dreamers and providing them with a pathway to citizenship, the bill gives these talented individuals the legal certainty they need to pursue their ambitions—in the tech sector or otherwise—without the threat of deportation.
The Big Story: PRO Act would limit startups’ access to independent contractors. House lawmakers this week passed legislation—known as the Protecting the Right to Organize (PRO) Act—that would, in part, change the definitions of employees and independent contractors. By expanding the definition of an employee, the bill would make it more difficult for startups and other small businesses to hire the outside contractors they need to launch and grow their companies.
“Engine is proud to support the Workforce Mobility Act, legislation that would give workers the opportunity to launch their own competitive startups without being hindered by non-compete agreements. This legislation would spur startup formation across the country by removing barriers to entry that serve to stifle innovation and entrepreneurship.”
The Big Story: Despite progress, barriers still stand in the way of Black founders. Although the U.S. startup ecosystem is increasingly vast and diverse, Black entrepreneurs across the country still face barriers to entry—such as a lack of equitable access—that make it more difficult for them to compete with their peers. And the pandemic has only exacerbated some of these disparities, with a report from the Center for Responsible Lending finding that approximately 95 percent of Black-owned firms stood almost no chance of receiving a first round Paycheck Protection Program loan from a traditional bank or credit union.
TLDR: The federal government recently solicited public input about a national strategy for building more diverse and inclusive innovation ecosystems. While startup communities across the country comprise individuals of every race, gender, ethnicity, and culture, more needs to be done to empower underrepresented entrepreneurs and dismantle the unjust barriers they routinely face. As the U.S. continues to address systemic inequalities, many startups, entrepreneurs, and support organizations are calling on the government to use this opportunity to support entrepreneurship for all.
“Last week’s introduction of comprehensive immigration reform legislation shows that the Biden administration is committed to positively reforming the country’s outdated immigration system. The White House and Congress now have the opportunity to pursue an immigration agenda that boosts immigrant entrepreneurship and provides startups and technology companies with greater access to the talented workers they need to grow and thrive.”
TLDR: As the Biden administration prepares to unveil an immigration reform bill this week that would provide millions of undocumented immigrants with a pathway to citizenship, policymakers need to remain mindful of the valuable skills and talents that foreign-born workers bring to the United States. In order to support entrepreneurs—particularly those economically disadvantaged by the pandemic—policymakers must improve access to high-skilled talent in any immigration reform efforts in order to bolster U.S. innovation.
TLDR: As we round out the second week of the Biden administration, the president is continuing to chart out the country’s long-term economic recovery from the pandemic. While President Joe Biden has already taken a number of positive early steps—including prioritizing vaccination efforts, rescinding harmful immigration orders issued by the previous administration, and advancing racial equity efforts—it is integral that the administration devote time during its first 100 days in office to support and strengthen America’s startup ecosystem across a range of policy areas.
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