Rep. Subramanyam Introduces Bipartisan Bill to Support Small AI Businesses

WASHINGTON, DC – U.S. Representatives Suhas Subramanyam (D-VA) and Jay Obernolte (R-CA) have introduced the bipartisan Small AI Innovators Empowerment Act. The bill would allow for support to small AI businesses so they can compete in this emerging market and create jobs.

“The future of AI will be shaped not just by big tech, but also by small businesses and startups. To stay ahead of international competitors, we must support the small innovators who play a key role in this industry," said Rep. Subramanyam. “My bill will investigate the challenges to federal funding, recruiting and retaining top talent, and navigating regulations these businesses face. As our world becomes increasingly reliant on AI, we must act now to support these innovators.”

“America’s leadership in artificial intelligence will not only depend on large technology companies, but also on the next generation of innovators building breakthrough tools in small businesses and startups across the country. As a software engineer and small business owner myself, I understand how difficult it can be for early-stage companies to navigate access to capital and talent, and to deal with regulatory uncertainty. This bipartisan legislation will help Congress better understand the barriers facing small AI innovators so we can ensure the United States remains the global leader in artificial intelligence,” said Rep. Obernolte. 

The Small AI Innovators Empowerment Act directs the Department of Commerce, in collaboration with NIST and the SBA, to conduct a study on challenges faced by small artificial intelligence businesses across the country. This study will investigate:

• Federal and non-federal funding opportunities for small AI businesses, including early and seed funding.
• The ability of small AI businesses to access R&D tax credits.
• Downstream policy impacts on small AI businesses, including regulatory uncertainty.
• Talent and recruitment challenges faced by small AI businesses.

“In order for lawmakers to pass sound legislation both regulating and promoting the development of AI, they need a firm grasp of the realities faced by AI startups across the country. The Small AI Innovators Empowerment Act will shine light on the experiences of startups from the first dollar they raise to eventual successful exit—and all of the product development, regulatory hurdles, and other challenges they encounter in between. Engine is proud to endorse this legislation and is grateful to Reps. Subramanyam and Obernolte for their leadership on this issue and support of the U.S. startup ecosystem,” said Kate Tummarello, Executive Director of Engine.

“Small AI businesses are developing, deploying, and adapting tools that improve productivity, expand access to services, and strengthen U.S. competitiveness. Unfortunately, they often face distinct and overlooked challenges in accessing capital, computing resources, and talent, while also navigating uncertain pathways for growth. The Small AI Innovators Empowerment Act includes provisions to document and better understand those challenges to ensure policymakers considering a comprehensive AI regulatory framework have a clearer picture of the needs of the smallest AI innovators. We are proud to support this legislation and appreciate Representatives Subramanyam (D-VA-10) and Obernolte (R-CA-23) for leading this effort in the House,” said Morgan Reed, President, ACT, The App Association.

Rep. Subramanyam recently spoke about this bill on the House floor. You can watch that here.