Small AI Innovators Empowerment Act

#7968 | HR Congress #119

Policy Area: Commerce
Subjects:

Last Action: Referred to the House Committee on Science, Space, and Technology. (3/17/2026)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text

Bill Summary

The "Small AI Innovators Empowerment Act" is a proposed legislation that seeks to address the challenges faced by small artificial intelligence (AI) businesses in the United States. The bill authorizes the Department of Commerce, specifically through the National Institute of Standards and Technology (NIST), to conduct a comprehensive study on various obstacles these businesses encounter.

Key components of the study include:

1. **Funding Opportunities**: Analyzing available federal and non-federal funding sources, including early and seed funding, and the accessibility and impact of these funds on small AI businesses.

2. **Tax Credits**: Examining the use of research and development tax credits and how changes to these credits affect small AI firms.

3. **Support Systems**: Assessing the role of accelerators and incubators in helping establish small AI businesses.

4. **Federal Policy Impact**: Investigating how federal policies influence small AI firms, including technological disparities compared to larger businesses, regulatory uncertainties, and the effects of partnerships and competition policies.

5. **Talent Challenges**: Analyzing difficulties in recruiting and retaining skilled talent within the AI sector.

6. **Additional Challenges**: Identifying other relevant challenges faced by these businesses, as determined by the Secretary of Commerce.

7. **Recommendations**: Providing proposals and recommendations to address the identified challenges.

The bill defines a "United States small artificial intelligence business" as a for-profit entity primarily engaged in AI activities, headquartered in the U.S., with 250 or fewer employees. The legislation aims to empower these businesses to contribute significantly to the U.S. economy and enhance their competitiveness in the AI field.

Possible Impacts

The "Small AI Innovators Empowerment Act" could affect people in several ways, including:

1. **Increased Access to Funding**: By analyzing various funding opportunities, the legislation may lead to enhanced access to federal and non-federal resources for small AI businesses. This could empower entrepreneurs and startups in the AI sector to secure the capital they need to develop their technologies, potentially leading to job creation and economic growth in their communities.

2. **Support for Talent Recruitment and Retainment**: The study's focus on talent recruitment and retention challenges could lead to recommendations and policies that make it easier for small AI businesses to attract and keep skilled workers. This could improve career opportunities for individuals in the AI field, resulting in a more robust workforce and innovation within the industry.

3. **Improved Policy and Regulatory Framework**: The examination of the downstream impacts of federal policy on small AI businesses could result in more favorable regulatory conditions and clearer guidelines for operation. This could reduce uncertainty for entrepreneurs, making it easier for them to plan for the future, pursue partnerships, and explore growth opportunities, ultimately benefiting both the businesses and the consumers they serve.

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7968 Introduced in House (IH)]

<DOC>






119th CONGRESS
  2d Session
                                H. R. 7968

    To authorize the Department of Commerce to carry out a study on 
    challenges faced by United States small artificial intelligence 
                  businesses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2026

   Mr. Subramanyam (for himself, Mr. Obernolte, and Mr. Gottheimer) 
 introduced the following bill; which was referred to the Committee on 
                     Science, Space, and Technology

_______________________________________________________________________

                                 A BILL


 
    To authorize the Department of Commerce to carry out a study on 
    challenges faced by United States small artificial intelligence 
                  businesses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small AI Innovators Empowerment 
Act''.

SEC. 2. STUDY ON CHALLENGES FACED BY SMALL ARTIFICIAL INTELLIGENCE 
              BUSINESSES.

    (a) In General.--Subject to the availability of appropriations, the 
Secretary of Commerce, acting through the Director of the National 
Institute of Standards and Technology, and in consultation with the 
Administrator of the Small Business Administration, shall seek to enter 
into an agreement with an appropriate entity with relevant expertise, 
as determined by the Director of the National Institute of Standards 
and Technology, which may include a federally funded research and 
development center, to conduct a study on challenges faced by United 
States small artificial intelligence businesses located across the 
United States.
    (b) Elements.--The study under subsection (a) shall include the 
following:
            (1) An analysis of Federal and non-Federal resource funding 
        opportunities for United States small artificial intelligence 
        businesses, including relating to the following:
                    (A) Data on early and seed funding sources.
                    (B) Accessibility of Federal funding opportunities, 
                timeline of receiving such funding, and the impact of 
                physical asset collateral and other loan requirements 
                on United States small artificial intelligence 
                businesses.
                    (C) Availability and use of non-Federal funding 
                opportunities.
            (2) Usage of research and development tax credits, and the 
        impact of tax credit restrictions or changes on United States 
        small artificial intelligence businesses.
            (3) Usage of accelerators and incubators in the process of 
        establishing United States small artificial intelligence 
        businesses.
            (4) An analysis of downstream impacts of Federal policy on 
        United States small artificial intelligence businesses, 
        including an assessment of technology stacks, with 
        consideration of the following:
                    (A) Differences in usage of artificial intelligence 
                tools between United States small artificial 
                intelligence businesses and other businesses across the 
                infrastructure, model, and application layers of the 
                artificial intelligence ecosystem, and the role of 
                access to computing resources, cloud services, and 
                data.
                    (B) Impact of regulatory uncertainty on exit 
                strategies and acquisition opportunities for United 
                States small artificial intelligence businesses.
                    (C) Impact of partnerships with larger firms and 
                competition policy frameworks on opportunities for 
                growth of United States small artificial intelligence 
                businesses.
            (5) An analysis of talent recruitment and retainment 
        challenges faced by United States small artificial intelligence 
        businesses.
            (6) An analysis of any other potential challenges faced by 
        United States small artificial intelligence businesses the 
        Secretary determines appropriate.
            (7) Proposals and recommendations to address any such 
        challenges.
    (c) Definitions.--In this section:
            (1) Artificial intelligence.--The term ``artificial 
        intelligence'' has the meaning given such term in section 5002 
        of the National Artificial Intelligence Initiative Act of 2020 
        (15 U.S.C. 9401).
            (2) United states small artificial intelligence business.--
        The term ``United States small artificial intelligence 
        business'' means a business that creates, develops, or 
        customizes artificial intelligence products or services as its 
        primary business activity and that--
                    (A) is headquartered in the United States;
                    (B) is organized for profit;
                    (C) operates primarily within the United States or 
                makes a significant contribution to the United States 
                economy through payment of taxes or use of American 
                products, materials, or labor;
                    (D) is independently owned and operated, including 
                a business that is backed by private funding, equity 
                financing, or an institutional investor; and
                    (E) employs 250 or fewer people.
            (3) Technology stacks.--The term ``technology stacks'' 
        means the collection of technologies, tools, and infrastructure 
        utilized by such businesses.
                                 <all>