Today, Engine published the 2026 Startup Policy Playbook, highlighting the policy issues coming up this year that will impact startups. There are startups building innovative companies and contributing to U.S. competitiveness in every community across the country, and policymakers’ decisions across a wide range of policy issues will help decide whether and how they can succeed.
Some areas—like AI and content moderation—are already dominating policy conversations, and the startup perspective is often overlooked in crowded and contentious debates. Federally, congressional conversations about AI rules have only just started, but states have either gotten the ball rolling or passed into law legislation on all facets of AI, from foundation models, to consequential decisions, to chatbots, and much more. At the same time, Congress, state legislatures, and regulators are pushing forward with proposals that require that Internet companies verify the ages of all of their users to restrict certain user content or design features for young users. Trade is similarly top of mind for policymakers and startups, as they wait for the Supreme Court to rule on the legality of some of the Trump administration’s sweeping tariffs, which invite foreign countries to create new and heightened trade barriers, making it harder for startups to scale globally. And while most of the immigration policy conversation has focused on the Trump administration’s strategy of cruel and indiscriminate arrests and deportations, some facets of the administration’s anti-immigrant approach have directly impacted those looking to build companies and advance innovation in the U.S., including steps to make existing immigration pathways more restrictive and expensive.
Other policy debates may attract less attention, but they still stand to dramatically impact startups. For instance, the U.S. Patent and Trademark Office is preparing to completely overhaul the program that’s been successful at weeding out low-quality patents, which are easily weaponized against startups. Startups are still waiting to see long-promised action from Congress on creating a nationwide privacy framework to reduce duplicate and onerous compliance burdens for startups, as well as action from Congress to reform universal broadband programs to keep them effective and sustainable so that more founders, employees, and users have reliable, affordable Internet access. And policymakers have several options to alleviate the first roadblock many startup founders encounter: limited access to capital. Through changes to capital formation and tax policy, Congress can incentivize more people from more communities to invest in early stage startups. Similarly, startups need Congress to reauthorize the lapsed Small Business Innovation Research and Small Business Technology Transfer programs, which provide critical non-dilutive funding to fund early stage R&D.
Throughout 2026, Engine will work with startups and policymakers across these issues and more to find policy solutions that support entrepreneurship, innovation, and U.S. competitiveness. If you’re interested in learning more about how policy can support startups, please contact policy@engine.is
Read our playbook here.
