ICYMI: Legislative and Policy Update

By SBE Council at 16 February, 2026, 5:07 pm

Coalition Letter Urges U.S. House to Prioritize Regulatory Relief and Accountability via "Prove It Act"

In a coalition letter to House Majority Leader Steve Scalise, a broad range of small business groups thanked the Majority Leader for prioritizing regulatory relief for small businesses and urged the U.S. House to move forward with a full vote on the "Prove It Act." The legislation builds on reforms implemented by the Trump Administration and Congress by increasing small business input in the regulatory process and ensuring agencies are fully accounting for the impact of regulations on small businesses. The bill already passed the House Judiciary and Small Business Committees. In the letter, the groups observe:

"Small businesses were forced to deal with a tsunami of new regulations coming from Washington, D.C. over four years under the Biden Administration. In one four-year term, the Biden Administration finalized an unprecedented $1.8 trillion in new regulatory compliance costs and added 356 million in paperwork hours. These burdens fall disproportionately on small businesses that do not have lawyers and compliance officers to navigate complex regulatory issues."

SBE Council's February 2025 support letter for the "Prove It Act" also provides additional details on why the measure is important to small businesses.

ICYMI: Housing Affordability Solutions Move Forward

On February 9, 2026, the U.S. House passed the bipartisan "Housing for the 21st Century Act " (390-9). The bill is supported by a broad coalition of groups and business organizations, including SBE Council. As noted by SBE Council President & CEO Karen Kerrigan in a statement of support for the legislative package:

"By helping to expand the availability of affordable housing, the 'Housing for the 21st Century Act' will help to reduce the burden many workers face regarding costly and longer commutes - both in time and money - providing them with more choices in both employment and where they want to live. The downstream effect will be positive for small business creation and growth, as affordable housing choices will support the efforts of local businesses in attracting and retaining workforce talent."

Patent Tax Dead

SBE Council joined allies in warning about the big problems and economic dangers associated with a proposed framework that would charge patent holders based on the percentage of their patent's value, on top of existing fees. During a Senate Appropriations subcommittee hearing last week, Secretary of Commerce Howard Lutnick said that the proposal will not move forward. In a response to a question by Senator Chris Coons (D-DE), Secretary Lutnick said "we will avoid harming innovation by not doing a valuation, or any valuation fee or tax on patents." This is very good news!

In a September 2025 coalition letter to Secretary Lutnick that SBE Council signed, it was noted that the patent tax would be a highly complex one to implement (and to comply with), would undermine the positive investment/innovation incentives in the One Big Beautiful Bill, and the Administration's goals for positioning the U.S. as the global leader in innovation. SBE Council also joined the U.S. Chamber and other groups in signing a letter to congressional leaders about the consequences of the patent tax.

SBE Council Joins Petition for NLRB Rulemaking on Independent Contractors

SBE Council joined the Coalition for a Democratic Workforce and several other employer organizations in filing a petition for rulemaking with the NLRB on February 11. The petition urges the Board to set a clear independent contractor standard under the National Labor Relations Act:

"Given [the current] lack of clarity, instability, and open clash with the courts, both the purposes of the Act and the legitimacy of the Board are best served by the Board establishing a regulation setting forth the framework for determining independent contractor status by way of APA notice-and-comment rulemaking in line with its decision in SuperShuttle."

SBE Council Joins Groups to Oppose Codification of Most Favored Nation (MFN) for Drug Pricing

SBE Council has long opposed price controls due to the damaging downstream impact on small innovative companies that are key to disruption, innovation, and consumer choice across industries - including the biopharmaceutical sector. In a coalition letter to Members of Congress, it is pointed out how MFN undermines innovation and investment at home, and does not end foreign freeloading:

"MFN would surrender to foreign freeloading by basing U.S. prices on the prices of countries with socialist policies. Supporters of MFN hope that it will incentivize manufacturers to negotiate better deals. However, this is based on the flawed assumption that American manufacturers are not already fighting as hard as they can against foreign price controls."

Open Letter to the WTO on Making the eCommerce Moratorium Permanent

SBE Council joined fellow organizations in the global startup community to urge the World Trade Organization (WTO) to make the Moratorium on Custom Duties on Electronic Transmissions and the Associated Work Programme on Electronic Commerce permanent when the WTO members convene during their next ministerial meeting. As the groups underscore in their letter:

"The WTO's longstanding moratorium on tariffs and customs formalities on electronic transmissions, including content, has underpinned our growth and job creation across consumer and enterprise markets, and remains vital to supporting MSME and startup innovation as well as the digital transition writ large. The moratorium has enabled startups and MSMEs around the world to fairly and efficiently reach new markets, driving competition and innovation."

The WTO is scheduled to meet in Cameroon from March 26-29, 2026.

- Compiled by SBE Council's legislative affairs and policy team.