New Start Act of 2025
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Apr 28, 2025
Bottom line
This bill creates a new federal grant program to support entrepreneurship training for justice-impacted individuals, aiming to boost economic opportunity and reduce reoffending rates.
What it actually does
This bill establishes the "New Start Program" within the Small Business Act, authorizing the Small Business Administration (SBA) to award competitive grants to organizations that provide entrepreneurial development programming to currently and formerly incarcerated individuals. The program aims to foster self-employment, reduce recidivism, and improve economic stability for justice-impacted individuals.
Proponents argue
Supporters argue that the bill addresses high recidivism and unemployment rates among justice-impacted individuals by providing a proven pathway to economic stability through entrepreneurship, which studies show significantly reduces reoffending and increases income. They contend that this program offers a practical and evidence-based solution for successful reentry.
Opponents contend
Critics might raise concerns about the efficacy of entrepreneurial programs for this specific population, the administrative overhead of establishing a new grant program, or argue that federal funds could be better allocated to other reentry services. However, no specific opposition is detailed in the provided text.
The bill is concise and clearly structured, allowing an informed reader to understand its core provisions within the time typically allotted for legislative review.
Section 1
Short Title 'New Start Act of 2025'
This section formally names the bill the 'New Start Act of 2025,' providing a common reference for the legislation. This title will be used in public discourse and legislative tracking to identify the Act.
Supporters argue
Supporters argue that a clear and concise short title helps in public discourse and legislative tracking, making the bill more accessible and understandable to a wider audience.
Critics contend
No specific opposition is typically raised against short titles, as they serve a fundamental organizational purpose in legislation.
Section 2
Congressional Findings on Recidivism and Entrepreneurship
This section outlines the factual basis and rationale for the bill, citing statistics on high recidivism rates (77% within 5 years), significant unemployment (48.5% for 1 year post-incarceration) and reduced earnings (25%) among formerly incarcerated individuals. It also highlights studies indicating that justice-impacted individuals are more likely to choose entrepreneurship (12.49% vs. 7.09% for others), which reduces recidivism by 5.3% and increases annual income by $2,700.
Section 3, inserting new Section 49(b) into the Small Business Act
Establishment of the New Start Program
This provision directs the Administrator of the Small Business Administration (SBA) to establish the "New Start Program" within 180 days of the bill's enactment. The program will award competitive grants over a 5-year period to organizations that create or support entrepreneurial development programs for currently and formerly incarcerated individuals. The Administrator must coordinate with the Director of the Bureau of Prisons to facilitate services for currently incarcerated individuals and ensure an equitable share of grants between programs targeting both groups.
Section 3, new Section 49(c), (d), (e), (f)
Grant Eligibility, Application, and Priority Criteria
This section details the requirements for organizations seeking grants, specifying annual grant amounts between $100,000 and $500,000 and requiring geographic variation among recipients. Applicants must demonstrate strong community ties, an ability to provide ongoing entrepreneurial development programming, a plan for reaching target populations, and a comprehensive use-of-funds plan. Priority may be given to applicants with non-Federal funding commitments, those considering local economies, offering concurrent job training, or with a history of effective training for justice-impacted individuals, especially those soon to be released (within 18 months).
Section 3, new Section 49(g)
Responsibilities of Grant Recipients to Connect Participants to Federal Resources
Grant recipients are required, to the maximum extent possible, to connect formerly incarcerated individuals to a range of existing federal resources. These resources include the SBA's Microloan program, Community Advantage Small Business Lending Companies, Small Business Development Centers, Women's Business Centers, SCORE chapters, Veteran Business Outreach Centers, and business centers established by the Minority Business Development Agency.
Section 3, new Section 49(h)
Annual Reports and GAO Evaluation
The Administrator must submit annual reports to Congress detailing program activities, grantee information, participant characteristics (e.g., race, gender, employment, income, prior business experience), participation and retention rates, reasons for non-completion, recidivism rates, participant experiences, and loan data. Additionally, the Comptroller General (GAO) must submit a report one year after the program terminates, evaluating the services provided by grant recipients, SBA's oversight, and the program's overall performance and impacts.
The definitions of 'currently incarcerated individual' and 'formerly incarcerated individual' include a clause requiring that they meet 'offense eligibility requirements set forth in any applicable policy notice or other guidance issued by the Administration for the program established under section 7(m).'
Section 3, new Section 49(a)(3)(B) and (a)(5)(B)
Why it matters:This is standard legislative practice to allow administrative flexibility in defining specific eligibility criteria, which can be updated more easily than statutory language. It leverages existing agency expertise and policy frameworks.
Case for: Proponents argue that referencing existing administrative guidance allows the SBA to leverage established eligibility frameworks, ensuring consistency with other programs and enabling adaptive policy adjustments without requiring new legislation. This approach can streamline implementation.
Case against: Critics might contend that this approach lacks transparency, as the specific offenses that would disqualify an individual are not explicitly stated in the bill, leaving significant discretion to the Administration and potentially leading to exclusions not intended by Congress or the public.
Estimated impact: This provision significantly impacts the total number and type of justice-impacted individuals who will be eligible for entrepreneurial development programs, potentially excluding those with certain criminal records and thus limiting the program's reach.
The Administrator 'shall coordinate with the Director of the Bureau of Prisons to allow organizations... to provide entrepreneurial development assistance to currently incarcerated individuals.'
Section 3, new Section 49(b)(2)(A)
Why it matters:This is typical for inter-agency coordination provisions, relying on good faith and existing executive branch relationships. It avoids over-prescribing operational details in statute, allowing agencies to determine the most effective methods.
Case for: Proponents argue that this flexibility allows the agencies to develop the most effective and practical coordination methods, adapting to the unique operational environments of prisons without being constrained by overly rigid statutory language.
Case against: Critics might point out that without stronger mandates or specific incentives for the Bureau of Prisons, the 'coordination' could be weak or slow, potentially hindering the program's ability to reach currently incarcerated individuals effectively and limiting its overall impact.
Estimated impact: The effectiveness of this coordination will determine the extent to which the program can serve currently incarcerated individuals, impacting a significant portion of the target population and the program's ability to achieve its stated goals.