Small Business ICE Disruption Fund Act
- Sponsor
- Sen. Markey, Edward J. [D-MA]
- Committees
- Small Business and Entrepreneurship Committee (primary)
- Last action
- Feb 12, 2026
Bottom line
This bill creates a $200 million federal grant program to compensate small businesses for revenue losses directly caused by federal immigration enforcement activities.
What it actually does
This bill establishes the Small Business ICE Disruption Fund and appropriates $200 million for fiscal year 2026 to provide grants to small businesses. These grants are intended to compensate eligible entities for at least a 25% revenue loss directly caused by disruptions from federal immigration enforcement actions, with caps of $1 million per entity and $500,000 per physical location.
Proponents argue
Supporters argue this bill provides a vital safety net for small businesses that are innocent bystanders caught in the economic disruption of federal immigration enforcement, ensuring their survival and protecting local economies. They might emphasize that these businesses often suffer significant, unrecoverable losses through no fault of their own, and this fund offers necessary relief.
Opponents contend
Opponents might argue that this fund could create a moral hazard, potentially subsidizing businesses that knowingly or unknowingly employ undocumented workers, or that it diverts taxpayer money to address consequences of federal law enforcement actions rather than addressing the root causes of illegal immigration. They might also question the administrative burden and potential for fraudulent claims.
The bill is very short and clearly written, allowing for a quick and thorough understanding of its provisions.
Section 3(a) and 3(b)
Fund Establishment and Initial Appropriation
This section formally creates a new federal fund named the 'Small Business ICE Disruption Fund.' It then immediately appropriates $200,000,000 from the U.S. Treasury for fiscal year 2026 to this fund. These appropriated funds are designated to remain available until expended, meaning they will not expire at the end of the fiscal year.
Supporters argue
Supporters argue that a dedicated fund with a clear, upfront appropriation is essential to ensure that the program has the necessary resources to provide timely relief to affected businesses without relying on uncertain annual appropriations processes.
Critics contend
Critics might argue that appropriating a specific sum without a detailed assessment of potential claims could lead to either insufficient funds or an over-allocation of taxpayer money. They may also object to the use of unappropriated funds for this purpose.
Tradeoffs
This provision balances the need for immediate and guaranteed funding for a new program against concerns about the fiscal impact and the potential for misestimating the required amount of aid.
Section 2(2)
Eligibility Criteria for Grant Recipients
This section defines which small businesses are eligible for grants. To qualify, a small business must be located in an area where a federal immigration enforcement action occurred within the last year and must demonstrate at least a 25% revenue loss directly caused by disruptions from such enforcement. The definition explicitly excludes businesses with more than 15 locations (including affiliates) and publicly traded companies.
Section 3(d)
Application Process and Fraud Prevention Measures
To apply for a grant, eligible entities must make a good faith certification that their losses resulted from immigration enforcement disruptions and that they have not received compensation from any other source. The Administrator is also mandated to implement specific fraud checks, including requiring business identifiers (like EIN or SSN), verifying tax returns to confirm prior income, and cross-checking applicant information against existing government databases to prevent individuals or businesses convicted of fraud from receiving grants.
Section 3(e)
Grant Amount Determination and Caps
This section specifies that the amount of a grant awarded to an eligible entity will be equal to their demonstrated immigration enforcement-related revenue loss. However, there are explicit caps on the total amount: the aggregate amount of grants for an eligible entity and any affiliated businesses cannot exceed $1,000,000, and the grant amount is further limited to $500,000 per physical location of the eligible entity.