Federal startup grant program renewed with expanded reach to distressed regions

What does this do?

HR 8866 renews the Build to Scale program, run by the Department of Commerce, which funds state agencies and nonprofits that help technology-based startups grow in specific regions. The bill authorizes up to $50 million per year from 2026 through 2030. It also updates cost-sharing rules, requiring grant recipients to cover at least half the cost, with adjustments allowed for economically struggling areas.

Who does it affect?

Entrepreneurs, startup founders, and small technology-based businesses in economically distressed regions are most directly affected. State agencies and nonprofit organizations that administer innovation programs are also affected, as they apply for and distribute the grants.

Why does it matter?

Renewing the program extends federal support for startup ecosystems in regions that have faced long-term economic hardship, trade-related job losses, or rural isolation. The expanded outreach requirements mean more communities in those categories would be actively encouraged to compete for funding, and workforce boards could be brought in to link job training with supported businesses.

What does it cost, and who pays?

• Up to $50M per year authorized
• Covers fiscal years 2026–2030
• Recipients must match at least 50%