How Reconciliation Bill Will Harm Entrepreneurs | California State Budget

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Policies in Reconciliation Bill Will Harm Entrepreneurs

Congress just passed a Budget Reconciliation bill that poses serious threats to small businesses—cutting Medicaid, weakening borrower protections, and favoring large firms with skewed tax breaks. These changes could increase costs, reduce access to capital, and hurt healthcare access for millions.

But the fight isn’t over: use the Summer Recess to urge your lawmakers to protect small business programs such as CDFI Fund and SBA in the FY26 budget. Join us on July 15 to prepare you for your efforts.

California State Budget

Governor Newsom signed California’s 2025–26 budget, marking two wins and a loss for small business support. The SB-TAP program received $23 million to continue helping entrepreneurs through various small business assistance programs, while DFPI’s fee schedule was updated to strengthen financial oversight.

However, Cal IIP—which provides key funding for CDFIs—was not included. One final round of funds remains in 2026, giving us a critical window to advocate for its renewal.

Aspen Ideas: How Small Businesses Power Industry

Last week, CAMEO Network CEO Carolina Martinez spoke at the Aspen Ideas Festival about how small businesses are driving a new industrial revolution. Alongside fellow panelists, she explored how to redefine “industry” to reflect today’s small-scale manufacturers—and how to better support them through technology, ecosystem-building, and equitable opportunity. Watch the full session to hear how small businesses are shaping the future of industry.

Celebrate Independent Businesses

This Fourth of July, honor the spirit of independence by supporting the small retailers and independent workers who fuel our economy. 

Amid rising tariffs, inflation, and limited access to capital, they face real challenges. The White House’s proposed budget and Congress’s reconciliation bill threaten to cut key support programs—making it even harder for them to succeed. We can exercise our power of the purse and shop small to do our part.

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For Your Clients

EmpowHer grants of up to $25,000 support women who need early-stage business capital, a network of business advisors, or both.The first application window for the California Competes Tax Credit runs from July 21 to August 11, 2025Join the free application webinar on July 23 at 9:30am PT.

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