Sarah Chen was staring at her laptop on January 3, 2026, with that familiar knot of anxiety. Her Portland-based business, “Green Sprout Organics,” was barely breaking even thanks to the rising cost of imported organic fertilizers and supply chain snarls that just wouldn’t quit. She wasn’t the only one. Small business owners everywhere were watching the new Congress, hoping its legislative agenda would finally do something about the economic headwinds that made just staying open a daily fight. The big question was, what would they actually prioritize, and would it be fast enough to save a business like Green Sprout?
Key Takeaways
- The 119th Congress (Jan. 2026) is set to tackle inflation, supply chain problems, and workforce shortages.
- A popular bipartisan idea is tax relief for small businesses (under 50 employees) to cut their operating costs.
- Major infrastructure spending is planned for the country’s logistics networks, which should help prevent future supply chain delays for businesses needing on-time delivery.
- Expect to see more federal grants for vocational programs and other training initiatives to fill labor gaps in key industries.
- Lowering healthcare costs by negotiating drug prices is still on the table, which could reduce what employers pay for insurance.
Right now, Sarah’s biggest headache is a shipment of organic nitrogen fertilizer that’s been stuck in the Port of Long Beach for the third time in three months. “The unpredictable cost is killing me even more than the delay,” she said on a call. “My projections are useless.” That kind of unpredictability is exactly the economic instability that defined the 2024 and 2025 elections. So it’s no surprise that Congressional leaders are putting economic stability at the top of their legislative agenda for the 119th Congress.
Supply chain resilience is a major priority. The chaos of the early 2020s, made worse by geopolitical events, showed just how fragile things were. A November 2025 report from the Congressional Research Service (CRS) confirmed it: over 60% of U.S. businesses said they were hit by supply chain problems last year. For a business like Green Sprout Organics, this boils down to predictable costs and having reliable inventory. The proposed fixes include pushing for more domestic manufacturing of key goods, pouring money into port infrastructure, and getting logistics companies and government agencies to share data so they can actually see bottlenecks coming.
Sarah doesn’t care about the policy debates, she just wants something that actually works. She’s been following the proposed “American Logistics Modernization Act,” a bipartisan bill that would put $50 billion over five years into fixing ports, rail, and trucking. “If my fertilizer could get from the port to my farm in two days instead of two weeks, that’s real savings,” she said. That same bill, which is in committee right now, also has grants for small businesses to buy better inventory management software, exactly the kind of tool Sarah has wanted but couldn’t afford.
Addressing Inflation and Cost of Living
Inflation is the other big problem that won’t go away, and it’s a top concern for voters and therefore for Congress. Sure, it’s cooled off since the 2022 peaks, but it’s still eating into everyone’s purchasing power and driving up business costs. The Fed’s own projections from December 2025 show inflation is still stubbornly above its 2% target. That pressure makes consumers think twice before buying things like specialty organic produce, which hits Sarah’s bottom line directly.
So what’s the plan? Lawmakers are looking at a few different angles. A big one is energy policy. Since global energy markets are still a mess, you’re hearing proposals for everything from more domestic oil and gas to huge investments in renewables. The thinking is that having more energy independence and a mix of sources will protect the U.S. economy from shocks abroad. For example, the “Clean Energy Grid Advancement Act,” a bipartisan bill from Senator Rodriguez (D-CA) and Senator Thompson (R-WY), would offer $75 billion in tax credits and loan guarantees for renewable projects and grid upgrades. If it works, that could finally bring some stability to energy prices for both businesses and regular people.
Giving consumers direct relief could also help businesses by getting people to spend again. There’s talk of targeted tax credits for middle- and lower-income families and, of course, ideas for cutting healthcare costs. The “Affordable Care Expansion Act” is a big Democratic push to expand insurance subsidies and let Medicare negotiate more drug prices. Sarah’s employee healthcare costs have been climbing for years, so any break would be huge. “Every dollar I save on insurance,” she noted, “is a dollar I can put into better quality soil or a new delivery van.”
Workforce Development and Labor Shortages
Like a lot of small businesses, Green Sprout Organics can’t find reliable people. The combination of a tight labor market and a real skills gap is holding back growth across the board. “Finding experienced farmhands who understand organic practices is nearly impossible,” Sarah said. “I end up spending weeks training new hires, and then some of them just leave after a few months.”
Washington gets it. Workforce development is a rare bipartisan priority for this Congress. The proposals center on expanding vocational training, giving more money to community colleges, and setting up more apprenticeships where they’re needed most. A key bill here is the “Skills for Tomorrow Act” from Reps. Davis (R-GA) and Lee (D-NY), which would give states $30 billion over three years for exactly these kinds of programs. Critically for business owners, it includes matching grants for businesses that offer paid apprenticeships, something Sarah could use if she decides to train someone new.
Immigration reform always comes up in these labor discussions. A full overhaul is probably a non-starter politically, but some lawmakers are trying for smaller, targeted visa programs to bring in workers for specific sectors like agriculture and healthcare. Don’t hold your breath, though. Those ideas face a lot of opposition and won’t pass quickly, if at all.
Small Business Support and Regulatory Reform
Legislation aimed directly at small businesses would obviously have the biggest effect on entrepreneurs like Sarah. Tax relief is the main topic of conversation. There are a few ideas floating around, like extending tax deductions for buying equipment, making the tax code simpler for small outfits, and cutting the corporate tax rate for companies under a certain size. A Republican bill, the “Small Business Growth Act,” even suggests a temporary cut in capital gains taxes for owners who put profits back into their business, which is designed to spur expansion and hiring.
Small businesses are also desperate for some regulatory reform. Too many owners are drowning in complex and overlapping federal rules. Congress is likely to look at bills that force federal agencies to simplify their processes and actually analyze the costs versus the benefits before they roll out new rules. One specific bill, the “Regulatory Accountability Act,” would force agencies to think about the impact on businesses with fewer than 50 employees. That could make a real difference in the compliance burden for a place like Green Sprout Organics.
Sarah is cautiously optimistic. By March 2026, the American Logistics Modernization Act has actually passed the House and is just waiting on the Senate. The idea of a federal grant for inventory software feels real. And even though her latest fertilizer shipment is still delayed, she has better tracking info because of a pilot program at the Port of Long Beach, a small sign that things might be getting better. “It’s not a magic wand,” she admitted, “but if Congress can fix even a few of these big problems, it gives us a fighting chance.” What happens with this legislative agenda will directly determine whether businesses like Sarah Chen’s can survive.
The new Congress’s agenda lays out the big national priorities. For businesses and individuals, the things to watch are the bills on supply chain fixes and small business support, since those are the areas where you’ll see the most direct economic effects.
What are the primary economic concerns addressed by the new Congress?
The big three are stubborn inflation, fragile supply chains, and ongoing labor shortages. All of them are hitting both regular people and businesses hard.
How is Congress planning to address supply chain issues?
They’re looking at spending big on infrastructure (ports, rail, etc.), offering incentives to bring manufacturing back to the U.S., and improving data sharing to predict and avoid future bottlenecks.
What legislative efforts are focused on workforce development?
The focus is on practical training: expanding vocational programs, giving more money to community colleges, and encouraging apprenticeships to fill the skills gap in industries that desperately need workers.
Are there specific proposals to help small businesses?
Yes, definitely. The main ideas are tax relief (extending deductions for equipment, simpler tax codes, lower rates for small companies) and cutting down on regulatory red tape.
What is the timeline for these legislative priorities?
It’s a slow process. Some bills are moving, but the big debates and votes will likely happen throughout 2026. If anything passes, don’t expect to see the effects until late 2026 or early 2027 at the soonest.
