In a rare show of unity amid partisan gridlock, the U.S. House of Representatives on January 20, 2026, passed two bipartisan bills aimed at providing artificial intelligence tools to small businesses through the Small Business Administration. The AI for Main Street Act (HR 5764) passed by a landslide vote of 395-14, while the Artificial Intelligence Wisdom for Innovative Small Businesses Act (AI-WISE Act) (HR 5784) passed by voice vote. Both bills currently await action in the Senate, with companion bills introduced in early January by Sen. Todd Young (R-Ind.) and Sen. Maria Cantwell (D-Wash.) showing potential momentum. FedScoop reported that the passage is an important step toward closing the technology gap for Main Street companies.
These bills respond to clear divides of opinion. While large corporations are pouring billions of dollars into AI, small and medium-sized enterprises, which employ nearly half of the civilian workforce, often lack the resources to safely deploy AI. Rep. Mark Alford (R-Missouri), a lead sponsor of the AI for Main Street Act along with Rep. Hilary Scholten (D-Mich.), emphasized empowerment over replacement. “This is not about replacing people, it’s about empowering people. It’s about giving family-owned businesses the same opportunities to compete, grow and innovate as Fortune 500 companies,” Alford said. The law requires SBA-funded Small Business Development Centers (SBDCs), a network of more than 900 locations nationwide, to provide AI guidance, training, and outreach on best practices, cybersecurity, data protection, and streamlining operations. Fox News highlighted the landslide support.
This measure builds directly on existing initiatives such as Google’s AI U program, which was launched with a $10 million Google.org grant to US SBDCs in 2024. The initiative already provides one-on-one coaching and resources, proving a model for scaling AI literacy without new spending. Both bills are funded solely with current SBA funds. Rep. Nydia Velasquez (D.Y.), Ranking Member of the House Small Business Committee, warned of the risks: “While it is becoming increasingly common for small businesses to use AI to streamline their operations, many businesses still lack access to AI responsibly. But when used incorrectly, AI can have disastrous consequences.” Congress.gov has more information on the progress of this bill.
Empowering SBDCs as AI front-line advisors
Under HR 5764, SBDCs must conduct outreach to assess small businesses’ AI concerns and provide customized counseling. This includes evaluating AI tools for tasks like inventory management and customer service, planning for disruption, and dealing with regulations. The House Small Business Committee unanimously advanced the bill away from the price increase in November 2025 after hearings on SBA recovery, reflecting months of bipartisan coordination. Committee Chairman Rep. Roger Williams (R-Texas) has long championed small business innovation, pointing to the real-time transformation of operations through AI.
For rural and underserved areas, these resources can be transformative. Scholten and co-sponsor of the AI-WISE Act, Rep. Troy Downing (R-Mont.), highlighted the challenges in their district, saying, “The rural small businesses I represent often lack the resources and information they need to accelerate technology adoption. My AI-WISE Act will help Main Street Montana remain competitive and thrive in the age of AI.” Downing’s press release celebrated House passage, citing support from OpenAI and Intuit. Representative Troy Downing’s office.
The SBDC, a public-private partnership, is already advising on funding and planning. The expansion into AI formalizes this role as adoption soars. According to Forbes Insights, a September 2025 SBA Office of Advocacy report notes that small businesses are rapidly closing the AI gap, with 78% of businesses using AI but only 26% capturing full value. These bills aim to accelerate responsible efforts. Representative Mark Alford’s office.
The AI-WISE Act: Building a Digital Literacy Platform
HR 5784 directs the SBA Administrator to develop and host online learning modules on existing platforms that cover how AI models work, identifying tasks, third-party coordination, data privacy, and identifying AI outputs. Consultation with the National Institute of Standards and Technology (NIST) and expert advisory groups ensures accuracy and neutrality, without favoring any particular provider. OpenAI praised this in a November 2025 letter. “OpenAI also strongly supports HR 5784…This bill would require the Small Business Administration to develop and maintain clear educational resources and online learning modules that explain how AI tools work and their limitations and risks.” Congressional Record.
Rep. Scholten, a consistent force, tweeted after the passage, saying, “West Michigan entrepreneurs showed up and Congress got results today. My AI-WISE Act and the AI for Main Street Act passed the House with bipartisan support.” The bill engages SBDCs and women’s business centers for dissemination, including localized training. Williams added, “Artificial intelligence is changing the way businesses operate in real time. And while large companies can afford expensive consultants…many small businesses can’t…The AI WISE Act helps fill that gap.” FedScoop Committee Advance Information.
This modular approach leverages SBA’s e-learning infrastructure and prioritizes accessibility without requiring new authorizations. OpenAI’s support for the industry highlights the importance of model-agnostic design as agent AI rises in workflows such as prediction and personalization, according to Forbes’ 2026 predictions for small business trends.
Path to the Senate and broader momentum
Senators Young and Cantwell’s January 2026 Senate companion bill mirrors the House provision and directs SBDCs to expand AI training in operations, cybersecurity, and intellectual property protection. “This legislation will help provide thousands of small businesses with guidance and training on how they can leverage AI to help their businesses grow and thrive,” Young said. Mr. Cantwell expressed a similar opinion for Washington state. As of late January 2026, there is no floor action in the Senate, but with bipartisan sponsors and momentum in the House, the Senate is in a good position, especially with passage of a post-SBA IT modernization bill in December 2025. Sen. Todd Young’s office.
Recent SBA actions, such as the Roundtable on AI Executive Order on February 5, 2026, are in line with this push. Google’s continued AI U expansion with Grow with Google further validates the model. Rep. Alford tweeted: “Passed: AI FOR MAIN STREET ACT! @HouseSmallBiz is finding solutions that give small businesses the tools, training, and trusted guidance they need to compete.” X posts from insiders confirm overwhelming support. SBA AI Resources Page.
For industry observers, these bills signal Washington’s pivot to practical AI for the 33 million small and medium-sized businesses that drive 44% of U.S. GDP. With no fiscal offset required, Senate passage could codify AI as a Main Street equalizer by mid-2026, amid stronger agent tools and federal frameworks.
