The New Start Act of 2025 creates a federal grant program to help people who are currently in prison or have been released from prison start their own businesses. The government will give grants of $100,000 to $500,000 per year to organizations like small business development centers and SCORE (retired business executives) to teach entrepreneurship skills to these individuals.

The bill is based on research showing that formerly incarcerated people face major barriers to finding jobs—nearly half remain unemployed a year after release, and criminal records reduce earning potential by about 25 percent. However, the data shows that when formerly incarcerated people start their own businesses instead, they're much more likely to succeed and less likely to return to crime. People who become entrepreneurs after incarceration earn about $2,700 more per year than those who work for employers, and they have significantly lower recidivism rates.

Organizations that receive grants must provide comprehensive training including business planning, financial literacy, mentorship, and help accessing startup capital. They'll work with the Bureau of Prisons to reach currently incarcerated individuals and coordinate with lenders to help formerly incarcerated entrepreneurs get loans. The program will run for five years, and the government will track results like how many people complete the training, how many start businesses, and whether participants stay out of the criminal justice system. Congress will receive annual reports on the program's effectiveness.