The New Start Act of 2025 seeks to combat high rates of unemployment and recidivism among formerly incarcerated individuals by fostering entrepreneurship. Congressional findings highlight that nearly 77% of individuals reoffend within five years of release, and a significant portion face unemployment or negligible income, whereas entrepreneurship has been shown to substantially reduce recidivism and boost annual income for this demographic.

The legislation establishes the New Start Program, to be implemented by the Small Business Administration within 180 days of enactment. This program will award competitive grants over a five-year period to organizations dedicated to creating or supporting entrepreneurial development programs for both currently and formerly incarcerated individuals. The Administrator is mandated to coordinate with the Bureau of Prisons to ensure services reach those still incarcerated.

Grant recipients, which may include small business development centers, women's business centers, and SCORE chapters, will receive annual awards ranging from $100,000 to $500,000, with a focus on geographical diversity. Applicants must demonstrate strong community ties, a clear plan for reaching target populations, and the capacity to deliver comprehensive entrepreneurial training. This training includes self-study courses, in-depth classroom instruction, one-on-one coaching, business plan development, and guidance on identifying capital sources.

Priority for grant awards may be given to applicants who secure non-Federal funding, integrate local economic considerations into their programs, or offer services concurrently with employment or job training. Grantees are also responsible for connecting participants to a broad array of Federal resources, such as various Small Business Administration programs. The Administrator must submit annual reports to Congress detailing program activities and outcomes, with a final evaluation by the Government Accountability Office upon the program's termination.