Impact & Influence – Government Talks
Federal policy upheaval under the second Trump administration is threatening billions in government contracts and funding streams that Black-owned businesses rely on.
Key takeaways
- •Since January 2026, executive actions on tariffs, deregulation, and potential diversity-program rollbacks have accelerated, directly hitting minority enterprises dependent on federal procurement worth over $700 billion annually.
- •Black-owned firms, holding under 3% of federal contracts despite growth in numbers, face heightened risks of lost revenue and market access without stronger advocacy.
- •As federal uncertainty mounts, state-level influence in places like Georgia becomes critical amid looming budget deadlines and infrastructure decisions through mid-2026.
Advocacy Amid Upheaval
The return of Donald Trump to the presidency in January 2026 has unleashed a rapid series of policy shifts, including reinstated tariffs on imports, broad deregulation efforts, and executive moves targeting perceived ideological programs. These changes ripple through government contracting, small-business support, and regulatory environments, areas where minority-owned businesses—particularly Black-owned ones—have long fought for equitable access.
Federal procurement represents a massive economic lever, with annual spending exceeding $700 billion. Minority-owned businesses have historically secured only a fraction of this, often below targeted goals, due to barriers in certification, competition, and awareness. Recent moves risk further erosion, especially if set-aside programs or diversity initiatives face cuts or scrutiny.
In Georgia, home to a vibrant ecosystem of Black entrepreneurs, the stakes are local as well. State responses to federal changes—on tax incentives, infrastructure funding, or economic development grants—carry deadlines in 2026 legislative cycles. Inaction or poor positioning could mean missed opportunities in sectors like construction, technology, and services that depend on public dollars.
Less visible tensions include the trade-off between deregulation's promise of reduced compliance costs and the inflationary bite of tariffs, which raise input prices for many small firms. Advocacy groups must navigate these cross-currents, balancing calls for protectionism with demands for open markets, while federal retrenchment pushes more responsibility to state and local levels.