Addressing Immigration Enforcement Crisis by Separating DHS From Federal Funding Bill is the Best Outcome for Small Businesses

For Immediate Release: 
Wednesday, January 28, 2026

Statement from Small Business Majority Founder & CEO John Arensmeyer on the impact of a partial federal government shutdown and the immigration reforms that would benefit small firms

“Congress is at a crossroads and the decisions our elected officials make in the coming days and weeks will have a profound impact on not only America’s small businesses but on the collective whole of our nation.

On one hand, government shutdowns, even partial shutdowns, typically harm small businesses in some form. Most notably, shutdowns interrupt small business access to lending, technical assistance and other critical support services. For small businesses that work directly with the federal government as contractors, it means they do not get paid for the duration of the shutdown. These are all serious problems that can cause irreparable damage to small firms.

At the same time, the federal government’s widespread use of violent and chaotic immigration enforcement action is disrupting small business operations nationwide. In fact, Small Business Majority’s research found that 47% of small business owners say that increased immigration enforcement has had a negative impact on their business. This is no surprise given that immigrants are twice as likely as U.S.-born individuals to start their own business and many small business employees are immigrants. Our research also found 89% support immigration reform that modernizes the legal immigration system to reduce backlogs and makes it easier for qualified workers to come into the United States legally. Additionally, 87% support providing a pathway to citizenship for Dreamers, undocumented immigrants who were brought to the United States as children.

In order to address an immigration enforcement situation that has rapidly devolved to the point of crisis while also minimizing the damage caused by a government shutdown, the U.S. Senate should separate U.S. Department of Homeland Security funding from the other legislation needed to fund the federal government so that the government can remain up and running while lawmakers negotiate necessary reforms to U.S. Immigration and Customs Enforcement operations. Going forward, lawmakers must also pass legislation that provides pathways to legal status for qualifying undocumented immigrants to bolster an essential small business workforce. This includes passing bipartisan legislation like the Dignity Act (H.R. 4393), which would strengthen immigration laws in the United States while providing certain undocumented, Deferred Action for Childhood Arrivals recipients and Dreamer status holders with temporary status to support our economy on Main Street. The Dignity Act would also raise outdated immigration caps and increase availability of high-skilled visas, expanding access to talented workers for small businesses in high-skill, manufacturing and agricultural fields.

The bottom line is that the status quo on immigration is not working for small businesses. The chaotic, arbitrary and violent immigration enforcement that is hurting small business owners, their employees and the economy must end immediately. We urge policymakers to take this opportunity to make needed and long overdue changes that benefit Main Street and our nation as a whole.”

About Small Business Majority

Small Business Majority is a national small business organization that empowers America's diverse entrepreneurs to build a thriving and equitable economy. We engage our network of more than 85,000 small businesses and 1,500 business and community organizations to advocate for public policy solutions and deliver resources to entrepreneurs that promote equitable small business growth. Our deep connections with the small business community along with our scientific research enable us to educate the public about key issues impacting America’s entrepreneurs, with a special focus on advancing the smallest businesses and those facing systemic inequalities. Learn more about us on our website and follow us on TwitterFacebook and Instagram.

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