Sponsors
The bill expands and stabilizes SBIR/STTR support for small businesses and outreach to underrepresented states by reallocating a modest share of major agencies' program funds to the SBA, trading off reduced direct resources and tighter budgeting flexibility for those agencies in order to boost small-business access and program administration.
Small businesses that compete for SBIR/STTR awards see a modest increase in set-aside contracting (from 3.0% to 3.3%), improving their chances of receiving federal R&D awards and funding.
The SBA receives dedicated new resources (mandatory transfers equal to 10% from major agencies) to expand outreach and applicant assistance, likely improving support and access for prospective SBIR/STTR applicants nationwide.
SBIR/STTR programs are reauthorized through 2030, giving awardees and participating agencies multi-year stability for planning and program continuity.
Taxpayers and agency programs effectively absorb a reallocation: at least 10% of certain agency program funds (DOD, DOE, HHS, NASA, NSF) are shifted to SBA transfers, reducing those agencies' direct program resources.
A two-month deadline to transfer funds after each appropriations act creates a tight implementation window that could disrupt agency budgeting and short-term program administration.
Transferred funds are prohibited from being used for programs under the Small Business Investment Act of 1958, limiting flexibility and potentially complicating coordination between SBA-funded outreach and other SB-related programs.
Based on analysis of 2 sections of legislative text.
Extends SBIR/STTR admin funding to 2030, raises the admin set‑aside from 3.0% to 3.3%, and requires five agencies to transfer at least 10% of certain SBIR/STTR admin funds to SBA.
Introduced January 22, 2026 by George Latimer · Last progress January 22, 2026
Increases and extends the federal administrative funding for the SBIR/STTR programs: it raises the statutory administrative set‑aside from 3.0% to 3.3% and extends the authorization date to September 30, 2030. The bill also requires the heads of DOD, DOE, HHS, NASA, and NSF to transfer at least 10% of the funds those agencies use for specified SBIR/STTR administrative/oversight/contract processing purposes to the SBA within two months after enactment of an appropriations act for those agencies. The transferred funds cannot be used for programs under the Small Business Investment Act of 1958 and may be used by SBA for the same authorized administrative, outreach, and technical assistance purposes; agencies are also explicitly allowed to use a portion of their administrative funds to carry out outreach and policies that increase participation from States with historically low SBIR awards.