Sponsors
Need the quick take? I'll walk you through this bill.
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Extends and strengthens parts of the federal SBIR/STTR small business innovation programs by moving several expiration dates from 2025 to 2030. It broadens and extends the “direct to Phase II” authority so more agencies can use it, sets yearly percentage limits on awards made under that authority, and requires agencies to report amounts and counts of those awards. It also extends two pilot programs (Phase 0 proof-of-concept partnerships and commercialization assistance pilots) and extends the civilian-agency commercialization readiness program through FY2030.
Designate the existing text of subsection (cc) of Section 9 of the Small Business Act as paragraph (1).
Replace the phrase "2012 through 2025" with "2012 through 2030" in subsection (cc), extending the period covered by the authority to 2030.
Replace the agency-specific phrase "the National Institutes of Health, the Department of Defense, and the Department of Education may each" with the broader phrase "each Federal agency required to carry out an SBIR program may," allowing any such agency to exercise the authority.
Add a Limitation: Except as provided for NIH, the total value of awards provided by a Federal agency under this subsection in a fiscal year shall be not more than 10 percent of the total funds allocated to that agency's SBIR program during that fiscal year.
Add a Limitation specific to NIH: With respect to the National Institutes of Health, the total value of awards provided under this subsection in a fiscal year shall be not more than 15 percent of the total funds allocated to NIH's SBIR program during that fiscal year.
Who is affected and how:
Small businesses participating in SBIR/STTR: They get extended program continuity and potentially faster paths to Phase II (direct-to-Phase-II), which can shorten the development timeline and improve commercialization chances. The extension of Phase 0 and commercialization assistance pilots also provides more time and opportunities for early-stage proof-of-concept work and commercialization support.
Federal agencies that run SBIR/STTR programs: More agencies may opt to use direct-to-Phase-II authority, but they must stay within the new percentage limits and meet new reporting requirements. Agencies will need to update program practices, tracking, and annual reporting.
Research partners and commercialization service providers: Entities that partner with small businesses (universities, incubators, accelerators, non‑profits) may see sustained demand for Phase 0 and commercialization services through 2030.
Program administrators and oversight bodies: Increased reporting requirements create modest administrative burden but improve transparency about how the direct-to-Phase-II pathway is used.
Potential benefits:
Potential downsides and risks:
Overall, the changes are largely administrative and programmatic extensions designed to support commercialization while adding guardrails and transparency. No direct new spending or tax policy changes are included in the text provided.
Amends 15 U.S.C. 638(jj)(7) by replacing the prior expiration language ('at the end of fiscal year 2025') with a new date: 'on September 30, 2030'.
Amends 15 U.S.C. 638(uu)(3) by replacing the prior expiration date ('September 30, 2025') with a new date: 'September 30, 2030'.
Amends subsection 9(gg) of the Small Business Act by altering the subsection heading, replacing a term throughout the subsection with the phrase "covered program", and updating the fiscal-year reference from 2025 to 2030.
Amends subsection (cc) of 15 U.S.C. 638 by redesignating its existing text as paragraph (1), changing the date range from 2012–2025 to 2012–2030, replacing a clause naming NIH, DOD, and Dept. of Education with a clause referring to each Federal agency required to carry out an SBIR program, and adding new paragraphs (2) (limitations on award value as percentage caps) and (3) (a reporting requirement referencing subsection (g)(9)).
Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced June 9, 2025 by Johnny Olszewski · Last progress June 9, 2025
Expand sections to see detailed analysis
Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Introduced in House