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Multiple amendments to section 9 of the Small Business Act to (1) increase minimum percentages of agency budgets set aside for SBIR/STTR in specified future fiscal years, (2) authorize fellowships and internships funded from specified sources, (3) expand application assistance and outreach requirements to increase participation by minority and Hispanic-serving institutions and low-award states, (4) modify technical and business assistance authorities including specified per-project funding limits for Phase I and Phase II, (5) require I–Corps participation options and funding sources, and (6) expand database and reporting requirements to include subcontracted research institutions and related details.
Modifies subsection (mm) of 15 U.S.C. 638: redesignates paragraph (1) text as subparagraph (A), redesignates existing subparagraphs A–L as clauses (i)–(xii), updates a statutory date and percentage, and adds a new subparagraph (B) establishing required transfers of at least 10% from specified agencies and limiting use of transferred funds.
Replaces subsection (mm)(2) to modify allowable uses of funds for outreach and technical assistance to increase participation of certain States and to carry out a referenced policy directive.
Conforming amendment replacing existing text of subsection (mm)(6) to enumerate uses of funds including transferred funds and other funds to achieve objectives.
Designates the existing text of subsection (cc) as paragraph (1), extends the statutory period from 2012–2025 to 2012–2030, expands which agencies may exercise the direct to Phase II authority, and adds limitations and reporting requirements.
Amends subsection (gg) by altering the heading text, replacing references with the term "covered program," and extending a fiscal year reference from 2025 to 2030.
Extends the expiration/terminology for the Phase 0 proof of concept partnership program from the end of fiscal year 2025 to September 30, 2030.
Extends the date for commercialization assistance pilot programs from September 30, 2025 to September 30, 2030.
Extends the expiration date for the due diligence program to assess security risks from September 30, 2025 to September 30, 2030.
Adds a new paragraph (5) to subsection (r) requiring the Administrator, in coordination with the Secretary of Defense, the Administrator of the General Services Administration, and other appropriate Federal agencies, to establish workforce training for contracting officers and agency acquisition workforce on Phase III SBIR and STTR acquisitions; defines 'agency acquisition workforce' and 'Phase III acquisition.'
And 4 more affected sections...
Reauthorizes and reforms the federal SBIR and STTR small-business research programs and related pilot authorities through updated rules, extended deadlines, new outreach and commercialization requirements, and expanded reporting. It raises program spending/participation targets, adds fellowships/internships tied to Phase II awards, increases and clarifies allowable technical and business assistance (with set dollar caps), expands outreach and application help for underrepresented institutions and states, and requires agencies to improve commercialization support and acquisition training for Phase III transitions. The bill also extends multiple pilot authorities and program expiration dates to 2030, requires new studies and public commercialization-impact reporting, adds SBICs into program language, and makes administrative and technical edits to improve tracking, speed, and oversight of awards. Several reporting deadlines, pilot limits, and short-term fund-transfer provisions to SBA for program administration are included; specific funding amounts are not specified in the excerpt.
Declares the heading and introduction to the Act's table of contents with the sentence: "The table of contents for this Act is as follows:" No table entries or further content are included in this excerpt.
Amend Section 9 of the Small Business Act (15 U.S.C. 638) by striking subsection (m).
Amend Section 9(n)(1)(A) of the Small Business Act (15 U.S.C. 638(n)(1)(A)) by striking specified text (the excerpt shows the action “is amended by striking .” but does not display the exact text to be removed).
Amend Section 34(i) of the Small Business Act (15 U.S.C. 657d(i)) by striking the date “September 30, 2005” and inserting “September 30, 2030,” thereby extending the FAST program’s statutory date.
Increase SBIR percentage set-asides in subsection (f)(1): require not less than 4% of agency budget for fiscal years 2026–2027; 5% for 2028–2029; 6% for 2030–2031; and 7% for fiscal year 2032 and each fiscal year thereafter.
Who is affected and how:
Small businesses and startups developing R&D-driven products: Direct beneficiaries. They gain increased funding targets, clearer rules on allowable assistance, new fellowship/internship opportunities tied to Phase II, and stronger pathways and agency support for moving technologies into Phase III and procurement.
Small Business Investment Companies (SBICs): Now explicitly included in program language, which may affect eligibility, partnerships, or program references involving SBICs.
Institutions of higher education and research organizations: Expanded outreach, application assistance, and reporting requirements affect universities and research labs that partner on SBIR/STTR awards, with increased visibility of subcontracted research partners through public databases.
Federal agencies and contracting/acquisition staff: Agencies must create or expand training for acquisition personnel, name commercialization officials, implement new reporting and data-collection requirements, and possibly transfer funds temporarily to SBA for administration—raising administrative workload and requiring procedural changes.
States and regions with historically low SBIR participation: Targeted outreach and reporting aim to increase awards in those states; state governments and local economic development entities may see more program engagement.
Program administrators (SBA and agency program offices): Will need to implement new caps, pilots, reporting pipelines, databases, and data publication requirements; this increases administrative responsibilities and may require IT or staffing investments.
Investors, commercialization partners, and contractors: Better public data on commercialization outcomes and more standardized rules for Phase III procurement can improve transparency and reduce barrier to government adoption, benefitting downstream partners.
Trade-offs and compliance burden:
Overall effect:
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 May 1, 2025 by Nydia M. Velázquez · Last progress May 1, 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
