Sponsors (2)
The bill shifts more federal R&D dollars and program support toward small businesses and commercialization—boosting opportunities and capacity for SBIR/STTR awardees and under‑represented participants—while reducing the funds and flexibility available for other agency research, increasing administrative burdens, and raising federal spending obligations.
Small businesses (SBIR/STTR awardees) will receive a larger share of federal extramural R&D funding as SBIR set‑asides rise (to 7% SBIR / 1% STTR by FY2032), increasing grant and contract opportunities.
Current SBIR/STTR program authorities are extended through at least Sept 30, 2030, giving awardees and program managers multi‑year certainty and reducing near‑term disruption.
Awardees gain expanded direct assistance (Phase I/II technical/business assistance payments, internship/fellowship awards, and SBA outreach/assistance transfers) that boosts commercialization capacity, workforce training, and participation from under‑served states.
Researchers and other agency programs will have less discretionary extramural R&D funding because higher SBIR/STTR set‑asides shift a larger share of agency R&D budgets to small business awards.
Extending program authorities and increasing program activity raises federal spending obligations, which could increase costs to taxpayers absent offsets.
New officials, workforce training, expanded reporting, and higher administrative caps (e.g., from 3% to 3.3%) increase administrative overhead for agencies, reducing funds available for awards and raising program operating costs.
Based on analysis of 13 sections of legislative text.
Raises SBIR/STTR set-aside minimums through FY2032+, funds fellowships and commercialization supports, requires agency transfers to SBA, and expands reporting and definitions.
Introduced May 1, 2025 by Edward John Markey · Last progress May 1, 2025
Increases required SBIR and STTR set-aside percentages for federal agencies on a phased schedule starting in FY2026 and makes the program authorities effective through 2030 and beyond. It expands commercialization support by authorizing fellowships and internships, creates agency commercialization officers and contracting workforce training, and tightens procurement advocacy and Phase III transition requirements to move more technologies from research into government or commercial use. Requires several major research agencies to transfer a portion of administrative funds to the SBA to support program-wide activities, raises the administrative cap slightly, expands GAO reporting and program evaluation metrics (including review time metrics), and adds definitions and technical fixes including explicit inclusion of SBICs in the statute.