Sponsors (2)
The bill expands and stabilizes funding, commercialization support, outreach, and workforce pathways for SBIR/STTR small R&D firms—boosting equity and market transition—but does so by shifting federal R&D dollars toward SBIR/STTR and adding administrative, compliance, and statutory complexity that can reduce funding available for other research and increase costs for agencies, awardees, and taxpayers.
Small businesses that participate in SBIR/STTR (especially tech and research firms) gain sustained and larger funding: program authorities are extended through at least Sept 30, 2030 and set‑asides rise to 7% (SBIR) and 1% (STTR) by FY2032, increasing grant and contract opportunities.
SBIR/STTR awardees get stronger commercialization support—dedicated commercialization officials/advocates, acquisition workforce training, and model Phase III procedures—to improve chances of follow‑on contracts and transition to market.
Awardees and trainees gain expanded assistance and workforce development: new technical/business assistance payments, fellowship and internship awards, and clarified direct‑to‑Phase II authority speed funding and build R&D career pathways.
Taxpayers and non‑SBIR R&D projects face reduced available funding: higher SBIR/STTR set‑asides and extended authorities increase federal obligations and shrink agencies' extramural budgets for other research.
Small businesses and students may receive fewer award dollars because agencies can divert portions of set‑asides (e.g., up to 3% or 3.3%) and transfers can reduce funds available for direct awards.
Agencies, awardees, and research institutions will face higher compliance and administrative burdens from new reporting, outreach mandates, training programs, and annual reporting requirements, raising costs and slowing solicitations/contracting.
Based on analysis of 13 sections of legislative text.
Raises and phases up SBIR/STTR set‑asides through FY2032+, mandates SBA/admin fund transfers, requires commercialization training/officers, expands reporting, and authorizes fellowships.
Official title: Amend the Small Business Act to reauthorize and modify the Small Business Innovation Research and Small Business Technology Transfer Research programs, and for other purposes.
Introduced May 1, 2025 by Edward John Markey · Last progress May 1, 2025
Reauthorizes and reforms the federal SBIR and STTR small‑business R&D programs by extending program authorities, raising minimum agency set‑aside percentages in stages through FY2032 and beyond, and expanding commercialization support. It creates new fellowship authority for Phase II awardees, requires commercialization training for acquisition staff, designates agency commercialization officials, mandates interagency transfers to the SBA to support program administration and outreach, tightens reporting and evaluation requirements including a GAO study, and makes technical edits and definitional updates (including explicit inclusion of SBICs).