Sponsors (2)
The bill expands and sustains SBIR/STTR funding, commercialization supports, and outreach—boosting opportunities for small innovators and workforce development—but does so by redirecting agency R&D dollars, increasing administrative burdens and taxpayer costs, and creating potential fairness and eligibility trade-offs.
Small businesses (startups and awardees) will get substantially more and sustained access to SBIR/STTR funding and related programs because set-asides are raised and program authorities/pilots are extended through 2030+.
SBIR/STTR participants will have clearer, faster commercialization pathways because agencies must advocate for Phase III awards, standardize clauses, designate Technology Commercialization Officials, and train acquisition staff.
Students, early-career researchers, and underrepresented groups will gain more paid fellowship, internship, and outreach opportunities tied to SBIR/STTR firms, increasing training and workforce pipelines.
Taxpayers and broader R&D programs may bear trade-offs because higher mandatory SBIR/STTR set-asides and agency transfers reduce flexible agency R&D dollars and can shift funding away from non‑SBIR research priorities.
Implementing extensions, new reporting, training, designated officials, and standardized clauses will raise administrative and compliance costs for agencies (and ultimately taxpayers) and could divert money from awards.
Small businesses may face increased paperwork and compliance burdens because of new reporting requirements for subcontracting, Phase III denials, and other agency/prime-contractor reports, raising costs for awardees.
Based on analysis of 13 sections of legislative text.
Reauthorizes and strengthens SBIR/STTR: raises agency set‑aside rates over time, expands Phase III/commercialization support and fellowships, and extends authorities to 2030+.
Introduced May 1, 2025 by Edward John Markey · Last progress May 1, 2025
Reauthorizes and reforms the federal SBIR and STTR small‑business research programs by extending authorities, raising agency set‑aside rates on a phased schedule starting in FY2026, and lengthening certain program expirations through 2030. It adds new commercialization and Phase III support (training, designated commercialization officials, reporting, and streamlined contracting provisions), creates fellowship/internship opportunities tied to prior Phase II awardees, expands direct‑to‑Phase II authority with annual limits, and requires agency transfers and new reporting to strengthen outreach and commercialization outcomes. The bill also directs GAO to report on program diversification and commercialization, requires an NIH pilot to shorten award timing, updates definitions (including SBICs), and makes technical and funding‑use adjustments to the SBIR/STTR funding and outreach authorities.