WASHINGTON – Today, House Small Business Committee Ranking Member Nydia M. Velázquez (D-NY) and Senate Small Business Committee Ranking Member Edward J. Markey (D-MA) introduced the SBIR and STTR Reauthorization Act of 2025.
The bill would permanently authorize and strengthen two of the federal government’s most successful small business innovation programs: the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
“For over 40 years, SBIR and STTR have helped America’s small businesses lead the way in cutting-edge research and innovation,” said Ranking Member Velázquez. “At a time when the Trump administration is working to dismantle vital public programs, it is more important than ever to protect what works. This bill gives these programs the long-term support they need by providing stable funding, expanding access, and strengthening safeguards against foreign threats. I am proud to work with Ranking Member Markey to secure the future of these programs.”
“Thanks in part to the SBIR/STTR programs, America has experienced a ‘golden age of innovation’ over the last forty years. And now, as Trump's reckless tariffs threaten to decimate our most effective innovators–our small businesses–and the Administration slashes research dollars to institutions, it is even more urgent that we make the SBIR and STTR programs permanent," said Ranking Member Markey. "These programs work because they prioritize merit and promote competition, and I am committed to ensuring that they retain their initial intent of fostering innovation in truly small businesses. I thank Congresswoman Velázquez for her partnership in promoting innovation through small businesses and providing certainty for these programs for decades to come."
For more than four decades, the SBIR and STTR programs have delivered over $70 billion in research and development funding to more than 30,000 small businesses across the country. These programs have driven groundbreaking advancements in areas ranging from clean energy to public health, supporting small firms that turn cutting-edge research into real-world impact.
The new legislation ensures long-term certainty for these programs while also increasing their reach and effectiveness. Specifically, the bill would:
Make permanent the SBIR and STTR programs. Permanently authorizing the SBIR and STTR programs will give both small businesses and government agencies the stability needed to continue their collaboration to spur innovation.
Maintain competitiveness of the SBIR and STTR programs. The legislation maintains the program’s 40-year long practice of facilitating merit-based competition to determine which innovative small businesses receive awards. This legislation would place no caps or limits on small businesses or the number of awards they can receive to ensure unbridled innovation for America.
Increase research funding for small businesses and partnering research institutions. Agencies, over the course of 7 years, would be required to allocate at least 7% of their extramural R&D budgets to SBIR and 1% to STTR—up from 3.2% and 0.45%, respectively.
Strengthen commercialization efforts. Agencies often fail to identify SBIR/STTR-funded technologies that demonstrate a solution to their needs, fueling a belief that many technologies simply do not showcase commercialization potential. Requiring agencies to designate a Technology Commercialization Official and undergo acquisition training will result in a greater number of SBIR/STTR technologies being commercialized by the federal government.
Maintain bipartisan foreign due diligence efforts. The legislation extends the bipartisan due diligence program until 2030.
Dismantle barriers to broaden participation. The time and resources required to develop an SBIR/STTR proposal can be a significant barrier to entry for many small businesses, particularly those with limited resources. By reauthorizing the Federal and State Technology (FAST) Partnership Program and allowing agencies to use a portion of their SBIR/STTR funding to assist businesses in developing competitive proposals, the bill will help diversify the applicant pool and bring in new participants, including those from states that have historically received fewer awards. The bill also allows agencies to use a portion of their SBIR and STTR funding to establish internship and fellowship opportunities to spur innovation with a targeted effort to reach women and socially and economically disadvantaged individuals.
With the current authorization set to expire on September 30, 2025, the lawmakers are urging swift congressional action to preserve and strengthen the SBIR and STTR programs.
