WASHINGTON, March 18, 2026 /PRNewswire/ — Earlier today, the House finally passed legislation to reopen the critical Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Following a five-month lapse in operations, the bill has now been passed by both the House and Senate and NSBA and SBTC are urging President to promptly sign.

Back in September 2025, Sen. Ernst was the lone holdout against a short-term continuing resolution to keep the SBIR/STTR programs in operation while lawmakers crafted a more long-term reauthorization compromise bill. The legislation, the Small Business Innovation and Economic Security Act is the product of lengthy negotiations between Sen. Markey and House Small Business Committee Chair and Ranking Member, Reps. Roger Williams (R-Texas) and Nydia Velazquez (D-N.Y.) to find a compromise with Sen. Ernst in order to restart the program.

“I applaud lawmakers for coming to a consensus to get the 4,000+ companies per year who innovate, create jobs and harness vital technology for the federal government back on track,” stated National Small Business Association President and CEO Todd McCracken. “Sens. Markey and Ernst and Reps. Williams and Velazquez have shown a strong, bipartisan commitment to small business and I am proud to have worked alongside them to get this critical bill passed.”

The compromise legislation contains a number of changes to the program that small businesses will need to be aware of, including:

Strengthening and standardizing foreign risk/due diligence requirements;
The creation of a “strategic breakthrough award” post-Phase II program that allows agencies to make jumbo awards up to $30 million under certain circumstances;
A requirement that agencies set a cap on the number of proposals a small business can submit to the SBIR/STTR programs on either a per-fiscal-year, per-solicitation, or per-topic basis;
Enhanced training for federal agencies’ acquisition workforces on Phase III awarding;
Suggested Phase III utilization by procurement center representatives;
The creation of standardized model contracts for Phase I, II and III;
Changes under TABA (Technical and Business Assistance) to allow cybersecurity assistance and utilize funding for employee training and hiring;
Improved SBIR/STTR data collection practices, requiring better tracking of direct to Phase II, Phase III, and subcontracting data;
Reauthorizes the current agreement and all pilot programs thereunder for SBIR/STTR to Sept. 30, 2031

“The Small Business Technology Council (SBTC) fully endorses the Small Business Innovation and Economic Security Act and urges President Trump to speedily enact this legislation to restore authority to the SBIR and STTR programs. We are grateful to Sens. Markey and Ernst and Reps. Williams and Velazquez for restoring these vital small-business funding programs to ensure that America’s high-tech small businesses can continue to receive the funding they need to drive America’s innovative economy and maintain our technological advantage,” stated SBTC Executive Director Jere Glover.

Please click here to view the complete bill.

Please click here to learn about the importance of the SBIR/STTR programs.

Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. The SBTC is the technology-focused arm of NSBA, the leading small-business voice in federal innovation programs. NSBA’s 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.NSBAadvocate.org or follow us at @NSBAAdvocate.

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