The nation’s premier small-business research grant programs remain in legislative limbo as lawmakers race to revive them before a fast-approaching funding deadline. The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs – a 40-year-old “America’s seed fund” that has fueled cutting-edge R&D at startups – authority expired on September 30, 2025 after Congress failed to reauthorize them(**). Now, with a potential government shutdown looming on January 30, lawmakers are scrambling for a breakthrough. A last-ditch compromise bill released/circulated as a draft in December by Senator Edward J. Markey, Democrat of Massachusetts, seeks to end the impasse with reforms meant to address the national security and accountability concerns raised by Senator Joni Ernst, Republican of Iowa, whose objections have stalled the programs’ renewal(**).
A Compromise Bill Targets Security and “SBIR Mills”
Mr. Markey’s draft legislation – titled the “SBIR/STTR Reauthorization Act of 2025” (which you can read in its entirety at the bottom of this post) – pairs a multi-year extension of the programs with a suite of new provisions designed to answer Ms. Ernst’s criticisms. Notably, it would eliminate the programs’ sunset clause, effectively making SBIR and STTR permanent unless Congress acts to end them. The draft would raise the SBIR set-aside from 3.2% to 7% by FY2032 (and STTR from 0.45% to 1%), though the schedule in the draft excludes NSF and NIH. That increase is intended to expand opportunities for small firms – a priority long sought by program champions – even as the bill tightens oversight to ensure those dollars are well spent.
hashtag#neutrinodonuthashtag#sbirhashtag#ernsthashtag#sttrhashtag#nih
