This bill became law on 2026-04-13 as Public Law No. 119-83.
The summary below describes the bill at the version we last reviewed; the enacted text may differ.
The SBIR and STTR small-business research grant programs would be extended through September 30, 2031, after the previous authorization expired September 30, 2025. Federal agencies would have to screen each small-business applicant against eight federal security and sanctions lists — including the UFLPA forced-labor list, the Chinese Military-Industrial Complex list, and the Section 889 prohibition list — and could deny awards for ties to foreign countries of concern, with applicants notified of the basis where possible without compromising national security. A new "strategic breakthrough" track would let agencies with R&D budgets above $100 million spend up to 0.5% of that extramural budget on Phase II awards as large as $30 million, requiring 100% matching funds from new private capital or other federal programs. The bill also caps how many proposals one small business can submit per year, requires Phase III contracting training across federal acquisition staff, and adds new data fields tracking direct-to-Phase-II, strategic breakthrough, and Phase III prime and subcontract awards.
Transparency & Accountability
- SBIR database fields — adds direct-to-Phase-II, strategic breakthrough, and Phase III tracking
- Federal Procurement Data System reporting — Phase III designation and SBIR contract IDs required
- Recurring agency briefings to Congress — strategic breakthrough plans and implementation
- Quarterly proposal-limit reporting — methodology and small-business impact disclosed
Civil Liberties
- Federal security-list screening — applicants checked against 8 entity/sanctions lists
- Award-denial review for applicants — classified-source denials only require notice as appropriate
Congressional Summary
Small Business Innovation and Economic Security ActThis act reauthorizes through FY2031 and modifies the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program, and related pilot programs. (The SBIR and STTR programs are administered by various federal agencies and provide competitive awards for domestic small businesses to conduct research and development projects that have the potential for commercialization.)Specifically, the act expands the requirements for federal agencies administering these programs to evaluate the security risks of the small businesses that apply for awards under the programs. If an agency denies an application for security reasons, the agency must provide the small business with the basis for such determination.Further, each agency must set a maximum number of proposals per fiscal year that a small business concern may submit in response to Phase I and Phase II solicitations.The act expands the training requirements for agencies' contracting officers and acquisition workforce with respect to Phase III (commercialization of technologies) awards under the SBIR and STTR programs.The act also establishes strategic breakthrough allocations for critical technology areas. These are additional Phase II SBIR and STTR awards to small businesses that demonstrate an effective technology and receive matching funds.
Legislative Subjects
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Public Law
- Action Date
- 2026-04-13
- Date Added
- 2026-05-21
- Source
- Congress.gov →
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