SBIR/STTR Reauthorization Act of 2025
Sponsored By: Senator Sen. Markey, Edward J. [D-MA]
Introduced
Summary
Reauthorizes SBIR and STTR authority. It would lock in multi‑year funding targets and add new commercialization, outreach, security, and reporting rules to push small businesses from lab to market.
Show full summary
- Small businesses and startups would get stronger commercialization support and clearer long‑term funding targets that rise to 7% of SBIR/STTR budgets by 2032.
- Researchers and colleges would gain new fellowships at the undergraduate, graduate, and postdoctoral levels and expanded technical and business assistance with per‑project caps of $6,500 for Phase I and $50,000 for Phase II.
- Federal agencies and acquisition staff would face new training requirements, designated Technology Commercialization Officials, expanded direct‑to‑Phase II authority with annual caps of 10% of an agency's SBIR funds (15% for NIH), and tougher foreign‑influence rules that can bar awards to firms tied to defined "covered foreign entities."
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
SBIR and STTR Continue Permanently
If enacted, the bill would remove the expiration dates for the SBIR and STTR statutory authorities so the programs would not automatically end. This would reduce near-term uncertainty for small research businesses that depend on SBIR/STTR awards.
More SBIR/STTR Help and Training
If enacted, SBIR/STTR awardees would get more choices and supports. Award winners could pick technical and business help, including cybersecurity. Phase I recipients could use up to $6,500 per project, and Phase II recipients up to $50,000, for assistance. Agencies could fund I‑Corps participation, give fellowships and internships for Phase II firms, and use program funds to help applicants and reach underserved States and minority or Hispanic‑serving institutions. Some fellowship funding for certain agencies would be limited to 3% of specified funds.
Pilot Programs and Authorities Extended
If enacted, the bill would extend several SBIR/STTR pilots and related authorities through September 30, 2030. It would extend the security due diligence program through 2030, keep the SBA FAST program authorized to 2030, rename one commercialization pilot, and require the SBA to keep certain administrative authorities in place. It would also allow a small rise in an SBA administrative cost growth rate to 3.3 percent and require NIH to start a pilot to speed award funding toward a 90‑day target.
Stronger Commercialization, Contracts, and Data
If enacted, agencies must name Technology Commercialization Officials and require Procurement Center Representatives to push Phase III awards. Agencies and prime contractors must work with the SBA on simpler, standard solicitation and contract rules. The bill would train contracting officers on Phase III rules, require DOD to report Phase III denials to SBA within 30 days, expand public reporting of award and subcontractor data, and require an annual commercialization impact assessment and a GAO review within three years.
New Foreign Ownership Limits for Awards
If enacted, the bill would bar SBIR awards to many small businesses that are majority‑owned by multiple venture capital operating companies, hedge funds, or private equity firms when the SBA finds the firm is owned or controlled in majority part by a covered foreign entity. The bill also explicitly treats Small Business Investment Company investments like private equity for these rules.
Bigger SBIR/STTR Funding and Transfers
If enacted, agencies would aim for higher SBIR/STTR budget shares and percent targets over time. The bill sets minimum set‑aside shares: 4% (FY2026–27), 5% (FY2028–29), 6% (FY2030–31), and 7% (FY2032+). It also sets agency obligation percentile targets: 0.5% (2026–27) up to 1.0% (2032+). At the same time, certain agencies must transfer at least 10% of specified SBIR/STTR funds to the SBA to expand administration, which would shift money away from agency-held award accounts.
Direct-to-Phase II Expanded but Capped
If enacted, every federal agency required to run SBIR could use Direct‑to‑Phase II authority through 2030, expanding which agencies may award Direct‑to‑Phase II grants. At the same time, the bill would cap annual Direct‑to‑Phase II award value at 10% of an agency's SBIR funds, with NIH allowed up to 15%. Agencies must report counts and amounts used under the authority.
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Sponsors & CoSponsors
Sponsor
Sen. Markey, Edward J. [D-MA]
MA • D
Cosponsors
Richard Blumenthal
CT • D
Sponsored 7/14/2025
Roll Call Votes
No roll call votes available for this bill.
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