All Roll Calls
Yes: 345 • No: 41
S3971119th CongressWALLET
Small Business Innovation and Economic Security Act
Sponsored By: Senator Joni Ernst
To President
Summary
Strengthen research security for SBIR/STTR awards. This bill would broaden security screening for small business awards, create a new "strategic breakthrough" Phase II funding path, cap proposal submissions to cut admin burden, and streamline Phase III contracting and acquisition training.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 1 costs, 1 mixed.
Large SBIR breakthrough awards for small businesses
If enacted, agencies with large SBIR budgets would set aside up to 0.50% of their extramural R&D for new "strategic breakthrough" awards starting with FY2026 budgets. Eligible small businesses could get up to $30 million per award or series, for work lasting up to 48 months. Firms would need at least one prior Phase II award and would show at least 100% in new matching funds from private or non‑Phase I/II government sources. For Defense awards, at least 20% of the match would come from new non‑Phase I/II DoD funding and the project would need clear transition plans. This authority would end after September 30, 2031.
More funds for SBIR technical help
If enacted, SBIR/STTR awardees would get more money for technical and business help. Phase I projects could include up to $6,500, and Phase II up to $50,000, per project. Funds could pay for cybersecurity, hiring or augmenting staff, and training. Agencies would be able to include these amounts in the award or add them on.
SBIR/STTR programs extended through 2031
If enacted, SBIR/STTR authorities would run through September 30, 2031, and would explicitly include DOE and NASA. Agencies could carry any required FY2026 SBIR/STTR funds they did not use into FY2027. A related GAO review period would increase from 3 years to 8 years.
Limits on SBIR proposal submissions
If enacted, starting in FY2027 each agency would set a single limit on how many Phase I and Phase II proposals a small business can submit. The cap would be set before the fiscal year and would apply equally to all firms at that agency. Agencies could grant narrow waivers for urgent topics, but waivers would cover no more than 5% of topics and need fast approvals. Agencies would report methods and waiver use to Congress.
Tougher security checks for applicants
If enacted, agencies would run broader security reviews on SBIR/STTR applicants. Reviews would look at cybersecurity, patents, foreign ownership and ties, and check several federal restricted lists. Agencies could deny awards on security grounds and, when safe, would tell applicants why. A denial would not bar future eligibility.
Easier path to Phase III deals
If enacted, agencies that run SBIR/STTR would make it easier to move from research to contracts. Awardees would be able to request I‑Corps training and use award funds, I‑Corps grants, or team funds to pay. Agencies would use simpler, standard procedures and model contracts, and would say what proves Phase III eligibility. Contracting officers would get training on Phase III agreements, data rights, and sole‑source awards. The procurement data system would flag Phase III deals and SBIR‑based tech, and SBA representatives would push for more Phase III transitions.
Sponsors & CoSponsors
Sponsor
Joni Ernst
IA • R
Cosponsors
Edward Markey
MA • D
Sponsored 3/3/2026
Roll Call Votes
house vote • 3/17/2026
On Motion to Suspend the Rules and Pass
Yes: 345 • No: 41
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