# 119-s-3971: Small Business Innovation and Economic Security Act

119-s-3971, Small Business Innovation and Economic Security Act, is a 119th Congress bill sponsored by Sen. Ernst, Joni [R-IA] (R-IA); status became_law; PRIA reads it as touching household money (as of 2026-08-01).

- Canonical: https://policyrisk.com/legislation/119-s-3971
- As of: 2026-08-01
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3971
- Congress: 119
- Title: Small Business Innovation and Economic Security Act
- Status: became_law
- Introduced: 2026-03-03
- Sponsor: Sen. Ernst, Joni [R-IA] (R-IA)
- Cosponsors: 1
- Policy area: Commerce
- Touches household money: yes
- Last recorded action: 2026-08-01

## Summary

**Extends SBIR/STTR authorities to Sept. 30, 2031 and creates a strategic breakthrough award pathway.** The law lengthens program authorities and pilots, strengthens national security checks, and adds a new funding route to help small firms scale technology into procurement-ready products. - Small businesses: Creates a "strategic breakthrough" allocation for agencies with large extramural R&D portfolios that can set aside up to 0.5% of that budget to award up to $30.0 million to a small firm over as much as 48 months. Awardees must have had a prior Phase II award and show 100% new matching funds, with DoD-relevant awards requiring at least 20% new DoD funding. - Federal agencies and acquisition workforce: Requires agencies to set uniform limits on how many Phase I/II proposals a firm may submit beginning FY2027, allows waivers for urgent topics but caps waivers at 5% of topics, and directs streamlined contracting and a 90-day target to complete awards. It also mandates training and standardized Phase I–III contracting templates to ease transitions to procurement. - Security and oversight: Institutes a risk-based security due diligence framework that uses federal entity lists, cybersecurity and foreign-affiliation checks, and applicant disclosures. It preserves ongoing Government Accountability Office oversight and mandates a GAO study of implementation and effectiveness.

## Cosponsors (1)

- Sen. Markey, Edward J. [D-MA] (D-MA), 2026-03-03T00:00:00.000Z

## Votes

| Date | Chamber | Question | Result | Yea | Nay |
| --- | --- | --- | --- | --- | --- |
| 2026-03-17T00:00:00.000Z | house | On Motion to Suspend the Rules and Pass | Passed | 345 | 41 |

## Provisions PRIA read

- More help for SBIR/STTR winners: benefit, high. The law expands technical and business help for SBIR/STTR awardees. You can choose your own provider and get cybersecurity help and screening for foreign involvement. You can use up to $6,500 per Phase I project and up to $50,000 per Phase II project for this help. Agencies can include these amount…
- SBIR/STTR extended through 2031: benefit, medium. The law keeps SBIR and STTR running through September 30, 2031, including pilots and commercialization efforts. Agencies may also use any required SBIR/STTR funds left from fiscal year 2026 in fiscal year 2027. This one‑time carryover can add more program money in 2027.
- Simpler path to Phase III contracts: benefit, medium. Agencies must create simpler, standard procedures and model contracts for SBIR Phase I, II, and III. They must issue clear solicitation provisions and clauses that spell out what you need to show to qualify for Phase III. Procurement Center Representatives must push agencies to use SBIR/STTR tech i…
- Better tracking and ongoing oversight: benefit, low. The SBIR database now flags each award as direct Phase II, subsequent Phase II, strategic breakthrough, Phase III prime, or Phase III subcontract. Federal contract systems also add clearer SBIR/STTR reporting and links back to original awards. GAO oversight continues instead of expiring, keeping au…
- Strategic awards up to $30 million: mixed, high. Agencies can make “strategic breakthrough” awards up to $30 million without the usual waiver. Beginning fiscal year 2026, eligible agencies can set aside up to 0.50% of extramural R&D for these awards. Contracts must be issued within 90 days of proposal receipt and can run up to 48 months. Applican…
- New limits on SBIR proposals: mixed, medium. Starting in fiscal year 2027, each agency must set one uniform cap on how many Phase I and Phase II proposals a single small business can submit. The director (not delegable) must choose a fiscal‑year, solicitation, or topic basis for the cap and report changes to Congress within 30 days. Waivers a…

## Related bills

- 119-s-1241: Sanctioning Russia Act of 2025
- 119-s-2096: Daniel J. Harvey, Jr. and Adam Lambert Improving Servicemember Transition to Reduce Veteran Suicide Act
- 119-s-1677: Ensuring Lasting Smiles Act
- 119-s-1289: 25th Anniversary of 9/11 Commemorative Coin Act
- 119-s-315: AM Radio for Every Vehicle Act of 2025
- 119-s-1547: America the Beautiful Act

## Sources
- [119-s-3971 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3971)

## Related
- [119-s-1241: Sanctioning Russia Act of 2025](https://policyrisk.com/legislation/119-s-1241)
- [119-s-2096: Daniel J. Harvey, Jr. and Adam Lambert Improving Servicemember Transition to Re…](https://policyrisk.com/legislation/119-s-2096)
- [119-s-1677: Ensuring Lasting Smiles Act](https://policyrisk.com/legislation/119-s-1677)
- [119-s-1289: 25th Anniversary of 9/11 Commemorative Coin Act](https://policyrisk.com/legislation/119-s-1289)
- [119-s-315: AM Radio for Every Vehicle Act of 2025](https://policyrisk.com/legislation/119-s-315)
- [119-s-1547: America the Beautiful Act](https://policyrisk.com/legislation/119-s-1547)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3971 (as of 2026-08-01).