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119-s-5633119th CongressWALLET

STEP Improvement Act of 2026

Sponsored By: Senator Shaheen, Jeanne [D-NH]

Introduced

Summary

Reauthorizes and modernizes the State Trade Expansion Program (STEP). It would assign governance to the Associate Administrator at the Small Business Administration and update who qualifies, how grants are sized and allocated, and how States report results for fiscal years 2027 through 2031.

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  • States and territories would get guaranteed minimum shares and clearer redistribution rules. States would receive at least 0.75% of total program appropriations while territories and commonwealths would receive at least 0.5%.
  • Small businesses would see expanded eligibility categories to include economically distressed firms and specific geographic or demographic designations like HUBZones, Promise Zones, Qualified Opportunity Zones, low/moderate‑income areas, rural areas, and women‑owned concerns. Funding for foreign trade missions would be limited to firms that have operated for at least one year.
  • Grant awards and oversight would shift toward a formula once funding reaches $30 million for two consecutive years, with competitive awards below that threshold. The bill also tightens application timing, requires monthly obligation reports to small business committees, and increases transparency and annual performance reporting across several metrics.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

More small businesses count as distressed

If enacted, the bill would define “economically distressed” small businesses to include firms located in low- or moderate-income areas, HUBZones, empowerment zones or enterprise communities, HUD Promise Zones, and Qualified Opportunity Zones. Businesses in those places would count for STEP treatment tied to the distressed definition. This could expand which firms get priority in STEP reporting and metric calculations.

Trade-mission support limited for new businesses

If enacted, small businesses would need to have operated for at least 1 year to use STEP funds for a foreign trade mission. Newer businesses would not qualify for STEP support for trade missions. This would reduce access to grant-funded trade-mission help for very young firms.

New formula and minimum grants for STEP

If enacted, STEP grants would shift to a statutory formula once program funding reaches at least $30 million for two straight years. Each State would generally get at least 0.75% of appropriations and territories 0.5%, with remaining funds split using specified export and program metrics. A single State's share for any metric could not exceed 10 times the smallest positive share. Grants would require the non-Federal match, be rounded to the nearest $1,000, and generally not fall below 80% of the prior year, with limited exceptions. States could decline or return awards within 15 days and returned funds would be redistributed pro rata.

Limits on collecting state staff data

If enacted, the Associate Administrator would generally be limited to collecting a State official's name, position, and contact information for STEP purposes. Salary information could only be required if it is part of the State's non-Federal match or paid with grant funds. The SBA could still request more information for investigations or to meet federal grant rules.

Clearer STEP applications and budget rules

If enacted, the SBA Associate Administrator would publish STEP application rules, award calculations, deadlines, and eligible costs each year. Applications would be concise and include a budget plan. After funds are disbursed, States could revise budgets for allowable uses, but reallocations of 10% or more would need SBA approval unless the SBA fails to act within 30 days. Unsuccessful applicants would get recommendations to improve future applications.

STEP funding authorized through 2031

If enacted, the bill would extend STEP's authorization of appropriations to cover fiscal years 2027 through 2031. The change would allow Congress to fund the program in those years but would not itself provide any specific dollar amount.

Sponsors & CoSponsors

Sponsor

Shaheen, Jeanne [D-NH]

NH • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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