# 119-s-853: INNOVATE Act

119-s-853, INNOVATE Act, is a 119th Congress bill sponsored by Sen. Ernst, Joni [R-IA] (R-IA); status in_committee; PRIA reads it as touching household money (as of 2026-09-10).

- Canonical: https://policyrisk.com/legislation/119-s-853
- As of: 2026-09-10
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-853
- Congress: 119
- Title: INNOVATE Act
- Status: in_committee
- Introduced: 2025-03-05
- Sponsor: Sen. Ernst, Joni [R-IA] (R-IA)
- Cosponsors: 0
- Policy area: Commerce
- Touches household money: yes
- Last recorded action: 2026-09-10

## Summary

**This bill reorganizes and raises funding floors for the SBIR/STTR programs while creating a new DoD-focused "strategic breakthrough" funding stream to push small-business technologies toward defense acquisition and manufacturing.** - Small businesses and new entrants get clearer entry paths. Agencies must set aside at least 2.5 percent of SBIR funds for a new Phase 1A entrant track that targets firms that never had SBIR/STTR awards and funds proposals up to $40,000 with streamlined two-page applications. - The Department of Defense gets a dedicated strategic breakthrough allocation to move mature projects toward production. DoD may award up to $30 million to a single small business for awards lasting up to 48 months and must speed decisions and provide direct access to program offices. - Access and security rules change how awards are made. The bill shifts preference rules toward ‘‘emerging States’’ and rural areas and bans consideration of race, gender, or ethnicity. It also tightens national-security due diligence with a 10-year foreign-risk lookback and restricts overseas transfers of SBIR/STTR intellectual property.

## Provisions PRIA read

- Large DoD awards to scale production: benefit, high. If enacted, the Department of Defense would set aside at least 0.25% of its extramural research or R&D budget each year starting in FY2026 for a new 'strategic breakthrough' pool. DoD could give one award per small business of up to $30 million for up to 48 months. Awards must be paid from that poo…
- Small grants for new SBIR entrants: benefit, low. If enacted, each agency would have to set aside at least 2.5% of its SBIR funds for Phase 1A awards for new entrants. Each Phase 1A award would be no more than $40,000 and an applicant could get only one. Agencies must run these as open-topic notices and notify applicants of decisions within 90 day…
- New SBIR eligibility, caps, and preferences: mixed, high. If enacted, firms that have received more than $75 million in past SBIR/STTR Phase I/II awards could not apply to Phase I or II solicitations. A firm with more than $40 million in annual receipts could not apply for a Phase I award. A small business could submit no more than 3 proposals to a single…
- IP and security rules for startups: mixed, medium. If enacted, SBIR/STTR contracts funded from program allocations would be firm-fixed-price by default unless an agency head writes a case-by-case exception. The SBA and agencies would publish best practices to help awardees avoid accidental investor disclosures to foreign parties. Agencies would che…
- More STTR funding, early-stage focus: mixed, medium. If enacted, agencies would have to use STTR money for fundamental research done with research institutions. DoD and NASA STTR funds would be limited to projects at technology readiness levels 1, 2, and 3. Starting in fiscal year 2026, agencies would also have to allocate at least 3.45% of the appli…

## Related bills

- 119-s-4952: Protecting American Taxpayers Act
- 119-s-4378: Protecting American Taxpayers Act
- 119-s-1748: Kids Online Safety Act
- 119-s-3971: Small Business Innovation and Economic Security Act
- 119-s-2355: Patients Deserve Price Tags Act
- 119-s-1922: FIREARM Act

## Sources
- [119-s-853 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/853)

## Related
- [119-s-4952: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4952)
- [119-s-4378: Protecting American Taxpayers Act](https://policyrisk.com/legislation/119-s-4378)
- [119-s-1748: Kids Online Safety Act](https://policyrisk.com/legislation/119-s-1748)
- [119-s-3971: Small Business Innovation and Economic Security Act](https://policyrisk.com/legislation/119-s-3971)
- [119-s-2355: Patients Deserve Price Tags Act](https://policyrisk.com/legislation/119-s-2355)
- [119-s-1922: FIREARM Act](https://policyrisk.com/legislation/119-s-1922)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-853 (as of 2026-09-10).