All Roll Calls
Yes: 345 • No: 41
S3971119th CongressWALLET
Small Business Innovation and Economic Security Act
Sponsored By: Senator Ernst, Joni [R-IA]
Became Law
Summary
Modernizes SBIR/STTR with new security screening and a Phase II Strategic Breakthrough funding track. It tightens national-security reviews, limits proposals and assistance, and creates a high-dollar route to scale promising small-business technologies while extending authorities through September 30, 2031.
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- Small businesses: Adds broader security due diligence that can deny awards for certain foreign ties or entries on risk lists and requires written notices for denials. It also caps technical and business assistance at $6,500 for Phase I and $50,000 for Phase II and imposes a uniform cap on Phase I/II proposal submissions with limited waivers.
- Agencies and funding: Lets agencies with large extramural R&D budgets set aside up to 0.5% of that budget starting in fiscal year 2026 for Strategic Breakthrough Phase II awards up to $30 million and up to 48 months. Applicants need a prior Phase II and 100% matching funds, DoD projects must include at least 20% new DoD funding, and agencies must move to award decisions within 90 days of proposals.
- Commercialization and program operations: Requires contracting officer and acquisition workforce training on Phase III authorities, standardizes solicitation clauses and model contracts to ease transitions, and adds new SBIR/STTR data fields and FPDS reporting to track award types. It also extends many pilots and program flexibilities through 2031.
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Bill Overview
Analyzed Economic Effects
8 provisions identified: 4 benefits, 1 costs, 3 mixed.
Huge matched awards for small‑biz R&D
If enacted, large agencies would be able to set aside up to 0.50% of their extramural R&D budgets for “Strategic Breakthrough” Phase II awards. A small business would be able to receive up to $30,000,000 per award or series over no more than 48 months. You would need at least one prior Phase II and matching funds equal to the federal amount. Matching would have to be new private capital or new non‑SBIR/STTR government money; for DoD awards, at least 20% of the match would be new DoD funds. Agencies would be required to finish awards within 90 days of receiving a proposal. This authority would end after September 30, 2031.
Easier follow‑on contracts and tracking
If enacted, agencies would create simpler, standardized procedures and model contracts for Phase I, II, and III awards. Contracting officers and acquisition staff would be trained on Phase III use, data rights, and sole‑source awards. The SBA would update related guidance within one year. Federal systems would be updated to flag direct‑to‑Phase II, subsequent Phase II, Strategic Breakthrough, and Phase III prime and subcontract awards, and to link follow‑on contracts to prior SBIR/STTR IDs. Records would also show when non‑SBIR contracts use SBIR‑funded technology.
Small‑biz R&D runs through 2031
If enacted, the SBIR and STTR programs would be authorized through September 30, 2031. Agencies would also be able to use required SBIR/STTR funds left at the end of FY2026 during FY2027. This would help keep awards flowing and could boost FY2027 funding if money remains.
New limits on small‑biz R&D proposals
If enacted, each agency would set one equal cap on how many Phase I and II proposals a firm can file, starting in FY2027. The director would have to set the limit 90 days before FY2027 and could base it on year, solicitation, or topic. Waivers would be allowed only for urgent topics, limited to 5% of topics per year, with decisions due in 15 days. Agencies would have to report their methods and waiver records to Congress.
Stronger security checks for small‑biz R&D
If enacted, agencies would expand due‑diligence for SBIR/STTR applicants. Reviews would check cybersecurity, foreign ownership and ties, key personnel affiliations, investments, and licensing. Agencies would check applicants against federal watch lists and may coordinate with law enforcement. If denied for security reasons, you would be notified and would remain eligible to apply in future cycles.
I‑Corps training open to awardees
If enacted, agencies with I‑Corps would have to offer SBIR/STTR awardees the option to join I‑Corps courses or bootcamps. Participation costs would be able to be paid from several sources, including SBIR/STTR funds named in the bill and I‑Corps grants, alone or combined. This would give awardees more paths to get commercialization training.
More money for technical help
If enacted, Phase I projects would be able to get up to $6,500 for technical and business assistance. Phase II projects would be able to get up to $50,000 per project. You would be able to hire a vendor or add staff, including for cybersecurity help. Agencies would be able to include this inside an award or add it on top, and could review how funds are used.
Old small‑biz R&D rule removed
If enacted, section 5142 of the 2012 defense law would be repealed. The real‑world effect would depend on what that section required or allowed.
Sponsors & CoSponsors
Sponsor
Ernst, Joni [R-IA]
IA • R
Cosponsors
Sen. Markey, Edward J. [D-MA]
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