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
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.
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- 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.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
More help for SBIR/STTR winners
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 amounts in the award or provide them on top. Agencies with I‑Corps also must offer team courses or bootcamps you can request.
Strategic awards up to $30 million
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. Applicants must provide at least 100% matching funds; for DoD‑related awards, at least 20% of the match must be new DoD funding. This authority ends September 30, 2031.
SBIR/STTR extended through 2031
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
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 in Phase III awards. The SBA must update policy within one year.
New limits on SBIR proposals
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 are allowed for urgent topics but cannot exceed 5% of topics in a year and need non‑delegable approvals within 15 days. If a topic gets a waiver, any small business can submit under that topic.
Better tracking and ongoing oversight
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 audits and reviews in place.
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