Ranking Member Edward J. Markey (D-Mass.) has advanced the Small Business Innovation and Economic Security Act, a bipartisan bill that would reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs for five years. The legislation aims to maintain the merit-based competition of these programs, prevent lifetime caps on awards, and ensure access for the smallest businesses. After passing in the Senate, the bill will proceed to the House of Representatives.
“The five-year reauthorization of the SBIR/STTR programs is a win-win-win-win—for American small businesses, for workers, for the innovation economy, and for the communities they serve,” said Ranking Member Markey. “This much-improved reauthorization has come a long way from early proposals that would have immediately kicked dozens of U.S. small businesses out of the programs and severely limited the ability of hundreds more in Massachusetts and across the country to grow and thrive.While this legislation does not include every improvement I would like to see, its enactment will immediately reopen these essential programs so that we can once again stake our position on the world stage, empowering our most nimble allies—our small businesses.”
The SBIR/STTR programs have provided over $77 billion in awards to 33,000 small businesses nationwide since their inception. These funds have contributed to inventions such as heart pumps and advances in disease treatment. In Massachusetts alone, more than 2,600 small businesses have received over $9 billion through these initiatives.
Senator Markey’s efforts secured several provisions in this reauthorization:
– The SBIR and STTR programs are renewed for five years.
– Lifetime award caps were rejected; competitive principles are preserved.
– The STTR program remains intact with continued participation by research institutions like Harvard University and Tufts University.
– Unused Fiscal Year 2026 funds may be carried into Fiscal Year 2027 if needed.
– Foreign due diligence requirements are extended with increased transparency regarding potential foreign risks flagged by agencies.
Industry groups expressed support for Senator Markey’s work on this legislation.
“The Small Business Technology Council (SBTC) fully endorses the Small Business Innovation and Economic Security Act and urges Congress to speedily pass this legislation to restore authority to the SBIR and STTR programs. We are grateful to Senator Markey for his leadership and commitment to restoring these vital small-business funding programs to ensure that America’s high-tech small businesses can continue to receive the funding they need to drive America’s innovative economy and maintain our technological advantage,” said SBTC Executive Director Jere Glover.
“The SBIR and STTR programs have fueled American innovation for decades by investing in small businesses and research institutions across America with big ideas to advance the missions of our military and public safety agencies, to improve the nation’s health and environment, and create highly skilled jobs. This bipartisan legislation followed months of negotiations to ensure that the renewal of these investments included common sense reforms to protect our know-how from potential adversaries, keep their merit-based competitive principles, and broaden participation. Senator Markey has worked tirelessly with his colleagues in both parties to make sure what makes these programs successful are not undermined by arbitrary restrictions so we can build on their unsurpassed return on investment for taxpayers. SBIR and STTR are the envy of the world for a reason. They are back in business and that is good news for American innovation and economic competitiveness and will help foster the next generation of innovators,” said DefendSBIR.
“Massachusetts has built the nation’s leading biotechnology ecosystem by investing in breakthrough science at its earliest stages, when risk is highest. The SBIR and STTR programs have been central to that success, providing long-term stability…We are especially grateful to Senator Ed Markey for his steadfast commitment…” said Kendalle Burlin O’Connell from MassBio.
Other leaders highlighted how important these federal investments remain as global competitors increase spending on science technology.
Supporters also noted how health technology startups depend heavily on non-dilutive capital provided by these grants during early clinical research phases.
Barbara R. Snyder from AAU stated: “The reauthorization…delivers certainty…to thousands…who depend on SBIR/STTR funding…”
Erin Neal from Velocity Government Relations pointed out: “I’m encouraged that this bipartisan five-year SBIR/STTR agreement restores much-needed stability while avoiding disruptive implementation outcomes.”
Lynn Abramson from Clean Energy Business Network commented: “Restarting these vital programs will support creation of new businesses…and promote American competitiveness.”
National Small Business Association President Todd McCracken praised lawmakers: “After months…I applaud lawmakers for coming…to get 4,000+ companies per year who innovate…back on track.”
Bobby Franklin from NVCA emphasized: “We applaud inclusion of provisions providing clear pathway…, consistency…, transparency….”
Phil Weilerstein from VentureWell added appreciation regarding training improvements using I-Corps methodology.
Markey had previously sought temporary extensions after program lapses but faced blocks in Senate proceedings last year before introducing permanent authorization efforts earlier this session.
The Senate Small Business & Entrepreneurship Committee plays a role in shaping national fiscal priorities related to such federal innovation policies as well as offering Congress policy options affecting budget components (source). The committee provides nonpartisan analysis via oversight functions (source) established under law since 1974 (source).
