President Donald J. Trump signed updates to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs into law on April 13, following efforts led by U.S. Senator Joni Ernst of Iowa.
The new law aims to prioritize small businesses in federal research funding and protect American technology from foreign interference. These changes are intended to address concerns that the programs previously favored larger companies and did not sufficiently safeguard taxpayer-funded technologies.
Senator Ernst, Chair of the Senate Committee on Small Business and Entrepreneurship, said, “After years of work to put small businesses at the forefront of the SBIR-STTR programs, I am thrilled President Trump signed these long-overdue updates into law.” She added, “Due to these reforms, we are putting our warfighters first, safeguarding American technology against foreign interference, holding recipients accountable for producing cutting-edge technologies, and eliminating taxpayer-funded blank checks. I look forward to working with the Trump administration to empower the entrepreneurs who drive American innovation forward and the men and women in uniform who deserve the best possible capabilities. Now these dollars will go out the door with the proper protections, and America’s seed fund will serve truly small businesses.”
The reforms include stronger due diligence standards for awardees to prevent Chinese espionage; requirements for accountability in developing new technologies for military use; annual limits on applications from large companies so that smaller firms have more opportunities; a new Strategic Breakthrough award system requiring matching funds from agencies; and increased transparency through improved data collection.
Ernst has a history of public service as noted by her office assisting Iowans with federal agency matters such as Social Security, Medicare, veterans benefits, immigration issues, and military affairs according to her official website. She served over 23 years in the Iowa Army National Guard where she reached lieutenant colonel rank and commanded troops during Operation Iraqi Freedom according to her official website. Ernst grew up on a family farm in Montgomery County where values like hard work were emphasized according to her official website.
She became Iowa’s first woman elected to federal office upon joining Congress according to her official website, holds degrees from Iowa State University and Columbus State University according to her official website, serves on multiple Senate committees focused on fiscal responsibility according to her official website, and is recognized as both Iowa’s first female combat veteran elected senator as well as a longtime member of the military according to her official website.
Looking ahead, Senator Ernst said she intends for these changes “to empower entrepreneurs who drive American innovation forward” while ensuring protections are in place so “America’s seed fund will serve truly small businesses.”
