Congress Passes SBIR/STTR Reauthorization, Unlocking $6 Billion
March 29, 2026 · 2 min read
Jared Klein
The House of Representatives voted 345-41 on March 17 to pass the Small Business Innovation and Economic Security Act, sending the five-year SBIR/STTR reauthorization to the president's desk after the longest funding lapse in the programs' 42-year history. The Senate had passed the measure unanimously on March 3.
Five Months of Frozen Innovation
Both programs expired on September 30, 2025, after the Senate failed to approve a stopgap extension. For five months, 11 federal agencies — including NIH, NSF, DOD, DOE, and NASA — could not issue new Phase I or Phase II solicitations or select new awardees. More than $4 billion in annual funding stopped flowing to the roughly 4,000 companies that depend on these programs each year.
The damage was immediate. NIH canceled 23 active solicitations in November. NSF paused Project Pitch submissions in December. The Department of Defense shelved pre-solicitation topic lists that had been months in development.
What the New Law Changes
The compromise, brokered by Senators Joni Ernst (R-Iowa) and Edward Markey (D-Mass.), extends program authority through September 30, 2031 — eliminating the recurring three-year reauthorization cycles that created chronic uncertainty.
The headline provision is a new Strategic Breakthrough Awards tier that allows qualifying small businesses to receive up to $30 million with performance periods capped at 48 months. Eligibility requires a prior Phase II award and 100 percent matching funds from private or non-SBIR/STTR government sources. These awards are capped at 0.50 percent of each agency's extramural R&D budget, and only agencies with $100 million or more in annual SBIR obligations can issue them.
The bill also significantly expands national security screening, requiring checks against the Section 889 Prohibition List, the Military End User List, and Chinese military company designations.
When Solicitations Resume
DOD and NIH are expected to publish new solicitations first, likely in March or April. NSF, DOE, and NASA should follow in April through May, with smaller agencies — USDA, EPA, DHS, NOAA — restarting on varying timelines through summer 2026.
One remaining question: President Trump has indicated he will not sign any legislation until the SAVE America Act passes, though the bill may still become law without his signature. Small businesses should prepare proposals now — the compressed solicitation window will reward those who are ready. Track upcoming deadlines at grantedai.com.
For deeper analysis of this story and its implications for grant seekers, visit the Granted blog.