Education Department's SBIR Program in Crisis as All Program Managers Eliminated
March 27, 2026 · 2 min read
David Almeida
The Department of Education's SBIR program — a pipeline that has funded early-stage educational technology companies for over two decades — has lost all three of its program managers to workforce reductions, leaving current grantees in limbo and the program's future uncertain.
The cuts came as part of broader layoffs at the department that began in March 2025, when 1,400 employees received layoff notices. A year later, the department continues to transfer programs to other agencies as part of an ongoing downsizing.
Current Grantees Sound the Alarm
A dozen active SBIR awardees signed an open letter to Congress warning that staff reductions at the Institute of Education Sciences (IES) jeopardize "continuation of our approved and allocated remaining funds" and threaten their ability to complete development of innovative educational technology products.
National Center for Education Research Commissioner Elizabeth Albro acknowledged in an email to awardees that IES was "deeply impacted" by the reduction in force, directing grantees to new points of contact.
A Compounding Crisis With SBIR Reauthorization
The staffing collapse arrives at the worst possible moment. SBIR and STTR program authorization lapsed on October 1, 2025, and while the Senate recently passed S. 3971 to reauthorize the programs through 2031, the Department of Education's SBIR operation may lack the personnel to resume normal operations even after the bill becomes law.
This distinguishes Education from other SBIR agencies. DOD, NSF, and NIH all retained their program infrastructure during the authorization lapse. Education's situation is qualitatively different — it's not a funding freeze but an institutional collapse.
What Ed-Tech Companies Should Do Now
Companies with active Education SBIR awards should document all communication with the department and verify their grants are being administered through the new IES contacts. For companies that were planning Education SBIR proposals, the practical advice is blunt: pivot to other agencies.
NSF's Education and Human Resources directorate funds related work, and IES's remaining research grant programs may continue under new organizational structures. The SBIR/STTR reauthorization bill includes provisions for contracting officer training that could eventually help rebuild the program, but that's a long-term prospect. For strategic guidance on navigating SBIR disruptions across agencies, see the analysis at grantedai.com.