Sen. Ed Markey, D-Mass., the ranking member of the Senate Committee on Small Business and Entrepreneurship, introduced a bill today that aims to make permanent and expand the Small Business Innovation Research Program (SBIR) and the Small Business Technology Transfer Program (STTR).
House Committee on Small Business Ranking Member Nydia Velázquez, D-N.Y., is introducing companion legislation in the House.
Without congressional action, the SBIR and STTR programs are set to expire on Sept. 30. The programs have delivered over $70 billion in research and development (R&D) funding to more than 30,000 small businesses nationwide, helping drive technological breakthroughs.
“Thanks in part to the SBIR/STTR programs, America has experienced a ‘golden age of innovation’ over the last forty years. And now, as Trump’s reckless tariffs threaten to decimate our most effective innovators – our small businesses – and the Administration slashes research dollars to institutions, it is even more urgent that we make the SBIR and STTR programs permanent,” said Sen. Markey.
“These programs work because they prioritize merit and promote competition, and I am committed to ensuring that they retain their initial intent of fostering innovation in truly small businesses,” the senator added. “I thank Ranking Member Velázquez for her partnership in promoting innovation through small businesses and providing certainty for these programs for decades to come.”
The SBIR/STTR Reauthorization Act of 2025 would permanently authorize the two programs. The bill would also increase research funding for small businesses and partnering research institutions.
Over a seven-year period, Federal agencies would be required to allocate at least 7 percent of their extramural R&D budgets to the SBIR program and 1 percent to the STTR program – up from 3.2 percent and 0.45 percent, respectively.
Under the bill, Federal agencies would be required to designate a “technology commercialization official” who will provide guidance to SBIR and STTR program awardees in commercializing and transitioning technologies, among other duties.
Federal agencies would also have their contracting officers and acquisition workforce take training on the SBIR and STTR programs to help increase the number of technologies being commercialized by the Federal government.
Currently, Federal agencies are instructed to establish and implement a “due diligence program” to assess security risks presented by small businesses seeking a federally funded award. The SBIR/STTR Reauthorization Act of 2025 looks to maintain bipartisan foreign due diligence efforts, extending the bipartisan due diligence program until 2030.
Additionally, the bill looks to extend the Federal and State Technology Partnership (FAST) Program until 2030. The FAST Program is a one-year funding opportunity for organizations to help increase the number of SBIR and STTR proposals.
“By reauthorizing the Federal and State Technology Partnership (FAST) Program and allowing agencies to use a portion of their SBIR/STTR funding to assist businesses in developing competitive proposals, the bill would help diversify the applicant pool and bring in new participants, including those from states that have historically received fewer awards,” according to a one-pager on the legislation.
“The bill also allows agencies to use a portion of their SBIR and STTR funding to establish internship and fellowship opportunities to spur innovation with a targeted effort to reach women and socially and economically disadvantaged individuals,” it adds.
The legislation is endorsed by the National Small Business Association (NSBA), Small Business Technology Council (SBTC), the New England Innovation Alliance, MassMEDIC, and VentureWell.
“The SBIR/STTR Reauthorization Act of 2025 will build on the successes of the programs, while maintaining what has made them successful in the first place,” said Jere Glover, executive director of the SBTC. “Small businesses thrive on certainty and making these programs permanent sends a powerful message to small businesses that the government will continue to be a reliable partner and customer for them.”
“The SBIR and STTR Reauthorization Act of 2025 would maintain the competitive, merit-based fundamentals of the programs to ensure the best technology is developed to keep America as the world leader,” the New England Innovation Alliance said in a statement.