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S 1573119th CongressIn Committee

SBIR/STTR Reauthorization Act of 2025

Introduced: May 1, 2025
View on Congress.gov
Standard Summary
Comprehensive overview in 1-2 paragraphs

The SBIR/STTR Reauthorization Act of 2025 proposes to reauthorize and expand the federal SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) programs under the Small Business Act. It extends current authorities (and in some cases sunsets) and adds a broad set of enhancements aimed at boosting competition, commercialization, and participation, while also expanding pilot programs and strengthening oversight and transparency. Notable changes include longer-term extension of program authority, higher minimum agency expenditures for SBIR/STTR, new fellowships, expanded outreach to underserved and minority institutions, expanded technical and business assistance (TA), integration of I-Corps training, more robust Phase III engagement, and stronger reporting requirements. The bill also introduces technical changes such as including SBICs (Small Business Investment Companies) in the program framework and clarifying Phase III/sole-source award processes. Overall, the bill is designed to accelerate the development and commercialization of SBIR/STTR-supported technologies, broaden participation across underrepresented groups and institutions, and improve the federal government’s use of Phase III contracts and related procurement processes. It envisions a larger, more proactive role for agencies in commercialization, education of contracting workforce, and data-driven oversight, with several program timelines extended through 2030–2032 and beyond.

Key Points

  • 1Extended reauthorization and sunset removal for SBIR and STTR; FAST program extended through 2030.
  • 2Enhanced funding and competition measures:
  • 3- New minimum agency SBIR/STTR expenditure floors through 2025 and stepped increases thereafter (4% in 2026–2027; 5% in 2028–2029; 6% in 2030–2031; 7% from 2032 onward).
  • 4- Direct-to-Phase II authority extended; cap adjustments (up to 10% of an agency’s SBIR funds, NIH up to 15%); timeline extended to 2030.
  • 5Fellowships and expanded participation:
  • 6- Creation of SBIR/STTR fellowships and internships at undergraduate through postdoctoral levels in fields important to federal agencies; mandatory enhanced outreach to women, socially/economically disadvantaged individuals; funding through specified sources with caps.
  • 7Expanded application assistance and minority outreach:
  • 8- New provisions to help small firms apply and to increase participation from states with historically low SBIR/STTR awards; enhanced outreach to minority-serving institutions and other underrepresented groups.
  • 9Expanded technical and business assistance (TA) and I-Corps integration:
  • 10- Recipients may select TA options (including cybersecurity) and hire staff for TA; explicit caps for Phase I ($6,500) and Phase II ($50,000) TA expenditures per project; targeted TA reviews possible.
  • 11- Agencies required to offer I-Corps training options to SBIR/STTR awardees and allow funding for such participation.
  • 12Transparency and reporting on research institutions:
  • 13- Expanded website disclosures about subcontracted research institutions, including type (higher ed, nonprofit, or federal R&D center) and institutional designations (e.g., HBCU/HSI/Tribal, etc.).
  • 14Commercialization improvements and Phase III focus:
  • 15- Training for contracting officers on Phase III acquisitions; DoD reporting of Phase III denials within 30 days; creation of Technology Commercialization Official at each agency to drive commercialization efforts and coordinate across agencies; standardized Phase III processes and model contracts; annual commercialization reporting.
  • 16Pilot program extensions and new programs:
  • 17- Civilian agencies commercialization readiness program extended to 2030 (renamed as the Civilian Agencies Commercialization Readiness Program); continued extension of Phase 0 PoC partnerships and commercialization assistance pilots to 2030; extended due diligence for security risk assessments to 2030.
  • 18Oversight, simplification, and governance:
  • 19- More frequent annual reports to Congress, expanded oversight (including a Comptroller General review on diversification and commercialization), continued timeliness reporting, and safeguards related to venture-capital-backed small businesses.
  • 20Technical changes:
  • 21- Inclusion of SBICs in the SBIR/STTR framework; clarity around Phase III and sole-source awards.

Impact Areas

Primary group/area affected:- Small business concerns participating in SBIR and STTR, including those owned or led by women, minorities, and economically or socially disadvantaged groups; participating universities and research institutions that host SBIR/STTR work through subcontractors.Secondary group/area affected:- Federal agencies administering SBIR/STTR (e.g., DoD, DoE, NIH, NSF, etc.), procurement and contracting workforce, and organizations that provide TA or I-Corps training; third-party outreach and support organizations; SBICs and venture-capital-backed firms.Additional impacts:- Increased program transparency and data reporting; potential higher upfront costs to agencies to meet new floors and establish Technology Commercialization Officials; broader inclusion of SBICs may affect the way capital and commercialization activities are integrated with SBIR/STTR-funded work; potential shifts in Phase III procurement practices and contract structures toward standardized approaches.
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