HR 3169119th CongressIn Committee

SBIR/STTR Reauthorization Act of 2025

Introduced: May 1, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

SBIR/STTR Reauthorization Act of 2025 is a comprehensive bill to reauthorize, expand, and modify the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. It removes the expiration dates on SBIR/STTR and related FAST program authorities, extends another set of related pilot and readiness programs, and builds in stronger outreach, commercialization, and oversight features. The bill aims to boost funding, broaden participation (including more women, minorities, and economically disadvantaged groups), improve assistance and training for applicants, accelerate commercialization of SBIR/STTR technologies, and increase transparency through regular reporting and data collection. It also introduces new roles (Technology Commercialization Official) and new requirements for agencies to support Phase III work and I-Corps-style training. In short, the bill seeks to (1) keep SBIR/STTR operating well into the future, (2) increase and target federal spending on SBIR/STTR activities, (3) expand fellowship and outreach to underrepresented groups, (4) strengthen pathways to market for SBIR/STTR technologies, and (5) improve reporting, oversight, and simplification to make the programs more effective and transparent.

Key Points

1Extended authorization and program modernization
2- Extends the SBIR and STTR authorities beyond their current end dates and extends the FAST program through 2030, ensuring continued operation and modernization of these programs.
3Increased funding and staged investment
4- Sets new minimum funding percentages for agency SBIR/STTR programs over multiple years (e.g., 4% in 2026–27, rising to 7% from 2032 onward for SBIR/STTR budgets) and adds corresponding incremental funding for STTR (0.5% to 1% in later years). Also includes a framework to channel more agency resources into administering and expanding the programs.
5Fellowships and enhanced outreach
6- Creates SBIR/STTR fellowships for Phase II award recipients to fund internships and fellowships across undergraduate to postdoctoral levels in fields relevant to the agencies’ missions. Requires enhanced outreach to women, socially disadvantaged, and economically disadvantaged individuals, with potential use of third-party nonprofits to support outreach and administration.
7Broadening participation and targeted assistance
8- Adds requirements for agencies to provide application assistance to small businesses, with a focus on states and institutions that historically received fewer SBIR/STTR awards. Expands outreach to minority-serving institutions and other underserved groups in both SBIR and STTR programs.
9Technical and business assistance (TBA) and I-Corps
10- Expands how technical and business assistance can be used, allowing recipients to hire staff and utilize various vendors for Phase I and II services, including cybersecurity support. Includes targeted reviews of TBA funding and requires I-Corps participation where applicable, with funding flexibility to cover training costs.
11Enhanced data reporting and transparency
12- Reforms data collection and reporting to include information about research institutions subcontracted for SBIR/STTR work, along with detailed attribution by institution type and classification (e.g., higher education categories). Requires annual, publicly accessible reporting by agencies.
13Phase III and commercialization improvements
14- Adds dedicated Phase III workforce training for contracting officers, establishes a Technology Commercialization Official in each agency, and requires agencies to pursue standardized Phase III contracts and streamlined procurement practices to favor transition of SBIR/STTR technologies to the market. Encourages more Phase III awards and standardized procurement provisions.
15Pilot programs and readiness extensions
16- Extends and broadens several pilot programs (Phase 0 PoC partnerships, commercialization assistance pilots, commercialization readiness programs for civilian agencies, etc.) through 2030, and extends the due diligence program to assess security risks through 2030.
17Oversight, simplification, and safeguards
18- Increases congressional oversight with annual reports to Congress and expanded Comptroller General reviews on diversification and commercialization. Adds safeguards for small businesses majority-owned by investment funds to ensure appropriate program access and transparency. Includes a commercialization impact assessment.
19Technical changes and broader inclusion
20- Includes SBICs (Small Business Investment Companies) in SBIR/STTR programs and makes related adjustments to Phase III and sole-source award authorities.

Impact Areas

Primary group/area affected- Small businesses and startups participating in SBIR and STTR, including Phase I/II awardees and prospective applicants; research institutions and universities that subcontract SBIR/STTR work; and minority-serving and other underserved institutions and communities targeted by expanded outreach and fellowship programs.Secondary group/area affected- Federal agencies administering SBIR/STTR programs (e.g., grant offices, procurement offices, and program managers); contracting officers and acquisition workforce responsible for Phase III purchases; and entities supporting SBIR/STTR outreach and training (nonprofits, I-Corps-like programs, etc.).Additional impacts- Increased federal budget exposure for SBIR/STTR programs through suggested funding percentages; potential administrative overhead and reporting requirements for agencies; more robust data on subcontractors and institutional participation; a stronger emphasis on commercialization readiness and market transition of technologies; potential acceleration of technology transfer to the private sector; and broader accountability through annual and CG reporting and public website updates.SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are U.S. programs that provide funding to small businesses to conduct R&D with potential for commercialization.Phase I/II/III refer to stages of SBIR/STTR projects, with Phase I typically assessing feasibility, Phase II expanding the R&D, and Phase III focusing on commercialization and market deployment (often through non-SBIR/STTR contracts).I-Corps is a program designed to help teams learn how to commercialize technology and identify real-world markets.FAST program refers to the Federal and State Technology Partnership program, which supports collaboration between federal labs and state/local entities to help move technology to market.

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