SBIR/STTR Reauthorization Act of 2025

Bill Number: H.R. 3169
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Commerce
Status: Introduced
Latest Action: 2025-05-01: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last Updated: 2026-02-18T13:56:14Z

AI-Generated Summary

Summary of H.R. 3169: SBIR/STTR Reauthorization Act of 2025

Purpose

This bill reauthorizes and updates the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs under the Small Business Act. These programs provide federal funding to small businesses for research and development (R&D) in innovative technologies. The goal is to extend the programs' authority, increase funding levels, improve competition and participation (especially for underrepresented groups), enhance commercialization of technologies, extend pilot initiatives, strengthen oversight, and make technical adjustments to support small business innovation and economic growth.

Key Provisions

The bill is structured into six titles, amending Section 9 of the Small Business Act (15 U.S.C. 638) unless otherwise noted.

Title I: Reauthorization of Programs

Extension of SBIR and STTR Authority (Sec. 101): Removes expiration dates, making the programs permanent.
Extension of FAST Program (Sec. 102): Extends the Federal and State Technology (FAST) Partnership Program, which supports technology development in underserved states, from 2005 to September 30, 2030.

Title II: Enhancing Competition

Increasing Agency Expenditures (Sec. 201): Gradually raises the percentage of extramural R&D budgets that agencies must allocate to SBIR (from 3.2% in 2025 to 7% in 2032 and beyond) and STTR (from 0.45% in 2025 to 1% in 2032 and beyond).
SBIR and STTR Fellowships (Sec. 202): Allows agencies to fund fellowships and internships for undergraduates, graduates, and postdocs at small businesses with Phase II awards, with outreach to women and disadvantaged individuals; funded up to 3% of program budgets.
Application Assistance (Sec. 203): Expands assistance for small businesses applying to programs, including outreach to states with low historical award levels and minority/Hispanic-serving institutions (defined as colleges serving specific underrepresented groups under the Higher Education Act).
Technical and Business Assistance Improvements (Sec. 204): Increases funding caps for assistance (e.g., $6,500 for Phase I, $50,000 for Phase II per project), adds cybersecurity support, allows hiring staff for training, and mandates options for I-Corps training (a National Science Foundation program for commercialization skills).
Website Improvements (Sec. 205): Enhances public databases to report details on subcontracted research institutions, including their type (e.g., universities, nonprofits) and minority-serving status, covering Phases I-III.

Title III: Commercialization Improvements

Phase III Award Education (Sec. 301): Requires training for federal contracting officers on Phase III (commercialization phase) awards, covering program goals, data rights (protections for proprietary information), and sole-source contracts (awards without competition to SBIR/STTR participants).
Technology Commercialization Official (Sec. 302): Mandates each participating agency to appoint an official to guide award recipients on commercialization, coordinate markets, report progress, and simplify processes.
Phase III Improvements (Sec. 303): Directs procurement representatives to promote Phase III transitions; requires agencies to develop standardized procedures and model contracts for Phases I-III, including clear guidance on proposal requirements.

Title IV: Pilot Programs

Assistance for Administrative Costs (Sec. 401): Extends to 2030 and increases funding (to 3.3%) for agencies' administrative, oversight, and processing costs; requires transfers (at least 10%) from major agencies (e.g., DoD, NIH) to the Small Business Administration (SBA); emphasizes outreach to underserved states.
Direct to Phase II Authority (Sec. 402): Extends to 2030, expands to all agencies (previously limited), allows skipping Phase I for proven concepts; caps at 10% of program funds (15% for NIH); requires reporting.
Commercialization Readiness Program (Sec. 403): Converts a pilot for civilian agencies into a permanent program, extended to 2030, to help Phase II recipients prepare technologies for market.
Extension of Other Pilots (Secs. 404-405): Extends Phase 0 Proof of Concept partnerships, commercialization assistance, and a due diligence program for security risks to September 30, 2030.

Title V: Oversight and Simplification Initiatives

Annual Reports to Congress (Sec. 501): Expands reporting requirements to include House and Senate Small Business Committees; mandates public website publication.
Comptroller General Report (Sec. 502): Requires a GAO report within three years assessing program effectiveness in diversifying participants (e.g., new entrants, underrepresented groups like women-owned or disadvantaged businesses) and supporting commercialization.
Extend Report on Award Timeliness (Sec. 503): Extends to 11 years; adds data on average/median review times for proposals.
NIH Evaluation Pilot (Sec. 504): Establishes a pilot to speed up NIH awards (targeting 90 days from notice to funding) with flexible peer review; ends 2030; requires evaluation report.
Safeguards for VC-Owned Businesses (Sec. 505): Codifies limits on majority-owned businesses by venture capital (VC), hedge funds, or private equity if linked to "covered foreign entities" (e.g., foreign adversaries, terrorists, or entities posing security risks); applies to post-enactment awards.
Commercialization Impact Assessment (Sec. 506): Requires annual SBA-coordinated assessment of Phase II recipients' outcomes (e.g., revenues, investments, jobs, Phase III awards) over nine years; includes in SBA annual report.

Title VI: Technical Changes

Inclusion of SBICs (Sec. 601): Adds Small Business Investment Companies (SBICs, government-backed investors under the Small Business Investment Act) as allowable investors in SBIR/STTR participants, alongside VC and private equity.
Phase III and Sole-Source Awards (Sec. 602): Clarifies headings and procedures for Phase III justifications, emphasizing sole-source options.

Significant Changes to Existing Law

Funding Increases: Raises SBIR/STTR budget percentages phased over years, providing more resources than current levels (e.g., SBIR from 3.2% to 7%).
Permanent Reauthorization: Eliminates sunset provisions for core programs, unlike prior temporary extensions.
Expanded Participation: Adds fellowships, outreach to minority institutions and underserved states, and I-Corps integration; includes SBICs as investors.
Security Enhancements: Codifies foreign entity restrictions, building on existing due diligence pilots.
Reporting and Transparency: Broadens databases to include Phase III and subcontract details; adds new assessments and GAO oversight.
Pilot Expansions: Makes some pilots permanent or agency-wide (e.g., direct to Phase II); extends others to 2030.
Simplification: Standardizes Phase III processes, contracts, and NIH reviews to reduce bureaucracy.

Potential Impacts

Government Agencies: Participating agencies (11 major ones like DoD, NIH, NASA) face higher funding obligations, new administrative roles (e.g., commercialization officials), and training requirements, potentially increasing costs but streamlining acquisitions. SBA gains resources from fund transfers for oversight.
Citizens and Small Businesses: Boosts opportunities for small innovative firms, especially underrepresented ones (e.g., women-owned, minority-led, in low-award states), through more funding, assistance, fellowships, and commercialization support; could create jobs, spur R&D, and accelerate tech-to-market transitions, benefiting the economy.
International Relations: Strengthens national security by restricting awards to businesses tied to foreign adversaries (e.g., China, via "covered foreign entities"), potentially limiting international collaboration in sensitive tech but protecting U.S. interests; no direct impact on alliances.

Main Stakeholders Affected

Small Businesses: Primary beneficiaries, particularly innovative startups, Phase II awardees, and those owned by women, socially/economically disadvantaged individuals, or in underserved areas; also VC-, hedge fund-, private equity-, and SBIC-backed firms (with safeguards).
Federal Agencies: DoD, NIH, Department of Energy, NASA, NSF, and others required to run SBIR/STTR; must allocate more funds and report extensively.
Small Business Administration (SBA): Oversees implementation, gains funding for administration, and coordinates assessments/reports.
Educational and Research Institutions: Minority-serving colleges (e.g., HBCUs, Hispanic-serving), universities, and nonprofits gain visibility and subcontract opportunities via enhanced outreach and databases.
Investors and Nonprofits: VC firms, hedge funds, private equity, SBICs, and nonprofits supporting outreach/fellowships.
Congress and Oversight Bodies: House/Senate Small Business Committees and GAO receive expanded reports for accountability.

Notable Legal, Constitutional, or Political Implications

Legal: Aligns with existing laws (e.g., Higher Education Act for institution definitions, Immigration and Nationality Act for foreign protections); codifies security safeguards to prevent espionage risks, potentially reducing litigation over foreign ties; ensures compliance with peer review under Public Health Service Act for NIH pilot. No conflicts with procurement rules, as it promotes sole-source awards for proven innovations.
Constitutional: No direct implications; supports First Amendment-free speech in R&D via data rights protections and equal protection through diversity outreach, without mandating quotas.
Political: Advances bipartisan goals of innovation, job creation, and economic competitiveness (e.g., countering foreign tech threats); emphasizes equity for underrepresented groups, aligning with diversity initiatives; could influence future budgets by locking in higher spending, promoting U.S. tech leadership amid global competition.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Velázquez, Nydia M. [D-NY-7]

Cosponsors (3)

Rep. Amo, Gabe [D-RI-1], Rep. Pappas, Chris [D-NH-1], Rep. Chu, Judy [D-CA-28]

Recent Actions

2025-05-01: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Referred to the Committee on Small Business, and in addition to the Committee on Science, Space, and Technology, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-05-01: Introduced in House
2025-05-01: Introduced in House

Bill Versions

SBIR/STTR Reauthorization Act of 2025 — issued 2025-05-01 — PDF (52 pages)