SBIR/STTR Pilot Extension Act

Bill Number

H.R. 3851

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Commerce

Status

Introduced

Latest Action

2025-06-09: 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

2025-06-25T12:51:42Z

AI-Generated Summary

Purpose

The SBIR/STTR Pilot Extension Act (H.R. 3851) aims to extend and expand certain pilot programs under the Small Business Act. These programs support small businesses in developing innovative technologies through federal research grants. SBIR stands for Small Business Innovation Research, which funds high-risk, high-reward research; STTR stands for Small Business Technology Transfer, which encourages partnerships between small businesses and research institutions. The bill promotes faster funding access and commercialization of innovations to boost economic growth and competitiveness.

Key Provisions

• Extension and Expansion of Direct to Phase II Authority (Section 2):
• Allows federal agencies to award Phase II grants (for prototype development) directly to small businesses that have completed feasibility studies, skipping the traditional Phase I (initial research) if the project shows strong potential.
• Extends this authority from fiscal year 2025 to 2030.
• Expands eligibility from just the National Institutes of Health (NIH), Department of Defense (DoD), and Department of Education to all federal agencies required to run SBIR programs.
• Limits awards to no more than 10% of an agency's total SBIR funds per fiscal year (15% for NIH).
• Requires agencies using this authority to report the number and amount of awards in their annual SBIR reports.

• Extension of Commercialization Readiness Program for Civilian Agencies (Section 3):
• Renames and extends a program that helps civilian (non-military) federal agencies prepare SBIR/STTR innovations for market use, such as through training or partnerships.
• Changes it from a "pilot program" ending in fiscal year 2025 to a "covered program" lasting until fiscal year 2030.

• Extension of Other SBIR/STTR Pilot Programs (Section 4):
• Extends the Phase 0 Proof of Concept Partnership Program (which funds early-stage idea validation with universities or nonprofits) from fiscal year 2025 to September 30, 2030.
• Extends Commercialization Assistance Pilot Programs (which provide extra support like mentoring for turning research into products) from September 30, 2025, to September 30, 2030.

Significant Changes to Existing Law

• Timeline Extensions: Multiple programs previously set to expire in 2025 are now extended to 2030, providing five additional years of funding stability.
• Broader Scope: The Direct to Phase II option, once limited to three agencies, now applies agency-wide, potentially increasing opportunities for small businesses across more government sectors (e.g., energy, health, defense).
• New Safeguards: Introduces funding caps (10-15% of SBIR budgets) to prevent overuse and mandates reporting for transparency, which were not in the original authority.
• Program Evolution: Shifts some pilots to permanent or "covered" status, reducing their experimental nature and integrating them more fully into standard SBIR/STTR operations.

Potential Impacts

• On Government Agencies: Agencies with SBIR programs (e.g., DoD, NIH, NASA) gain flexibility to fund promising projects faster but must adhere to new spending limits and reporting, which could strain administrative resources while optimizing R&D budgets.
• On Citizens and Small Businesses: Enables quicker access to federal funding (up to $1-2 million per Phase II award, typically), helping entrepreneurs commercialize innovations in fields like health tech or clean energy. This could create jobs and spur economic growth, especially for underrepresented or startup firms.
• On International Relations: Minimal direct impact, but by strengthening U.S. small business innovation, it indirectly enhances competitiveness against global rivals in technology sectors.

Main Stakeholders Affected

• Small Businesses: Primary beneficiaries, particularly tech startups and innovators seeking federal R&D grants without lengthy application processes.
• Federal Agencies: Including DoD, NIH, Department of Energy, and others with SBIR mandates; they must implement expansions and track usage.
• Research Institutions: Universities and nonprofits partnering via STTR or Phase 0 programs gain extended collaboration opportunities.
• Congress and Oversight Bodies: The House Committee on Small Business and Committee on Science, Space, and Technology, which referred the bill, benefit from sustained innovation policy tools.

Notable Legal, Constitutional, or Political Implications

• Legal: Builds on the Small Business Act (15 U.S.C. § 638) without altering core SBIR/STTR structures, ensuring compliance with existing procurement rules. The funding caps and reporting add accountability, reducing risks of misuse of taxpayer funds.
• Constitutional: No major issues; aligns with Congress's spending power under Article I and promotes general welfare through economic development.
• Political: Supports bipartisan goals of fostering innovation and small business growth, potentially appealing to pro-entrepreneurship lawmakers. It avoids controversy by maintaining program safeguards, but could face debate over budget allocations in future appropriations.

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

Sponsor

Rep. Olszewski, Johnny [D-MD-2]

Recent Actions

• 2025-06-09: 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.
• 2025-06-09: 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.
• 2025-06-09: Introduced in House
• 2025-06-09: Introduced in House

Bill Versions

• SBIR/STTR Pilot Extension Act — issued 2025-06-09 — PDF (4 pages)