SBIR/STTR Innovation Workforce Act
- Bill Number
- H.R. 5212
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Commerce
- Status
- Introduced
- Latest Action
- 2025-09-08: 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
- 2025-09-30T13:11:43Z
AI-Generated Summary
Purpose of the Legislation
The SBIR/STTR Innovation Workforce Act (H.R. 5212) aims to expand opportunities for building a skilled workforce in innovation-driven fields by allowing federal agencies to fund fellowships and internships through small businesses that have succeeded in federal research programs. It focuses on developing talent at various educational levels while promoting participation from underrepresented groups.
Key Provisions
- Fellowship and Internship Funding: Federal agencies may provide grants or awards—directly or in partnership with third parties—to small businesses that have received Phase II awards under the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. These funds support fellowships and internships for undergraduates, bachelor's degree holders, graduate students, and postdoctoral researchers in fields important to the agency (e.g., technology or science areas aligned with agency missions).
- Enhanced Outreach for Diversity: Agencies must conduct targeted outreach to boost participation by women, socially disadvantaged individuals (those facing social barriers to business ownership, as defined in federal small business programs), and economically disadvantaged individuals (those with limited financial resources, as defined in federal programs).
- Partnerships with Nonprofits: Agencies may collaborate with or fund nonprofit organizations experienced in diversity outreach to help implement these efforts.
- Funding Limits:
- Agencies using special SBIR/STTR reauthorization funds (under subsection (mm)) can draw from those.
- Other agencies are limited to no more than 3% of their required annual SBIR/STTR expenditures.
- Application to Both Programs: The provisions apply identically to both SBIR (focused on small business innovation) and STTR (focused on university-small business tech transfer) programs.
Significant Changes to Existing Law
This bill amends Section 9 of the Small Business Act (15 U.S.C. 638), which governs SBIR and STTR programs:
- Adds a new paragraph (5) to subsection (f) (SBIR policy directives) and a new paragraph (4) to subsection (n) (STTR policy directives), introducing explicit authority for fellowship funding—a capability not previously outlined in these sections.
- No changes to core SBIR/STTR award structures (e.g., Phase I feasibility studies or Phase II development), but it creates a new optional use of program funds to support workforce development, emphasizing equity in access.
Potential Impacts
- On Government Agencies: Enables agencies (e.g., Department of Defense, NASA, or National Science Foundation) to strategically invest in talent pipelines for critical technologies, potentially improving innovation outcomes without requiring new appropriations. The 3% cap limits administrative burden.
- On Citizens: Provides educational and career opportunities for students and early-career professionals, especially from underrepresented groups, fostering skills in high-demand fields like STEM (science, technology, engineering, math). This could enhance economic mobility and diversity in the workforce.
- On International Relations: Minimal direct impact, though it may indirectly strengthen U.S. competitiveness in global innovation by building domestic expertise in strategic areas (e.g., defense or health tech).
- Broader Effects: Small businesses gain access to motivated talent, potentially accelerating commercialization of research, while promoting inclusivity could address workforce gaps in innovation sectors.
Main Stakeholders Affected
- Federal Agencies: Primary implementers, particularly those administering SBIR/STTR (11 agencies total, including major ones like HHS and DOE).
- Small Businesses: Eligible recipients of awards must have Phase II SBIR/STTR success; they benefit from hosting fellows/interns and associated funding.
- Students and Researchers: Undergraduates through postdocs, with special emphasis on women and disadvantaged individuals gaining hands-on experience.
- Nonprofit Organizations: Experienced groups in diversity outreach may receive grants to support program expansion.
- Underrepresented Communities: Targeted for increased access, aligning with broader federal equity goals.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on existing SBIR/STTR frameworks without altering eligibility or core funding mandates, ensuring compliance with small business procurement laws. The diversity outreach aligns with federal anti-discrimination policies but requires careful implementation to avoid unintended biases.
- Constitutional: No apparent conflicts; supports Congress's commerce clause authority to promote economic innovation and equal opportunity.
- Political: Reinforces bipartisan priorities in workforce development and STEM equity, potentially appealing across party lines by tying small business support to national competitiveness. Could face scrutiny over fund diversion from core R&D, though the cap mitigates this.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Scholten, Hillary J. [D-MI-3]
Recent Actions
- 2025-09-08: 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.
- 2025-09-08: 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.
- 2025-09-08: Introduced in House
- 2025-09-08: Introduced in House
Bill Versions
- SBIR/STTR Innovation Workforce Act — issued 2025-09-08 — PDF (5 pages)