SBIR Administrative Funding Act

Bill Number

H.R. 7217

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-01-22: 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

2026-02-12T04:08:25Z

AI-Generated Summary

Purpose of the Legislation

The SBIR Administrative Funding Act (H.R. 7217) aims to extend and update funding support for the administrative, oversight, and contract processing costs of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs provide federal grants to small businesses for research and development (R&D) in technology and innovation. The bill seeks to ensure these programs have stable resources while promoting broader participation, especially from underserved areas.

Key Provisions

• Extension of Funding Authority: Extends the period during which federal agencies can allocate funds for SBIR and STTR administrative costs from September 30, 2025, to September 30, 2030.
• Increase in Allocation Percentage: Raises the percentage of SBIR and STTR program funds that agencies can use for administrative purposes from 3% to 3.3%.
• Mandatory Fund Transfers to SBA: Requires the heads of the Department of Defense (DoD), Department of Energy (DoE), Department of Health and Human Services (HHS), National Aeronautics and Space Administration (NASA), and National Science Foundation (NSF) to transfer at least 10% of their SBIR/STTR administrative funds to the Small Business Administration (SBA) within two months of receiving annual appropriations. These transferred funds cannot support programs under the Small Business Investment Act (which provides loans and investments to small businesses).
• Enhanced Outreach and Assistance: Allows agencies to use a portion of these funds for outreach and technical assistance to implement SBA policy directives and boost participation from states that have historically received few SBIR awards (e.g., rural or economically disadvantaged regions).
• Reporting Requirements: Updates reporting rules to include how transferred funds are used for outreach and to meet participation goals.

Significant Changes to Existing Law

• Structural Amendments: Redesignates parts of Section 9(mm) of the Small Business Act (15 U.S.C. 638(mm)) for clarity, adding a new subsection on fund transfers.
• Shift in Outreach Focus: Replaces prior language in subsection (mm)(2) to emphasize increasing awards in low-participation states, rather than broader technical assistance.
• Conforming Updates: Modifies subsection (mm)(6) to explicitly track the use of transferred funds for outreach, ensuring accountability.

These changes build on existing law by extending timelines, increasing funding percentages, and introducing mandatory transfers to centralize resources at the SBA.

Potential Impacts

• On Government Agencies: Agencies like DoD, DoE, HHS, NASA, and NSF will face new obligations to transfer funds, potentially streamlining SBA's role in program administration but increasing short-term administrative burdens. The SBA gains more resources to oversee SBIR/STTR, which could improve efficiency in processing contracts and awards.
• On Citizens and Small Businesses: Small businesses, especially in innovation and tech sectors, may benefit from smoother program operations and targeted outreach, leading to more R&D funding opportunities. Underserved populations (e.g., in low-award states) could see increased access, fostering economic growth and job creation in those areas.
• On International Relations: Minimal direct impact, as the bill focuses on domestic small business programs; however, enhanced U.S. innovation support could indirectly strengthen competitiveness in global technology markets.

Main Stakeholders Affected

• Small Businesses: Primary beneficiaries, particularly startups and tech firms eligible for SBIR/STTR grants.
• Federal Agencies: DoD, DoE, HHS, NASA, NSF (as funders and implementers), and the SBA (as the central administrator).
• State Governments and Communities: Especially those in regions with historically low SBIR participation, which may receive more targeted support.
• Congress and Oversight Bodies: Involved in appropriations and monitoring fund usage.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Strengthens accountability through mandatory transfers and reporting, potentially reducing duplication in federal R&D administration. No conflicts with existing statutes like the Small Business Act are evident, but it imposes enforceable deadlines on agency heads.
• Constitutional Implications: Aligns with Congress's spending power under Article I, Section 8, by directing federal appropriations without raising separation-of-powers concerns.
• Political Implications: Promotes equity by addressing disparities in program participation, which could appeal to bipartisan interests in small business support and regional development. The bill's focus on extending authorizations may influence future budget debates, as it commits more funds to admin costs amid fiscal pressures.

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

Sponsor

Rep. Latimer, George [D-NY-16]

Recent Actions

• 2026-01-22: 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.
• 2026-01-22: 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.
• 2026-01-22: Introduced in House
• 2026-01-22: Introduced in House

Bill Versions

• SBIR Administrative Funding Act — issued 2026-01-22 — PDF (4 pages)