The long-awaited legislation to reauthorize the SBIR/STTR program now has a name and bill number: Senate Bill S.3971 will be known as the “Small Business Innovation and Economic Security Act” once it becomes law. S.3971 passed the Senate on 3/3/2026. To become law, the bill still requires House passage & the President’s signature. These are some highlights of key elements and changes:
- AUTHORIZES both SBIR & STTR (and existing pilots) until Sept 30, 2031
- EXPANDS Direct to Phase II to the STTR program and adds DOE and NASA (keeps NIH, DOD & Education)
- NEW Strategic Breakthrough Awards: Up to $30 M as Phase II follow on, and requires outside matching funds
- UPDATED Foreign Influence disclosures: A list of Prohibited Entities is mandated that will result in award denial. Agencies MUST provide reason for denials, AND resubmission of denied proposals is allowed
- NEW Each Agency must define annual proposal limits (by company, solicitation or Topic) starting October 1, 2026
- NEW Phase III improvements (staff training and simplified & standard procedures)
- UPDATES Technical and Business Assistance (TABA):
- All Agencies must participate (previously voluntary)
- Amounts remain the same ($6,500 Phase I, $50,000 Phase II),
- NEW—allows TABA funds to be used internally
- NEW I-Corps Participation: Allows TABA funds to be used to pay for I-Corps
- Several administrative reporting updates for the participating Agencies
To track progress of Bill S.3971, visit here.