SBIR/STTR Reauthorization Act of 2025
Congress Proposes Doubling Research Grants for Small Businesses to Boost Innovation and Security
Stalled
No legislative action in over 90 days.
Legislative Progress
Key Points
- This bill extends two major programs that give federal grants to small businesses for scientific research and high-tech development. It ensures these programs keep running through at least 2030, providing steady support for American startups working on new inventions.
- The plan would gradually double the amount of money large federal agencies must set aside for small business research. By 2032, agencies like the Department of Defense and NASA would have to spend 7% of their research budgets on these small business grants, up from the current 3.2%.
- To help the next generation of scientists, the bill creates new internship and fellowship opportunities. Small businesses that win these grants could hire students from college through the doctoral level, with a special focus on recruiting women and people from disadvantaged backgrounds.
- The bill adds new security rules to protect American technology. It would ban any small business from receiving these grants if they are mostly owned or controlled by certain foreign governments or entities, such as those from China, Russia, North Korea, or Iran.
- Federal agencies would be required to do more outreach to minority-serving colleges and Hispanic-serving institutions. This is intended to help more diverse researchers partner with small businesses and win a larger share of the available grant money.
- Small businesses would get more help turning their inventions into real products. The bill increases funding for business and cybersecurity advice and requires agencies to appoint a specific official to help guide companies through the process of selling their tech to the government or the public.
Impact Analysis
Personal Impact
The bill's foreign ownership restrictions could affect small businesses with significant foreign investor involvement, which sometimes includes visa holders who have founded or co-founded tech startups. Companies majority-owned by entities connected to designated foreign countries of concern would be barred from SBIR awards. This could limit opportunities for some visa-holding entrepreneurs while also protecting the integrity of the program.
Milestones
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.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
4 articles
Expiring SBIR/STTR Programs Get Lifelines From Congress
Sen. Ed Markey and Rep. Nydia Velázquez introduced the SBIR/STTR Reauthorization Act of 2025 to make the programs permanent and increase research funding. The bill would double agency set-asides to 7% for SBIR and 1% for STTR over seven years to provide long-term certainty for small innovators.
House Small Business advances innovation and tech funding legislation
The House Small Business Committee unanimously advanced a one-year extension of the SBIR/STTR programs. However, Senate Small Business Chair Joni Ernst opposes the 'clean' extension, pushing instead for the INNOVATE Act to reform 'SBIR mills' and strengthen foreign influence safeguards.

More US federal layoffs, future of SBIR on the table
Biotech and medtech startups face a 'valley of death' as Congress debates competing SBIR reauthorization bills. The Markey-Velázquez bill seeks to expand the program to 7% of R&D budgets, while the Ernst bill focuses on structural reforms and cutting STTR funding to prioritize first-time winners.
Source Information
Document Type
Congressional Bill
Official Title
SBIR/STTR Reauthorization Act of 2025
Data Sources
Sponsor
Cosponsors
(3)Analysis generated by AI. Always verify with official sources.