Small Business Innovation and Economic Security Act
Congress Extends Small Business Tech Grants Through 2031 with New $30 Million Breakthrough Awards
Legislative Progress
Key Points
- This bill keeps two major programs running until September 30, 2031. These programs give federal money to small businesses to help them research and develop new technologies that the government might need, such as advanced medical tools or defense equipment.
- To protect American secrets, the bill requires agencies to check if a small business has risky ties to foreign countries, especially those on specific watch lists related to the Chinese military. If a business is found to be a security risk, the government can deny their application for funding.
- A new Strategic Breakthrough fund will offer much larger awards—up to $30 million—for projects that could lead to major technological leaps. To get this money, businesses must show they have matching funds from private investors or other government sources to prove the project is a solid investment.
- The bill tries to cut down on paperwork by limiting how many proposals a single business can submit each year. It also requires better training for government workers so they know how to actually buy and use the finished products from these small businesses once the research is done.
- Small businesses will get more help with things like cybersecurity and protecting their inventions. The bill increases the amount of money available for these support services to $6,500 for early-stage projects and $50,000 for more advanced research.
Impact Analysis
Personal Impact
The bill's enhanced security screening provisions require agencies to evaluate foreign affiliations of owners and key personnel at small businesses applying for SBIR/STTR awards. Small business founders or key employees who hold visas and have ties to foreign countries of concern could face additional scrutiny or denial of awards, even if their connections are benign. This creates higher barriers for immigrant entrepreneurs in the federal research funding ecosystem.
Milestones
Presented to President.
Both chambers passed identical text. The President has 10 days to sign it into law or veto it.
Motion to reconsider laid on the table Agreed to without objection.
On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 345 - 41 (Roll no. 89).
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 345 - 41 (Roll no. 89).
The House fast-tracked this bill — limited debate, no amendments allowed, but needs two-thirds support to pass.
Considered as unfinished business. (consideration: CR H2545-2546)
Vote Results
1 voteOn Motion to Suspend the Rules and Pass
Related News
2 articles
Senate poised to reauthorize key small business fund used by Pentagon
Senators Joni Ernst and Ed Markey reached a bipartisan deal to reauthorize the SBIR and STTR programs for five years. The 'Small Business Innovation and Economic Security Act' includes a new Strategic Breakthrough initiative and safeguards against Chinese influence while rejecting award caps.
Small Business Innovation and Economic Security Act: An Inside Look at the Changes to America's Seed Fund
The legislation institutes new restrictions to curb risks from adversarial nations and requires agencies to institute annual limits on applications. It also creates a 'strategic breakthrough' category for projects requiring larger scale funding to reach production.
Source Information
Document Type
Congressional Bill
Official Title
Small Business Innovation and Economic Security Act
Data Sources
Sponsor
Cosponsors
(1)Analysis generated by AI. Always verify with official sources.