NEWS | NSBA, SBTC Continue Urging Action on SBIR, STTR Small Business Reauthorization
- NSBA
- Apr 1
- 3 min read
NSBA and our Small Business Technology Council (SBTC) continue urging action on S. 3971 - a 5-year reauthorization plan to reinstate the SBIR/STTR small-business technology and development programs - without delay.
ANALYSIS | The SBIR/STTR programs are a foundational driver of U.S. innovation, supplying early-stage capital that empowers small businesses to advance breakthrough technologies, secure federal opportunities, and bring research to market—often in sectors critical to national security and economic growth. Ongoing delays in reauthorization introduce harmful uncertainty, undermining long-term planning, deterring participation, and slowing the momentum of promising R&D efforts. Absent timely action, small firms risk losing access to vital funding, federal agencies may face shortfalls in innovative solutions, and the broader economy could experience setbacks in technological progress and global competitiveness at a moment when agility and predictability are essential.
APRIL 1, 2026 | Congress is currently adjourned for its spring, Easter, and Passover holiday, but, despite passage by both the House and Senate, S. 3971 - a 5-year reauthorization bill for the the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through Sept. 30, 2031 - remains un-presented to the President for final signature into law.
SBIR/STTR programs are a crucial driver of innovation, providing specific small-business designations from federal funds supporting development of advanced technology, with applications spanning defense, health, and modern conveniences, like cell phone cameras and GPS technology adapted for cars and other computers.
Renewed in some form nearly every year since its conception in the early 1970s, in Sept. 2025, funding for SBIR/STTR lapsed, after a Senate block prevented adoption of the House-supported efforts to extend the program for one year (H.R. 5100).
Held up in the Senate over concerns with application processes and national security safeguards to prevent disbursement of funds to unallied foreign actors or companies, after five months of fighting, the Senate reached a compromise agreement (S. 3971) to reauthorize SBIR/STTR for five years, ultimately passing the bill by unanimous consent, followed by a favorable vote of 341-46 for passage in the House.
Around the same time of final congressional passage of S. 3971, President Trump issued a hardline stance on a voter ID and election reform bill, declaring a moratorium on signature of new laws until Congress passes and presents the SAVE America Act.
In close contact with NSBA and our Small Business Technology Council (SBTC) on the latest for this important reauthorization, House Speaker Mike Johnson (R-La.) reportedly signed S. 3971 for engrossment to the Senate and advancement down Pennsylvania Avenue. However, next steps for S. 3971 remain pending on the Senate Side.
Ultimately delayed for presentment to the President for signature into law due to the SAVE America Act moratorium at this time, staffers and leadership said this delayed approach minimizes threat of a premature veto of the bill.
Once S. 3971 is formally advanced by the House and Senate and presented for final signature, the President will have 10 days with the exception of Sundays to sign or veto this legislation, after which, if no action is taken, the bill becomes law.
Sentiments from Capitol Hill remain generally optimistic that the President will sign S. 3971 for his support of the 5-year reauthorization for SBIR/STTR, but it comes down a question of timing, with agencies and small businesses still in a holding pattern waiting for reinstatement.
Follow SBTC and NSBA for the latest on signature of S. 3971 into law, and join our efforts to further this 5-year reauthorization for SBIR/STTR into permanent policy for critical small-business technology research and development.
