NEWS | SBIR/STTR Funds Lapse Drags On, Putting America’s Small Business Innovators at Risk

NSBA and our Small Business Technology Council (SBTC) continue to urge Congress to formally act on reinstatement of funds and longer-term reauthorization of the SBIR/STTR programs - critical research and technology development programs supporting small-business innovators.

JAN. 06, 2026 | As 2026 begins and the 119th Congress enters its second session, negotiations over extending the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) programs remain unresolved. Meanwhile, the lapse of these critical small business innovation programs has now stretched into a fourth month. Each additional week without action puts America’s most innovative companies at greater risk, especially early-stage and first-time startups that depend on SBIR/STTR funding to survive and continue their research.

Fortunately, there are some signs of progress: Late last month, staff with Senator Ed Markey (D-Mass.) circulated new compromise language aimed at addressing a number of concerns on SBIR/STTR from Senator Joni Ernst (R-Iowa). If approved by the “six corners”—the Majority and Minority leaders of the Senate and House Small Business Committees, along with the House Science Committee—the agreement could move quickly. The next major legislative vehicle is the General Government Appropriations bill, which must pass by Jan. 30 to avoid another government shutdown.

Alternatively, SBIR/STTR could advance as a stand-alone measure through unanimous consent if bipartisan agreement is reached.

Until Congress settles on a long-term reauthorization, NSBA and SBTC will continue pressing lawmakers to pass a short-term extension to keep these programs operational. For instance, H.R. 5100, a clean one-year extension for the SBIR/STTR programs, has already cleared the House and now awaits Senate action.

Passage of H.R. 5100 would restore SBIR/STTR through September and provide immediate relief to small businesses relying on these programs. NSBA urges small-business owners to stay engaged with their members of Congress and advocate for swift Senate passage of H.R. 5100 while negotiations on a permanent solution continue.