NEWS | SBIR/STTR Programs Still Lapsed as NDAA Week Lands on Capitol Hill, Big Questions for Small Business Remain

NSBA and the Small Business Technology Council urge Congress to act to reinstate SBIR/STTR funds, including options to work in the reauthorizations in the National Defense Authorization Act (NDAA).

UPDATE, DEC. 11, 2025 | After passing the House by a vote of 215-211 along tight party lines, the Senate will pick up the FY26 NDAA bill next week.

The legislation authorizes a 3.8 percent troop pay raise and significantly overhauls the way the Pentagon conceptualizes and buys weapons.

The bill also sets some defense policy, including provisions to limit the President's ability to reduce American troops in Europe, as well as military exercises and defense tech collaboration to support Taiwan.

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DEC. 08, 2025 | Late last night, Congress released the FY2026 National Defense Authorization Act (NDAA) Conference Bill. 

Notably absent from the working draft text was an extension for the SBIR/STTR programs, with the Oct. 1, 2025, lapse in funds and program authorities now likely to last through the new year.

Historically, SBIR/STTR reauthorizations have been included in the NDAA, given the critical innovation and defense technology funded by these programs; however, with joint release of the text, the House and Senate Armed Services Committees made it clear no SBIR reauthorization would be added without sign-off from the two lead Republicans and Democrats from the House and Senate Small Business Committees, and the House Science Committee, each of the committees with jurisdiction over SBIR/STTR, known colloquially as the Six Corners leadership block.

Earlier this year, five of the Six Corners supported passage of H.R. 5100, which offered a clean 1-year extension of SBIR/STTR programs, designed to keep the programs going and allow more time for finding an agreement for a long-term extension. 

Inclusion of H.R. 5100 in the FY26 NDAA was opposed only by Sen. Joni Ernst (R-Iowa), Chairwoman of the Senate Small Business Committee, who opted to push to include her self-authored INNOVATE Act, which included a number of changes to the SBIR/STTR programs that several legislators remain opposed to.

While NSBA and SBTC continue to push for permanency of these critical innovation and research funds, short-term extensions for SBIR/STTR are not unusual in the history of the programs. For some context, between 2009 and 2011, Congress passed 14 short-term extensions to keep SBIR/STTR active while Congress deliberated changes to the programs. 

Unfortunately, Senator Ernst remains opposed to extensions of any length without her changes reflected to the program.  Negotiations will continue within the Six Corners over compromise legislation.

Running up on the potential for another shutdown with federal dollars set to expire in January, the next must-pass legislation where SBIR/STTR could hitch a ride to passage will be another funding bill. If a breakthrough in negotiations occurs, however, it is possible SBIR/STTR reauthorizations could pass as a stand-alone piece of legislation. 

In 2022, the last SBIR/STTR reauthorization passed as a stand-alone bill just days before the program was set to terminate.  If the Six Corners can all agree on terms of a bill, the legislation could be brought to the floor and quickly passed. 

NSBA and SBTC will continue monitoring passage of the NDAA this session, and we urge our members and small-business supporters to contact Congress and drive action for SBIR/STTR, including reconsiderations of H.R. 5100 or other solutions providing more time for renegotiations or reauthorizations.

Read the NDAA bill summary and full text.