NEWS | SBIR/STTR Reauthorization Gains Momentum with NSBA, SBTC Push as Congress Exchanges Proposals

NSBA and our Small Business Technology Council (SBTC) are continuing to urge Congress to act to pass the House-approved H.R. 5100 or a long-term plan for reauthorization of the critical SBIR/STTR small-business research and innovation programs.

JAN. 14, 2026 | After four months of waiting for reauthorization, negotiations to revive the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are beginning to accelerate in Congress by compromise, as well as urging from NSBA and SBTC. Senate Democrats and Republicans have now formally exchanged competing compromise proposals, which is an important step toward breaking the logjam that has left innovative small businesses without access to critical early-stage R&D funding.

RELATED | NSBA, SBTC LEAD FIGHT FOR REAUTHORIZING SBIR/STTR

In December, Senator Ed Markey (D-Mass.) circulated compromise text to congressional leaders on the relevant committees, signaling Democrats’ willingness to narrow differences. Late last week, Senator Joni Ernst responded with a Republican counterproposal that significantly pares back earlier drafts.

While the GOP proposal removes several significant provisions, such as extended clawbacks and a 10-year lookback, it remains heavily focused on tightening foreign risk and due diligence requirements, without clearly ensuring small businesses have meaningful opportunities to mitigate potential issues.

The Republican proposal also takes a different approach to program structure. Rather than enhanced benchmarks included in the Markey draft, the new language would allow agencies to cap the number of proposals a small business can submit annually, with agencies given discretion to set those limits. In addition, the proposal would reauthorize SBIR/STTR for just three years, extending the programs only through February 1, 2029, falling well short of the long-term certainty innovative small businesses need, but a positive step in the right direction toward reauthorizing these important funds.

NSBA and our partners have long advocated for permanent authorization of SBIR/STTR. The repeated lapses and short-term extensions undermine planning, investment, and hiring, particularly for early-stage startups that rely on SBIR/STTR awards to survive and scale. While the exchange of proposals is a positive sign, the stakes remain high: another temporary reauthorization risks perpetuating the same uncertainty that has plagued these programs for years.

Negotiations are ongoing, and further changes are expected before any final agreement is reached. NSBA and SBTC will continue to engage with lawmakers and keep small-business owners informed as talks progress, while pressing Congress to restore SBIR/STTR quickly and provide the long-term stability America’s most innovative small businesses need to compete and grow.