NEWS | Space Force Signals Support for NSBA, SBTC Small Business Funding Fight for SBIR, STTR, Innovation Programs
- NSBA
- Dec 15, 2025
- 2 min read
NSBA and SBTC continue urging Congress and lawmakers in Washington to reinstate the SBIR/STTR small-business programs, ending ongoing threats to our nation's critical defense systems, including Space Force and the Department of Defense.
DEC. 15, 2025 | Small businesses at the frontier of space innovation could face more uncertainty as key Space Force acquisition programs remain threatened by ongoing congressional deadlock over reauthorizing Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) funding. Senior Space Force officials warn that delays in extending these small-business funds are already slowing plans for next-generation technology development.
At the Spacepower 2025 conference, Space Force acquisition leaders made clear that the inability of Congress to renew Pentagon authority to use SBIR, along with complementary strategic funding mechanisms, is not just an abstract budget squabble. These seed funding sources are a cornerstone of early-stage investment for startups and small companies working on cutting-edge technologies critical to national security.
According to Maj. Gen. Stephen Purdy, acting space acquisition head, SBIR grants, along with the Air Force’s STRATFI and TACFI programs, have been “very beneficial” to the Space Force’s large industrial base, injecting fresh ideas and new entrants into the defense marketplace. Without immediate reauthorization, officials fear this vital feeder system could dry up just when the nation needs small-business innovation most.
Space Rapid Capabilities Office leaders echoed these concerns, noting that a planned request for proposals for “agile” satellite bus technology, a capability critical to more maneuverable reconnaissance and responsive space systems, has been put on hold due to the uncertainty around SBIR and related small funding authorities.
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The SBIR and STTR programs are among the most important federal funding vehicles available to small firms doing high-risk, high-reward research and development. According to recent data, these programs have historically provided more than $77 billion to tens of thousands of small companies and yield significant economic returns for the U.S. economy.
For small businesses in space and defense technology sectors, these awards are often the difference between staying in business and advancing breakthrough technologies. Many startups count on SBIR contracts not only for seed funding but also to signal credibility to venture capital and other investors, an effect Space Force officials say bolsters private investment in small-business innovation.
Without a clean reauthorization of these programs in the FY2026 National Defense Authorization Act, small innovators could face funding gaps at precisely the moment when competition with global adversaries demands rapid technological advancement. This risk comes on top of existing program lapses that NSBA has previously highlighted and urged Congress to address.
NSBA continues to emphasize that reliable access to capital, including federal innovation funding like SBIR/STTR, is essential for small businesses to compete, scale, and contribute to national priorities. The current funding impasse threatens not only specific defense programs but the broader small-business innovation ecosystem that underpins U.S. competitiveness.
As this legislative fight unfolds, NSBA will continue pushing for bipartisan action to reinstate and strengthen these funding authorities, ensuring that small innovators are not sidelined during a critical period for national security and global technological leadership.
