NSBA-SBTC PRESS | Agreement Reached to Restart SBIR, STTR Innovation Programs

NSBA and SBTC commend Congress for working to reach a viable solution to reinstate SBIR/STTR funding - critical funding for small-business research, development, and innovation, creating life-saving drugs and technologies.

FOR IMMEDIATE RELEASE 

Feb. 25, 2026 

CONTACT | Molly Brogran

202-276-2131  mbrogan@nsbaadvocate.org

FEB. 25, 2026 | TODAY, following a nearly four-month lapse in operations, Sen. Edward Markey (D-Mass.) ushered through a deal with Sen. Joni Ernst (R-Iowa) to reinstate the highly-successful Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. 

RELATED | NSBA, SBTC URGE CONGRESS TO ACT ON STOPGAP FOR SBIR FUNDING

In September 2025, Sen. Ernst was the lone holdout against a short-term continuing resolution to keep the SBIR/STTR programs in operation while negotiators crafted a more long-term reauthorization compromise bill. Introduced as the Small Business Innovation and Economic Security Act, the bill was shared and hot-lined in the Senate this afternoon, setting it up to be passed quickly and sent to the House of Representatives next week, before being sent to the President’s desk. 

This bill is the result of lengthy and at times contentious negotiations between Sens. Markey and Ernst:    

"I applaud lawmakers for coming to a consensus to get the 4,000+ companies per year who innovate, create jobs and harness vital technology for the federal government back on track,” National Small Business Association President and CEO Todd McCracken said following the announcement. “Sen. Markey and his cohorts in the House have shown a strong, bipartisan commitment to small business through their steadfast leadership of the SBIR/STTR programs.” 

NSBA's Small Business Technology Council (SBTC) Executive Director Jere Glover also commented on the SBIR announcement:

“SBTC fully endorses the Small Business Innovation and Economic Security Act and urges Congress to speedily pass this legislation to restore authority to the SBIR and STTR programs.  We are grateful to Sen. Markey for his leadership and commitment to restoring these vital small-business funding programs to ensure that America’s high-tech small businesses can continue to receive the funding they need to drive America’s innovative economy and maintain our technological advantage."

The compromise legislation contains a number of changes to the program that small businesses will need to be aware of, including: 

• Strengthening and standardizing foreign risk/due diligence requirements; 

• The creation of a "strategic breakthrough award" post-Phase II program that allows agencies to make jumbo awards up to $30 million under certain circumstances; 

• A requirement that agencies set a cap on the number of proposals a small business can submit to the SBIR/STTR programs on either a per-fiscal-year, per-solicitation, or per-topic basis; 

• Enhanced training for federal agencies' acquisition workforces on Phase III awarding; 

• Suggested Phase III utilization by procurement center representatives; 

• The creation of standardized model contracts for Phase I, II and III; 

• Changes under TABA (Technical and Business Assistance) to allow cybersecurity assistance and utilize funding for employee training and hiring; 

• Improved SBIR/STTR data collection practices, requiring better tracking of direct to Phase II, Phase III, and subcontracting data; 

• Reauthorizes the current agreement and all pilot programs thereunder for SBIR/STTR to Sept. 30, 2031 

Please click here to view the complete bill.  

Please click here to learn about the importance of the SBIR/STTR programs.  

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Celebrating nearly 90 years in operation, NSBA is a staunchly nonpartisan organization advocating on behalf of America’s entrepreneurs. The SBTC is the technology-focused arm of NSBA, the leading small-business voice in federal innovation programs. NSBA's 65,000 members represent every state and every industry in the U.S., and we are proud to be the nation’s first small-business advocacy organization. Please visit www.NSBAadvocate.org  or follow us at @NSBAAdvocate.