Your TL;DR: The SBIR and STTR programs expired September 30, 2025, and as of late 2025, they remain in limbo because Congress has not passed a reauthorization. This lapse is slowing the release of new awards and creating uncertainty for innovators. Multiple bipartisan bills exist, but lawmakers have not reached an agreement on a path forward. Potential clients should stay informed, engage with their House and Senate offices, and emphasize how these programs fuel research and economic growth.
Where Things Stand Today
If your organization depends on federal research and development funding, you have likely been watching the unfolding situation around the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs with keen interest. These programs represent more than $4 billion in annual set-aside funding for small business R&D and are foundational in advancing early-stage technologies into the marketplace. They are often called America’s Seed Fund because they bridge the gap between research and commercialization. The legal authority that allowed federal agencies to issue new awards under the SBIR/STTR programs expired on September 30, 2025. That lapse means agencies cannot issue new solicitations or select new awardees until Congress reauthorizes the programs.
Recent coverage of the situation notes that the omission of reauthorization language from major bills, such as the FY2026 defense authorization, left the programs stagnant through the end of 2025. Congressional analysts and SBIR stakeholders generally expect SBIR/STTR reauthorization to be attached to broader budget or appropriations legislation in early 2026.
Here are three key pieces of proposed SBIR/STTR reauthorization legislation
- SBIR/STTR Reauthorization Act of 2025 (S.1573 / H.R.3169): This is the primary bipartisan reauthorization bill introduced in both the Senate (S.1573) and the House (H.R.3169) that seeks to extend program authority and modernize the SBIR and STTR programs. It would make several structural updates to the Small Business Act, including expanding agency funding allocations for SBIR/STTR, strengthening commercialization support, enhancing outreach and application assistance, and codifying pilot programs like direct to Phase II. If enacted, it would restore the statutory authority that lapsed on September 30, 2025, and provide agencies greater stability and predictability to issue new solicitations and awards.
- INNOVATE Act: The Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence (INNOVATE) Act is a competing reauthorization bill introduced with a focus on modernizing and restructuring how SBIR/STTR funds are distributed and used. Key elements include creating a simplified Phase I-A award for first-time applicants, new large follow-on (Phase III-type) awards to help transition technologies toward practical application, potential caps on lifetime awards for individual companies, and revised priorities for outreach and due diligence.
- RAMP Act (Research Advancing to Market Production for Innovators Act): The RAMP Act represents another proposed reauthorization framework that emphasizes commercialization outcomes and flexibility in Phase II and Phase III awards. It would require agencies to evaluate commercial potential more explicitly during proposal review, expand “Direct-to-Phase II” authority across agencies, establish more dedicated commercialization support roles, and increase funding for technical assistance and intellectual property support.
These three bills illustrate the range of approaches currently under discussion in Congress: one aims to restore and strengthen the existing program structure, another to overhaul the design and incentives of SBIR/STTR, and a third to bolster commercialization and market readiness pathways. All of them attempt to address the same core challenge: giving agencies the legal authority to issue awards again while reshaping the programs to better serve innovation needs in the coming decade.
What This Means Right Now
- No new solicitations or awards can be released until statutory authority is restored. This pause affects planning timelines and any proposals that were on track for release in late 2025 or early 2026.
- Existing awards continue under their current terms, but agencies are not issuing new opportunities.
- Agencies are closely watching congressional progress, and once a vehicle is identified, they will announce timelines for the resumption of competitions.
It is important to interpret this as a procedural pause rather than a cancellation. The infrastructure and review systems for these awards are still in place. They are simply waiting for the legal authority to move forward.
When Congress Returns and What to Expect
Congress is now back in session as of January 5, 2026. Both chambers have resumed work this week after the holiday recess. Many Members will focus on the continuing resolution and appropriations process, which extends government funding into January 30, 2026. That funding timeline creates a potential opportunity for lawmakers to attach SBIR/STTR reauthorization language to larger budget bills before the month ends.
Committee schedules, including those for the Senate Small Business and House Small Business Committees, typically follow regular session calendars that begin in the first weeks of January. While no formal reauthorization vote has been announced yet, the early part of this year is widely viewed as the next real chance for movement.
Actions That Make Practical Sense Today
While legislative authority is out of your direct control, there are several concrete things you can focus on now so you are well-positioned once opportunities begin moving again:
- Get your planning and materials in order. Complete drafts of proposals, budgets, commercialization plans, and teaming agreements now so that you can respond quickly when solicitations re-open. This is not speculative work; it is making sure you are ready when the timeline resumes.
- Update your internal calendars and milestones. Projects that were tied to 2025 timelines may need realignment for 2026. Use this pause to refine your strategy rather than rushing later.
- Understand agency guidance and contingencies. Some agencies, including Department of Homeland Security affiliates, have issued notices clarifying that only new solicitations are paused, but existing Phase III and other non-SBIR acquisition paths remain available. Review these details with your team or advisors.
- Communicate to congressional offices with a short, fact-based message. Lawmakers and staff care most about clear examples of real impact on innovation, workforce, or regional economic activity. A short, personalized message that explains how the program’s pause is affecting your planning or operations helps them assess the practical effects as they consider legislative options.
What’s Next
The first major benchmark to watch is late January and early February 2026. As government funding deadlines approach and appropriations negotiations proceed, there will likely be clearer signals about which legislative vehicle lawmakers will use to reauthorize SBIR and STTR.
In the meantime, treat this moment as an opportunity to refine strategy, shore up documentation, and ensure you are ready to act once statutory authority returns.
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