Your TL;DR: The federal shutdown and SBIR/STTR expiration have created uncertainty for innovators, but this is a pause, not an end. Current awards continue, new solicitations are on hold, and innovators should use this time to prepare for rapid opportunities once authority and funding are restored.
The innovation ecosystem thrives on momentum. Federal programs like SBIR/STTR are lifelines for startups, small businesses, and researchers developing breakthrough technologies. As of yesterday, that momentum has slowed. The U.S. government has entered a shutdown, and the authorization for the SBIR/STTR programs has expired.
This moment may feel uncertain, but it represents a delay, not a defeat.
Why This Happened
Congress did not pass appropriations bills or a continuing resolution (CR) to maintain government funding. Until bipartisan agreement is reached and signed into law, federal operations will be limited.
Separately, the SBIR/STTR authority has lapsed. Without reauthorization, agencies cannot issue new solicitations under these programs.
Implications for SBIR/STTR
For innovators who rely on these opportunities, here’s what it means right now:
- Program authority has lapsed: No new SBIR/STTR solicitations can be released until reauthorization occurs.
- Shutdown adds delay: With agencies operating at reduced capacity, even routine processing will slow.
- Existing awards continue: Current SBIR/STTR contracts and grants remain valid, though payments and oversight may face temporary slowdowns.
Impacts on Federal Contracts & Grants
This disruption reaches beyond SBIR/STTR into federal grants and contracts more broadly:
- Active awards remain in place: Current projects continue, but modifications, payments, or official guidance may be delayed if your Contracting Officer is furloughed.
- New awards are on hold: Until funding and program authority are restored, agencies cannot move forward.
- Communication slows: Innovators should expect limited clarity from federal partners during the shutdown.
What Innovators Should Do Now
Periods of uncertainty can also be periods of opportunity. While this pause is frustrating, innovators can use it strategically:
- Stay connected: Maintain communication with your Contracting Officer, though expect slower responses.
- Sharpen your edge: Use this downtime to refine proposals, align capabilities with agency missions, and strengthen customer relationships.
- Prepare for acceleration: Once operations resume and SBIR/STTR is reauthorized, solicitations could move quickly. Companies ready to act will have a competitive advantage.
The Bottom Line
The shutdown and SBIR lapse are not permanent endings. They are temporary pauses in the federal funding pipeline. Innovators who remain engaged, prepared, and resilient will be well-positioned to seize opportunities when the programs restart.
Resilience is the hallmark of innovation. This moment is no different.
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We assist our clients in locating, applying for, and evaluating the outcomes of non-dilutive grant funding. We believe non-dilutive funding is a crucial tool for mitigating investment risks, and we are dedicated to guiding our clients through the entire process—from identifying the most suitable opportunities to submitting and managing grant applications.