Where We Stand and What You Can Do to Prepare
Following months of bipartisan efforts to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, passage of S. 3971, the Small Business Innovation and Economic Security Act, is expected on or before April 14, 2026.
Below, we cover:
- Reauthorization status
- Expected timeline for new solicitations and awards
- How you can prepare for the reauthorization
- Key program changes
What is the current status of the reauthorization bill?
The Small Business Innovation and Economic Security Act has reached the final stages before becoming law. The Act was formally presented to the President on April 2, 2026. Following presentment, the President has 10 days (excluding Sundays) to act on the bill by signing it, vetoing it, or taking no action.
- If the bill is signed or no action is taken within the 10 day-period, the bill will become law.
- If the President vetoes the bill, it will return to Congress, where a two-thirds majority vote in both chambers is required to override the veto and enact the law.
Our current “most likely” scenario is that the bill will become law by April 14, 2026.
How are federal agencies preparing for reauthorization?
The timing of new solicitations will vary significantly by agency. Based on our direct outreach to our agency contacts, we’ve summarized what to expect below:
Agency
Status
Department of War (DoW)
- DoW is poised to move very quickly upon reauthorization! They have announced that the program will open on the first Wednesday after SBIR/STTR reauthorization and will close within 4 weeks of opening (this means that the program is currently projected to open April 15, 2026, with a closing date of May 13, 2026).
- Currently, 24 SBIR/STTR topics are in pre-release on the DoW SBIR/STTR Innovation Portal (DSIP) website
- DoW has announced its intention to release new topics and Broad Agency Announcements within days of reauthorization. Topics are released on a monthly basis.
- Decisions on applications submitted in late 2025 will be released following reauthorization.
- Applications submitted in Fiscal Year 2025 have been reviewed, and summary statements have been released. Some Institutes and Centers have started requesting responses to review feedback in preparation for Just-In-Time requests for applications submitted for the September 2025 deadline. Program Officers have indicated that competitive applications from prior cycles may be funded very quickly after reauthorization.
- NIH has indicated that there will be no official statement on when the next solicitation will be released until reauthorization.
- NIH typically has three standard deadlines each year(January 5, April 5, and September 5). Although NIH could potentially add another deadline, through conversations with multiple Program Officers, we do not anticipate an off-cycle deadline for SBIR/STTR proposals. Therefore, the anticipated next deadline for proposal submission would be September 7, 2026 (as September 5 falls on a Saturday).
Department of Energy (DoE)
- DoE has stated that there will be no official statement on when the next solicitation will be released until reauthorization.
- Ongoing organizational changes are expected to delay the release of new DoE SBIR/STTR solicitations even after reauthorization.
- Moving forward, applicants will submit proposals for both Phase I and Phase II funding simultaneously. The Phase II portion of the award will be released as an option, contingent upon the successful completion of Phase I milestones.
- According to NSF Program Officials, the agency is prepared to release a new solicitation and reopen the Project Pitch submission portal as soon as the program is reauthorized.
- Project Pitches in queue are being reviewed. Invitations for full applications are being issued.
- Submitted full proposals are being reviewed, and pre-award negotiations are happening. No awards will be issued until reauthorization, however we are seeing proposals being recommended for funding, which is the final stage before award issuance.
- Open invitations for small businesses to submit full proposals (following their successful Project Pitch) remain valid.
- NSF typically offers three submission windows per year. We anticipate the next full proposal deadline to be around July 2026.
- NASA will transition to a Broad Agency Announcement (BAA) mechanism, releasing Phase I subtopics throughout the year rather than in a single January batch and summer Ignite release, as in previous years.
- The new solicitation was ready for release in October 2025 and is therefore expected to be issued shortly after reauthorization.
- New funding amounts have been released for Fiscal Year 2026 as of February 3, 2026:
- Phase I amounts increased from $150,000 to $225,000.
- Phase II amounts increased from $850,000 to $1,275,000.
- These new maximums will go into effect for future solicitations, beginning with 2025 Phase II and 2026 Phase I.
- Review of Phase II applications submitted in September 2025 has been paused during the lapse in SBIR/STTR authorization.
- USDA has stated that there will be no official statement on when the next solicitation will be released until reauthorization.
- USDA typically has one Phase I submission deadline (September-October; $125,000 – $175,000) and one Phase II submission deadline (March-April; $600,000) per Fiscal Year.
- There will be no official statements on the release of new awards or solicitations until the DHS budget is approved.
- DHS has historically held one submission deadline per Fiscal Year (January; $175,000 for Phase I and $1,000,000 – $1,500,000 for Phase II.
Department of Commerce – National Institute of Standards and Technology (NIST) & National Oceanic and Atmospheric Administration (NOAA)
- NIST has indicated that there will be no official statement on when the next solicitation will be released until reauthorization.
- NIST typically has one Phase I submission deadline (December; $100,000) and one Phase II submission deadline (June; $400,000) per Fiscal Year.
- NOAA typically has one Phase I submission deadline (January; $190,000) and one Phase II submission deadline (March; $690,000) per Fiscal Year.
- A Program Official at ED’s Institute of Education Sciences (IES) has indicated that ED plans to release solicitations in April or early May, pending reauthorization. A pre-solicitation notice will be published 2 weeks before the solicitation is released.
- Award amounts have historically been $250,000 for Phase I and $1,000,000 for Phase II.
- DoT has indicated that there will be no official statement on when the next solicitation will be released until reauthorization.
- DoT typically has one Phase I submission deadline per Fiscal Year (March-May; $200,000). Phase II solicitations are shared with Phase I awardees within 30 days of completion of the Phase I project ($1,500,000).
- EPA has indicated that its solicitation timeline will be discussed by top management following reauthorization.
- EPA typically has one Phase I submission deadline per Fiscal year (July-August; $100,000). Phase I awardees can submit a proposal for a Phase II award of $400,000.
What can you do NOW to prepare for reauthorization?
As the SBIR/STTR program nears reauthorization, there are several actions you can take now to ensure your business is ready to move quickly:
To submit and receive SBIR/STTR grants, several registrations are required, varying by agency — including eRA Commons (NIH), gov (NSF), and DSIP (DoW). All federal grants also require an active SAM.gov registration, which can take up to 6-8 weeks to activate and must be renewed annually.
Action: Confirm that all required registrations your organization are up-to-date.
Securing American innovation within the U.S. has become a growing emphasis of the SBIR/STTR program, with each agency required to perform due diligence to confirm that applicants do not have significant ties to a foreign country of concern. In practice, this means that any relationship your small business has with any foreign entity must be disclosed at the time of application or during pre-award negotiations, depending on the agency. This requirement extends to employees, consultants, business advisors, and investors, and failure to disclose these relationships could result in denial of an award.
Action: Review current foreign affiliations across your company and key personnel and adjust as needed. This may include identifying new academic partners, consultants, contract research organizations, or vendors with operations based in the U.S.
Even for early-stage Phase I projects, agencies and reviewers increasingly expect a well-developed commercialization strategy.
Action: Seek business development support through advisors, incubators, accelerator programs, or state-based resources. A portion of these costs may be eligible for coverage through Technical and Business Assistance (TABA) funding requested as part of your SBIR/STTR award.
Program officials expect to be swamped following reauthorization. Whether you are preparing a new application or awaiting a decision on a 2025 submission, now is the time to get on their radar.
Action: Reach out to program officials to schedule a meeting, so that you can be at the top of their list once reauthorization occurs.
Reviewers will look for a well-rounded team to execute the proposed scope of work. You may need to recruit expert consultants in areas where your team lacks experience or collaborate with an academic laboratory. This could provide the added benefit of access to key instruments or core facilities to complete the proposed work.
Action: Conduct a team gap analysis to identify missing expertise or resources. If planning an academic subaward, contact the institution’s pre-award office now to confirm required lead times for proposal preparation.
Although preliminary data is not strictly required for Phase I SBIR/STTR applications, it will often be necessary to stand out in the flood of applications following the SBIR/STTR program lapse. This is a great time to run some preliminary studies, potentially with collaborators you will be including in your SBIR/STTR project.
Action: Plan and execute a targeted feasibility study and prepare a summary for inclusion in your proposal.
Many SBIR/STTR solicitations allow applicants to include Letters of Support from individuals who can speak to the technical and commercial merit of the technology. These could be letters from potential investors, future end-users, or key opinion leaders in the field.
Action: Identify potential letter writers from within your network to secure their support for your project. They may even offer to provide critical feedback, which can be very valuable.
How will the SBIR/STTR landscape be changing?
The Small Business Innovation and Economic Security Act reauthorizes the SBIR/STTR programs through September 30, 2031, and introduces several significant changes to program administration.
Below, we summarize the key proposed revisions and how they will impact small business applicants:
Ordinarily, agencies must spend all allocated funds within a given fiscal year or risk losing them. This provision adds flexibility for FY26, as agencies were unable to release new awards for over seven months. In practice, we anticipate that additional funding will be rolled over to FY27 to support the anticipated surge in applications following reauthorization.
These awards are designed to accelerate high-impact, late-stage SBIR/STTR technologies toward commercialization. Awards may provide up to $30M over 48 months and will require 100% matching funds from the small business, which may come from federal or private sources. Only agencies with SBIR/STTR budgets exceeding $100M—including the Department of War, National Institutes of Health, National Science Foundation, Department of Energy, and National Aeronautics and Space Administration—may set aside funding for this mechanism.
Each agency will set limits on the number of proposals a small business can submit, which may apply per fiscal year, solicitation, or topic. While all agencies must implement caps, the bill does not define specific limits, so these are expected to vary widely. Proposal caps will take effect on October 1, 2026.
Members of the Federal Acquisition Workforce (i.e., contracting officers) will be required to complete additional training on SBIR/STTR program goals, Phase III agreements, data rights, and sole-source contracting. This is particularly relevant for Department of War contracts, where the government may become a direct customer through Phase III sole-source awards.
This provision of the bill provides more transparency about the due diligence to be performed related to security risks. Agencies will be required to look at cybersecurity practices, foreign ownership, patents and/or licensing agreements, and other foreign business relationships, especially with foreign countries of concern, before making an award. The bill also specifies several associations that would be considered a security risk, including entities on eight federal watchlists:
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- Uyghur Forced Labor Prevention Act [UFLPA] Entity List
- Non-Specially Designated Nationals [SDN] Chinese Military Industrial Complex Companies List
- Section 889 Prohibition List, Chinese Military Companies List
- Military End Users List
- Entity List maintained by the Bureau of Industry and Security
- List of Equipment and Services maintained by the Federal Communications Commission, Withold Release Order and Findings List.
Additionally, companies who are denied an application on the basis of a security risk determination will be provided with the basis for the determination. This is great news for SBIR/STTR applicants, as 2025 saw a sharp increase in the number of applications denied due to failed foreign risk assessment, particularly by the NIH, without clarity around how this determination was made. Finally, the bill specifies that if a small business is denied an award due to a failed foreign risk assessment, this does not prevent them from re-applying for SBIR/STTR awards in the future.
TABA funding—typically used to support business activities that enhance commercialization—will now include services such as cybersecurity support and participation in Innovation-Corps (I-Corps) programs. Additionally, funds may now be used not only for external vendors but also to hire or train internal staff in areas such as market research, IP strategy, regulatory planning, and manufacturing.
The bill also introduces several administrative changes behind the scenes:
Enhanced tracking and reporting will provide better visibility into program performance and commercialization outcomes. This includes more detailed award data, such as distinctions between Direct-to-Phase II and sequential Phase II awards, and whether non-SBIR/STTR contracts leverage SBIR/STTR-funded technologies. Overall, this will improve the ability to track project progression and commercialization success.
A more standardized contract framework will promote consistency across agencies, reduce administrative burden, and improve predictability for awardees. Agencies will also be encouraged to clarify requirements for Phase III eligibility, reinforcing a broader push to support commercialization beyond Phase II.