SBIR/STTR Program Set to Expire September 30, 2025
As many in this community know, the SBIR and STTR programs are critical sources of early-stage funding for innovative small businesses. While these programs continue to enjoy strong bipartisan support, reauthorization is not guaranteed. The bills introduced so far differ significantly, reflecting different views on what the programs’ goals and priorities.
Senate Small Business Committee Chairwoman Joni Ernst introduced S. 853, the INNOVATE Act, following a hearing she held on March 5th, 2025. On the House side, Chairman Roger Williams of the House Small Business Committee held a hearing on February 26th and is currently developing his own reauthorization proposal. Meanwhile, House Ranking Member Nydia Velázquez and Senator Ranking Member Ed Markey introduced a joint bill, the SBIR/STTR Reauthorization Act of 2025 on May 3rd.
Staff discussions across both chambers and parties are expected to start soon as they work to reconcile differences. Once both committees advance a single bill it will need to pass in both the House and Senate before being sent to the President for signature. All of this is occurring alongside major new legislation the Administration is working to pass this year, so one challenge will be making sure Congress makes reauthorization of these crucial programs a priority.
Another challenge: many new members on the Small Business Committees are not familiar with the SBIR and STTR Programs or the positive impact they have on economic prosperity. It’s important to remember that these programs do not increase federal spending. They simply allocate a small percentage of existing R&D budgets to small businesses—companies that consistently prove to be more innovative, agile, and cost-effective than larger contractors.
The SBIR/STTR programs have funded R&D for over 40 years in areas where traditional venture capital is nearly always absent. These federal investments have helped launch transformative technologies, created hundreds of thousands of high-paying jobs across the country, and delivered a return of more than 20-to-1 on taxpayer investment. In today’s political climate—where there is growing pressure to reduce federal spending and re-evaluate the government’s role in innovation—it is essential that Congress understands the tangible, local benefits these programs provide in maintaining US leadership in innovation and resulting economic prosperity.
How You Can Help
If your Representative serves on the House Small Business Committee or your Senator is on the Senate Small Business Committee, now is the time to reach out to their office. Tell them your story. Explain how SBIR/STTR funding has helped your company grow, innovate, and hire. Describe your challenges, highlight your successes, and—if you’re comfortable—share your feedback on the current bills.
The most important messages:
- The economic prosperity enjoyed in the US since WWII has been led by innovative technologies
- The SBIR/STTR Programs have been a crucial innovation funding source for >40 years
- The SBIR/STTR Programs do NOT add to the federal budget
- To maintain the US lead in technology, these programs must continue.
To find your Representative or Senator’s contact information, visit the committee membership pages:
I will continue to provide updates through this newsletter as the reauthorization process moves forward.
Author: John Williams
John Williams led the SBA Office of Innovation & Technology from 2014 to 2023, the office responsible for overseeing the SBIR/STTR programs. He previously served in the Navy SBIR/STTR program office for over 27 years. He has testified numerous times before Congress on the effectiveness of the SBIR/STTR programs and has helped drive multiple reauthorization efforts through his nearly 40 years of federal service. He currently serves as the Executive Director of the Small Business Innovation Research Consortium (SBIRC), a non-profit membership organization that supports the SBIR/STTR community.
