Senate blocks extension for SBIR/STTR as Markey warns of impact on US innovation

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Sen. Joni Ernst, chair | Joni Ernst Official Webste

Senate blocks extension for SBIR/STTR as Markey warns of impact on US innovation

Senator Edward J. Markey, the Ranking Member of the Senate Small Business and Entrepreneurship Committee, issued a statement after his attempt to extend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs failed in the Senate. The proposed one-year extension had previously passed unanimously in the House of Representatives but was blocked by Senate Republicans, leading to an impending expiration of both programs at midnight.

In his statement, Markey said, “I am disappointed that the Chair has rejected a bipartisan extension to one of the most bipartisan and successful small business programs in our government. Our standing on the world stage of innovation depends on our small businesses. A lapse in the SBIR/STTR programs will be devastating—it will lead to expansive layoffs, setbacks to scientific advancement, leave government funded technology vulnerable to foreign adversaries, and cut billions for small business investors. Kicking successful companies out of these programs would be like cutting your highest scorers after winning an NBA title. Instead of innovation, we would get decimation."

He added, “We all want to see improvements made, but we need the time necessary to ensure that we are making informed, evidence-based decisions that do not harm American innovation. By allowing this program to end, the Chair and my Senate Republican colleagues are serving up our crown jewel—American small businesses and decades of American innovation—to our foreign adversaries on a silver platter.”

Markey has been actively working toward extending and improving both programs. Last week he released new analysis detailing how a lapse could negatively affect small businesses and American innovation as a whole. He also highlighted input from hundreds of stakeholders—including small businesses, universities, program experts, and a former Trump administration official—all urging passage of the extension.

Earlier in September, Markey introduced legislation on the Senate floor intended to reauthorize SBIR/STTR for another year while maintaining current due diligence procedures regarding foreign participation and implementing further reforms aimed at keeping U.S. innovation competitive. This legislation was also blocked by Senate Republicans.

In August, Markey held a listening session with Massachusetts-based research and innovation-focused small businesses who advocated for continued federal support through these types of grant programs.

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