Ranking Member Edward J. Markey has advanced the Small Business Innovation and Economic Security Act, a bipartisan bill to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. The legislation aims to protect the competitive nature of these programs, prevent lifetime caps on awards for small businesses, and ensure access for the smallest companies. Following Senate passage, the bill will move to the House of Representatives.
“The five-year reauthorization of the SBIR/STTR programs is a win-win-win-win—for American small businesses, for workers, for the innovation economy, and for the communities they serve,” said Ranking Member Markey. “This much-improved reauthorization has come a long way from early proposals that would have immediately kicked dozens of U.S. small businesses out of the programs and severely limited the ability of hundreds more in Massachusetts and across the country to grow and thrive.While this legislation does not include every improvement I would like to see, its enactment will immediately reopen these essential programs so that we can once again stake our position on the world stage, empowering our most nimble allies—our small businesses.”
The SBIR/STTR programs have provided over $77 billion in awards to 33,000 small businesses nationwide. These funds have supported developments such as heart pump technology, GPS systems, and medical breakthroughs. Massachusetts ranks second nationally in participation, with more than 2,600 small businesses receiving over $9 billion through these programs.
Under Senator Markey’s leadership, several key provisions were included:
- The SBIR and STTR programs are reauthorized for five years.
- Lifetime caps on awards are rejected to maintain merit-based competition.
- Participation by research institutions is protected.
- Agencies unable to spend Fiscal Year 2026 funding may carry it over into Fiscal Year 2027.
- Strong foreign due diligence requirements are maintained along with new transparency measures.
Leaders in innovation expressed support for Markey’s efforts.
“The Small Business Technology Council (SBTC) fully endorses the Small Business Innovation and Economic Security Act and urges Congress to speedily pass this legislation to restore authority to the SBIR and STTR programs. We are grateful to Senator Markey for his leadership and commitment to restoring these vital small-business funding programs to ensure that America’s high-tech small businesses can continue to receive the funding they need to drive America’s innovative economy and maintain our technological advantage,” said SBTC Executive Director Jere Glover.
“The SBIR and STTR programs have fueled American innovation for decades by investing in small businesses and research institutions across America with big ideas to advance the missions of our military and public safety agencies, to improve the nation's health and environment, and create highly skilled jobs. This bipartisan legislation followed months of negotiations to ensure that the renewal of these investments included common sense reforms to protect our know-how from potential adversaries, keep their merit-based competitive principles, and broaden participation. Senator Markey has worked tirelessly with his colleagues in both parties to make sure what makes these programs successful are not undermined by arbitrary restrictions so we can build on their unsurpassed return on investment for taxpayers. SBIR and STTR are the envy of the world for a reason. They are back in business and that is good news for American innovation and economic competitiveness and will help foster the next generation of innovators," said DefendSBIR.
"Massachusetts has built the nation’s leading biotechnology ecosystem by investing in breakthrough science at its earliest stages, when risk is highest. The SBIR and STTR programs have been central to that success, providing the long-term stability and non-dilutive capital that allow startups to pursue transformative discoveries during early-stage clinical research. MassBio has consistently advocated for the continuation of these programs and applauds policymakers for securing a path forward that restores activity and provides much-needed certainty through 2031. We are especially grateful to Senator Ed Markey for his steadfast commitment to innovation and to sustaining these critical investments. At a time when global competitors are accelerating their investments in science and technology, policymakers on both sides of the aisle and both chambers must continue to champion the entrepreneurship and ingenuity these programs embody,” said Kendalle Burlin O’Connell.
“The SBIR and STTR programs are popular, bipartisan programs which focus on spurring innovation in high-impact technology sectors – such as healthcare, energy, and defense, while also ensuring that the United States remains competitive internationally. The SBIR and STTR programs have been critically important to small businesses in New England – earning over 33,000 awards valued at over $12 billion since the programs’ inception. We are grateful to Senator Markey for his tireless advocacy on this important issue, and again urge Congress to pass the Small Business Innovation and Economic Security Act and reauthorize the SBIR and STTR programs through September 2031,” said James T. Brett.
"Due to the protracted pathway to commercialization, health technology innovation is uniquely reliant on the SBIR program. Medtech is fortunate to have a dedicated advocate in Ed Markey on our side...I enthusiastically endorse this reauthorization bill," said Brian Johnson.
"The reauthorization of these programs acknowledges that investing in small business research...is investing in...American competitiveness," said Barbara R. Snyder.
“As a small business consultant representing dozens of companies advancing from Phase I...this bipartisan five-year SBIR/STTR agreement restores much-needed stability while avoiding...disruptive implementation outcomes,” said Erin Neal.
“For over forty years...the SBIR/STTR programs have served as America’s innovation engine...” said Lynn Abramson.
"After months of...programs shuttering...I applaud lawmakers...Senator Markey...shown a strong bipartisan commitment..." said Todd McCracken.
“This reauthorization represents a strong bipartisan commitment...The SBIR/STTR provide catalytic capital...” said Bobby Franklin.
“We would like thank Senator Markey for his persistence advocating provisions regarding high impact training using I-Corps approach...” said Phil Weilerstein.
Senator Markey previously advocated multiple times on behalf of temporary extensions or permanent authorization when previous efforts were blocked or delayed in Congress.
The Senate Small Business & Entrepreneurship Committee plays an important role by supporting informed decision-making about national fiscal priorities (official website). It also offers comprehensive policy options related to federal budget components (official website), contributes via resolutions or reconciliation instructions (official website), provides nonpartisan analysis through oversight functions (official website), was established under budget law reforms passed in 1974 (official website), but currently lists Lindsey Graham as chairman rather than any Massachusetts senator (official website).
