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Washington (May 1, 2025) - Senate Committee on Small Business and Entrepreneurship Ranking Member Edward J. Markey (D-Mass.) today introduced the SBIR/STTR Reauthorization Act of 2025, which would make permanent and expand the Small Business Innovation Research Program and the Small Business Technology Transfer Program (SBIR/STTR). House Committee on Small Business Ranking Member Nydia Velázquez (NY-07) is introducing companion legislation in the House.

For over 40 years, the SBIR and STTR programs have delivered more than $70 billion in research and development (R&D) funding to over 30,000 small businesses nationwide, ushering in technological breakthroughs that have benefited everyday Americans across the country and strengthened our national security. The SBIR and STTR programs are set to expire on September 30, 2025, if they are not reauthorized by Congress.

“Thanks in part to the SBIR/STTR programs, America has experienced a ‘golden age of innovation’ over the last forty years. And now, as Trump's reckless tariffs threaten to decimate our most effective innovators–our small businesses–and the Administration slashes research dollars to institutions, it is even more urgent that we make the SBIR and STTR programs permanent," said Ranking Member Markey. "These programs work because they prioritize merit and promote competition, and I am committed to ensuring that they retain their initial intent of fostering innovation in truly small businesses. I thank Ranking Member Velázquez for her partnership in promoting innovation through small businesses and providing certainty for these programs for decades to come."

“For over 40 years, SBIR and STTR have helped America’s small businesses lead the way in cutting-edge research and innovation,” said Ranking Member Velázquez. “At a time when the Trump administration is working to dismantle vital public programs, it is more important than ever to protect what works. This bill gives these programs the long-term support they need by providing stable funding, expanding access, and strengthening safeguards against foreign threats. I am proud to work with Ranking Member Markey to secure the future of these programs.”

Specifically, the SBIR and STTR Reauthorization Act of 2025 would:

• Make permanent the SBIR and STTR programs. Permanently authorizing the SBIR and STTR programs would give both small businesses and government agencies the stability needed to continue their collaboration to spur innovation.
• Maintain competitiveness of SBIR and STTR programs. The legislation maintains the program’s 40-year long practice of facilitating merit-based competition to determine which innovative small businesses receive awards. This legislation would place no caps or limits on small businesses or the number of awards they can receive to ensure unbridled innovation for America.
• Increase research funding for small businesses and partnering research institutions. Agencies, over the course of 7 years, would be required to allocate at least 7 percent of their extramural R&D budgets to SBIR and 1 percent to STTR—up from 3.2 percent and 0.45 percent, respectively. 
• Strengthen commercialization efforts. Agencies often fail to identify SBIR/STTR-funded technologies that demonstrate a solution to their needs, fueling a belief that many technologies simply do not showcase commercialization potential. Requiring agencies to designate a Technology Commercialization Official and undergo acquisition training would result in a greater number of SBIR/STTR technologies being commercialized by the federal government. 
• Maintain bipartisan foreign due diligence efforts. The legislation extends the bipartisan due diligence program until 2030.   
• Dismantle barriers to broaden participation. The time and resources required to develop an SBIR/STTR proposal can be a significant barrier to entry for many small businesses, particularly those who have limited resources. By reauthorizing the Federal and State Technology Partnership (FAST) Program and allowing agencies to use a portion of their SBIR/STTR funding to assist businesses in developing competitive proposals, the bill would help diversify the applicant pool and bring in new participants, including those from states that have historically received fewer awards. The bill also allows agencies to use a portion of their SBIR and STTR funding to establish internship and fellowship opportunities to spur innovation with a targeted effort to reach women and socially and economically disadvantaged individuals. 

Massachusetts has the highest per-capita award rate of any state and is the second largest recipient of SBIR/STTR awards in the country, receiving more than 24,000 SBIR awards totaling $8.3 billion, and 2,000 STTR awards totaling over $720 million.

“The Small Business Technology Council (SBTC) is pleased to offer its endorsement to the bicameral SBIR/STTR Reauthorization Act of 2025. The SBIR/STTR Reauthorization Act of 2025 will build on the successes of the programs, while maintaining what has made them successful in the first place. We particularly appreciate the SBIR/STTR programs being made permanent, a long-overdue step for programs that have proven their worth for over 40 years in the case of SBIR. Small businesses thrive on certainty and making these programs permanent sends a powerful message to small businesses that the government will continue to be a reliable partner and customer for them. SBTC also supports increasing the SBIR and STTR allocations, for the first time since 2011. These programs continue to provide an enormous return on the taxpayer investment, and deserve to a larger investment of Federal R&D expenditures,” said Jere Glover, Executive Director of Small Business Technology Council.

“The New England Innovation Alliance, a coalition of small, disruptive innovation businesses located in Massachusetts and New Hampshire, strongly supports The SBIR and STTR Reauthorization Act of 2025 introduced by Senator Edward Markey, Ranking Member of the Senate Committee on Small Business and Entrepreneurship, and Representative Nydia Velázquez, Ranking Member of the House Small Business Committee,” said the New England Innovation Alliance. “The SBIR and STTR Reauthorization Act of 2025 would maintain the competitive, merit-based fundamentals of the programs to ensure the best technology is developed to keep America as the world leader. The measure appropriately recognizes that there should be no arbitrary award caps, submission limits, or forced graduation from programs.”

“Startups in medical technology face a daunting timeline of development, FDA clearance, and coverage determination. The CMS process alone can take more than five years. As a result, the industry has seen private investment move to other sectors with quicker returns. SBIR grants fill a critical gap in early-stage capital for healthcare innovation, a key growth driver for the Commonwealth. MassMEDIC deeply appreciates Sen. Markey's leadership, collaboration, and commitment to building upon the success of the SBIR program and enthusiastically endorses his SBIR and STTR Reauthorization Act of 2025,” said Brian Johnson, President of MassMEDIC.

“VentureWell supports the strategic emphasis on entrepreneurial support in the SBIR/STTR Reauthorization Act of 2025, particularly the expansion of the I-Corps program. By recognizing that SBIR and STTR funding is essential—but not alone sufficient—for bridging the ‘valley of death’ between research and commercialization, this legislation rightly positions the federal government as a proactive partner in cultivating top-tier innovators and ensuring their work produces the maximum return on America's investment in science,” said Phil Weilerstein, President and CEO of VentureWell.

The legislation is also endorsed by the National Small Business Association (NSBA).

Ranking Member Markey has been a longtime champion of the SBIR and STTR programs. In 2011, during his time serving in the House of Representatives, Ranking Member Markey played an integral role in SBIR and STTR’s reauthorization efforts. This reauthorization effort was the last time the program's budget was increased significantly. Ranking Member Markey also introduced a reauthorization bill to improve the programs in 2019 and advocated on behalf of SBIR and STTR small businesses to the Trump administration during the COVID-19 pandemic.

In March 2025, Ranking Member Markey attended a Senate Small Business and Entrepreneurship Committee hearing titled, “Golden Age of American Innovation: Reforming SBIR-STTR for the 21^st Century,” where his witness highlighted the success of the SBIR/STTR programs.

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