Congress Just Revived Two Key R&D Programs For Entrepreneurs

After being put on ice for six months, the SBIR and STTR programs have been brought back to life.

BY MELISSA ANGELL, SENIOR STAFF WRITER @MELISSKAWRITES

Illustration: Inc; Photo: Getty Images

Two federal research and development programs that have infused billions of dollars into fledgling companies and are responsible for modern inventions like GPS were revived by lawmakers earlier this week. 

The House on Tuesday reauthorized the Small Business Innovation Research (SBIR) program and the Small Business Technology Transfer (STTR) program on Tuesday, extending both programs by five years up until September 30, 2031. The bill reauthorizing the program now heads to President Donald Trump’s desk, awaiting his signature.

“The reauthorization of the SBIR and STTR programs is a critical win for the small businesses that drive American innovation,” Reps. Brian Babin (R-TX),  Zoe Lofgren (D-CA), Roger Williams (R-TX) and Nydia M. Velázquez (D-NY) wrote in a joint “We have worked to provide entrepreneurs with the resources they need to transform bold ideas into technology that will fuel our economy, strengthen supply chains, and safeguard our future.”

Companies from 23andMe to Qualcomm have benefitted from the programs, which extends capital to early-stage companies that show innovative promise and the potential for scale. Qualcomm, for example, received a $1.5 million funding award back in the 1980s that helped it build out technology that supports modern cellular networks. 

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In total, the programs have allocated about $77 billion to the benefit of more than 33,000 companies. SBIR and STTR funding lapsed at the end of last September when lawmakers failed to pass any extensions. Notably, the recently-passed measure allows companies and research institutions to carry over funds from fiscal year 2026 to fiscal 2027 given the six-month lapse the program faced. 

Sen. Ed Markey (D-MA), who serves as the ranking member for the Senate Committee on Small Business and Entrepreneurship, celebrated the measure, but indicated that he’d like to preserve both programs permanently. 

“We must work to make these programs permanent because entrepreneurs and innovators should be in the lab focusing on their work—not worrying about what is happening in Washington,” Markey said in a written statement.  

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