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SBIR/STTR Reauthorization Act of 2026

What S. 3971 means for your business

Signed into law April 14, 2026

Legislative Timeline

Dec 2024

Introduced

S. 3971 introduced in Senate

Mar 3, 2026

Senate Passed

Unanimous consent

Mar 17, 2026

House Passed

Vote: 345-41

Apr 2, 2026

Enrolled

Presented to President

Apr 14, 2026

Signed into Law

Effective immediately

Before vs After

BeforeAfter
Phase I: $150-200KPhase I: up to $300K
Phase II: $1-1.5MPhase II: up to $2M
No Fast-TrackFormal Fast-Track
Weak commercialization reportingMandatory DSIP reporting
VC rules unclearAnti-shell provisions

What This Means

For Small Businesses

  • More funding per award = less need for multiple proposals
  • Fast-Track eliminates Phase I→II gap
  • Stricter eligibility = less fraud = more trust

For Agencies

  • Must track commercialization outcomes
  • Standardized reporting via DSIP
  • New agencies auto-enrolled when they hit $100M

Frequently Asked Questions

No, S. 3971 does not create new agencies. However, it includes provisions for automatic enrollment of federal agencies when their extramural R&D budget exceeds $100 million annually.
The increased award guidelines ($300K Phase I, $2M Phase II) take effect for solicitations issued after the bill's enactment date of April 14, 2026.
Fast-Track allows qualified applicants to submit Phase I and Phase II proposals simultaneously, eliminating the gap between phases and accelerating the funding timeline for promising technologies.
S. 3971 includes anti-shell provisions to prevent fraud, stricter oversight of venture capital affiliations, and enhanced due diligence requirements for applicant companies.
No, existing SBIR/STTR awards continue under their original terms. The new provisions apply to solicitations issued after April 14, 2026.
The reauthorization extends both SBIR and STTR programs through Fiscal Year 2031, providing 5 years of program stability.
DSIP (Defense SBIR Innovation Portal) becomes the mandatory reporting platform for commercialization outcomes and program data across all participating agencies, improving transparency and accountability.

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