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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
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
| Before | After |
|---|---|
| Phase I: $150-200K | Phase I: up to $300K |
| Phase II: $1-1.5M | Phase II: up to $2M |
| No Fast-Track | Formal Fast-Track |
| Weak commercialization reporting | Mandatory DSIP reporting |
| VC rules unclear | Anti-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.