SBIR/STTR Reauthorization Act of 2026
S. 3971 — The Small Business Innovation and Economic Security Act
Legislative Timeline
From introduction to law in 42 days
Mar 3, 2026
Introduced in Senate
S. 3971 introduced by Sen. Ernst [R-IA], cosponsored by Sen. Markey [D-MA]
Mar 3, 2026
Passed Senate
Unanimous consent
Mar 17, 2026
Passed House
345-41 (Roll no. 89)
Apr 2, 2026
Enrolled
Presented to President
Apr 14, 2026
Became Law
Pocket approval — 10-day review period expired without signature or veto
Mar 3, 2026
Introduced in Senate
S. 3971 introduced by Sen. Ernst [R-IA], cosponsored by Sen. Markey [D-MA]
Mar 3, 2026
Passed Senate
Unanimous consent
Mar 17, 2026
Passed House
345-41 (Roll no. 89)
Apr 2, 2026
Enrolled
Presented to President
Apr 14, 2026
Became Law
Pocket approval — 10-day review period expired without signature or veto
Three Key Provisions
The most significant changes in the reauthorization
Strategic Breakthrough Allocation
Sec. 3- Up to $30M per Phase II award
- 0.50% of agency extramural R&D budget
- 100% matching funds required
- 48-month performance period
- For agencies with >$100M extramural budget
Security Risk Screening
Sec. 2- Applicants screened against 8 federal watchlists
- UFLPA Entity List, OFAC sanctions, Section 889
- Chinese Military-Industrial Complex List
- Entity List, Military End User List
- FCC Equipment List, Withhold Release Orders
- Denied applicants receive written reason
- Intelligence community coordination
Proposal Volume Limits
Sec. 4- Each agency sets max proposals per small business per FY
- Effective starting FY2027
- Waivers available for up to 5% of topics
- Written justification required for waivers
- Non-delegable authority
Before vs After
What changed with S. 3971
| Before | After | |
|---|---|---|
| No Strategic Breakthrough Allocation | Up to $30M Phase II awards (Sec. 3) | |
| Fast-Track pathway existed | Enhanced Fast-Track with statutory support | |
| No proposal volume limits | Agencies set max proposals per SB per FY (Sec. 4) | |
| Limited security screening | 8 federal watchlist screening (Sec. 2) | |
| Basic commercialization reporting | Mandatory reporting for all agencies | |
| Standard technical assistance | $6,500/Phase I, $50K/Phase II assistance |
What This Means
Impact for small businesses and federal agencies
For Small Businesses
- Strategic Breakthrough Allocation: Phase II awards up to $30M for high-impact tech
- Enhanced Fast-Track reduces Phase I→II gap
- More technical assistance: $6,500 (Phase I) and $50,000 (Phase II) per project
- 5+ years of program stability through FY2031
For Agencies
- Must screen applicants against 8 federal watchlists
- Must set proposal limits per small business per FY (starting FY2027)
- Mandatory commercialization outcome reporting
- New agencies auto-enrolled when R&D budget exceeds $100M
Award Amounts
S. 3971 does NOT set new Phase I/II dollar caps in statute. Current SBA guidelines remain Phase I up to $275,613 and Phase II up to $1,852,636. The major new funding mechanism is the Strategic Breakthrough Allocation (up to $30M Phase II). Figures like $300K/$2M cited in some press coverage are not in the enrolled bill text.
Frequently Asked Questions
Common questions about the reauthorization
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