SBIR/STTR Reauthorization Act of 2025
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The SBIR/STTR Reauthorization Act of 2025 permanently reauthorizes and significantly expands the Small Business Innovation Research and Small Business Technology Transfer programs. It phases in increased agency expenditure requirements from 3.65% (current) to 7% for SBIR by 2032, and from 0.45% to 1% for STTR. The bill adds new fellowship programs, expands technical assistance funding, and creates enhanced outreach requirements for minority-serving institutions.
Who Benefits and How
Small businesses receive expanded funding (increasing to 7% of agency R&D budgets), larger technical assistance allowances ($6,500 Phase I, $50,000 Phase II), and new fellowship/internship opportunities. Minority-serving institutions (HBCUs, HSIs, Tribal Colleges, etc.) gain enhanced outreach and participation requirements. States with historically low SBIR/STTR awards get targeted application assistance. Federal agencies with Innovation Corps programs must offer I-Corps training options.
Who Bears the Burden and How
Federal agencies with extramural R&D budgets over $100M must increase SBIR/STTR set-asides from 3.65% to 7% by 2032. The SBA must update databases to track minority-serving institution participation. Agencies must train contracting officers on Phase III acquisitions. Award recipients must report research institution subcontracting details.
Key Provisions
- Permanently reauthorizes SBIR/STTR programs (removes 2025 sunset)
- Phases in SBIR allocation increases: 4% (2026-27), 5% (2028-29), 6% (2030-31), 7% (2032+)
- Creates fellowship programs for SBIR/STTR Phase II recipients with enhanced outreach
- Increases technical assistance: $6,500 (Phase I), $50,000 (Phase II)
- Requires minority-serving institution outreach and participation tracking
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Reauthorizes and expands the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through 2032, increasing funding allocations, adding fellowship programs, expanding technical assistance, and enhancing participation by minority-serving institutions.
Key Policy Areas
Small Business, Research & Development, Federal Contracting, Higher Education
Primary Purpose
Reauthorizes and expands the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs through 2032, increasing funding allocations, adding fellowship programs, expanding technical assistance, and enhancing participation by minority-serving institutions.
Policy Domains
Title I - Authorization Extension
Identified Gains
Contextual inference, no direct clause citation- Small businesses in innovation research
- SBIR/STTR program administrators
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- None significant
Contextual inference, no direct clause citation
Title II - Program Improvements
Identified Gains
Contextual inference, no direct clause citation- Small businesses receiving SBIR/STTR awards
- Minority-serving institutions
- Students (fellowship recipients)
- Low-award states
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal agencies (increased set-asides)
- SBA (database updates)
Contextual inference, no direct clause citation
Title III - Commercialization and Contracting
Identified Gains
Contextual inference, no direct clause citation- Small businesses seeking Phase III contracts
- Contracting officers (training)
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Federal agency training programs
- Contracting officers
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
In CommitteeMr. Markey introduced the following bill; which was read twice …
Read twice and referred to the Committee on Small Business …
Introduced in Senate
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Congressional oversight committees, Federal agencies administering SBIR/STTR programs, Federal agencies denying Phase III awards
Federal agencies with SBIR/STTR programs faces effects in multiple directions
Positive-direction: Congressional oversight committees, Federal agencies administering SBIR/STTR programs, National Institutes of Health
Negative-direction: Federal agencies denying Phase III awards, Federal contracting officers, GAO, Government Accountability Office, SBA (database management), SBA (policy directive updates), SBA and participating agencies, SBA, DoD, GSA (training coordination)
SBIR/STTR awardees (data reporting), Small businesses applying to NIH SBIR/STTR, Small businesses receiving SBIR/STTR Phase I awards
Positive-direction: Small businesses applying to NIH SBIR/STTR, Small businesses receiving SBIR/STTR Phase I awards, Small businesses receiving SBIR/STTR Phase II awards, Small businesses seeking Phase III commercialization, Small businesses seeking Phase III contracts, Small businesses seeking SBIR/STTR funding, Small businesses transitioning to Phase III, Small businesses with proven technologies, Traditional small businesses competing for awards, Underrepresented groups in SBIR/STTR
Negative-direction: SBIR/STTR awardees (data reporting), VC-backed small businesses in SBIR/STTR
Minority-serving institutions (HBCUs, HSIs), Minority-serving institutions (tracking visibility), Students (undergraduate, graduate, postdoctoral)
Women and socially/economically disadvantaged individuals
States with historically low SBIR/STTR awards
Small Business Investment Companies (SBICs)
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_administrator"
- → Administrator of the Small Business Administration
- "the_administrator"
- → Administrator of the Small Business Administration
- "the_administrator"
- → Administrator of the Small Business Administration
- "the_secretary_of_defense"
- → Secretary of Defense
Key Definitions
Terms defined in this bill
Percentage of extramural R&D budget agencies must spend on SBIR, increasing from 3.65% to 7% by 2032
Percentage of extramural R&D budget agencies must spend on STTR, increasing from 0.45% to 1% by 2032
Acquisition of a good or service from a Phase III participant that such participant has commercialized or is seeking to commercialize
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology