Small Business Innovation and Economic Security Act

Sponsored bySen. Ernst, Joni [R-IA]IA· Introduced 3 March 2026

Open on Congress.gov

Cosponsors

Actions

Amendments

Committees

—

Since introduced

Introduced

Committee

Passed Chamber

Passed Both

Enacted

Step 4 of 0

Latest action

Became Public Law No: 119-83.

13 April 2026·3 months ago

Summary

Public Law · Updated 20 May 2026

Small Business Innovation and Economic Security Act

This act reauthorizes through FY2031 and modifies the Small Business Innovation Research (SBIR) program, the Small Business Technology Transfer (STTR) program, and related pilot programs. (The SBIR and STTR programs are administered by various federal agencies and provide competitive awards for domestic small businesses to conduct research and development projects that have the potential for commercialization.)

Specifically, the act expands the requirements for federal agencies administering these programs to evaluate the security risks of the small businesses that apply for awards under the programs. If an agency denies an application for security reasons, the agency must provide the small business with the basis for such determination.

Further, each agency must set a maximum number of proposals per fiscal year that a small business concern may submit in response to Phase I and Phase II solicitations.

The act expands the training requirements for agencies' contracting officers and acquisition workforce with respect to Phase III (commercialization of technologies) awards under the SBIR and STTR programs.

The act also establishes strategic breakthrough allocations for critical technology areas. These are additional Phase II SBIR and STTR awards to small businesses that demonstrate an effective technology and receive matching funds.

Timeline

20 actions

Committee on Small Business and Entrepreneurship. Hearings held.
17 June 2026 · Committee
Signed by President.
13 April 2026 · President
Signed by President.
13 April 2026 · BecameLaw
Became Public Law No: 119-83.
13 April 2026 · BecameLaw
Signed by President.
13 April 2026 · BecameLaw
Became Public Law No: 119-83.
13 April 2026 · President
Presented to President.
2 April 2026 · Floor
Presented to President.
2 April 2026 · President
Presented to President.
2 April 2026 · President
Considered as unfinished business. (consideration: CR H2545-2546)
17 March 2026 · Floor
Considered as unfinished business. (consideration: CR H2545-2546)
17 March 2026 · Floor
Passed/agreed to in House: On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 345 - 41 (Roll no. 89).
17 March 2026 · Floor
Motion to reconsider laid on the table Agreed to without objection.
17 March 2026 · Floor
On motion to suspend the rules and pass the bill Agreed to by the Yeas and Nays: (2/3 required): 345 - 41 (Roll no. 89).
17 March 2026 · Floor
DEBATE - The House proceeded with forty minutes of debate on S. 3971.
16 March 2026 · Floor
At the conclusion of debate, the Yeas and Nays were demanded and ordered. Pursuant to the provisions of clause 8, rule XX, the Chair announced that further proceedings on the motion would be postponed.
16 March 2026 · Floor
Ms. Van Duyne moved to suspend the rules and pass the bill.
16 March 2026 · Floor
Considered under suspension of the rules. (consideration: CR H2491-2497; text: CR H2491-2495)
16 March 2026 · Floor
Ms. Van Duyne moved to suspend the rules and pass the bill.
16 March 2026 · Floor
Held at the desk.
4 March 2026 · Floor

Sponsorship

1 cosponsors

Sponsor

Sen. Ernst, Joni [R-IA]IA

Cosponsors

Democrat1100%

Democrat:Sen. Markey, Edward J. [D-MA]MA

Classification

Policy area

Commerce

Legislative subjects

Advanced technology and technological innovationsAsiaChinaComputer security and identity theftComputers and information technologyData collection, sharing, protectionGovernment lending and loan guaranteesIntellectual propertyMilitary assistance, sales, and agreementsPerformance measurementPublic contracts and procurementResearch administration and funding

Market relevance

AI-inferred

Impact via Spending

Sectors

↑ Technology↑ Defense↑ Healthcare↑ Energy↑ Industrials

Tickers

↑ LMT ↑ RTX ↑ NOC ↑ GD ↑ BA

The bill extends the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs until 2031, ensuring continued government funding for small business R&D across various sectors. It introduces a new 'strategic breakthrough allocation' for significant awards (up to $30M) to small businesses developing critical technologies, particularly for national security, with a focus on matching private capital and facilitating transition into Department of Defense acquisition programs. Enhanced security vetting for awardees, especially concerning foreign ties, will impact eligibility for some small businesses. Improvements to Phase III awards, including training for the acquisition workforce and simplified procedures, aim to streamline the transition of successful R&D into government procurement. Increased technical and business assistance further supports small business commercialization. Major defense contractors (LMT, RTX, NOC, GD, BA) are expected to benefit from a more robust pipeline of innovative small businesses developing technologies that can be integrated into their programs, especially with the bill's explicit focus on DoD acquisition pathways.

Track Small Business Innovation and Economic Security Act as it moves through Congress