[Congressional Record Volume 172, Number 47 (Monday, March 16, 2026)]
[House]
[Pages H2491-H2497]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SMALL BUSINESS INNOVATION AND ECONOMIC SECURITY ACT
Ms. VAN DUYNE. Mr. Speaker, I move to suspend the rules and pass the
bill (S. 3971) to extend the SBIR and STTR programs, and for other
purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 3971
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Innovation
and Economic Security Act''.
SEC. 2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(1) in subsection (g)--
(A) by redesignating paragraphs (15), (16), and (17) as
paragraphs (16), (18), and (19), respectively;
(B) by inserting after paragraph (14) the following:
``(15) evaluate whether a small business concern presents a
security risk for any reason, through measures including--
``(A) the due diligence process required under subsection
(vv);
``(B) disclosures submitted under this subsection; or
``(C) coordination with the intelligence community, as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003), Federal law enforcement, and other
counterintelligence capabilities of the Federal
Government;'';
(C) in paragraph (16), as so redesignated--
(i) by striking subparagraph (B);
(ii) by striking ``that--'' and all that follows through
``the small business concern submitting'' and inserting
``that the small business concern submitting'';
(iii) by redesignating clauses (i), (ii), and (iii) as
subparagraphs (A), (B), and (C), respectively, and adjusting
the margins accordingly;
(iv) in subparagraph (B), as so redesignated, by striking
``or'' at the end;
(v) in subparagraph (C), as so redesignated, by striking
``and'' at the end; and
(vi) by adding at the end the following:
``(D) has a security risk connecting the small business
concern to an entity, including any affiliates of the entity,
or individual on--
``(i) the UFLPA Entity List maintained by the Department of
Homeland Security;
[[Page H2492]]
``(ii) the Non-SDN Chinese Military-Industrial Complex
Companies List of the Office of Foreign Assets Control
maintained by the Department of the Treasury;
``(iii) the Section 889 Prohibition List established under
section 889 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232;
132 Stat. 1917) and maintained by the Department of Defense;
``(iv) the list of Chinese Military companies required
under section 1260H of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (10
U.S.C. 113 note) and maintained by the Department of Defense;
``(v) the Military End User List maintained by the Bureau
of Industry and Security of the Department of Commerce;
``(vi) the Entity List maintained by the Bureau of Industry
and Security of the Department of Commerce;
``(vii) the List of Equipment and Services maintained by
the Federal Communications Commission; or
``(viii) the Withhold Release Orders and Findings List
maintained by U.S. Customs and Border Protection;
``(E) has a security risk with a primary source that is
classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (16), as so redesignated,
the following:
``(17) provide for--
``(A) a process under which, upon making an award decision
to deny an application on the basis of a determination under
paragraph (16), or upon making a determination under
paragraph (16) that a small business concern has a security
risk described in that paragraph, the Federal agency provides
to the small business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that does
not compromise national security, a notification--
``(i) advising the small business concern of such
determination; and
``(ii) identifying the basis for such determination; and
``(B) a policy that clarifies that receipt of an award
decision denying an application does not prohibit the small
business concern from being eligible for an award in a
subsequent award cycle;'';
(E) in paragraph (19), as so redesignated--
(i) in subparagraph (B), by striking ``paragraph (16)(A)''
and inserting ``paragraph (18)(A)''; and
(ii) in subparagraph (C), by striking ``paragraph (16)(B)''
and inserting ``paragraph (18)(B)'';
(2) in subsection (o)--
(A) by redesignating paragraphs (19), (20), and (21) as
paragraphs (20), (22), and (23), respectively;
(B) by inserting after paragraph (18) the following:
``(19) evaluate whether a small business concern presents a
security risk for any reason, through measures including--
``(A) the due diligence process required under subsection
(vv);
``(B) disclosures submitted under this subsection; or
``(C) coordination with the intelligence community, as
defined in section 3 of the National Security Act of 1947 (50
U.S.C. 3003), Federal law enforcement, and other
counterintelligence capabilities of the Federal
Government;'';
(C) in paragraph (20), as so redesignated--
(i) by striking subparagraph (B);
(ii) by striking ``that--'' and all that follows through
``the small business concern submitting'' and inserting
``that the small business concern submitting'';
(iii) by redesignating clauses (i), (ii), and (iii) as
subparagraphs (A), (B), and (C), respectively, and adjusting
the margins accordingly;
(iv) in subparagraph (B), as so redesignated, by striking
``or'' at the end;
(v) in subparagraph (C), as so redesignated, by striking
``and'' at the end; and
(vi) by adding at the end the following:
``(D) has a foreign risk connecting the small business
concern to an entity, including any affiliates of the entity,
or individual on--
``(i) the UFLPA Entity List maintained by the Department of
Homeland Security;
``(ii) the Non-SDN Chinese Military-Industrial Complex
Companies List of the Office of Foreign Assets Control
maintained by the Department of the Treasury;
``(iii) the Section 889 Prohibition List established under
section 889 of the John S. McCain National Defense
Authorization Act for Fiscal Year 2019 (Public Law 115-232;
132 Stat. 1917) and maintained by the Department of Defense;
``(iv) the list of Chinese Military companies required
under section 1260H of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021 (10
U.S.C. 113 note) and maintained by the Department of Defense;
``(v) the Military End User List maintained by the Bureau
of Industry and Security of the Department of Commerce;
``(vi) the Entity List maintained by the Bureau of Industry
and Security of the Department of Commerce;
``(vii) the List of Equipment and Services maintained by
the Federal Communications Commission; or
``(viii) the Withhold Release Orders and Findings List
maintained by U.S. Customs and Border Protection;
``(E) has a security risk with a primary source that is
classified; or
``(F) has a security risk that the Federal agency
determines warrants a denial;'';
(D) by inserting after paragraph (20) the following:
``(21) provide for--
``(A) a process under which, upon making an award decision
to deny an application on the basis of a determination under
paragraph (20), or upon making a determination under
paragraph (20) that a small business concern has a security
risk described in that paragraph, the Federal agency provides
to the small business concern, as appropriate pursuant to the
discretion of the Federal agency and in a manner that does
not compromise security, a notification--
``(i) advising the small business concern of such
determination; and
``(ii) identifying the basis for such determination; and
``(B) a policy that clarifies that receipt of an award
decision denying an application does not prohibit the small
business concern from being eligible for an award in a
subsequent award cycle;''; and
(E) in paragraph (23), as so redesignated--
(i) in subparagraph (B), by striking ``paragraph (20)(A)''
and inserting ``paragraph (22)(A)''; and
(ii) in subparagraph (C), by striking ``paragraph (20)(B)''
and inserting ``paragraph (22)(B)''; and
(3) in subsection (vv)(2)--
(A) by amending subparagraph (A) to read as follows:
``(A) assess, using a risk-based approach as appropriate--
``(i) the cybersecurity practices of a small business
concern;
``(ii) patent analysis;
``(iii) employee analysis;
``(iv) foreign ownership of a small business concern
seeking an award, including the financial ties and
obligations (which shall include surety, equity, and debt
obligations) of the small business concern and employees of
the small business concern to a foreign country, foreign
person, or foreign entity;
``(v) foreign affiliations of a covered individual, owner,
or other key personnel of a small business concern with an
entity in a foreign country of concern;
``(vi) investment relationships of a small business concern
with an individual or entity in a foreign country of concern;
``(vii) technology licensing agreements or joint ventures
(including joint venture-like agreements) with an individual
or entity in a foreign country of concern; and
``(viii) business relationships between a covered
individual, owner, or other key personnel of a small business
concern and an individual or entity in a foreign country of
concern;'';
(B) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(C) examine any relationship of a small business concern
seeking an award to any entity or individual included on the
lists described in subsections (g)(16)(D) and (o)(20)(D).''.
(b) GAO Study.--Section 4(b)(4) of the SBIR and STTR
Extension Act of 2022 (Public Law 117-183; 136 Stat. 2183) is
amended by striking ``3 years'' and inserting ``8 years''.
SEC. 3. PHASE II STRATEGIC BREAKTHROUGH FUNDING.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638) is amended--
(1) in subsection (aa), by adding at the end the following:
``(6) Strategic breakthrough allocation.--The requirement
under paragraph (1) and the requirement to receive a waiver
from the Administrator under paragraph (4) do not apply to a
Federal agency for awards of not more than $30,000,000 to a
small business concern with funds made available under a
strategic breakthrough allocation (as defined in subsection
(ff)(3)(A)).''; and
(2) in subsection (ff), by adding at the end the following:
``(3) Strategic breakthrough awards.--
``(A) Strategic breakthrough allocation defined.--In this
paragraph, the term `strategic breakthrough allocation'
means, with respect to a Federal agency with a required
expenditure under subsection (f)(1) in excess of
$100,000,000, an expenditure amount from the SBIR allocation
under subsection (f)(1) of such agency of not more than 0.50
percent of the extramural budget for research or research and
development designated for such agency for fiscal year 2026
and every fiscal year thereafter.
``(B) Award.--Under this paragraph, a funding agreement may
be awarded to a small business concern by a Federal agency
using funds made available under a strategic breakthrough
allocation.
``(C) Fund parameters.--In the case of a Phase II agreement
that is awarded to a small business concern by a Federal
agency using funds made available under a strategic
breakthrough allocation, the following requirements shall
apply:
``(i) Award size and period of performance.--A Federal
agency may award from a strategic breakthrough allocation not
more than $30,000,000 to a small business concern, including
its affiliates, in a single award or series of awards based
on reaching production or development milestones, if the
total period of performance of the project with respect to
which such funds are awarded is not more than 48 months.
``(ii) Small business concern requirements.--The small
business concern shall--
[[Page H2493]]
``(I) have been awarded not less than 1 prior Phase II
award under the SBIR or STTR program;
``(II) demonstrate not less than 100 percent matching funds
from--
``(aa) new private capital as a result of an award using
funds made available under a strategic breakthrough
allocation;
``(bb) new funding awarded by a government agency under a
program other than Phase I or II of the SBIR or STTR program
as a result of an award using funds made available under a
strategic breakthrough allocation; or
``(cc) a combination of funds described in items (aa) and
(bb);
``(III) demonstrate a technology that is an effective
solution, as determined by market research; and
``(IV) only be eligible for an award from the strategic
breakthrough allocation at the Department of Defense if the
small business concern--
``(aa) provides a product, process, or technology that
meets a necessary level of readiness and has a commitment for
inclusion in a program objective memorandum from an official
with the rank of program acquisition executive or higher in
an acquisition organization of the Department of Defense;
``(bb) provides a product, process, or technology that will
meet high priority requirements or operational needs of a
military department through a successful transition and into
the acquisition process; and
``(cc) demonstrates not less than 20 percent of the
required matching funds under subclause (II) come from new
funding awarded by the Department of Defense under a program
other than Phase I or II of the SBIR or STTR program as a
result of an award using funds made available under a
strategic breakthrough allocation.
``(iii) Deadline.--The Federal agency shall complete any
contract awards using strategic breakthrough allocation funds
not later than 90 days after receiving a proposal from a
small business concern for the award.
``(iv) Eligible activities.--Eligible activities by a small
business concern using strategic breakthrough allocation
funds are any critical technology areas or requirements
deemed necessary by the Federal agency.
``(v) Selection criteria.--In making awards using funds
made available under a strategic breakthrough allocation, the
Federal agency shall consider--
``(I) the potential of the small business concern to
advance the national security capabilities of the United
States;
``(II) the potential of the small business concern to
provide new technologies or processes, or new applications of
existing technologies, that will enable new alternatives to
existing programs;
``(III) whether a customer in a Federal agency has
expressed an intent to purchase and integrate technology from
the small business concern into its operations; or
``(IV) whether a particular technology area is
undercapitalized by private investment.
``(D) Use of streamlined contracting mechanisms.--Each
Federal agency shall implement streamlined processes and
requirements for submitting proposals and applying for awards
using funds made available under a strategic breakthrough
allocation.''.
(b) Commercialization Readiness Program.--Section 9(y) of
the Small Business Act (15 U.S.C. 638(y)) is amended--
(1) in paragraph (2)--
(A) by striking ``shall identify'' and inserting ``shall--
``(A) identify'';
(B) in subparagraph (A), as so designated--
(i) by inserting ``, including small business concerns with
an award from the strategic breakthrough allocation (as
defined in subsection (ff)(3)(A),'' before ``that have the
potential''; and
(ii) by striking the period at the end and inserting a
semicolon; and
(C) by adding at the end the following:
``(B) ensure, in collaboration with SBIR program managers
of each component, that research programs identified under
subparagraph (A) are analyzed within the programming and
budgeting process as budget requests are developed; and
``(C) provide to the Committee on Small Business and
Entrepreneurship of the Senate and the Committees on Small
Business and Science, Space, and Technology of the House of
Representatives information on the integration of SBIR and
STTR awardees in budget rollouts for research, development,
testing, and evaluation activities.'';
(2) by striking paragraph (3);
(3) by redesignating paragraphs (4), (5), and (6) as
paragraphs (3), (4), and (5), respectively; and
(4) in paragraph (5), as so redesignated--
(A) in subparagraph (B), by striking ``and'' at the end;
(B) by redesignating subparagraph (C) as subparagraph (D);
and
(C) by inserting after subparagraph (B) the following:
``(C) establish a mechanism to provide small business
concerns with direct access to program and requirements
offices that may purchase technology from the small business
concern under Phase III of the SBIR program; and''.
(c) Briefings.--
(1) Definition.--In this subsection, the term ``appropriate
committees of Congress'' means--
(A) the Committee on Small Business and Entrepreneurship of
the Senate;
(B) the Committee on Small Business of the House of
Representatives; and
(C) the Committee on Science, Space, and Technology of the
House of Representatives.
(2) General requirement.--Not later than 60 days after the
date of enactment of this Act, the head of each Federal
agency that is eligible to make an award from funds made
available under a strategic breakthrough allocation (as
defined in paragraph (3) of subsection (ff) of section 9 of
the Small Business Act (15 U.S.C. 638), as added by this
section) shall brief the appropriate committees of Congress
on whether that Federal agency plans to make awards pursuant
to the authority provided under such paragraph (3), including
the reasons why the Federal agency plans to, or does not plan
to, use that authority.
(3) Recurring briefing by federal agencies using funding
authority.--The head of each Federal agency that opts to make
awards pursuant to the authority under paragraph (3) of
subsection (ff) of section 9 of the Small Business Act (15
U.S.C. 638), as added by this section, shall, on a recurring
basis until the Federal agency finalizes procedures for
making those awards, brief the appropriate committees of
Congress regarding the implementation of such paragraph (3)
by that Federal agency.
(d) Termination.--Effective on September 30, 2031--
(1) this section and the amendments made by this section
shall cease to have effect; and
(2) the provisions of law amended by this section shall be
restored as if such amendments had not been enacted.
SEC. 4. REDUCING ADMINISTRATIVE BURDEN.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended by adding at the end the following:
``(aaa) Reducing Administrative Burden.--
``(1) In general.--With respect to fiscal year 2027 and
each fiscal year thereafter, the Director of the SBIR or STTR
program office of each Federal agency shall, pursuant to
authority that may not be delegated, set equally for all
small business concerns a limit on the maximum number of
proposals that a small business concern may submit in
response to Phase I solicitations and Phase II solicitations
under subsection (cc), published by that Federal agency,
including all components of that Federal agency, in a single
fiscal year. In establishing such a limitation, the Director
of the SBIR or STTR program office of each Federal agency
shall use 1 of the following methods:
``(A) A limit for any small business concern on a fiscal
year basis.
``(B) A limit for any small business concern on a
solicitation basis.
``(C) A limit for any small business concern on a topic
basis.
``(2) Waiver.--
``(A) In general.--On a topic by topic basis, the Director
of the SBIR or STTR program office of each Federal agency may
grant a waiver of the proposal limit under paragraph (1) at
the time of a solicitation announcement for a specific topic
for the SBIR or STTR program of the Federal agency if the
topic is time-sensitive and urgent to the mission of the
Federal agency.
``(B) Written justification.--For each topic for which a
waiver is sought under subparagraph (A), the Director of the
SBIR or STTR program office of the Federal agency shall
provide a written justification to the Administrator, and to
the Undersecretary described in subparagraph (C), for why the
use of the waiver authority is imperative for the agency's
mission and the nature of the immediate and critical need
that the Director reasonably believes cannot be met by small
business concerns that have not reached the proposal limit
under paragraph (1).
``(C) Timing.--The Undersecretary overseeing the SBIR or
STTR program at a Federal agency and the Administrator are
required to approve or disapprove a waiver and written
justification not later than 15 days after the date on which
the Undersecretary receives from the Director the waiver
request described in subparagraph (A) and the written
justification described in subparagraph (B).
``(D) Nondelegation.--The authority to grant or approve a
waiver under subparagraph (A) or (C), respectively, may not
be delegated.
``(E) Waiver effects.--If the Federal agency grants a
waiver under subparagraph (A) with respect to a topic for the
SBIR or STTR program of a Federal agency, paragraph (1) shall
not prohibit any small business concern from submitting an
SBIR or STTR proposal to that Federal agency under such
topic.
``(F) Record requirement.--Participating agencies shall
maintain information on topics to which waivers of the
proposal limit under this paragraph are granted, including
the written justifications for those waivers.
``(G) Limitation.--A Federal agency may not grant a waiver
under this paragraph with respect to more than 5 percent of
the topics of the SBIR and STTR programs of the Federal
agency in any fiscal year.
``(3) Reporting.--
``(A) In general.--Not later than 30 days after the date on
which the Director of the SBIR or STTR program office of a
Federal agency sets or changes a limit under paragraph (1),
the head of that Federal agency shall provide to the
Committee on Small Business and Entrepreneurship of the
Senate and the Committee on Small Business and the Committee
on Science, Space, and Technology of the House of
Representatives the methodology for setting or changing that
[[Page H2494]]
limit, the considerations made in setting or changing that
limit, and how many small business concerns are impacted by
that limit based on historical data.
``(B) Written notification.--Not later than 30 days after
the date on which the Director of the SBIR or STTR program
office of a Federal agency grants a waiver under paragraph
(2), the Director shall provide to the Committee on Small
Business and Entrepreneurship of the Senate and the Committee
on Small Business and the Committee on Science, Space, and
Technology of the House of Representatives a written
notification regarding the granting of that waiver, which
shall include the information described in paragraph (2)(F)
with respect to that waiver.
``(4) Timing.--The Director shall establish the proposal
limit under paragraph (1) not later than 90 days before the
start of fiscal year 2027 and each fiscal year thereafter.''.
SEC. 5. PHASE III AWARD EDUCATION.
Section 9 of the Small Business Act (15 U.S.C. 638) is
amended--
(1) in subsection (e)--
(A) in paragraph (18), by striking ``and'' at the end;
(B) in paragraph (19), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(20) the term `agency acquisition workforce' means the
employees of a Federal agency that have procurement or
acquisition responsibilities, including--
``(A) employees described in section 1703 of title 41,
United States Code; and
``(B) individuals that are part of the acquisition
workforce, as defined in section 101(a) of title 10, United
States Code.'';
(2) in subsection (r), by adding at the end the following:
``(5) Workforce training.--
``(A) In general.--The Administrator, in coordination with
the Secretary of Defense, the Administrator of General
Services, and the head of any other Federal agency that the
Administrator determines appropriate, shall establish
training activities for contracting officers and the agency
acquisition workforce of Federal agencies to ensure that all
such individuals are fully aware of all aspects of Phase III
awards under the SBIR and STTR programs, as applicable.
``(B) Training topics.--The training activities required
under subparagraph (A) shall include training on--
``(i) the missions, goals, and authorities of the SBIR and
STTR programs;
``(ii) the use of Phase III agreements;
``(iii) Phase III data rights; and
``(iv) the execution of Phase III sole source award
contracts.
``(C) Funding.--The training activities required under
subparagraph (A) may be carried out using funds made
available to carry out subsections (y) and (mm).''; and
(3) in subsection (mm)(1)--
(A) in subparagraph (J), by striking ``and'' at the end;
(B) in subparagraph (K), by striking the period at the end
and inserting ``; and''; and
(C) by adding at the end the following:
``(L) contracting officer and acquisition workforce
training activities pursuant to subsection (r)(5).''.
SEC. 6. PHASE III IMPROVEMENTS.
(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act
(15 U.S.C. 638(j)(4)) is amended by inserting before the
period at the end the following: ``, and advocate for the
maximum practicable use and transition of products, services,
and technologies developed under SBIR or STTR programs to
Phase III by means of Phase III awards to small business
concerns''.
(2) Modification deadline.--Not later than 1 year after the
date of enactment of this Act, the Administrator of the Small
Business Administration shall modify the policy directives
issued pursuant to subsection (j) of section 9 of the Small
Business Act (15 U.S.C. 638(j)) in accordance with paragraph
(4) of that subsection, as amended by paragraph (1).
(b) Phase III Award Simplification.--Section 9(r)(4) of the
Small Business Act (15 U.S.C. 638(r)(4)) is amended--
(1) in subparagraph (A), by striking ``and'' at the end;
(2) in subparagraph (B), by striking the period at the end
and inserting a semicolon; and
(3) by adding at the end the following:
``(C) develop simplified and standardized procedures and
model contracts for Phase I, Phase II, and Phase III SBIR
awards and report to the Administrator on actions taken by
the Federal agency in support of these objectives; and
``(D) as applicable, issue standardized solicitation
provisions and contract clauses that provide clear guidance
on the information that small business concerns participating
in SBIR or STTR programs can be expected to provide as part
of market research or as part of a proposal by those small
business concerns to establish eligibility for Phase III
awards.''.
SEC. 7. TECHNICAL AND BUSINESS ASSISTANCE IMPROVEMENTS.
Section 9 of the Small Business Act (15 U.S.C. 638(q)), as
amended by this Act, is amended--
(1) in subsection (q)--
(A) in paragraph (1)--
(i) in the matter preceding subparagraph (A)--
(I) by striking ``may enter into an agreement with 1 or
more vendors selected under paragraph (2)(A) to provide small
business concerns engaged in SBIR or STTR projects with
technical and business assistance services'' and inserting
``shall authorize recipients of awards under the SBIR program
or the STTR program to select, if desired, technical and
business assistance provided under subparagraph (A) or (B) of
paragraph (2) with respect to SBIR or STTR projects'';
(II) by inserting ``cybersecurity assistance,'' after
``intellectual property protections,''; and
(III) by striking ``such concerns'' and inserting ``such
recipients'';
(ii) in subparagraph (C), by striking ``and'' at the end;
(iii) in subparagraph (D), by striking the period at the
end and inserting ``; and''; and
(iv) by adding at the end the following:
``(E) screening for potential foreign involvement in
technology development or commercialization activities.'';
and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking ``Vendor
selection'' and inserting ``Eligible uses of funds.--'';
(ii) by striking subparagraph (A);
(iii) by redesignating subparagraph (B) as subparagraph
(A); and
(iv) by inserting after subparagraph (A), as so
redesignated, the following:
``(B) Staff.--A small business concern may, by contract or
otherwise, use funding provided under this section to hire
new staff, augment staff, or direct staff to conduct or
participate in training activities consistent with the goals
listed in paragraph (1).'';
(C) in paragraph (3)--
(i) by striking subparagraphs (A) and (B) and inserting the
following:
``(A) Phase i.--A Federal agency described in paragraph (1)
shall authorize a recipient of a Phase I SBIR or STTR award
to use not more than $6,500 per project, included as part of
the award of the recipient or in addition to the amount of
the award of the recipient as determined appropriate by the
head of the Federal agency, for the services described in
paragraph (1)--
``(i) provided through a vendor selected by the small
business concern under paragraph (2)(A); or
``(ii) achieved through the activities described in
paragraph (2)(B).
``(B) Phase ii.--A Federal agency described in paragraph
(1) shall authorize a recipient of a Phase II SBIR or STTR
award to utilize not more than $50,000 per project, included
as part of the award of the recipient or in addition to the
amount of the award of the recipient as determined
appropriate by the head of the Federal agency, for the
services described in paragraph (1)--
``(i) provided through a vendor selected by the small
business concern under paragraph (2)(A); or
``(ii) achieved through the activities described in
paragraph (2)(B).''; and
(D) by adding at the end the following:
``(5) Targeted review.--A Federal agency may perform
targeted reviews of technical and business assistance funding
as described in subsection (mm)(1)(F).''; and
(2) by adding at the end the following:
``(bbb) I-corps Participation.--
``(1) In general.--Each Federal agency with an Innovation
Corps program (commonly known as `I-Corps') that is required
to conduct an SBIR or STTR program shall--
``(A) provide an option for requesting participation in an
I-Corps teams course, I-Corps bootcamp, or another equivalent
training program to recipients of an award under the SBIR or
STTR program; and
``(B) authorize the recipients described in subparagraph
(A) to use amounts authorized under subsection (q) to
participate in the I-Corps teams course, I-Corps bootcamp, or
another equivalent training program.
``(2) Cost of participation.--The cost of participation by
a recipient described in paragraph (1)(A) in an I-Corps
course, I-Corps bootcamp, or another equivalent training
program may be provided by--
``(A) an I-Corps team SBIR or STTR grant;
``(B) funds awarded to the recipient under subsection (q);
``(C) funds made available to carry out subsection (mm);
``(D) the participating teams or other sources as
appropriate; or
``(E) any combination of sources described in subparagraphs
(A), (B), (C), and (D).''.
SEC. 8. IMPROVING SBIR AND STTR DATA COLLECTION.
(a) Additional Data Fields in SBIR Database.--Section
9(k)(1) of the Small Business Act (15 U.S.C. 638(k)(1)) is
amended--
(1) in subparagraph (E)(iv), by striking ``and'' at the
end;
(2) in subparagraph (F)(v), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(G) for each award granted, whether the award is
classified or designated as--
``(i) direct to Phase II, under subsection (cc);
``(ii) subsequent Phase II, under subsection (bb)(1);
``(iii) a strategic breakthrough award under subsection
(ff)(3);
``(iv) a Phase III prime contract award; or
``(v) a Phase III subcontract award.''.
(b) Improving Federal Procurement Data Systems Data
Tracking.--
(1) Definitions.--In this section:
(A) Federal agency; phase ii; phase iii; sbir; sttr.--The
terms ``Federal agency'', ``Phase II'', ``Phase III'',
``SBIR'', and ``STTR'' have the meanings given those terms in
section 9(e) of the Small Business Act (15 U.S.C. 638(e)).
[[Page H2495]]
(B) Small business concern.--The term ``small business
concern'' has the meaning given the term in section 3 of the
Small Business Act (15 U.S.C. 632).
(2) Requirement to update.--The Administrator of General
Services shall update the Federal Procurement Data System
described in section 1122(a)(4) of title 41, United States
Code, or any successor system, to--
(A) require reporting on whether an award under the SBIR or
STTR program under section 9 of the Small Business Act (15
U.S.C. 638) is classified or designated as--
(i) direct to Phase II, under subsection (cc) of such
section;
(ii) subsequent Phase II, under subsection (bb)(1) of such
section;
(iii) a strategic breakthrough award under subsection
(ff)(3) of such section, as added by this Act;
(iv) a Phase III prime contract award; or
(v) a Phase III subcontract award;
(B) require reporting on whether a contract is designated
as a Phase III contract;
(C) require reporting on whether non-SBIR contracts and
subcontracts are using SBIR- or STTR-funded technology; and
(D) require a government contracting officer, when
recording a Phase II or Phase III contract following on from
work done by a small business concern during a Phase I or
Phase II award, to reference an SBIR or STTR contract
identification number for relevant prior SBIR or STTR work
done.
SEC. 9. EXTENDING SBIR AND STTR AUTHORIZATION.
(a) In General.--Section 9 of the Small Business Act (15
U.S.C. 638), as amended by this Act, is amended--
(1) in subsection (m), by striking ``September 30, 2025''
and inserting ``September 30, 2031''; and
(2) in subsection (n)(1)(A), by striking ``2025'' and
inserting ``2031''.
(b) Carry Over Funds.--If a Federal agency that
participates in the SBIR or STTR program has funds remaining
at the end of fiscal year 2026 from amounts required to be
expended under subsection (f)(1) or (n)(1), respectively, of
section 9 of the Small Business Act (15 U.S.C. 638), the
Federal agency may use those remaining funds in fiscal year
2027 for the SBIR or STTR program, as applicable, of the
Federal agency.
SEC. 10. EXTENSION OF SBIR AND STTR PROGRAMS AND ACTIVITIES.
(a) Phase Flexibility.--Section 9(cc) of the Small Business
Act (15 U.S.C. 638(cc)) is amended--
(1) by striking ``During fiscal years 2012 through 2025''
and inserting ``Until September 30, 2031'';
(2) by striking ``, and the Department of Education'' and
inserting ``the Department of Energy, the National
Aeronautics and Space Administration, and the Department of
Education''; and
(3) by inserting ``or STTR program'' after ``SBIR program''
each place that term appears.
(b) Commercialization Readiness Program for Civilian
Agencies Pilot Program.--Section 9(gg)(7) of the Small
Business Act (15 U.S.C. 638(gg)(7)) is amended by striking
``2025'' and inserting ``2031''.
(c) Accelerated Awards.--Section 9(hh)(2)(C) of the Small
Business Act (15 U.S.C. 638(hh)(2)(C)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(d) Phase 0 Pilot Program.--Section 9(jj)(7) of the Small
Business Act (15 U.S.C. 638(jj)(7)) is amended by striking
``2025'' and inserting ``2031''.
(e) Administrative Assistance.--Section 9(mm)(1) of the
Small Business Act (15 U.S.C. 638(mm)(1)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(f) Increased Minimum Performance Standards.--Section
9(qq)(3)(I) of the Small Business Act (15 U.S.C.
638(qq)(3)(I)) is amended by striking ``September 30, 2025''
and inserting ``September 30, 2031''.
(g) Commercialization Assistance Pilot Programs.--Section
9(uu)(3) of the Small Business Act (15 U.S.C. 638(uu)(3)) is
amended by striking ``September 30, 2025'' and inserting
``September 30, 2031''.
(h) Due Diligence Program.--Section 9(vv)(3)(C) of the
Small Business Act (15 U.S.C. 638(vv)(3)(C)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(i) STTR Participation of Military Research and Educational
Institutions Pilot Program.--Section 9(yy)(2) of the Small
Business Act (15 U.S.C. 638(yy)(2)) is amended by striking
``September 30, 2025'' and inserting ``September 30, 2031''.
(j) Budget Calculation Pilot Program.--Section 9(zz)(3) of
the Small Business Act (15 U.S.C. 638(zz)(3)) is amended by
striking ``September 30, 2025'' and inserting ``September 30,
2031''.
(k) Special Operations Command Pilot.--Section 851(e) of
the National Defense Authorization Act for Fiscal Year 2020
(10 U.S.C. 4901 note) is amended by striking ``September 30,
2025'' and inserting ``September 30, 2031''.
(l) Government Accountability Office Mandate Sunset.-- The
National Defense Authorization Act for Fiscal Year 2012
(Public Law 112-81) is amended by striking section 5142 (15
U.S.C. 638a).
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Texas (Ms. Van Duyne) and the gentlewoman from New York (Ms. Velazquez)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Texas.
General Leave
Ms. VAN DUYNE. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Texas?
There was no objection.
Ms. VAN DUYNE. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of S. 3971, the Small Business
Innovation and Economic Security Act, which reauthorizes the Small
Business Innovation Research and Small Business Technology Transfer
programs through September 30, 2031.
The SBIR and the STTR programs are critical to American innovation
and help ensure the United States remains a step ahead of foreign
adversaries.
This reauthorization package is the culmination of countless hours of
bicameral and bipartisan negotiations over several months.
I thank my colleagues in the House--Chairman Williams and Ranking
Member Velazquez with the Committee on Small Business and Chairman
Babin and Ranking Member Lofgren with the Committee on Science, Space &
Technology--for their work to get these programs reauthorized.
I thank Chairman Ernst and Ranking Member Markey for advancing this
bill through the Senate.
Today is the day we get these programs back online for small
businesses across the country. The SBIR and the STTR programs have
helped small businesses turn big ideas into real solutions by providing
early-stage funding for more than 40 years. These investments have
produced groundbreaking technologies that strengthen America's economy
and our national defense.
Unfortunately, both these programs were shut down for the first time
for the last 5 months due to the Senate's inability to pass a short-
term clean reauthorization while negotiations continued.
This lapse created uncertainty for small businesses, delayed critical
innovation, and risked allowing critical technology to fall into the
hands of foreign adversaries.
This reauthorization package contains several bipartisan reforms that
restore stability and strengthen the programs by safeguarding American
technology, reducing administrative burdens, and accelerating the
development of emerging technologies.
This bill also aims to bridge the valley of death between research
and commercialization by providing training for acquisition officials,
improving data collection across participating agencies, and
modernizing technical and business assistance for small businesses.
The chairman and ranking member have shown their commitment to
ensuring these programs remain strong, operate efficiently, and support
small business innovators, while advancing research and development.
From lifesaving medical advancements to next-generation defense
capabilities, the SBIR and the STTR programs empower Main Street to
deliver real solutions for both the government and the private sector.
I thank my colleagues on both sides of the aisle and their staff for
working to find a bipartisan path forward to reauthorizing these
critical programs. I look forward to seeing this bill enacted and the
new innovative ideas that follow. I urge my colleagues to support this
unanimous commonsense solution.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I rise today in support of S. 3971, the Small Business
Innovation and Economic Security Act.
Mr. Speaker, the Small Business Innovation Research and Small
Business Technology Transfer, SBIR and STTR, programs saw their
reauthorizations lapse last October. As a result, nearly $6 billion in
funding for small, innovative companies was frozen.
These programs are overwhelmingly successful, boasting a demonstrated
return across over 40 years of operation,
[[Page H2496]]
resulting in groundbreaking technologies that have revolutionized
medicine, telecommunications, and military capabilities. Unfortunately,
negotiations started too late and disagreements were too great to reach
a deal before the deadline.
I am proud to say that, after months of uncertainty, we are finally
turning the lights back on. The product before us today is the result
of that monthslong deliberation while the program was lapsed. Thanks to
the hard work of everyone involved, this legislation is something we
can all be proud of.
Ideas from our majority like strategic breakthrough funding will help
attract both private capital and government buy-in to rapidly scale
promising technologies.
At the same time, ideas from myself and Senator Markey serve to
strengthen our program's Phase III by investing in contract officer
training and ensuring the PCRs advocate for small firms with successful
products in the government. Together, these provisions mark a cohesive
effort at bridging the valley of death for small, innovative companies.
Longstanding bipartisan priorities such as strengthening the
program's data collection system, as well as making improvements to
technical and business assistance and the Innovative Corps program,
have finally made it across the finish line.
In addition, my colleagues on the Science, Space, and Technology
Committee made real improvements to the foreign due diligence program,
protecting small firms from espionage by our adversaries.
Over and above all, after a period of tremendous uncertainty, a
reauthorization period of longer than 5 years will give small
businesses and agencies the certainty they need for long-term planning.
The lapse in authorization over the past 5 months has been
excruciating and unprecedented for small firms and labs who are at the
cutting edge of technology. It has also been painful for families who
are waiting for a cure for diseases that afflict their loved ones, only
to see the companies working on those cures lose funding.
This lapse was avoidable, and the costs were real. We must be active
in efforts to ensure it never happens again.
I am grateful for the work of my colleagues and our staff for
bringing this agreement together in the spirit of compromise. That is
how this program has always worked and must continue to work. Mr.
Speaker, I urge my colleagues to vote ``yes.''
Mr. Speaker, I reserve the balance of my time.
Ms. VAN DUYNE. Mr. Speaker, we must pass S. 3971 to ensure that
Federal investment yields results for our country.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield 3 minutes to the gentlewoman from
Pennsylvania (Ms. Houlahan).
Ms. HOULAHAN. Mr. Speaker, I thank Ranking Member Velazquez for
yielding time.
Mr. Speaker, I rise today to celebrate a big win for small businesses
and innovators in my district and across the country, as well.
For years, I proudly led the bipartisan RAMP for Innovators Act, a
bill that gives our small businesses the tools they need to turn great
ideas into market-ready products.
Today, I am thrilled that a significant portion of that work is
included in the Small Business Innovation and Economic Security Act.
Thanks to this bill, these very important provisions and improvements
will soon be law.
Today's passage is a testament to what bipartisan and bicameral
collaboration can achieve. It was a real disservice that the SBIR and
STTR programs lapsed last year, which are the lifeblood of innovation
on Main Street. They help both entrepreneurs and small businesses in
places like Pennsylvania's Sixth District turn ideas into real products
and businesses.
{time} 1510
Thanks to this legislation, the programs are back and stronger than
before.
Importantly, the bill incorporates key provisions for my RAMP for
Innovators Act that give small businesses more control over their
commercialization efforts. Under this legislation, companies can now
use technical and business assistance funds not just to utilize outside
experts but to also hire new staff, expand existing teams, and to train
their employees to move their technologies to market.
Agencies will continue to provide oversight to ensure that funds are
used effectively, but awardees now have a lot more flexibility to
direct these resources to where they are most needed.
Additionally, this bill ensures that SBIR and STTR recipients can
participate in the Innovation-Corps, or I-Corps, programs, which
provide key trainings that help turn research into market-ready
products. Under the provisions in my RAMP for Innovators Act,
businesses can use TABA funds and other funding sources for
participation in I-Corps, giving small businesses the flexibility they
need to fully take advantage of these opportunities.
Having scaled a lot of businesses in southeastern Pennsylvania, I
know how critical these resources are. They can literally mean the
difference between a promising and even life-changing idea sitting on a
shelf and a product that creates jobs and strengthens our economy.
I thank Representative Balderson for his continued participation and
bipartisanship on this, the RAMP for Innovators Act, and to Senator
Coons for championing these provisions in the Senate. Together, we are
ensuring that small businesses have the support that they need to grow,
hire, and bring bold ideas to market.
This is a really proud moment for Main Street, for innovators, and
for my community. I urge all of my colleagues to vote ``yes'' for the
Small Business Innovation and Economic Security Act.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself the balance of my time for
closing.
Mr. Speaker, I once again thank my colleagues in the Senate for their
hard work in bringing this together, as well as our House partnership
of myself, Chairman Williams, Chairman Babin, and Ranking Member
Lofgren for working in a bipartisan way to reauthorize this program.
The time for delay is over. I urge all of my colleagues to vote
``yes'' and get this bill to the President as soon as possible.
Mr. Speaker, I yield back the balance of my time.
Ms. VAN DUYNE. Mr. Speaker, I urge my colleagues to vote in favor of
S. 3971 to support small businesses across the country in advancing
technology and innovation. It is time for small businesses to access
SBIR and STTR programs again after 5 long months.
Mr. Speaker, I yield back the balance of my time.
Ms. LOFGREN. Mr. Speaker, I rise today in strong support of S. 3971,
a reauthorization of the SBIR and STTR Programs.
For more than 40 years, and Small Business Innovation Research
Program (SBIR), and later its companion program the Small Business
Technology Transfer Program (STTR), have been contributing to U.S.
leadership in technological innovation through support for small
business research and development.
I have had a front-row seat to the explosive growth of
entrepreneurship in Silicon Valley over my lifetime. I understand well
the importance of innovative small businesses to our local economy and
to the U.S. economy. I also understand the challenges these businesses
face accessing capital. The SBIR program has long been called
``America's Seed Fund'' because they invest in small businesses at the
higher-risk early stages before private capital is willing to invest. I
also recognize that every agency has a different mission, and tailors
their SBIR program accordingly. While that diversity in missions was an
undercurrent in the negotiations, in the end we arrived at a good
compromise that continues to support competition and innovation while
giving the agencies necessary flexibility.
Last fall, as these programs faced imminent closure, the House sent
the Senate a one-year, simple extension to keep the programs open to
small businesses as the parties continued to negotiate. Unfortunately,
there was not unanimity in the Senate to keep supporting small
businesses across the country as we continued to negotiate some policy
changes, The 6-month halt in the program has had real consequences for
businesses and their employees, for innovation, and even for clinical
trials and their patients. All of that was avoidable.
[[Page H2497]]
Fortunately, we are here today with a very good bill that provides
new forms of support and resources for innovative small businesses,
increases access and competition, and strengthens guardrails. I am
especially pleased that the bill authorizes the programs through fiscal
year 2031. Small businesses need certainty that the funding will be
available, and agencies need certainty to manage the program
efficiently.
I thank Small Business Committee Chairman Williams and Ranking Member
Velazquez and Science Committee Chairman Babin, for their partnership
in getting this done. I thank all of the committee staff for their hard
work and patience through these months of negotiations. And I thank our
partners in the Senate for continuing to work with us to find a path
forward. I strongly urge all of my colleagues to support S. 3971
without delay.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Texas (Ms. Van Duyne) that the House suspend the rules
and pass the bill, S. 3971.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Ms. VAN DUYNE. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further
proceedings on this motion will be postponed.
____________________