[119th Congress Public Law 83]
[From the U.S. Government Publishing Office]
[[Page 140 STAT. 755]]
Public Law 119-83
119th Congress
An Act
To extend the SBIR and STTR programs, and for other
purposes. <<NOTE: Apr. 13, 2026 - [S. 3971]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Small Business
Innovation and Economic Security Act.>>
SECTION 1. <<NOTE: 15 USC 631 note.>> 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 140 STAT. 756]]
``(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) <<NOTE: Notification.>> 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) <<NOTE: Policy.>> 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;
[[Page 140 STAT. 757]]
(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
[[Page 140 STAT. 758]]
``(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) <<NOTE: Notification.>> 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) <<NOTE: Policy.>> 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:
[[Page 140 STAT. 759]]
``(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) <<NOTE: Applicability.>> 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--
``(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;
[[Page 140 STAT. 760]]
``(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) <<NOTE: Contracts.>> 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
[[Page 140 STAT. 761]]
``(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) <<NOTE: Deadline.>> 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
[[Page 140 STAT. 762]]
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. <<NOTE: Procedures.>> --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) <<NOTE: 15 USC 638 note.>> 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) <<NOTE: Time periods.>> 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
[[Page 140 STAT. 763]]
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) <<NOTE: Deadline.>> 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 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) <<NOTE: Deadline. Time periods.>> 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--
[[Page 140 STAT. 764]]
(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) <<NOTE: Definition.>> 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) <<NOTE: 15 USC 638 note.>> 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).
[[Page 140 STAT. 765]]
(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) <<NOTE: Contracts.>> Staff.--A small business
concern may, by contract or otherwise, use funding
provided under this section to
[[Page 140 STAT. 766]]
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).''.
[[Page 140 STAT. 767]]
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) <<NOTE: 41 USC 1122 note.>> 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)).
(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
[[Page 140 STAT. 768]]
(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''.
[[Page 140 STAT. 769]]
(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).
Approved April 13, 2026.
LEGISLATIVE HISTORY--S. 3971:
---------------------------------------------------------------------------
CONGRESSIONAL RECORD, Vol. 172 (2026):
Mar. 3, considered and passed Senate.
Mar. 16, 17, considered and passed House.
<all>