Earlier this year, I was optimistic about SBIR/STTR re-authorization! I could not imagine that what seemed to be bi-partisan support of the program and the ongoing, and increasingly urgent, need to foster innovation in the U.S. would allow this key program to stall. However Congress has failed to pass any re-authorization legislation and efforts seem frustratingly stalled.
In my June post, What’s up with SBIR and STTR funding in 2025?, I wrote, “…at this time, mid-2025, federal agency funds have been allocated for the remainder of the fiscal year (through September 30) under a Continuing Resolution and SBIR/STTR agencies generally received close to their projected funding levels. For FY 2025, overall agency budgets for SBIR/STTR awards are expected to be stable and solicitations continue to be issued.”
Well, that was correct through September 30th. But then the federal shutdown happened AND no SBIR/STTR re-authorization was passed! Of course Congress has been working on other things like funding the entire federal government, but it has been a surprise that SBIR has been stuck in a whirlpool and my cautious optimism in October was unfounded.
Here is the SBIR.gov headline as of 12/17/25.
“Congressional authority for the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs has expired as of September 30, 2025. If no further action is taken by Congress, federal agencies may not be able to award funding under SBIR/STTR programs and SBIR/STTR solicitations may be delayed, cancelled, or rescinded. Current applicants and awardees should reach out directly to participating agencies with questions regarding active awards or applications.”
As an agency specific example, NASA SBIR just sent out this December 2025 email describing the current hiatus. Here’s a snippet from NASA. “Without reauthorization, NASA cannot release new SBIR/STTR solicitations nor fund any new SBIR/STTR awards. We are currently making necessary schedule adjustments to our program timelines. We will announce these updated schedules and any related solicitation updates once the program is reauthorized. Awards made prior to Sept. 30, 2025 are not impacted by reauthorization.”
There have been competing Congressional proposals for SBIR/STTR re-authorization which have ranged from a simple 1-year extension with minimal changes to the program all the way to Senator Joni Ernst’s (R-IA) INNOVATE Act which would bring major changes to the program. I had thought that Senator Ernst was a program champion but at the same time she has opposed a simple extension to keep momentum going, in favor of her own legislation. And there is bi-partisan frustration, as Senator Edward J. Markey (D-Mass.) issued a statement in early December calling for program re-authorization! It sadly reminds me of the Schoolhouse Rock song “I’m Just a Bill”!
What should you do?
In a way, it does depend on your SBIR/STTR pipeline and strategy Certain agencies, such as the NSF and NIH, are focused on funding the best investigator ideas.
If you are planning to submit to these “investigator led” agencies, future solicitations are likely to be fairly similar to those that have closed in 2025.
If you are focused on these agencies, you should seriously consider working on the meat of your proposal NOW! So that you can get a head start as soon as a new solicitation is open. You may have to fine tune the formatting or structure, but the heart of your work, your team, your market and your plan will be completed. (If you would like our help, you can check out our online course Develop a Winning SBIR Strategy – Insights From The Review Process, or email us at venturewrenchnews at gmail.com to ask about our 1:1 SBIR coaching support)
However, agencies that include SBIR/STTR as part of their procurement, including DoW/DoD and NASA, topics are always need-based and are rarely (in case of DoW/DoD almost NEVER) repeated. Therefore, you will likely need to work on your strategy and look at your pipeine while you wait for those topic specific solicitations to open.
My advice – keep working on proposals you are targeting to the NSF or NIH as you are likely going to find a solicitation topic that can include your proposal once new solicitations are opened.
But for other agencies, wait until a new solicitation is available so that you can target your work! You can always, for any agency, work on key background items about team, past research etc.
I would love to hear from you (email venturewrenchnews at gmail) about your experience with the current SBIR/STTR stall.
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