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Trump Signs Law Restoring SBIR/STTR Through 2031 With New Security Checks

The move restarts a key seed funding pipeline for startups supporting U.S. defense and space.

Overview

  • The Small Business Innovation and Economic Security Act, signed Monday, reauthorizes the Small Business Innovation Research and Small Business Technology Transfer programs through Sept. 30, 2031.
  • Program authority had expired Sept. 30, freezing new solicitations and leaving pending awards on hold for more than six months.
  • The law adds tougher screening to keep awards from firms with ties to foreign adversaries, addressing national security concerns that stalled reauthorization.
  • Space startups and the U.S. Space Force’s SpaceWERX, which use these awards for R&D in propulsion, refueling, solar arrays, radios, and navigation, expect stalled contracts to resume and investor confidence to rebound.
  • The package sets no lifetime funding caps, directs agencies to limit how often firms apply each year, and creates a Strategic Breakthrough Allocation of up to $30 million with matching funds.