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Reauthorization updates from TechConnect 2025

The SBIR/STTR Fall Innovation Conference was held recently in conjunction with the Defense TechConnect Summit. Much of the focus was on the SBIR reauthorization and expectations. CTC spent a significant amount of time talking with program managers, other state resources and SBIR Consortium (SBIRC) leaders about the fate of the programs and future plans.

As of this writing, the SBIR programs have expired and there are no funds or programs in place. The expectation is that the program will be reauthorized and continue on, though the questions of ‘when’ and ‘what’ the reauthorization looks like are still unresolved. There were two windows of opportunity to reauthorize described: “In the next 2-3 weeks” and “In January.” If the reauthorization doesn’t occur during these times, then the program is in serious trouble for not being reauthorized for several months to a year, or possibly not at all.

 There are two primary bills under consideration: The Innovate Act and the SBIR/STTR Reauthorization Act of 2025. The main differences between them are summarized in this table below:

Feature:INNOVATE –Reauthorization 2025 –
Reauthorization Period3-year extensionPermanent
Change to Funding LevelsSBIR increased to 3.45% STTR decreased to 0.24%SBIR to 7% and STTR to 1% over 7 years
Program Caps$75M lifetime SBIR/STTR funding and Annual Total Revenue of $40MNone
Focus on New AwardeesPhase 1A ($40K) using 2.5% of SBIR allocationFunding for SBA, reauthorizes FAST
Foreign InfluenceExpands language, stronger direction to agencies, limits ability to work with firms to mitigate riskExtends 2022 authorities to 2030
DEIremoves language referencing gender or social economic disadvantaged groups but adds on Emerging States and ruralAdds DEI focused internships and expands measuring HBCU/MSI concerns
Limits on Number of ProposalsLimits firms – 25/year/agency and 3 per solicitation, and Limits PI’s to 1 per agency solicitationNo Changes
Larger Phase II AwardsRequires top 5 agencies to use 7% of allocation on up to $30M Phase II, which require 1 to 1 matchNo Changes

Reach out to Wisconsin CTC to make sure you stay up-to-date on all things SBIR/STTR!