House · S 3971 · 119th Congress
Small Business Innovation and Economic Security Act
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Summary
This bill extends the Small Business Innovation Research and Technology Transfer programs through 2031. It adds security checks for small businesses applying for grants and creates larger awards up to $30 million for companies working on critical technologies. It also limits how many grant proposals one company can submit each year.
In Favor
Foreign rivals have tried to steal U.S. research funded by these programs. This bill adds security screening to block companies with ties to hostile foreign governments from getting taxpayer money. The new large awards help proven small businesses bring important technologies to market faster.
Against
The new proposal limits could shut out small businesses that work across many research areas. Security denials can be based on classified information a company cannot see or challenge. These rules add paperwork and uncertainty that may push talented small firms away from government research programs.
Additional Considerations
Purpose & Problem
Is the problem real and worth federal action?
The bill extends the SBIR and STTR programs through 2031 and adds new rules on security checks, proposal limits, and training for government staff who handle these research awards for small businesses.
Scope & Related Provisions
Does it stay focused, or carry unrelated add-ons?
The bill stays close to its core purpose but also adds a new large award category called the strategic breakthrough allocation, which carries its own separate funding rules and a 2031 end date.
Who Is Affected
Who benefits, and who bears the cost?
Small businesses applying for research awards face new security reviews and new limits on how many proposals they can submit each year. Federal agencies take on added duties to screen applicants, train their buying staff, and track award data more closely.
Cost & Funding
Is it affordable and responsibly funded?
The bill does not include a CBO cost estimate in the sources. It authorizes strategic breakthrough allocations of up to 0.50 percent of each qualifying agency's outside research budget, with single awards capped at $30,000,000. Phase I and Phase II winners may use up to $6,500 and $50,000 per project, respectively, for business and technical help.
Risks & Implementation
What could go wrong in practice?
Agencies must build new screening steps, set proposal limits, train buying staff, and update data systems, all within fixed deadlines. Meeting those deadlines depends on each agency having enough staff and clear rules already in place to carry out those duties.
For the actual bill text, see congress.gov.
AI-generated · Published 6/6/2026