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Small Business Innovation and Economic Security Act Extends SBIR and STTR Programs, Bolstering Research Security

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Summary

Public Law 119-83 extends the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs and adds security risk evaluation requirements for award decisions. Federal agencies must now assess whether small business concerns present security risks, including through due diligence, disclosures, and coordination with the intelligence community, law enforcement, and counterintelligence capabilities. The amendments add new denial grounds for concerns connected to entities on various federal restricted-lists including the UFLPA Entity List, OFAC's Non-SDN Chinese Military-Industrial Complex Companies List, the Section 889 Prohibition List, Chinese Military Companies List, Military End User List, Entity List, FCC's List of Equipment and Services, and CBP's Withhold Release Orders and Findings List.

Why this matters

Small businesses that have ownership, affiliate, or supply chain connections to entities on any of the eight enumerated restricted-lists (UFLPA Entity List, OFAC Non-SDN Chinese Military-Industrial Complex Companies List, Section 889 Prohibition List, Chinese Military Companies List under §1260H, Military End User List, BIS Entity List, FCC List of Equipment and Services, and CBP Withhold Release Orders and Findings List) face a heightened risk of denial on SBIR or STTR applications under the new security risk evaluation provisions. Concerns with classified primary sources or that otherwise present foreign security risks as determined by the awarding agency are also in scope. Firms should proactively review their organizational structures, investor bases, and supply chains before submitting federal R&D award applications.

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What changed

The Small Business Innovation and Economic Security Act amends 15 U.S.C. 638 to add security risk evaluation requirements across both SBIR and STTR programs. New provisions require agencies to evaluate whether small business concerns present security risks through due diligence processes, applicant disclosures, and coordination with the intelligence community, federal law enforcement, and counterintelligence capabilities. The amendments create new denial grounds tied to connections with entities appearing on multiple federal restricted-lists and provide for notification procedures when applications are denied on security grounds. Paragraph numbering is reorganized throughout to accommodate new requirements.

Small businesses seeking SBIR and STTR awards from federal agencies should review their affiliations, ownership structures, and supply chain relationships to assess whether any connections exist to the enumerated restricted-lists. Applicants denied on security risk grounds are entitled to a notification identifying the basis for the determination, and such a denial does not preclude eligibility in future award cycles. Program administrators at federal agencies should update application review procedures to incorporate the new evaluation criteria.

Archived snapshot

Apr 21, 2026

GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.

140 STAT. 755 PUBLIC LAW 119-83--APR. 13, 2026

Public Law 119-83 119th Congress An Act

GApr. 13, 2026 To extend the SBIR and STTR programs, and for other purposes. [S. 3971] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, Small Business Innovation and SECTION 1. SHORT TITLE. Economic Security Act. This Act may be cited as the ''Small Business Innovation and 15 USC 631 note. Economic Security Act''.

SEC. 2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS. (a) I N ENERALU.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 sub- section (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 Govern- ment;''; (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;

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140 STAT. 756 PUBLIC LAW 119-83--APR. 13, 2026 ''(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 Com- merce; ''(vii) the List of Equipment and Services main- tained by the Federal Communications Commission; or ''(viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protec- tion; ''(E) has a security risk with a primary source that is classified; or ''(F) has a security risk that the Federal agency deter- mines warrants a denial;''; (D) by inserting after paragraph (16), as so redesig- nated, the following: ''(17) provide for-- ''(A) a process under which, upon making an award Notification. decision to deny an application on the basis of a determina- tion 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 appro- priate pursuant to the discretion of the Federal agency and in a manner that does not compromise national secu- rity, a notification-- ''(i) advising the small business concern of such determination; and ''(ii) identifying the basis for such determination; and ''(B) a policy that clarifies that receipt of an award Policy. 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;

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140 STAT. 757 PUBLIC LAW 119-83--APR. 13, 2026 (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 sub-section (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 Govern-ment;''; (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 Com-merce; ''(vii) the List of Equipment and Services main-tained by the Federal Communications Commission; or ''(viii) the Withhold Release Orders and Findings List maintained by U.S. Customs and Border Protec-tion; ''(E) has a security risk with a primary source that is classified; or

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140 STAT. 758 PUBLIC LAW 119-83--APR. 13, 2026 ''(F) has a security risk that the Federal agency deter- mines warrants a denial;''; (D) by inserting after paragraph (20) the following: ''(21) provide for-- ''(A) a process under which, upon making an award Notification. decision to deny an application on the basis of a determina- tion 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 appro- priate 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) a policy that clarifies that receipt of an award Policy. 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 appro- priate-- ''(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 ven- tures (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 for- eign country of concern;''; (B) in subparagraph (B), by striking the period at the end and inserting ''; and''; and

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140 STAT. 759 PUBLIC LAW 119-83--APR. 13, 2026 ''(C) examine any relationship of a small business con-cern seeking an award to any entity or individual included on the lists described in subsections (g)(16)(D) and (o)(20)(D).''. (b) GAO S.--Section 4(b)(4) of the SBIR and STTR Exten-TUDYsion 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) I N ENERALU.S.C. 638) is amended-- (1) in subsection (aa), by adding at the end the following: ''(6) S .--The require- TRATEGIC BREAKTHROUGH ALLOCATION ment 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 avail- able 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) S .-- GTRATEGIC BREAKTHROUGH AWARDS ''(A) S TRATEGIC BREAKTHROUGH ALLOCATION .--In this paragraph, the term 'strategic break- DEFINED through 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) A .--Under this paragraph, a funding agree- WARD ment may be awarded to a small business concern by a Federal agency using funds made available under a stra- tegic breakthrough allocation. ''(C) F .--In the case of a Phase II Applicability. UND PARAMETERS agreement that is awarded to a small business concern by a Federal agency using funds made available under a strategic breakthrough allocation, the following require- ments shall apply: ''(i) A .-- WARD SIZE AND PERIOD OF PERFORMANCE A Federal agency may award from a strategic break- through 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) S .-- MALL 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;

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140 STAT. 760 PUBLIC LAW 119-83--APR. 13, 2026 ''(bb) new funding awarded by a govern- ment 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 Depart- ment of Defense if the small business concern-- ''(aa) provides a product, process, or tech- nology that meets a necessary level of readi- ness and has a commitment for inclusion in a program objective memorandum from an offi- cial with the rank of program acquisition executive or higher in an acquisition organiza- tion of the Department of Defense; ''(bb) provides a product, process, or tech- nology that will meet high priority require- ments or operational needs of a military department through a successful transition and into the acquisition process; and ''(cc) demonstrates not less than 20 per- cent of the required matching funds under subclause (II) come from new funding awarded by the Department of Defense under a pro- gram 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) D .--The Federal agency shall com-Contracts. EADLINE plete 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) E .--Eligible activities by LIGIBLE ACTIVITIES a small business concern using strategic breakthrough allocation funds are any critical technology areas or requirements deemed necessary by the Federal agency. ''(v) S .--In making awards using ELECTION CRITERIA 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 con- cern 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

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140 STAT. 761 PUBLIC LAW 119-83--APR. 13, 2026 ''(IV) whether a particular technology area is undercapitalized by private investment. ''(D) U-SE OF STREAMLINED CONTRACTING MECHA.--Each Federal agency shall implement streamlined NISMSprocesses and requirements for submitting proposals and applying for awards using funds made available under a strategic breakthrough allocation.''. (b) CP.--Section 9(y) of OMMERCIALIZATIONEADINESSROGRAMthe 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 alloca-tion (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 ''(B) ensure, in collaboration with SBIR program man-agers of each component, that research programs identified under subparagraph (A) are analyzed within the program-ming and budgeting process as budget requests are devel-oped; 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 para-graphs (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 subpara-graph (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 busi-ness concern under Phase III of the SBIR program; and''. (c) B.-- RRIEFINGS(1) D.--In this subsection, the term ''appropriate EFINITIONcommittees 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) G.--Not later than 60 days after Deadline. ENERAL REQUIREMENTthe 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

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140 STAT. 762 PUBLIC LAW 119-83--APR. 13, 2026 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) R AECURRING BRIEFING BY FEDERAL AGENCIES USING .--The head of each Federal agency that Procedures. FUNDING AUTHORITY 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) T .--Effective on September 30, 2031-- 15 USC 638 note. ERMINATION (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) R B .-- EDUCING DMINISTRATIVE URDEN ''(1) I .--With respect to fiscal year 2027 and Time periods. N GENERAL 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 solici- tation basis. ''(C) A limit for any small business concern on a topic basis. ''(2) W .-- AIVER ''(A) I .--On a topic by topic basis, the N GENERAL Director of the SBIR or STTR program office of each Fed- eral 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) W .--For each topic for which RITTEN JUSTIFICATION 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

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140 STAT. 763 PUBLIC LAW 119-83--APR. 13, 2026 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) T.--The Undersecretary overseeing the SBIR Deadline. IMINGor STTR program at a Federal agency and the Adminis-trator 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) N.--The authority to grant or ONDELEGATIONapprove a waiver under subparagraph (A) or (C), respec-tively, may not be delegated. ''(E) W.--If the Federal agency grants AIVER EFFECTSa waiver under subparagraph (A) with respect to a topic for the SBIR or STTR program of a Federal agency, para-graph (1) shall not prohibit any small business concern from submitting an SBIR or STTR proposal to that Federal agency under such topic. ''(F) R.--Participating agencies ECORD REQUIREMENTshall maintain information on topics to which waivers of the proposal limit under this paragraph are granted, including the written justifications for those waivers. ''(G) L.--A Federal agency may not grant IMITATIONa 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) R.-- EPORTING''(A) I.--Not later than 30 days after the N GENERALdate 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 con-cerns are impacted by that limit based on historical data. ''(B) W.--Not later than 30 days RITTEN NOTIFICATIONafter 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 Rep-resentatives 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) T.--The Director shall establish the proposal Deadline. IMINGlimit under paragraph (1) not later than 90 days before the Time periods. 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--

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140 STAT. 764 PUBLIC LAW 119-83--APR. 13, 2026 (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 ''(20) the term 'agency acquisition workforce' means the CDefinition. 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) W .-- ORKFORCE TRAINING ''(A) I .--The Administrator, in coordination N GENERAL 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) T .--The training activities required RAINING TOPICS 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) F .--The training activities required under UNDING 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 ''(L) contracting officer and acquisition workforce training activities pursuant to subsection (r)(5).''.

SEC. 6. PHASE III IMPROVEMENTS. (a) P R D .-- ROCUREMENT ENTER EPRESENTATIVE IRECTIVES (1) I .--Section 9(j)(4) of the Small Business Act N GENERAL (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 tech- nologies developed under SBIR or STTR programs to Phase III by means of Phase III awards to small business concerns''. (2) M .--Not later than 1 year after 15 USC 638 note. ODIFICATION DEADLINE the date of enactment of this Act, the Administrator of the Small Business Administration shall modify the policy direc- tives 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).

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140 STAT. 765 PUBLIC LAW 119-83--APR. 13, 2026 (b) PIII A.--Section 9(r)(4) of the HASEWARDIMPLIFICATIONSmall 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 provi-sions 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 busi- ness 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 tech- nology development or commercialization activities.''; and (B) in paragraph (2)-- (i) in the paragraph heading, by striking ''V SENDOR '' and inserting ''E .-- SELECTION LIGIBLE USES OF FUNDS ''; (ii) by striking subparagraph (A); (iii) by redesignating subparagraph (B) as subpara- graph (A); and (iv) by inserting after subparagraph (A), as so redesignated, the following: ''(B) S .--A small business concern may, by contract Contracts. TAFF or otherwise, use funding provided under this section to

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140 STAT. 766 PUBLIC LAW 119-83--APR. 13, 2026 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) P .--A Federal agency described in para- PHASE I graph (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) P .--A Federal agency described in para- HASE II graph (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) T .--A Federal agency may perform ARGETED REVIEW 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 ARTICIPATION ''(1) I .--Each Federal agency with an Innovation N GENERAL 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) C .--The cost of participation by OST OF PARTICIPATION 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 appro- priate; or ''(E) any combination of sources described in subpara- graphs (A), (B), (C), and (D).''.

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140 STAT. 767 PUBLIC LAW 119-83--APR. 13, 2026

SEC. 8. IMPROVING SBIR AND STTR DATA COLLECTION. (a) A SBIR D .--Section DDITIONAL ATA IELDS IN ATABASE9(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 sub- section (ff)(3); ''(iv) a Phase III prime contract award; or ''(v) a Phase III subcontract award.''. (b) I D S D 41 USC 1122 TMPROVING GEDERAL FROCUREMENT DATA FYSTEMS PATA .-- note. RACKING (1) D .--In this section: EFINITIONS (A) F ; ; ; ; .-- EDERAL 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) S .--The term ''small busi- MALL BUSINESS CONCERN ness concern'' has the meaning given the term in section 3 of the Small Business Act (15 U.S.C. 632). (2) R .--The Administrator of Gen- EQUIREMENT TO UPDATE eral 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 Busi- ness 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 sub- section (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 des- ignated as a Phase III contract; (C) require reporting on whether non-SBIR contracts and subcontracts are using SBIR- or STTR-funded tech- nology; 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) I N ENERALU.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

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140 STAT. 768 PUBLIC LAW 119-83--APR. 13, 2026 (2) in subsection (n)(1)(A), by striking ''2025'' and inserting ''2031''. (b) C O F .--If a Federal agency that participates ARRY VER UNDS 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) P F .--Section 9(cc) of the Small Business HASE LEXIBILITYAct (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) C R P C AOMMERCIALIZATION PEADINESS IROGRAM FOR DIVILIAN P .--Section 9(gg)(7) of the Small Business GENCIES ILOT ROGRAMAct (15 U.S.C. 638(gg)(7)) is amended by striking ''2025'' and inserting ''2031''. (c) A A .--Section 9(hh)(2)(C) of the Small CCELERATED WARDSBusiness Act (15 U.S.C. 638(hh)(2)(C)) is amended by striking ''Sep-tember 30, 2025'' and inserting ''September 30, 2031''. (d) P 0 P P .--Section 9(jj)(7) of the Small HASE ILOT ROGRAMBusiness Act (15 U.S.C. 638(jj)(7)) is amended by striking ''2025'' and inserting ''2031''. (e) A A .--Section 9(mm)(1) of the DMINISTRATIVE SSISTANCESmall Business Act (15 U.S.C. 638(mm)(1)) is amended by striking ''September 30, 2025'' and inserting ''September 30, 2031''. (f) I M P S .--Section NCREASED INIMUM ERFORMANCE TANDARDS9(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 ''Sep-tember 30, 2031''. (g) C A P P .--Section OMMERCIALIZATION SSISTANCE ILOT ROGRAMS9(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) D P .--Section 9(vv)(3)(C) of the Small UE ILIGENCE ROGRAMBusiness Act (15 U.S.C. 638(vv)(3)(C)) is amended by striking ''Sep-tember 30, 2025'' and inserting ''September 30, 2031''. (i) STTR P M R E - ARTICIPATION OF ILITARY ESEARCH AND DU P P .--Section 9(yy)(2) of the CATIONAL NSTITUTIONS ILOT ROGRAMSmall Business Act (15 U.S.C. 638(yy)(2)) is amended by striking ''September 30, 2025'' and inserting ''September 30, 2031''. (j) B C P P .--Section 9(zz)(3) of UDGET ALCULATION ILOT ROGRAMthe Small Business Act (15 U.S.C. 638(zz)(3)) is amended by striking ''September 30, 2025'' and inserting ''September 30, 2031''. (k) S O C P .--Section 851(e) of PECIAL PERATIONS OMMAND ILOTthe 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''.

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140 STAT. 769 PUBLIC LAW 119-83--APR. 13, 2026 (l) GOMS.-- OVERNMENTCCOUNTABILITYFFICEANDATEUNSETThe 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.

ALEGISLATIVE HISTORY--S. 3971: CONGRESSIONAL RECORD, Vol. 172 (2026): Mar. 3, considered and passed Senate. Mar. 16, 17, considered and passed House. Æ

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Named provisions

Short Title Bolstering Research Security of SBIR and STTR Awards

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Classification

Agency
U.S. Congress
Published
April 13th, 2026
Instrument
Rule
Branch
Legislative
Bill ID
S. 3971
Legal weight
Binding
Stage
Final
Change scope
Substantive
Document ID
Public Law 119-83

Who this affects

Applies to
Small businesses Government agencies
Industry sector
9211 Government & Public Administration
Activity scope
Federal R&D award eligibility Security risk evaluation Foreign affiliation disclosure
Geographic scope
United States US

Taxonomy

Primary area
Defense & National Security
Operational domain
Compliance
Compliance frameworks
ITAR/EAR
Topics
Government Contracting Export Controls

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