S. 3971

[119th Congress Public Law 83]
[From the U.S. Government Publishing Office]

[[Page 140 STAT. 755]]

Public Law 119-83
119th Congress

An Act

To extend the SBIR and STTR programs, and for other 
purposes. <<NOTE: Apr. 13, 2026 - [S. 3971]>> 

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Small Business 
Innovation and Economic Security Act.>> 
SECTION 1. <<NOTE: 15 USC 631 note.>> SHORT TITLE.

This Act may be cited as the ``Small Business Innovation and 
Economic Security Act''.
SEC. 2. BOLSTERING RESEARCH SECURITY OF SBIR AND STTR AWARDS.

(a) In General.--Section 9 of the Small Business Act (15 U.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 
subsection (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 
Government;'';
(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;

[[Page 140 STAT. 756]]

``(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 Commerce;
``(vii) the List of Equipment and Services 
maintained by the Federal Communications 
Commission; or
``(viii) the Withhold Release Orders and 
Findings List maintained by U.S. Customs and 
Border Protection;
``(E) has a security risk with a primary source that 
is classified; or
``(F) has a security risk that the Federal agency 
determines warrants a denial;'';
(D) by inserting after paragraph (16), as so 
redesignated, the following:
``(17) provide for--
``(A) <<NOTE: Notification.>> a process under 
which, upon making an award decision to deny an 
application on the basis of a determination 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 
appropriate pursuant to the discretion of the Federal 
agency and in a manner that does not compromise national 
security, a notification--
``(i) advising the small business concern of 
such determination; and
``(ii) identifying the basis for such 
determination; and
``(B) <<NOTE: Policy.>> a policy that clarifies 
that receipt of an award 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;

[[Page 140 STAT. 757]]

(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 
subsection (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 
Government;'';
(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 Commerce;
``(vii) the List of Equipment and Services 
maintained by the Federal Communications 
Commission; or
``(viii) the Withhold Release Orders and 
Findings List maintained by U.S. Customs and 
Border Protection;
``(E) has a security risk with a primary source that 
is classified; or

[[Page 140 STAT. 758]]

``(F) has a security risk that the Federal agency 
determines warrants a denial;'';
(D) by inserting after paragraph (20) the following:
``(21) provide for--
``(A) <<NOTE: Notification.>> a process under 
which, upon making an award decision to deny an 
application on the basis of a determination 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 
appropriate 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) <<NOTE: Policy.>> a policy that clarifies 
that receipt of an award 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 
appropriate--
``(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 ventures (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 foreign country of concern;'';
(B) in subparagraph (B), by striking the period at 
the end and inserting ``; and''; and
(C) by adding at the end the following:

[[Page 140 STAT. 759]]

``(C) examine any relationship of a small business 
concern seeking an award to any entity or individual 
included on the lists described in subsections 
(g)(16)(D) and (o)(20)(D).''.

(b) GAO Study.--Section 4(b)(4) of the SBIR and STTR Extension 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) In General.--Section 9 of the Small Business Act (15 U.S.C. 638) 
is amended--
(1) in subsection (aa), by adding at the end the following:
``(6) Strategic breakthrough allocation.--The requirement 
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 available 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) Strategic breakthrough awards.--
``(A) Strategic breakthrough allocation defined.--In 
this paragraph, the term `strategic breakthrough 
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) Award.--Under this paragraph, a funding 
agreement may be awarded to a small business concern by 
a Federal agency using funds made available under a 
strategic breakthrough allocation.
``(C) <<NOTE: Applicability.>> Fund parameters.--In 
the case of a Phase II agreement that is awarded to a 
small business concern by a Federal agency using funds 
made available under a strategic breakthrough 
allocation, the following requirements shall apply:
``(i) Award size and period of performance.--A 
Federal agency may award from a strategic 
breakthrough 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) Small 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;

[[Page 140 STAT. 760]]

``(bb) new funding awarded 
by a government 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 Department of Defense 
if the small business concern--
``(aa) provides a product, 
process, or technology that 
meets a necessary level of 
readiness and has a commitment 
for inclusion in a program 
objective memorandum from an 
official with the rank of 
program acquisition executive or 
higher in an acquisition 
organization of the Department 
of Defense;
``(bb) provides a product, 
process, or technology that will 
meet high priority requirements 
or operational needs of a 
military department through a 
successful transition and into 
the acquisition process; and
``(cc) demonstrates not less 
than 20 percent of the required 
matching funds under subclause 
(II) come from new funding 
awarded by the Department of 
Defense 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.
``(iii) <<NOTE: Contracts.>> Deadline.--The 
Federal agency shall complete 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) Eligible activities.--Eligible 
activities by a small business concern using 
strategic breakthrough allocation funds are any 
critical technology areas or requirements deemed 
necessary by the Federal agency.
``(v) Selection criteria.--In making awards 
using 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 concern 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

[[Page 140 STAT. 761]]

``(IV) whether a particular 
technology area is undercapitalized by 
private investment.
``(D) Use of streamlined contracting mechanisms.--
Each Federal agency shall implement streamlined 
processes and requirements for submitting proposals and 
applying for awards using funds made available under a 
strategic breakthrough allocation.''.

(b) Commercialization Readiness Program.--Section 9(y) of the 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 allocation (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
(C) by adding at the end the following:
``(B) ensure, in collaboration with SBIR program 
managers of each component, that research programs 
identified under subparagraph (A) are analyzed within 
the programming and budgeting process as budget requests 
are developed; 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 
paragraphs (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 
subparagraph (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 business concern under Phase III of the SBIR 
program; and''.

(c) Briefings.--
(1) Definition.--In this subsection, the term ``appropriate 
committees 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) <<NOTE: Deadline.>> General requirement.--Not later 
than 60 days after the 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

[[Page 140 STAT. 762]]

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) Recurring briefing by federal agencies using funding 
authority. <<NOTE: Procedures.>> --The head of each Federal 
agency that 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) <<NOTE: 15 USC 638 note.>> Termination.--Effective on September 
30, 2031--
(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) Reducing Administrative Burden.--
``(1) <<NOTE: Time periods.>> In general.--With respect to 
fiscal year 2027 and 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 
solicitation basis.
``(C) A limit for any small business concern on a 
topic basis.
``(2) Waiver.--
``(A) In general.--On a topic by topic basis, the 
Director of the SBIR or STTR program office of each 
Federal 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) Written justification.--For each topic for 
which 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

[[Page 140 STAT. 763]]

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) <<NOTE: Deadline.>> Timing.--The 
Undersecretary overseeing the SBIR or STTR program at a 
Federal agency and the Administrator 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) Nondelegation.--The authority to grant or 
approve a waiver under subparagraph (A) or (C), 
respectively, may not be delegated.
``(E) Waiver effects.--If the Federal agency grants 
a waiver under subparagraph (A) with respect to a topic 
for the SBIR or STTR program of a Federal agency, 
paragraph (1) shall not prohibit any small business 
concern from submitting an SBIR or STTR proposal to that 
Federal agency under such topic.
``(F) Record requirement.--Participating agencies 
shall maintain information on topics to which waivers of 
the proposal limit under this paragraph are granted, 
including the written justifications for those waivers.
``(G) Limitation.--A Federal agency may not grant a 
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) Reporting.--
``(A) In general.--Not later than 30 days after the 
date 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 concerns are impacted by 
that limit based on historical data.
``(B) Written notification.--Not later than 30 days 
after 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 Representatives 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) <<NOTE: Deadline. Time periods.>> Timing.--The 
Director shall establish the proposal limit under paragraph (1) 
not later than 90 days before the 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--

[[Page 140 STAT. 764]]

(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
(C) by adding at the end the following:
``(20) <<NOTE: Definition.>> the term `agency acquisition 
workforce' means the 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) Workforce training.--
``(A) In general.--The Administrator, in 
coordination 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) Training topics.--The training activities 
required 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) Funding.--The training activities required 
under 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
(C) by adding at the end the following:
``(L) contracting officer and acquisition workforce 
training activities pursuant to subsection (r)(5).''.
SEC. 6. PHASE III IMPROVEMENTS.

(a) Procurement Center Representative Directives.--
(1) In general.--Section 9(j)(4) of the Small Business Act 
(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 
technologies developed under SBIR or STTR programs to Phase III 
by means of Phase III awards to small business concerns''.
(2) <<NOTE: 15 USC 638 note.>> Modification deadline.--Not 
later than 1 year after the date of enactment of this Act, the 
Administrator of the Small Business Administration shall modify 
the policy directives 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).

[[Page 140 STAT. 765]]

(b) Phase III Award Simplification.--Section 9(r)(4) of the Small 
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 
provisions 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 business 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 
technology development or commercialization 
activities.''; and
(B) in paragraph (2)--
(i) in the paragraph heading, by striking 
``Vendor selection'' and inserting ``Eligible uses 
of funds.--'';
(ii) by striking subparagraph (A);
(iii) by redesignating subparagraph (B) as 
subparagraph (A); and
(iv) by inserting after subparagraph (A), as 
so redesignated, the following:
``(B) <<NOTE: Contracts.>> Staff.--A small business 
concern may, by contract or otherwise, use funding 
provided under this section to

[[Page 140 STAT. 766]]

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) Phase i.--A Federal agency described in 
paragraph (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) Phase ii.--A Federal agency described in 
paragraph (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) Targeted review.--A Federal agency may perform 
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 Participation.--
``(1) In general.--Each Federal agency with an Innovation 
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) Cost of participation.--The cost of participation by 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 
appropriate; or
``(E) any combination of sources described in 
subparagraphs (A), (B), (C), and (D).''.

[[Page 140 STAT. 767]]

SEC. 8. IMPROVING SBIR AND STTR DATA COLLECTION.

(a) Additional Data Fields in SBIR Database.--Section 9(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 
subsection (ff)(3);
``(iv) a Phase III prime contract award; or
``(v) a Phase III subcontract award.''.

(b) <<NOTE: 41 USC 1122 note.>> Improving Federal Procurement Data 
Systems Data Tracking.--
(1) Definitions.--In this section:
(A) Federal 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) Small business concern.--The term ``small 
business concern'' has the meaning given the term in 
section 3 of the Small Business Act (15 U.S.C. 632).
(2) Requirement to update.--The Administrator of General 
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 
Business 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 
subsection (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 
designated as a Phase III contract;
(C) require reporting on whether non-SBIR contracts 
and subcontracts are using SBIR- or STTR-funded 
technology; 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) In General.--Section 9 of the Small Business Act (15 U.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

[[Page 140 STAT. 768]]

(2) in subsection (n)(1)(A), by striking ``2025'' and 
inserting ``2031''.

(b) Carry Over Funds.--If a Federal agency that participates 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) Phase Flexibility.--Section 9(cc) of the Small Business Act (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) Commercialization Readiness Program for Civilian Agencies Pilot 
Program.--Section 9(gg)(7) of the Small Business Act (15 U.S.C. 
638(gg)(7)) is amended by striking ``2025'' and inserting ``2031''.
(c) Accelerated Awards.--Section 9(hh)(2)(C) of the Small Business 
Act (15 U.S.C. 638(hh)(2)(C)) is amended by striking ``September 30, 
2025'' and inserting ``September 30, 2031''.
(d) Phase 0 Pilot Program.--Section 9(jj)(7) of the Small Business 
Act (15 U.S.C. 638(jj)(7)) is amended by striking ``2025'' and inserting 
``2031''.
(e) Administrative Assistance.--Section 9(mm)(1) of the Small 
Business Act (15 U.S.C. 638(mm)(1)) is amended by striking ``September 
30, 2025'' and inserting ``September 30, 2031''.
(f) Increased Minimum Performance Standards.--Section 9(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 ``September 30, 2031''.
(g) Commercialization Assistance Pilot Programs.--Section 9(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) Due Diligence Program.--Section 9(vv)(3)(C) of the Small 
Business Act (15 U.S.C. 638(vv)(3)(C)) is amended by striking 
``September 30, 2025'' and inserting ``September 30, 2031''.
(i) STTR Participation of Military Research and Educational 
Institutions Pilot Program.--Section 9(yy)(2) of the Small Business Act 
(15 U.S.C. 638(yy)(2)) is amended by striking ``September 30, 2025'' and 
inserting ``September 30, 2031''.
(j) Budget Calculation Pilot Program.--Section 9(zz)(3) of the Small 
Business Act (15 U.S.C. 638(zz)(3)) is amended by striking ``September 
30, 2025'' and inserting ``September 30, 2031''.
(k) Special Operations Command Pilot.--Section 851(e) of the 
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''.

[[Page 140 STAT. 769]]

(l) Government Accountability Office Mandate Sunset.-- The 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.

LEGISLATIVE HISTORY--S. 3971:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 172 (2026):
Mar. 3, considered and passed Senate.
Mar. 16, 17, considered and passed House.

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