Sen. Joni Ernst, R-Iowa, introduced a bill this week to reauthorize the Small Business Innovation Research (SBIR) and the Small Business Technology Transfer (STTR) programs until 2028.
Ernst introduced the Investing in National Next-Generation Opportunities for Venture Acceleration and Technological Excellence, or the INNOVATE Act, during a Small Business and Entrepreneurship Committee hearing Wednesday. Per a summary from Ernst’s office, the bill aims to “DOGE-ify” the “bloated” SBIR/STTR programs through the elimination of unnecessary and underperforming pilot programs, the restriction of the number of award proposals that a single company can offer annually and more.
The legislation also looks to ramp up national security protections by creating a statutory definition for foreign risk and providing a baseline for evaluation for all agencies and agency components that also participate in the program. Ernst’s bill, the summary says, “strengthens participating agencies’ ability to claw back award dollars if a small business exposes SBIR-STTR funded products to adversarial influence post-award.”
“It’s clear SBIR is in need of additional reforms to safeguard taxpayer funds and enable this program to meet its full potential,” Ernst said in the hearing. “Despite the funding spanning 11 agencies and countless critical technology areas, SBIR has demonstrated an incredible potential to revitalize our small business industrial base and preserve America’s technological leadership.”
Ernst said the bill also seeks to eliminate diversity, equity and inclusion preferences.
The bill text states that an agency may not consider the “race, gender or ethnicity of the principal investigator, founder or key personnel” of the business applying for an SBIR award in its decision.
Additionally, agencies may not require or consider statements or plans for a small business as part of an application for an award or offer supplemental funding to an SBIR/STTR award recipient based on race, gender or ethnicity of the very same personnel.
“These measures enable agencies to scout the best proposals based on substance from across the country,” Ernst said in the hearing. “I am committed to ensuring open competition for innovators with traditionally lower engagement in the program.”
The SBIR and STTR programs, founded in 1982 and 1992, respectively, currently use the America’s Seed Fund, which is provided through the National Science Foundation, to help small businesses develop technology and move toward commercialization.
