[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4777 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4777
To improve the SBIR and STTR programs under the Small Business Act, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 25, 2025
Mr. Williams of Texas introduced the following bill; which was referred
to the Committee on Small Business, and in addition to the Committee on
Science, Space, and Technology, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To improve the SBIR and STTR programs under the Small Business Act, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Investing in
National Next-Generation Opportunities for Venture Acceleration and
Technological Excellence'' or the ``INNOVATE Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES
Sec. 101. Enhancing small business success in the STTR program.
Sec. 102. Phase II strategic breakthrough funding.
Sec. 103. Implementation briefings.
Sec. 104. Fixed-price contracts.
TITLE II--ENCOURAGING SMALL BUSINESS INNOVATION IN ALL OF AMERICA
Sec. 201. Encouraging new SBIR and STTR entrants.
Sec. 202. Combating discriminatory practices in the SBIR and STTR
programs.
Sec. 203. Disclosures and prohibitions relating to certain agreements
with entities engaging in censorship.
Sec. 204. Connecting SBIR and STTR awardees and small business
investment companies.
Sec. 205. Agency outreach to rural communities.
TITLE III--STREAMLINING PARTICIPATION IN THE SBIR AND STTR PROGRAMS
Sec. 301. Amendments relating to open topics.
Sec. 302. Reducing administrative burden.
TITLE IV--PROTECTING AMERICAN INNOVATION FROM ADVERSARIAL INFLUENCE
Sec. 401. Definition of foreign risk.
Sec. 402. Bolstering research security of SBIR and STTR awards.
Sec. 403. Strengthening the due diligence program to assess security
risks.
Sec. 404. Strengthening agency recovery authority.
Sec. 405. Best practices on investor informational rights.
Sec. 406. GAO report.
TITLE V--SIMPLIFYING SBIR-STTR STANDARDS
Sec. 501. Improving direct to Phase II authorities.
Sec. 502. Improving SBIR and STTR data collection.
Sec. 503. Streamlining program administration.
Sec. 504. Extending SBIR and STTR authorization.
TITLE VI--MISCELLANEOUS
Sec. 601. Technical amendments.
Sec. 602. Repeals.
Sec. 603. Severability.
SEC. 2. DEFINITIONS.
In this Act, the terms ``Phase I'', ``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)).
TITLE I--PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES
SEC. 101. ENHANCING SMALL BUSINESS SUCCESS IN THE STTR PROGRAM.
Section 9 of the Small Business Act (15 U.S.C. 638 et seq.) is
amended--
(1) in subsection (e)(7)--
(A) by striking ``40'' and inserting ``50''; and
(B) by striking ``30'' and inserting ``20'';
(2) in subsection (f)(1)--
(A) in subparagraph (H), by striking ``and'' at the
end;
(B) in subparagraph (I), by striking ``and each
fiscal year thereafter,'' and inserting ``; and''; and
(C) by adding at the end the following:
``(J) not less than 3.45 percent of such budget in
fiscal year 2026 and every year thereafter,''; and
(3) in subsection (n)(1)(B)--
(A) in clause (iv), by striking ``and'' at the end;
(B) in clause (v), by striking ``and each fiscal
year thereafter.'' and inserting ``; and''; and
(C) by adding at the end the following:
``(vi) not less than 0.20 percent for
fiscal year 2026 and each fiscal year
thereafter.''.
SEC. 102. 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.--Participating
agencies with a budget for SBIR greater than $100,000,000 shall
not be required to receive a waiver from the Administrator to
award a small business concern not more than $30,000,000 when
using funds made available under a strategic breakthrough
allocation (as defined in subsection (ff)).''; and
(2) in subsection (ff)--
(A) in the subsection heading, by striking ``and
STTR'' and inserting ``Phase II'';
(B) in paragraph (1), by striking ``or Phase II
STTR award''; and
(C) by adding at the end the following new
paragraph:
``(3) Strategic breakthrough awards.--
``(A) Award.--Under this subparagraph, a funding
agreement may be awarded to a small business concern by
each participating agency using funds made available
under a strategic breakthrough allocation, as defined
in subparagraph (B).
``(B) Fund parameters.--
``(i) Strategic breakthrough allocation
defined.--In this subparagraph, the term
`strategic breakthrough allocation' means, with
respect to a participating agency with a
required expenditure under subsection (f)(1) in
excess of $100,000,000, a required expenditure
amount from the SBIR allocation under
subsection (f)(1) of such agency of not less
than 0.25 percent of the extramural budget for
research or research and development designated
for such agency for fiscal year 2026 and every
fiscal year thereafter.
``(ii) Requirements.--In the case of a
Phase II agreement that is awarded to a small
business concern by a participating agency
using funds made available under a strategic
breakthrough allocation, the following
requirements shall apply:
``(I) Award size and period of
performance.--A participating agency
may award from a strategic breakthrough
allocation not more than $30,000,000 in
aggregate to a small business concern,
including its affiliates, spinouts, or
subsidiaries based on reaching
production or development milestone 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--
``(aa) have been awarded
not less than 1 prior Phase II
award under the SBIR or STTR
program;
``(bb) demonstrate not less
than 100 percent matching funds
from sources other than the
Government or amounts awarded
by participating agencies under
a program other than Phase I
and II of the SBIR or STTR
program as a result of an award
using funds made available
under a strategic breakthrough
allocation;
``(cc) is an effective
solution, as determined by
market research; and
``(dd) only be eligible for
an award from the strategic
breakthrough allocation if the
product, process, or technology
of the small business concern--
``(AA) 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
executive officer or
higher in an
acquisition
organization of the
participating agency
making such award; and
``(BB) will meet
high priority
requirements or
operational needs of
such participating
agency through a
successful transition
and into the
acquisition process.
``(III) Deadline.--Each
participating 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--
``(aa) design for
manufacturing;
``(bb) establishing
manufacturing facilities,
tooling, and supply chain
capacity;
``(cc) buying raw materials
or inventory;
``(dd) the integration of
products with open
interoperability standards;
``(ee) testing, evaluation,
and certification of low-rate
production units; and
``(ff) the purchase of
production units and
maintenance.
``(V) Selection criteria.--In
making awards using funds made
available under a strategic
breakthrough allocation, a
participating agency shall consider--
``(aa) the potential of the
small business concern to--
``(AA) advance the
national security
capabilities of the
United States; and
``(BB) provide new
technologies or
processes, or new
applications of
existing technologies,
that will enable new
alternatives to
existing programs;
``(bb) whether a customer
in the participating agency has
expressed an intent to purchase
and integrate technology from
the small business concern into
its operations; and
``(cc) whether a particular
technology area is
undercapitalized by private
investment.
``(C) Acquisition mechanism.--A participating
agency shall establish a mechanism to provide small
business concerns with direct access to program and
requirements offices throughout the participating
agency that may purchase technology from small business
concerns under Phase III of the SBIR program.
``(D) Use of streamlined contracting mechanisms.--
Each participating 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
the following: ``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,'' 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) and redesignating paragraphs
(4), (5), and (6) as paragraphs (3), (4), and (5),
respectively; and
(3) in paragraph (5), as so redesignated--
(A) in the subparagraph heading, by striking ``and
sttr'';
(B) in subparagraph (A)--
(i) by inserting ``substantively'' before
``increase'';
(ii) by striking ``and the number of Phase
II STTR contracts''; and
(iii) by inserting ``in fiscal year 2028 as
compared to fiscal year 2025'' before the
semicolon at the end;
(C) in subparagraph (B), by striking ``and'' at the
end;
(D) by redesignating subparagraph (C) as
subparagraph (E);
(E) 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;
``(D) allow services to provide operational needs
statements directly to chiefs of requirements offices;
and''; and
(F) in subparagraph (E), as so redesignated, in
clause (i) by striking ``and STTR contracts''.
SEC. 103. IMPLEMENTATION BRIEFINGS.
Not later than 60 days after the date of enactment of this Act, and
on a recurrent basis until the implementation of paragraph (3) of
section 9(ff) of the Small Business Act (15 U.S.C. 638(ff)), as added
by section 102, is complete, the head of each agency participating in
the SBIR or STTR programs that made an award from funds made available
under a strategic breakthrough allocation (as defined under paragraph
(3)(B) of section 9(ff) of the Small Business Act (15 U.S.C. 638(ff),
as added by section 102)) shall brief the Committee on Small Business
and Entrepreneurship of the Senate and the