Proposed 2025 SBIR Reauthorization Legislation
As of March 30, 2025, there are three proposed bills that have varying impacts on the SBIR/STTR program. Learn more about the bills below.
INNOVATE Act
Per the INNOVATE Act, the bill will better identify the best innovators nationwide by reforming Phase I, scaling technology to bridge the valley of death, eliminating SBIR Mills by requiring commercialization success and placing a cap on lifetime funding, and strengthening research security provisions.
Highlights
- Introduce Phase IA for smaller one-time $40k awards.
- After 25 Phase II awards, companies must have 1:1 ratio between SBIR & non-SBIR revenue.
- $75M lifetime maximum SBIR funding.
SBIR and STTR Reauthorization Act of 2025
As proposed in the RAMP Act, the bill will expand innovation opportunities by increasing agency R&D allocations, accelerating commercialization through Phase III reforms and new reporting requirements, extending Direct-to-Phase II authority and pilot programs, and enhancing research security by restricting awards to firms with foreign ties and requiring annual commercialization impact assessments.
Highlights
- More funding will be available as agencies increase budget allocations to 7% by 2032.
- More support through expanded outreach, proposal assistance, and resources for hiring and training.
- Increased support for Direct-to-Phase II access, Phase III guidance, and dedicated agency commercialization support.
Research Advancing to Market Production (RAMP) for Innovators Act
Per the RAMP Act, the bill will strengthen commercialization outcomes by requiring agencies to evaluate commercial potential during proposal review, expanding Direct-to-Phase II flexibility, assigning commercialization officials at each agency, increasing funding for technical assistance, and creating new patent and I-Corps support to help innovators successfully transition technologies to the market.
Highlights
- Proposal evaluations will consider commercialization likelihood, and at least one reviewer will have a commercialization background.
- All agencies will be able to offer Direct-to-Phase II awards.
- Companies with 50 or more Phase II awards will be included in yearly commercialization assessments, which track revenues, IP, spinouts, and Phase III funding.