The Department of Homeland Security (DHS) has issued additional guidance clarifying how it can proceed with Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) awards while the federal government’s flagship innovation program remains unauthorized due to congressional inaction.
During the monthly industry association outreach calls, the Government Technology & Services Coalition requested DHS Office of the Chief Procurement Officer (OCPO) provide the Department’s position on the SBIR/STTR program, given the Department of War issued guidance that SBIR Phase III efforts may continue outside the pending Congressional reauthorization of the SBIR/STTR program. The DHS Industry Liaison today confirmed that Congressional authorization for the SBIR/STTR program is currently expired. As a result, DHS cannot issue new SBIR Phase I or Phase II solicitations or awards unless and until Congress reauthorizes the program.
However, SBIR Phase III follow-on work remains possible for companies that previously received a SBIR Phase I or Phase II award from a federal agency. This is because SBIR Phase III efforts are not funded with SBIR dollars and may proceed using non-SBIR funds and other available DHS contracting authorities, where the work is clearly derived from, extends, or completes prior SBIR research. This clarification follows previously issued guidance from December 2025.
The previous extension for the SBIR program’s statutory authority expired September 30, 2025. The House passed legislation in September 2025 to extend SBIR authorization through September 30, 2026, providing a temporary bridge. However, the Senate blocked the bill’s passage, and as of early 2026, no reauthorization has been enacted. Without congressional action, the 11 federal agencies that administer SBIR funding – including the Department of Defense, National Institutes of Health, Department of Energy, National Science Foundation, and NASA – are legally constrained from issuing new solicitations or making awards under the program.
The federal Small Business Innovation Research (SBIR) program is a U.S. government initiative that provides competitive, merit-based funding to small businesses to develop and commercialize innovative technologies that meet federal research and development needs. It was developed in the early 1980s to stimulate technological innovation, strengthen the role of small businesses in meeting national priorities, and increase the commercialization of federally funded research, while also encouraging participation from socially and economically disadvantaged businesses.
While existing grants continue under prior agreements, new opportunities have stalled. For small businesses that depend on SBIR’s non-dilutive funding to move technologies from concept to production and feed larger corporations and government programs, the pause represents a significant disruption to the innovation pipeline.