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This week, Congress reached an agreement on the FY 2022 defense authorization bill (i.e. “NDAA”). The legislation includes support for expanding the Defense Innovation Unit’s (DIU) reach, research at minority-serving institutions, and commercialization pilots, as well as a $7 billion increase in research funding. While the NDAA does not provide appropriations, the bill is a strong signal for where the FY 2022 appropriations are likely to land.

On Tuesday, the Senate passed a bill to extend the SBIR, STTR and related pilot programs through Sept. 30, 2025. The House is expected to act on the legislation next week, just ahead of the current expiration at the end of this month.

The federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, providing nearly $4 billion in technology research and development funding, expire — in just six weeks — on Sept. 30. Unlike many federal programs that regularly operate beyond the end of their authorization, there is no direct SBIR appropriation that will ensure the program continues as-is without congressional action. Instead, SBIR would be on an agency-by-agency basis.

Alabama is the latest state that is embracing innovation as a way to grow the state’s economy. On May 19, Alabama Gov. Kay Ivey signed legislation that grew from two top priority measures of the Alabama Innovation Commission — proposals discussed between SSTI and commission members in a meeting earlier this year.

The U.S. House this week passed H.R. 2763, which would amend the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs in several significant ways. Most notably, the bill would extend by five years the “assistance for administrative… costs,” which is used for outreach initiatives and some business and market assistance initiatives across agencies.