S. 853 · In committee · Commerce

INNOVATE Act

What it does

Increases STTR program allocation from 40 percent to 50 percent for research partnerships with institutions, and decreases administrative portion from 30 percent to 20 percent.
Requires Department of Defense to allocate at least 0.25 percent of its extramural research and development budget to strategic breakthrough SBIR awards of up to $30 million per small business concern with up to 48 months performance period.
Directs Department of Defense and NASA to use STTR funds exclusively for research at technology readiness levels 1, 2, and 3.
Requires agencies to identify and analyze SBIR and STTR research programs within defense budget planning and provide Congress information on SBIR and STTR awardee integration in research and development budgets.
Extends authorization of SBIR and STTR programs and increases minimum budget allocations to 3.45 percent for SBIR and 0.20 percent for STTR in fiscal year 2026 and thereafter.

Jul 23, 2025: Committee on Small Business and Entrepreneurship. Hearings held.

Committee: Senate Small Business and Entrepreneurship