As a shutdown deadline approaches, a budget fight over DHS funding is colliding with the stalled SBIR program. This article examines the leading legislative options Congress could pursue to restart SBIR—and how each path could affect small businesses awaiting new awards.
WASHINGTON — January 14, 2026 — What has changed since our previous article focused on Senator Markey’s compromise draft is not the posture of negotiations — still serious, still incomplete — but the shape of the bargaining. On paper, it now looks less like one side talking past the other…
With SBIR and STTR authorization expired, Senator Markey’s compromise bill proposes stronger national security checks, commercialization mandates, and strategic grants—seeking bipartisan buy-in to restart America’s $4B small business research engine.
Congress’s latest spending package reshapes how agencies handle SBIR funds during reauthorization gaps—unlocking DOE flexibilities, preserving overhead recovery, and tightening oversight. Small businesses in R&D should prepare for new compliance norms.
The DOE confirmed a slight delay in releasing FY 2026 SBIR/STTR Phase I Release 1 topics, originally expected last week, now projected within one to two weeks. Budget shifts hint at possible changes.