Ernst’s Reforms to Put Small Businesses First Are Signed into Law

Summary

An April 13, 2026 release stating that President Donald J. Trump signed into law updates to the SBIR-STTR programs led by U.S. Senator Joni Ernst (R-Iowa), Chair of the U.S. Senate Committee on Small Business and Entrepreneurship. Ernst is quoted as saying the reforms put warfighters first and safeguard American technology against foreign interference. The release lists the changes, including an annual limit on applications at all SBIR offices, Strategic Breakthrough awards that require matching dollars and buy-in from the agency, and improved data collection and reporting.

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Title: Ernst’s Reforms to Put Small Businesses First Are Signed into Law
Date: 2026-04-13

Ernst’s Reforms to Put Small Businesses First Are Signed into Law

April 13, 2026

Read the release on Sen. Ernst's website HERE.

Necessary updates to SBIR-STTR give entrepreneurs the certainty needed to build and grow

WASHINGTON – Today, thanks to the leadership of U.S. Senator Joni Ernst (R-Iowa) to put small businesses first and safeguard our nation’s research and development dollars, President Donald J. Trump signed her updates to the SBIR-STTR programs into law.

“After years of work to put small businesses at the forefront of the SBIR-STTR programs, I am thrilled President Trump signed these long-overdue updates into law,” said Senator Ernst, Chair of the U.S. Senate Committee on Small Business and Entrepreneurship. “Due to these reforms, we are putting our warfighters first, safeguarding American technology against foreign interference, holding recipients accountable for producing cutting-edge technologies, and eliminating taxpayer-funded blank checks. I look forward to working with the Trump administration to empower the entrepreneurs who drive American innovation forward and the men and women in uniform who deserve the best possible capabilities. Now these dollars will go out the door with the proper protections, and America’s seed fund will serve truly small businesses.”

After exposing how these programs favored a few large companies over truly small businesses and failed to protect taxpayer-funded technologies from foreign influence, Ernst worked across the aisle and led her colleagues to change this unacceptable status quo by prioritizing small businesses and deterring malign foreign influence.

As a result, Ernst has now ushered these key updates into law:

Strengthening due diligence standards and closing loopholes to ensure awardees safeguard tech against Chinese espionage

Holding recipients accountable to producing cutting-edge technologies and capabilities for the warfighter

Requiring for the first time all SBIR offices to place an annual limit on applications to prioritize truly small businesses over large, entrenched companies that know how to game the system

Establishing the first-of-its-kind Strategic Breakthrough awards to enable agencies to scale the most promising technologies while ensuring businesses have skin in the game by requiring matching dollars and buy-in from the agency

Creating transparency of the use of tax dollars by improving data collection and reporting

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Permalink: https://www.sbc.senate.gov/public/index.cfm/2026/4/ernst-s-reforms-to-put-small-businesses-first-are-signed-into-law

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