Bill · S. 853· Senate(119-S-853)
INNOVATE Act
- Introduced
- 3/5/2025
- Last activity
- 7/23/2025 — Committee on Small Business and Entrepreneurship. Hearings held.
- Sponsored by
- Joni Ernst
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The INNOVATE Act seeks to improve the SBIR and STTR programs under the Small Business Act. It introduces strategic breakthrough funding specifically for the Department of Defense to support high-priority technology transitions. The bill establishes a new Phase 1A program designed to increase accessibility for new entrants through shorter, smaller proposals. It also implements stricter research security and due diligence to protect against foreign risk and adversarial influence. Additionally, the legislation aims to streamline program administration and simplify commercialization standards.
Yes· 3 of 9
Does this make it easier to run a small business?+7
The bill increases accessibility through Phase 1A awards and provides large strategic breakthrough allocations for the DoD.
Does this put more money into scientific research?+6
The bill expands the scope and availability of SBIR and STTR funding for research and development.
Would business owners be better off under this?+6
The bill creates new funding pathways and reduces administrative burdens for small business owners.
The opposite· 3 of 6
Does this narrow racial gaps in how people are treated?-5
The bill explicitly prohibits the consideration of race, gender, or ethnicity in SBIR and STTR award decisions.
Would Black Americans be better off under this?-4
The bill removes the ability to consider race or ethnicity in the awarding of SBIR and STTR funds.
Would Hispanic Americans be better off under this?-4
The bill removes the ability to consider race or ethnicity in the awarding of SBIR and STTR funds.
Who it would affect, and how
Potential Positive Impacts for People
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Increased Funding for Strategic Breakthroughs: The Department of Defense can award up to $30,000,000 to help small businesses with high-priority military requirements move into the acquisition process (Section 102).
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Improved Accessibility for New Entrants: A new Phase 1A program provides awards of up to $40,000 to encourage new small business concerns to enter the SBIR program with simplified two-page proposals (Section 201).
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Enhanced Support for Specific Research: The STTR program is directed to fund research that benefits most from partnerships with eligible research institutions (Section 101).
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Protection of Intellectual Property: The bill directs the development of best practices to protect the proprietary technology and intellectual property of small businesses from being shared unintentionally with foreign entities (Section 405).
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Increased Support for High-Priority Research: The Department of Defense and NASA are directed to use STTR budgets to fund research at specific technology readiness levels (Section 101).
Potential Negative Impacts for People
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Increased Restrictions on Foreign Research and Intellectual Property: Small business concerns face stricter rules regarding the sale or lease of intellectual property to foreign entities or individuals not from NATO or major non-NATO allies (Section 404).
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Higher Burdens for Small Businesses Meeting Performance Standards: Small businesses that fail to meet specific commercialization ratios regarding annual receipts from outside sources may be prohibited from participating in Phase I or receiving further awards (Section 501).
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Strict Limits on Participation: There are new limitations on the number of proposals a small business concern may submit to a single solicitation or agency in a single year (Section 302).
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Enhanced Security Due Diligence: Agencies are required to evaluate if a small business concern presents a risk to national security through a due diligence process (Section 402).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+7Increases Job Creation+5
- Education And Technology
- Increases Scientific Research Funding+6
- Demographic And Interest Groups
- Good For Business Owners+6Good For Rural Residents+5Good For Men+2Good For White Americans+2Good For African Americans-4Good For Asian Americans-4Good For Hispanic Americans-4Good For Native Americans-4Good For Women-4
- Social Issues And Justice
- Improves Racial Equity-5
- National Security And Foreign Policy
- Improves Cybersecurity Defense+4
- Governance And Ideology
- Improves Government Transparency+3
- 7/23/2025
- Committee on Small Business and Entrepreneurship. Hearings held.
- 3/5/2025
- Read twice and referred to the Committee on Small Business and Entrepreneurship.
- Committee on Small Business and Entrepreneurship. Hearings held.
- Introduced in Senate