On October 1, 2025, the U.S. government entered a partial shutdown due to Congress not approving the fiscal year 2026 budget. This affects many programs, including the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.
What Are SBIR and STTR?
These programs support small businesses in developing new technologies and encourage collaboration with universities and research institutions. They are key drivers of innovation in sectors like defense, health, and energy (sbir.gov).
Effects of the Shutdown
- Funding delays: New grants and solicitations cannot be issued during the shutdown.
- Operational limitations: Agencies have reduced staff, which may slow payments and project oversight (ebhoward.com).
- Impact on innovation: Disruptions could delay technological progress.
Inspiralia’s Recommendation
For current grantees, it is crucial to stay on schedule and continue delivering reports, milestones, and project deliverables on time. Maintaining progress ensures readiness for when agencies resume full operations and funding.
The shutdown creates uncertainty for small business innovation. Prompt Congressional action is essential to reauthorize SBIR and STTR programs and maintain their critical role in fostering technological growth.