Tomeka B. Scales, Ph.D.
Director, Media Engagement & Communications
media@pscouncil.org

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PSC Urges Congress to Reauthorize SBIR and STTR Small Business Programs 

Arlington, Va. (January 26, 2026) -- On Friday, January 23, 2026, the Professional Services Council (PSC) joined other associations in a letter to congressional leaders regarding reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, whose authority expired on September 30, 2025. 
 
The SBIR and STTR programs provide much-needed funding to small businesses working to transform research and development into deployable technologies for defense, aerospace, and civilian missions. The programs are especially important for new entrants to the federal marketplace as they seek to scale emerging technologies. Along with the Aerospace Industries Association, Commercial Space Federation, National Defense Industrial Association and the U.S. Chamber of Commerce, PSC cautioned House Speaker Mike Johnson, House Democratic Leader Hakeem Jeffries, Senate Majority Leader John Thune, and Senate Democratic Leader Chuck Schumer that a continued lapse in SBIR and STTR authority would destabilize small businesses and disrupt innovation. 
 
“SBIR and STTR help small businesses turn promising research into cutting-edge solutions for government agencies, from the Department of War to civilian agencies,” said PSC CEO Jim Carroll. “Reauthorizing these programs will provide stability for innovators and guarantee the United States remains competitive in key technology areas in support of our nation’s economic and national security interests.” 
 
Due to the lapse in authority for fiscal year 2026, federal departments and agencies have rescinded awards and abandoned new solicitations, hindering technology development. Companies have reported the cancelation of millions of dollars in anticipated funding, with some warning that they may be forced to reduce staff or close operations if the programs are not reauthorized. 
 
“The loss of technological advances will degrade our nation’s ability to anticipate, detect, and counter future threats and to respond to the needs of the American people,” said PSC President Stephanie Sanok Kostro. “In addition, a continued lapse in SBIR and STTR authority will have consequences across the innovation ecosystem, as funding uncertainty forces small businesses to make difficult decisions about their workforce and future operations. Reauthorization is urgently needed to ensure businesses can continue to provide innovative solutions across the full range of federal missions.”

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About PSC
The Professional Services Council (PSC) is the leading trade association and advocate for the government contracting industry, representing more than 400 member companies—ranging in size from start-ups to multinational organizations. These companies support federal agencies with mission-focused services and solutions and collectively employ one million American workers throughout the United States and around the world, contributing trillions of dollars to the U.S. economy. Learn more at: www.pscouncil.org.