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Pentagon Overhauls Small-Business R&D Programs

April 25, 2026

President Donald Trump has signed legislation reauthorizing two of the federal government’s flagship small-business research programs, clearing the way for a major Pentagon push to speed new technologies from startups and universities to the battlefield.

The Small Business Innovation and Economic Security Act renews the Small Business Innovation Research Program and Small Business Technology Transfer Program, commonly known as SBIR and STTR. The programs channel research funding to American small businesses and academic institutions developing technologies with commercial and national-security applications.

The United States Department of Defense said it will immediately relaunch the programs under a redesigned structure intended to better align innovation spending with urgent military needs.

Defense officials said the revamped model will focus on three priorities: breakthrough technologies, products that can be scaled rapidly, and innovations that deliver direct operational advantages for U.S. forces.

Emil Michael said the reauthorization would allow the department to more quickly connect innovation dollars with pressing warfighting demands. He said small businesses will play an increasingly central role in preserving U.S. military advantages.

As part of the overhaul, the Pentagon also announced a new Accelerated Research for Transition, or ART, program. The initiative is designed to help promising SBIR and STTR projects move beyond development and into production, deployment and long-term sustainment through additional non-dilutive funding.

Joseph Jewell said the effort supports a broader drive to rebuild military readiness and deterrence through faster adoption of advanced technology.

For decades, SBIR and STTR have served as key pipelines for defense innovation, awarding billions of dollars to thousands of U.S. firms working on technologies ranging from software and semiconductors to aerospace and medical systems.

Officials said future investments under the renewed programs will be tied more directly to the Pentagon’s designated critical technology priorities.

Gina Sims said the reauthorization will help deliver critical technologies to troops while promoting responsible use of taxpayer funds and supporting American entrepreneurs.

The move comes as Washington seeks to strengthen the defense industrial base and accelerate the pace of innovation amid rising strategic competition with China and other rivals.

By DNU Staff

Filed Under: News

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