II 119THCONGRESS 1 STSESSION S. 853 To improve the SBIR and STTR programs under the Small Business Act, and for other purposes. IN THE SENATE OF THE UNITED STATES MARCH5, 2025 Ms. E RNSTintroduced the following bill; which was read twice and referred to the Committee on Small Business and Entrepreneurship A BILL To improve the SBIR and STTR programs under the Small Business Act, and for other purposes. Be it enacted by the Senate and House of Representa-1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) S HORTTITLE.—This Act may be cited as the 4 ‘‘Investing in National Next-Generation Opportunities for 5 Venture Acceleration and Technological Excellence’’ or the 6 ‘‘INNOVATE Act’’. 7 (b) T ABLE OFCONTENTS.—The table of contents for 8 this Act is as follows: 9 Sec. 1. Short title; table of contents. Sec. 2. Definitions. VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 2 •S 853 IS TITLE I—PROMOTING TRANSITION FOR BATTLE-READY TECHNOLOGIES Sec. 101. Enhancing small business success in the STTR program. Sec. 102. Phase II strategic breakthrough funding. Sec. 103. Implementation briefings. Sec. 104. Fixed-price contracts. TITLE II—ENCOURAGING SMALL BUSINESS INNOVATION IN ALL OF AMERICA Sec. 201. Encouraging new SBIR and STTR entrants. Sec. 202. Combating discriminatory practices in the SBIR and STTR pro- grams. TITLE III—STREAMLINING PARTICIPATION IN THE SBIR AND STTR PROGRAMS Sec. 301. Definition of open topics. Sec. 302. Reducing administrative burden. TITLE IV—PROTECTING AMERICAN INNOVATION FROM ADVERSARIAL INFLUENCE Sec. 401. Definition of foreign risk. Sec. 402. Bolstering research security of SBIR and STTR awards. Sec. 403. Strengthening the due diligence program to assess security risks. Sec. 404. Strengthening agency recovery authority. Sec. 405. Best practices on investor informational rights. Sec. 406. GAO report. TITLE V—SIMPLIFYING SBIR-STTR COMMERCIALIZATION STANDARDS Sec. 501. Streamlining transition and commercialization rate benchmarks. Sec. 502. Improving direct to Phase II authorities. Sec. 503. Improving SBIR-STTR data collection. Sec. 504. Streamlining program administration. Sec. 505. Extending SBIR and STTR authorization. SEC. 2. DEFINITIONS. 1 In this Act, the terms ‘‘Phase I’’, ‘‘Phase II’’, ‘‘Phase 2 III’’, ‘‘SBIR’’, and ‘‘STTR’’ have the meanings given 3 those terms in section 9(e) of the Small Business Act (15 4 U.S.C. 638(e)). 5 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 3 •S 853 IS TITLE I—PROMOTING TRANSI-1 TION FOR BATTLE-READY 2 TECHNOLOGIES 3 SEC. 101. ENHANCING SMALL BUSINESS SUCCESS IN THE 4 STTR PROGRAM. 5 Section 9 of the Small Business Act (15 U.S.C. 638 6 et seq.) is amended— 7 (1) in subsection (e)— 8 (A) in paragraph (6)— 9 (i) in subparagraph (A), by adding 10 ‘‘and’’ at the end; and 11 (ii) by striking subparagraphs (B) and 12 (C) and inserting the following: 13 ‘‘(B) opportunities for follow-on funding in 14 Phases II and III of the SBIR program;’’; and 15 (B) in paragraph (7)— 16 (i) by striking ‘‘40’’ and inserting 17 ‘‘50’’; and 18 (ii) by striking ‘‘30’’ and inserting 19 ‘‘20’’; 20 (2) in subsection (f)(1)— 21 (A) in subparagraph (H), by striking 22 ‘‘and’’ at the end; 23 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 4 •S 853 IS (B) in subparagraph (I), by striking ‘‘and 1 each fiscal year thereafter,’’ and inserting ‘‘; 2 and’’; and 3 (C) by adding at the end the following: 4 ‘‘(J) not less than 3.45 percent of such 5 budget in fiscal year 2026 and every year there-6 after,’’; and 7 (3) in subsection (n)— 8 (A) in paragraph (1)(B)— 9 (i) in clause (iv), by striking ‘‘and’’ at 10 the end; 11 (ii) in clause (v), by striking ‘‘and 12 each fiscal year thereafter.’’ and inserting 13 ‘‘; and’’; and 14 (iii) by adding at the end the fol-15 lowing: 16 ‘‘(vi) not less than 0.20 percent for 17 fiscal year 2026 and each fiscal year there-18 after.’’; 19 (B) by redesignating paragraphs (2) and 20 (3) as paragraphs (3) and (4), respectively; and 21 (C) by inserting after paragraph (1) the 22 following: 23 ‘‘(2) P URPOSE OF STTR PROGRAM .— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 5 •S 853 IS ‘‘(A) IN GENERAL.—Each Federal agency 1 shall use its STTR budget to fund small busi-2 ness concerns conducting fundamental, basic, or 3 other scientific research that stands to benefit 4 most from partnerships with eligible research 5 institutions. 6 ‘‘(B) D OD AND NASA.—The Department 7 of Defense and the National Aeronautics and 8 Space Administration shall use their STTR 9 budget to solely fund research at technology 10 readiness levels 1, 2, and 3.’’. 11 SEC. 102. PHASE II STRATEGIC BREAKTHROUGH FUNDING. 12 (a) I NGENERAL.—Section 9 of the Small Business 13 Act (15 U.S.C. 638), as amended by this Act, is amend-14 ed— 15 (1) by redesignating subsection (y) as para-16 graph (3), adjusting the margins accordingly, and 17 moving it so as to appear in subsection (ff) after 18 paragraph (2); 19 (2) in subsection (aa), by adding at the end the 20 following: 21 ‘‘(6) S TRATEGIC BREAKTHROUGH ALLOCA -22 TION.—The Department of Defense or its compo-23 nents shall not be required to receive a waiver from 24 the Administrator to award a small business concern 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 6 •S 853 IS not more than $30,000,000 when using funds made 1 available under a strategic breakthrough alloca-2 tion.’’; 3 (3) in subsection (ff)— 4 (A) in the subsection heading, by striking 5 ‘‘ ANDSTTR’’ and inserting ‘‘PHASEII’’; 6 (B) in paragraph (1), by striking ‘‘or 7 Phase II STTR award’’; and 8 (C) in paragraph (3), as so redesignated— 9 (i) in the paragraph heading, by strik-10 ing ‘‘C OMMERCIALIZATION READINESS 11 PROGRAM’’ and inserting ‘‘STRATEGIC 12 BREAKTHROUGH AWARDS ’’; 13 (ii) in subparagraph (A), as so redes-14 ignated— 15 (I) in the first sentence, by strik-16 ing ‘‘create and administer a ‘Com-17 mercialization Readiness Program’’’ 18 and inserting ‘‘provide funding’’; and 19 (II) in the second sentence, by 20 striking ‘‘create and administer a 21 Commercialization Program under 22 this subsection’’ and inserting ‘‘pro-23 vide funding under this paragraph’’; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 7 •S 853 IS (iii) in subparagraph (B), as so redes-1 ignated— 2 (I) in the first sentence, by strik-3 ing ‘‘In carrying out the Commer-4 cialization Readiness Program’’ and 5 inserting the following: 6 ‘‘(i) I N GENERAL.—In carrying out 7 this paragraph’’; 8 (II) in clause (i), as so des-9 ignated— 10 (aa) by striking ‘‘shall iden-11 tify’’ and inserting ‘‘shall— 12 ‘‘(I) identify’’; 13 (bb) in subclause (I), as so 14 designated, by striking the period 15 at the end and inserting a semi-16 colon; and 17 (cc) by adding at the end 18 the following: 19 ‘‘(II) ensure, in collaboration 20 with SBIR program managers of each 21 component of the Department of De-22 fense, that research programs identi-23 fied under subclause (I) are analyzed 24 within the programming and budg-25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 8 •S 853 IS eting process as budget requests are 1 developed; and 2 ‘‘(III) provide to the Committee 3 on Small Business and Entrepreneur-4 ship of the Senate and the Commit-5 tees on Small Business and Science, 6 Space, and Technology of the House 7 of Representatives information on the 8 integration of SBIR and STTR 9 awardees in budget rollouts for re-10 search, development, testing, and eval-11 uation activities.’’; and 12 (III) by adding at the end the 13 following: 14 ‘‘(ii) A WARD.—Under this paragraph, 15 a funding agreement may be awarded to a 16 small business concern by the Department 17 of Defense using funds made available 18 under a strategic breakthrough allocation, 19 as defined in subparagraph (C)(i).’’; 20 (iv) by striking subparagraphs (C), 21 (D), and (E), as so redesignated, and in-22 serting the following: 23 ‘‘(C) F UNDING PARAMETERS .— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 9 •S 853 IS ‘‘(i) DEFINITION.—In this subpara-1 graph, the term ‘strategic breakthrough al-2 location’ means a required expenditure 3 amount for the Department of Defense 4 within the SBIR allocation under sub-5 section (f)(1) for fiscal year 2026 and 6 every fiscal year thereafter of not less than 7 0.25 percent of the extramural budget for 8 research or research and development des-9 ignated for the Department of Defense. 10 ‘‘(ii) R EQUIREMENTS.—In the case of 11 a Phase II agreement that is awarded to a 12 small business concern by the Department 13 of Defense using funds made available 14 under a strategic breakthrough allocation, 15 the following requirements shall apply: 16 ‘‘(I) A WARD SIZE AND PERIOD 17 OF PERFORMANCE .—The Department 18 of Defense may award not more than 19 1 award of not more than 20 $30,000,000 per small business con-21 cern, including its affiliates, spinouts, 22 or subsidiaries, from the strategic 23 breakthrough allocation with a period 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 10 •S 853 IS of performance of not more than 48 1 months. 2 ‘‘(II) S MALL BUSINESS CONCERN 3 REQUIREMENTS.—The small business 4 concern shall— 5 ‘‘(aa) have been awarded not 6 less than 1 prior Phase II award 7 under the SBIR program; 8 ‘‘(bb) demonstrate not less 9 than 100 percent matching funds 10 through new outside capital or 11 amounts awarded by the Depart-12 ment of Defense under a pro-13 gram other than Phase I and II 14 of the SBIR or STTR program 15 as a result of an award using 16 funds made available under a 17 strategic breakthrough allocation; 18 ‘‘(cc) have been awarded not 19 more than $50,000,000 in cumu-20 lative Department of Defense 21 contracts or awards; and 22 ‘‘(dd) only be eligible for an 23 award from the strategic break-24 through allocation if the product, 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 11 •S 853 IS process, or technology of the 1 small business concern— 2 ‘‘(AA) meets a nec-3 essary level of readiness and 4 has a commitment for inclu-5 sion in a program objective 6 memorandum from an offi-7 cial with the rank of pro-8 gram executive officer or 9 higher in an acquisition or-10 ganization of the Depart-11 ment of Defense; 12 ‘‘(BB) is an effective 13 solution, as determined by 14 market research; and 15 ‘‘(CC) will meet high 16 priority military require-17 ments or operational needs 18 of a military department 19 through a successful transi-20 tion and into the acquisition 21 process. 22 ‘‘(III) D EADLINE.—The Depart-23 ment of Defense shall complete any 24 contract awards using strategic break-25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 12 •S 853 IS through allocation funds not later 1 than 90 days after receiving a pro-2 posal from a small business concern 3 for the award. 4 ‘‘(IV) E LIGIBLE ACTIVITIES.— 5 Eligible activities by a small business 6 concern using strategic breakthrough 7 allocation funds are— 8 ‘‘(aa) design for manufac-9 turing; 10 ‘‘(bb) establishing manufac-11 turing facilities, tooling, and sup-12 ply chain capacity; 13 ‘‘(cc) buying raw materials 14 or inventory; 15 ‘‘(dd) the integration of 16 products with open interoper-17 ability standards; 18 ‘‘(ee) testing, evaluation, 19 and certification of low-rate pro-20 duction units; and 21 ‘‘(ff) the purchase of pro-22 duction units and maintenance. 23 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 13 •S 853 IS ‘‘(V) SELECTION CRITERIA.—In 1 making awards, the Department of 2 Defense shall consider— 3 ‘‘(aa) the potential of the 4 small business concern to— 5 ‘‘(AA) advance the na-6 tional security capabilities of 7 the United States; 8 ‘‘(BB) provide new 9 technologies or processes, or 10 new applications of existing 11 technologies, that will enable 12 new alternatives to existing 13 programs; 14 ‘‘(CC) provide future 15 cost savings; and 16 ‘‘(DD) enhance the 17 lethality and efficiency of 18 the United States military; 19 ‘‘(bb) whether a major sys-20 tem or customer in the Depart-21 ment of Defense has expressed 22 intent to purchase and integrate 23 technology from the small busi-24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 14 •S 853 IS ness concern into its operations; 1 and 2 ‘‘(cc) such other criteria that 3 the Department of Defense deter-4 mines to be appropriate. 5 ‘‘(D) A CQUISITION MECHANISM .—The De-6 partment of Defense shall establish a mecha-7 nism, such as a major system, to provide small 8 business concerns with direct access to program 9 and requirements offices throughout the De-10 partment of Defense that may purchase tech-11 nology from small business concerns under 12 Phase III of the SBIR program of the Depart-13 ment of Defense. 14 ‘‘(E) O PERATIONAL NEEDS .—The Depart-15 ment of Defense shall allow services to provide 16 operational needs statements directly to chiefs 17 of requirements offices.’’; and 18 (v) in subparagraph (F), as so redes-19 ignated— 20 (I) by amending clause (i) to 21 read as follows: 22 ‘‘(i) set a goal to substantively in-23 crease the number of Phase II SBIR con-24 tracts awarded by the Secretary that lead 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 15 •S 853 IS to technology transition into programs of 1 record or fielded systems in fiscal year 2 2028 compared to fiscal year 2025; and’’; 3 (II) by striking clause (ii); 4 (III) by redesignating clause (iii) 5 as clause (ii); and 6 (IV) in clause (ii), as so redesig-7 nated— 8 (aa) in subclause (I), by 9 adding ‘‘and’’ at the end; 10 (bb) in subclause (II)— 11 (AA) by striking 12 ‘‘through the Commer-13 cialization Readiness Pro-14 gram’’ and inserting ‘‘under 15 a strategic breakthrough al-16 location’’; and 17 (BB) by striking ‘‘; 18 and’’ and inserting a period; 19 and 20 (cc) by striking subclause 21 (III); and 22 (4) by redesignating subsection (xx), entitled 23 ‘‘Additional Provisions Relating to Solicitation Top-24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 16 •S 853 IS ics’’, as subsection (y), and moving it so as to ap-1 pear after subsection (x). 2 (b) T ECHNICAL ANDCONFORMINGAMENDMENTS.— 3 Section 9 of the Small Business Act (15 U.S.C. 638), as 4 amended by this Act, is amended— 5 (1) in subsection (i)(1), by striking ‘‘subsection 6 (y)’’ and inserting ‘‘subsection (ff)(3)’’; 7 (2) in subsection (mm)(1)(D), by striking ‘‘sub-8 section (y)’’ and inserting ‘‘subsection (ff)(3)’’; and 9 (3) in subsection (tt), by striking ‘‘(y)(6)(C)’’ 10 and inserting ‘‘(ff)(3)(F)(ii)’’. 11 SEC. 103. IMPLEMENTATION BRIEFINGS. 12 Not later than 60 days after the date of enactment 13 of this Act, and on a recurrent basis until implementation 14 is complete, the Secretary of Defense shall brief the Com-15 mittee on Small Business and Entrepreneurship of the 16 Senate and the Committee on Small Business and the 17 Committee on Science, Space, and Technology of the 18 House of Representatives on the implementation of para-19 graph (3) of section 9(ff) of the Small Business Act (15 20 U.S.C. 638(ff)), as added by section 102. 21 SEC. 104. FIXED-PRICE CONTRACTS. 22 Section 9 of the Small Business Act (15 U.S.C. 638) 23 is amended— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 17 •S 853 IS (1) in subsection (f), by adding at the end the 1 following: 2 ‘‘(5) F IXED-PRICE CONTRACT.—Any funding 3 agreement that is a contract made with expenditures 4 allocated to the SBIR program under paragraph (1) 5 shall be a firm-fixed-price contract (as defined in 6 section 16.202 of the Federal Acquisition Regula-7 tion), unless, on a case-by-case basis, the head of the 8 awarding Federal agency makes a written deter-9 mination to utilize a different contract structure.’’; 10 and 11 (2) in subsection (n), as amended by section 12 101, by adding at the end the following: 13 ‘‘(5) F IXED-PRICE CONTRACT.—Any funding 14 agreement that is a contract made with expenditures 15 allocated to the STTR program under paragraph (1) 16 shall be a firm-fixed-price contract (as defined in 17 section 16.202 of the Federal Acquisition Regula-18 tion), unless the head of the awarding Federal agen-19 cy makes a written determination to utilize a dif-20 ferent contract structure.’’. 21 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 18 •S 853 IS TITLE II—ENCOURAGING SMALL 1 BUSINESS INNOVATION IN 2 ALL OF AMERICA 3 SEC. 201. ENCOURAGING NEW SBIR AND STTR ENTRANTS. 4 (a) I NGENERAL.— 5 (1) E NCOURAGING NEW SBIR AND STTR EN -6 TRANTS.—Section 9(jj) of the Small Business Act 7 (15 U.S.C. 638(jj)) is amended to read as follows: 8 ‘‘(jj) E NCOURAGINGNEWSBIR ANDSTTR EN-9 TRANTS.— 10 ‘‘(1) O PTIMIZING SBIR AND STTR FUNDING .—A 11 small business concern, including its affiliates, spin-12 outs, or subsidiaries, may not apply to a Phase I or 13 Phase II solicitation under an SBIR or STTR pro-14 gram if the small business concern, including its af-15 filiates, spinouts, or subsidiaries, has previously re-16 ceived over $75,000,000 in funding from SBIR or 17 STTR Phase I and Phase II awards. 18 ‘‘(2) P RIMARY INVESTIGATORS .—An individual 19 may not concurrently serve as the primary investi-20 gator on more than 1 proposal to a single Phase I 21 solicitation or a single Phase II solicitation. 22 ‘‘(3) P HASE I SIZE STANDARD .—A small busi-23 ness concern applying for a Phase I award may not 24 have annual receipts (as defined in section 121.104 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 19 •S 853 IS of title 13, Code of Federal Regulations, or any suc-1 cessor regulation) of more than $40,000,000 for the 2 most recent fiscal year.’’. 3 (2) C ONFORMING AMENDMENT .—Section 4 9(tt)(1)(A) of the Small Business Act (15 U.S.C. 5 638(tt)(1)(A)) by striking ‘‘, (jj)(6)’’. 6 (b) P HASE1A PROGRAM.—Section 9 of the Small 7 Business Act (15 U.S.C. 638), as amended by this Act, 8 is amended— 9 (1) in subsection (e)(4)— 10 (A) in subparagraph (A), by striking ‘‘sub-11 paragraph (B)’’ and inserting ‘‘subparagraph 12 (C)’’; 13 (B) by redesignating subparagraphs (B) 14 and (C) as subparagraphs (C) and (D); and 15 (C) by inserting after subparagraph (A), 16 the following: 17 ‘‘(B) a 1A phase for the same purposes as 18 the first phase described under subparagraph 19 (A) and intended to increase accessibility to the 20 program for new entrants, with proposals sub-21 mitted pursuant to only SBIR open topic an-22 nouncements;’’; and 23 (2) by amending subsection (pp) to read as fol-24 lows: 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 20 •S 853 IS ‘‘(pp) PHASE1A AWARDS.— 1 ‘‘(1) S ENSE OF CONGRESS .—It is the sense of 2 Congress that— 3 ‘‘(A) Phase 1A funds will bring thousands 4 of new small business concerns committed to 5 commercialization of critical technologies into 6 the SBIR program; and 7 ‘‘(B) in order for participating agencies to 8 benefit from the full scope of American innova-9 tion and identify the most promising solutions 10 to scale, Phase 1A awards should fund the 11 strongest technologies in a topic area regardless 12 of— 13 ‘‘(i) the location of the small business 14 concern within the United States; or 15 ‘‘(ii) the educational background of 16 the principal investigator. 17 ‘‘(2) A UTHORIZATION.—The head of each agen-18 cy with an SBIR program shall allocate not less 19 than 2.5 percent of funding for the SBIR program 20 of the agency to Phase 1A awards. 21 ‘‘(3) S OLICITATION.—A solicitation issued 22 under this subsection shall be conducted as an open 23 topic announcement, as defined in subsection (e). 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 21 •S 853 IS ‘‘(4) ELIGIBILITY.—In order to be eligible for 1 an award under this subsection, a small business 2 concern, including its affiliates, spinouts, or subsidi-3 aries, shall not have previously received an SBIR or 4 STTR award. 5 ‘‘(5) P ROPOSAL.— 6 ‘‘(A) I N GENERAL.—A proposal submitted 7 in response to a solicitation under this sub-8 section shall consist of a report of no more than 9 2 pages in length and shall contain the criteria 10 described in subparagraph (B). 11 ‘‘(B) C RITERIA.— 12 ‘‘(i) I DENTIFICATION OF PROBLEM .— 13 The small business concern shall describe 14 the problem that the proposal is intended 15 to address for the awarding agency and 16 any commercial customer. 17 ‘‘(ii) D ESCRIPTION OF SOLUTION .— 18 The small business concern shall describe 19 the proposed solution, including the tech-20 nical basis for the solution to demonstrate 21 how the solution would address the prob-22 lem described in the proposal, including 23 the level of maturity of the solution at the 24 time of the proposal. 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 22 •S 853 IS ‘‘(iii) IMPACT OF THE SOLUTION .— 1 The small business concern shall describe 2 how adoption of the proposed solution 3 would produce potential time savings, cost 4 savings, risk reduction, improvement of 5 mission outcomes, or any other beneficial 6 impact for the awarding agency and any 7 commercial customer. 8 ‘‘(iv) D IFFERENTIATION.—The small 9 business concern shall— 10 ‘‘(I) identify the state of solu-11 tions in use at the time of the pro-12 posal to address the problem de-13 scribed in the proposal; and 14 ‘‘(II) explain how the proposed 15 solution is a unique and novel solu-16 tion. 17 ‘‘(v) C OMMERCIALIZATION STRAT -18 EGY.—The small business concern shall— 19 ‘‘(I) describe how the small busi-20 ness concern intends to fund the pro-21 posed solution; and 22 ‘‘(II) explain the market for the 23 proposed solution, including the in-24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 23 •S 853 IS tended Government and commercial 1 end users. 2 ‘‘(6) A WARD LIMITS.— 3 ‘‘(A) N UMBER OF AWARDS .—A small busi-4 ness concern or principal investigator is eligible 5 for not more than 1 Phase 1A award. 6 ‘‘(B) A MOUNT.—An award made under 7 this subsection shall be for not more than 8 $40,000. 9 ‘‘(7) N OTIFICATION OF SELECTION OR NON -SE-10 LECTION.—Each agency shall notify each small busi-11 ness concern of the award decision of the agency on 12 any proposal submitted by the small business con-13 cern not later than 90 days after the date on which 14 the solicitation closes. 15 ‘‘(8) A PPLICATION FOR PHASE II AWARD .— 16 ‘‘(A) E LIGIBILITY.—A small business con-17 cern that receives a Phase 1A award shall be el-18 igible to apply for a Phase II award. 19 ‘‘(B) U SE OF FUNDS.—A small business 20 concern may use funds from a Phase 1A award 21 to develop a proposed solution in pursuit of a 22 subsequent proposal for a Phase I award or a 23 Phase II award.’’. 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 24 •S 853 IS SEC. 202. COMBATING DISCRIMINATORY PRACTICES IN 1 THE SBIR AND STTR PROGRAMS. 2 Section 9 of the Small Business Act (15 U.S.C. 638), 3 as amended by this Act, is amended— 4 (1) in subsection (b)(7)(C), by striking ‘‘owned 5 and controlled by women or by socially and economi-6 cally disadvantaged individuals’’ and inserting 7 ‘‘owned by individuals who reside in emerging States 8 or rural areas’’; 9 (2) in subsection (e)— 10 (A) in paragraph (18), by striking ‘‘and’’ 11 at the end; 12 (B) in paragraph (19), by striking the pe-13 riod at the end and inserting a semicolon; and 14 (C) by adding at the end the following: 15 ‘‘(20) the term ‘emerging State’ means the 25 16 States with the fewest combined number of award 17 recipients in the SBIR program and the STTR pro-18 gram that have received their first Phase I award in 19 the previous 10 fiscal years; 20 ‘‘(21) the term ‘rural area’ means a county or 21 other political subdivision of a State that the Bureau 22 of the Census has defined as mostly rural or com-23 pletely rural in the most recent decennial census;’’; 24 (3) in subsection (g)(8)(A)— 25 (A) by striking clause (iii); 26 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 25 •S 853 IS (B) by redesignating clauses (iv), (v), and 1 (vi) as clauses (iii), (iv), and (v), respectively; 2 and 3 (C) in clause (iii), as so redesignated, by 4 striking ‘‘a socially or economically disadvan-5 taged individual or has a socially or economi-6 cally disadvantaged individual’’ and inserting 7 ‘‘an individual who resides in an emerging State 8 or rural area or has an individual who resides 9 in an emerging State or rural area’’; 10 (4) in subsection (j)— 11 (A) by adjusting the margins for para-12 graphs (2) and (3) 2 ems to the left; and 13 (B) in paragraph (2)— 14 (i) by striking subparagraph (F); 15 (ii) by redesignating subparagraphs 16 (G), (H), and (I) as subparagraphs (F), 17 (G), and (H); and 18 (iii) in subparagraph (H), as so redes-19 ignated, by striking ‘‘subparagraph (H)’’ 20 and inserting ‘‘subparagraph (G)’’; 21 (5) in subsection (k)(1)(F)— 22 (A) by striking clause (ii); 23 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 26 •S 853 IS (B) by redesignating clauses (iii), (iv), and 1 (v) as clauses (ii), (iii), and (iv), respectively; 2 and 3 (C) in clause (ii), as so redesignated, by 4 striking ‘‘a socially or economically disadvan-5 taged individual or has a socially or economi-6 cally disadvantaged individual’’ and inserting 7 ‘‘an individual who resides in an emerging State 8 or rural area or has an individual who resides 9 in an emerging State or rural area’’; 10 (6) in subsection (o)(9)(A)— 11 (A) by striking clause (iii); 12 (B) by redesignating clauses (iv), (v), and 13 (vi) as clauses (iii), (iv), and (v), respectively; 14 and 15 (C) in clause (iii), as so redesignated, by 16 striking ‘‘a socially or economically disadvan-17 taged individual or has a socially or economi-18 cally disadvantaged individual’’ and inserting 19 ‘‘an individual who resides in an emerging State 20 or rural area or has an individual who resides 21 in an emerging State or rural area’’; and 22 (7) in subsection (mm)— 23 (A) in paragraph (1)— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 27 •S 853 IS (i) in the matter preceding subpara-1 graph (A), by striking ‘‘and until Sep-2 tember 30, 2025’’; and 3 (ii) in subparagraph (F), by striking 4 ‘‘or abuse to ensure compliance’’ and in-5 serting ‘‘abuse, or adversarial influence to 6 ensure compliance’’; 7 (B) in paragraph (2)(A), by striking ‘‘to 8 carry out the policy directive required under 9 subsection (j)(2)(F) and’’ and inserting ‘‘to in-10 crease the participation of States with respect 11 to which a low level of SBIR awards have his-12 torically been awarded’’; and 13 (C) by adding at the end the following: 14 ‘‘(7) E LIGIBILITY.—For an agency to be eligi-15 ble to utilize funds allocated to the SBIR program 16 of that Federal agency under this subsection, the 17 agency shall not— 18 ‘‘(A) consider the race, gender, or ethnicity 19 of the principal investigator, founder, or key 20 personnel of the small business concern apply-21 ing for an SBIR or STTR award in an award 22 decision under the SBIR or STTR program of 23 the agency; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 28 •S 853 IS ‘‘(B) require or consider a statement or 1 plan to promote diversity or equity as part of 2 an application for an SBIR or STTR award 3 under the SBIR or STTR program of the agen-4 cy; or 5 ‘‘(C) offer supplemental funds to a recipi-6 ent of an SBIR or STTR award based on the 7 race, gender, or ethnicity of the principal inves-8 tigator, founder, or key personnel of a small 9 business concern.’’. 10 TITLE III—STREAMLINING PAR-11 TICIPATION IN THE SBIR AND 12 STTR PROGRAMS 13 SEC. 301. DEFINITION OF OPEN TOPICS. 14 Section 9(e) of the Small Business Act (15 U.S.C. 15 638(e)), as amended by section 202(2), is amended by 16 adding at the end the following: 17 ‘‘(22) the term ‘open topic announcement’ 18 means a solicitation for SBIR or STTR proposals 19 that— 20 ‘‘(A) is a generalized problem statement or 21 broad technology area and does not contain any 22 language requiring that the solutions that a 23 small business concern proposes adhere to spe-24 cific technological specifications; and 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 29 •S 853 IS ‘‘(B) evaluates the ability of the solution 1 proposed by the small business concern to meet 2 the stated innovation need of the agency or 3 Government end user; and’’. 4 SEC. 302. REDUCING ADMINISTRATIVE BURDEN. 5 Section 9(jj) of the Small Business Act (15 U.S.C. 6 638(jj)), as amended by section 201(a)(1), is amended by 7 adding at the end the following: 8 ‘‘(4) R EDUCING ADMINISTRATIVE BURDEN .— 9 ‘‘(A) L IMIT ON SUBMISSIONS TO A SOLICI -10 TATION.—A small business concern, including 11 its affiliates, spinouts, or subsidiaries, may not 12 submit more than 3 proposals to a single Phase 13 I solicitation or a single Phase II solicitation 14 under subsection (cc). 15 ‘‘(B) L IMIT ON SUBMISSIONS IN A SINGLE 16 YEAR.—A small business concern, including its 17 affiliates, spinouts, or subsidiaries, may not 18 submit more than a combined total of 25 pro-19 posals to Phase I solicitations or Phase II so-20 licitations under subsection (cc) published by a 21 single agency, including the components of the 22 agency, in a single fiscal year.’’. 23 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 30 •S 853 IS TITLE IV—PROTECTING AMER-1 ICAN INNOVATION FROM AD-2 VERSARIAL INFLUENCE 3 SEC. 401. DEFINITION OF FOREIGN RISK. 4 Section 9(e) of the Small Business Act (15 U.S.C. 5 638(e)), as amended by section 301, is amended by adding 6 at the end the following: 7 ‘‘(23) the term ‘foreign risk’ means, in the past 8 10 years, any foreign affiliation, technology licensing 9 agreement, joint venture, contractual or financial ob-10 ligation (pending or otherwise), investment agree-11 ment, research relationship (including co-author-12 ship), or business relationship between— 13 ‘‘(A) a small business concern (including 14 all subsidiaries, spinouts, and affiliates) submit-15 ting a proposal for an SBIR or STTR program, 16 and covered individuals, owners, or other key 17 personnel of the small business concern; and 18 ‘‘(B) an individual, research institution, 19 business entity, government, or government- 20 owned entity in a foreign country of concern 21 that is disclosed, as required under subsection 22 (g) or subsection (o), or otherwise identified in 23 the due diligence process, as required under 24 subsection (vv).’’. 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 31 •S 853 IS SEC. 402. BOLSTERING RESEARCH SECURITY OF SBIR AND 1 STTR AWARDS. 2 Section 9 of the Small Business Act (15 U.S.C. 638), 3 as amended by this Act, is amended— 4 (1) in subsection (g)— 5 (A) by redesignating paragraphs (15), 6 (16), and (17) as paragraphs (16), (18) and 7 (19), respectively; 8 (B) by inserting after paragraph (14) the 9 following: 10 ‘‘(15) evaluate whether a small business con-11 cern presents a risk to national security for any rea-12 son, through measures including— 13 ‘‘(A) the due diligence process required 14 under subsection (vv); 15 ‘‘(B) disclosures submitted under this sub-16 section; or 17 ‘‘(C) coordination with the Inspector Gen-18 eral of the agency or the intelligence community 19 (as defined under section 3 of the National Se-20 curity Act of 1947 (50 U.S.C. 3003));’’; 21 (C) in paragraph (16), as so redesig-22 nated— 23 (i) by striking subparagraph (B); 24 (ii) by striking ‘‘that—’’ and all that 25 follows through ‘‘the small business con-26 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 32 •S 853 IS cern submitting’’ and inserting ‘‘that the 1 small business concern submitting’’; 2 (iii) by redesignating clauses (i), (ii), 3 and (iii) as subparagraphs (A), (B), and 4 (C), respectively, and adjusting the mar-5 gins accordingly; 6 (iv) in subparagraph (B), as so redes-7 ignated, by striking ‘‘or’’ at the end; 8 (v) in subparagraph (C), as so redes-9 ignated, by striking ‘‘and’’ at the end; and 10 (vi) by adding at the end the fol-11 lowing: 12 ‘‘(D) has a foreign risk connecting the 13 small business concern to an entity, including 14 any affiliates, spinouts, or subsidiaries of the 15 entity, or individual on one or more of the fol-16 lowing lists: 17 ‘‘(i) the UFLPA Entity List main-18 tained by the Department of Homeland Se-19 curity; 20 ‘‘(ii) the Non-SDN Chinese Military- 21 Industrial Complex Companies List of the 22 Office of Foreign Assets Control main-23 tained by the Department of the Treasury; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 33 •S 853 IS ‘‘(iii) the Section 889 Prohibition List 1 established under section 889 of the John 2 S. McCain National Defense Authorization 3 Act for Fiscal Year 2019 (Public Law 4 115–232) and maintained by the Depart-5 ment of Defense; 6 ‘‘(iv) the list of Chinese Military com-7 panies required under section 1260H of 8 the William M. (Mac) Thornberry National 9 Defense Authorization Act for Fiscal Year 10 2021 (Public Law 116–283) and main-11 tained by the Department of Defense; 12 ‘‘(v) the Military End User List main-13 tained by the Bureau of Industry and Se-14 curity of the Department of Commerce; 15 ‘‘(vi) the Entity List maintained by 16 the Bureau of Industry and Security of the 17 Department of Commerce; 18 ‘‘(vii) the List of Equipment and 19 Services maintained by the Federal Com-20 munications Commission; and 21 ‘‘(viii) the Withhold Release Orders 22 and Findings List maintained by U.S. 23 Customs and Border Protection; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 34 •S 853 IS ‘‘(E) has a foreign risk with a primary 1 source that is classified; or 2 ‘‘(F) has a foreign risk or another national 3 security risk not listed in statute or regulatory 4 guidance that an agency determines warrants a 5 denial;’’; 6 (D) by inserting after paragraph (16), as 7 so redesignated, the following: 8 ‘‘(17) not, and any personnel of the Federal 9 agency including technical points of contact shall 10 not, communicate to an applicant prior to formal no-11 tification of an award decision that an application 12 was denied due to a foreign risk;’’; and 13 (E) in paragraph (19), as so redesig-14 nated— 15 (i) in subparagraph (B), by striking 16 ‘‘(16)(A)’’ and inserting ‘‘(18)(A)’’; and 17 (ii) in subparagraph (C), by striking 18 ‘‘(16)(B)’’ and inserting ‘‘(18)(B)’’; and 19 (2) in subsection (o)— 20 (A) by redesignating paragraphs (19), 21 (20), and (21) as paragraphs (20), (22) and 22 (23), respectively; 23 (B) by inserting after paragraph (18) the 24 following: 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 35 •S 853 IS ‘‘(19) evaluate whether a small business con-1 cern presents a risk to national security for any rea-2 son, through measures including— 3 ‘‘(A) the due diligence process required 4 under subsection (vv); 5 ‘‘(B) disclosures submitted under this sub-6 section; or 7 ‘‘(C) coordination with the Inspector Gen-8 eral of the agency or the intelligence community 9 (as defined under section 3 of the National Se-10 curity Act of 1947 (50 U.S.C. 3003));’’; 11 (C) in paragraph (20), as so redesig-12 nated— 13 (i) by striking subparagraph (B); 14 (ii) by striking ‘‘that—’’ and all that 15 follows through ‘‘the small business con-16 cern submitting’’ and inserting ‘‘that the 17 small business concern submitting’’; 18 (iii) by redesignating clauses (i), (ii), 19 and (iii) as subparagraphs (A), (B), and 20 (C), respectively, and adjusting the mar-21 gins accordingly; 22 (iv) in subparagraph (B), as so redes-23 ignated, by striking ‘‘or’’ at the end; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 36 •S 853 IS (v) in subparagraph (C), as so redes-1 ignated, by striking ‘‘and’’ at the end; and 2 (vi) by adding at the end the fol-3 lowing: 4 ‘‘(D) has a foreign risk connecting the 5 small business concern to an entity, including 6 any affiliates, spinouts, or subsidiaries of the 7 entity, or individual on one or more of the fol-8 lowing lists: 9 ‘‘(i) the UFLPA Entity List main-10 tained by the Department of Homeland Se-11 curity; 12 ‘‘(ii) the Non-SDN Chinese Military- 13 Industrial Complex Companies List of the 14 Office of Foreign Assets Control main-15 tained by the Department of the Treasury; 16 ‘‘(iii) the Section 889 Prohibition List 17 established under section 889 of the John 18 S. McCain National Defense Authorization 19 Act for Fiscal Year 2019 (Public Law 20 115–232) and maintained by the Depart-21 ment of Defense; 22 ‘‘(iv) the list of Chinese Military com-23 panies required under section 1260H of 24 the William M. (Mac) Thornberry National 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 37 •S 853 IS Defense Authorization Act for Fiscal Year 1 2021 (Public Law 116–283) and main-2 tained by the Department of Defense; 3 ‘‘(v) the Military End User List main-4 tained by the Bureau of Industry and Se-5 curity of the Department of Commerce; 6 ‘‘(vi) the Entity List maintained by 7 the Bureau of Industry and Security of the 8 Department of Commerce; 9 ‘‘(vii) the List of Equipment and 10 Services maintained by the Federal Com-11 munications Commission; and 12 ‘‘(viii) the Withhold Release Orders 13 and Findings List maintained by U.S. 14 Customs and Border Protection; 15 ‘‘(E) has a foreign risk with a primary 16 source that is classified; or 17 ‘‘(F) has a foreign risk or another national 18 security risk not listed in statute or regulatory 19 guidance that an agency determines warrants a 20 denial;’’; 21 (D) by inserting after paragraph (20) the 22 following: 23 ‘‘(21) not, and any personnel of the Federal 24 agency including technical points of contact shall 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 38 •S 853 IS not, communicate to an applicant prior to formal no-1 tification of an award decision that an application 2 was denied due to a foreign risk;’’; and 3 (E) in paragraph (23), as so redesig-4 nated— 5 (i) in subparagraph (B), by striking 6 ‘‘(20)(A)’’ and inserting ‘‘(22)(A)’’; and 7 (ii) in subparagraph (C), by striking 8 ‘‘(20)(B)’’ and inserting ‘‘(22)(B)’’. 9 SEC. 403. STRENGTHENING THE DUE DILIGENCE PROGRAM 10 TO ASSESS SECURITY RISKS. 11 Section 9(vv)(2) of the Small Business Act (15 12 U.S.C. 638(vv)(2)) is amended— 13 (1) in subparagraph (B), by striking the period 14 at the end and inserting ‘‘; and’’; and 15 (2) by adding at the end the following: 16 ‘‘(C) examine any relationship of a small 17 business concern seeking an award to any entity 18 or individual included on the lists, as published 19 on the date of the closing of the solicitation, de-20 scribed under subsections (g)(16)(D) and 21 (o)(20)(D).’’. 22 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 39 •S 853 IS SEC. 404. STRENGTHENING AGENCY RECOVERY AUTHOR-1 ITY. 2 Section 9 of the Small Business Act (15 U.S.C. 638), 3 as amended by this Act, is amended— 4 (1) in subsection (g)(18), as redesignated by 5 section 402— 6 (A) in the matter preceding subparagraph 7 (A), by inserting ‘‘, as adjusted for inflation ac-8 cording to the Consumer Price Index published 9 by the Bureau of Labor Statistics,’’ after 10 ‘‘amounts’’; 11 (B) in subparagraph (A)— 12 (i) by inserting ‘‘during the 10-year 13 period beginning on the date of the award, 14 or during a longer or indefinite period as 15 determined by the head of the awarding 16 agency as necessary for national security,’’ 17 before ‘‘the small business concern’’; and 18 (ii) by striking ‘‘or’’ at the end; 19 (C) in subparagraph (B)— 20 (i) by inserting ‘‘during the 10-year 21 period beginning on the date of the award, 22 or during a longer or indefinite period as 23 determined by the head of the awarding 24 agency as necessary for national security,’’ 25 before ‘‘there is a change’’; and 26 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 40 •S 853 IS (ii) by striking ‘‘and’’ at the end; and 1 (D) by adding at the end the following: 2 ‘‘(C) during the 5-year period beginning on 3 the date of the award, or during a longer or in-4 definite period as determined by the head of the 5 awarding agency as necessary for national secu-6 rity, the small business concern sells, leases, or 7 provides (through joint research, technological 8 licensing, or otherwise) intellectual property 9 that was developed, wholly or in part, using an 10 SBIR award to a foreign entity or individual 11 unless the foreign entity or individual is incor-12 porated in or a citizen of a country that is a 13 member of the North Atlantic Treaty Organiza-14 tion or a major non-NATO ally, as described 15 under section 2321k of title 22, United States 16 Code; or 17 ‘‘(D) during the 10-year period beginning 18 on the date of the award, or during a longer or 19 indefinite period as determined by the head of 20 the awarding agency as necessary for national 21 security, the small business concern sells, 22 leases, or provides (through joint research, tech-23 nological licensing, or otherwise) intellectual 24 property that was developed, wholly or in part, 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 41 •S 853 IS using an SBIR award to an entity, government, 1 or individual in a foreign country of concern; 2 and’’; and 3 (2) in subsection (o)(22), as redesignated by 4 section 402— 5 (A) in the matter preceding subparagraph 6 (A), by inserting ‘‘, as adjusted for inflation ac-7 cording to the Consumer Price Index published 8 by the Bureau of Labor Statistics,’’ after 9 ‘‘amounts’’; 10 (B) in subparagraph (A)— 11 (i) by inserting ‘‘during the 10-year 12 period beginning on the date of the award, 13 or during a longer or indefinite period as 14 determined by the head of the awarding 15 agency as necessary for national security,’’ 16 before ‘‘the small business concern’’; and 17 (ii) by striking ‘‘or’’ at the end; 18 (C) in subparagraph (B)— 19 (i) by inserting ‘‘during the 10-year 20 period beginning on the date of the award, 21 or during a longer or indefinite period as 22 determined by the head of the awarding 23 agency as necessary for national security,’’ 24 before ‘‘there is a change’’; and 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 42 •S 853 IS (ii) by striking ‘‘and’’ at the end; and 1 (D) by adding at the end the following: 2 ‘‘(C) during the 5 year period beginning on 3 the date of the award, or during a longer or in-4 definite period as determined by the head of the 5 awarding agency as necessary for national secu-6 rity, the small business concern sells, leases, or 7 provides (through joint research, technological 8 licensing, or otherwise) intellectual property 9 that was developed, wholly or in part, using an 10 STTR award to a foreign entity or individual 11 unless the foreign entity or individual is incor-12 porated in or a citizen of a country that is a 13 member of the North Atlantic Treaty Organiza-14 tion or a major non-NATO ally, as described 15 under section 2321k of title 22, United States 16 Code; or 17 ‘‘(D) during the 10-year period beginning 18 on the date of the award, or during a longer or 19 indefinite period as determined by the head of 20 the awarding agency as necessary for national 21 security, the small business concern sells, 22 leases, or provides (through joint research, tech-23 nological licensing, or otherwise) intellectual 24 property that was developed, wholly or in part, 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 43 •S 853 IS using an STTR award to an entity, govern-1 ment, or individual in a foreign country of con-2 cern; and’’. 3 SEC. 405. BEST PRACTICES ON INVESTOR INFORMATIONAL 4 RIGHTS. 5 Section 9(uu) of the Small Business Act (15 U.S.C. 6 638(uu)) is amended to read as follows: 7 ‘‘(uu) B ESTPRACTICES ON INVESTORINFORMA-8 TIONALRIGHTS.— 9 ‘‘(1) I N GENERAL.—The Administrator, in co-10 ordination with the heads of all agencies with an 11 SBIR program, the Director of the White House Of-12 fice of Science and Technology Policy, and the Com-13 mittee on Foreign Investment in the United States, 14 shall develop best practices to be shared with each 15 recipient of an SBIR or STTR award by the agency 16 granting the award. 17 ‘‘(2) C ONTENTS.—The best practices developed 18 under paragraph (1) shall include recommendations 19 for protecting the proprietary technology and intel-20 lectual property of the small business concern from 21 being shared unintentionally to foreign individuals 22 and entities through informational rights of limited 23 partners in venture capital, hedge fund, or private 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 44 •S 853 IS equity firms that have investments in SBIR or 1 STTR recipients.’’. 2 SEC. 406. GAO REPORT. 3 Paragraph (4) of section 4(b) of the SBIR and STTR 4 Extension Act of 2022 (Public Law 117–183; 136 Stat. 5 2194) is amended to read as follows: 6 ‘‘(4) GAO REPORT.— 7 ‘‘(A) I N GENERAL.—Not later than 1 year 8 after the date of enactment of the INNOVATE 9 Act, and annually thereafter for 3 years, the 10 Comptroller General of the United States shall 11 conduct a study and submit to the Committee 12 on Small Business and Entrepreneurship and 13 the Committee on Armed Services of the Senate 14 and the Committee on Small Business, the 15 Committee on Armed Services, and the Com-16 mittee on Science, Space, and Technology of 17 the House of Representatives a report on the 18 implementation and best practices of the due 19 diligence programs established under section 20 9(vv) of the Small Business Act (15 U.S.C. 21 638(vv)) across Federal agencies required to es-22 tablish an SBIR or STTR program. 23 ‘‘(B) S TUDY.—The study shall evaluate— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 45 •S 853 IS ‘‘(i) the effectiveness of each Federal 1 agency that participates in the SBIR pro-2 gram or STTR program in identifying— 3 ‘‘(I) enhanced risk in cybersecu-4 rity practices in SBIR and STTR 5 projects; 6 ‘‘(II) enhanced risk in patents, 7 including co-authorship with aca-8 demics in foreign countries of concern 9 in SBIR and STTR projects; 10 ‘‘(III) enhanced foreign influence 11 risk among employees of small busi-12 ness concerns involved in SBIR and 13 STTR projects; 14 ‘‘(IV) foreign ownership of a 15 small business concern seeking an 16 award, including the financial ties and 17 obligations (which shall include sur-18 ety, equity, and debt obligations) in 19 SBIR and STTR projects; and 20 ‘‘(V) security risks among appli-21 cants to the SBIR program or the 22 STTR program, including connections 23 to an entity, including any affiliates, 24 spinouts, or subsidiaries of the entity, 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 46 •S 853 IS or individual on one or more of the 1 lists referenced in subsection 2 (g)(16)(D); 3 ‘‘(ii) by year, the number of proposals 4 and number of small business concerns 5 with foreign risks by each Federal agency 6 that participates in the SBIR program or 7 STTR program, including a delineation of 8 how many of those small business concerns 9 have previously received an award under 10 the SBIR program or STTR program and 11 the nature of those foreign risks made by 12 each Federal agency; and 13 ‘‘(iii) the extent to which the Inspec-14 tor General and counterintelligence au-15 thorities of each Federal agency that par-16 ticipates in the SBIR or STTR program 17 effectively conducts investigations, audits, 18 inspections, and outreach relating to the 19 due diligence program to assess security 20 risks in the SBIR or STTR program.’’. 21 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 47 •S 853 IS TITLE V—SIMPLIFYING SBIR- 1 STTR COMMERCIALIZATION 2 STANDARDS 3 SEC. 501. STREAMLINING TRANSITION AND COMMER-4 CIALIZATION RATE BENCHMARKS. 5 Section 9(qq) of the Small Business Act (15 U.S.C. 6 638(qq)) is amended— 7 (1) by amending paragraph (1)(A)(ii) to read 8 as follows: 9 ‘‘(ii) for small business concerns that 10 received or receive more than 10 Phase I 11 awards, establish a minimum performance 12 standard with respect to the receipt of 13 Phase II awards that shall be a ratio of at 14 least 0.25 for the number of Phase II 15 awards received as compared to the num-16 ber of Phase I awards received; and’’; and 17 (2) in paragraph (3)— 18 (A) in subparagraph (A), by striking 19 clauses (i) and (ii) and inserting the following: 20 ‘‘(i) I N GENERAL.—With respect to a 21 small business concern that received or re-22 ceives more than 25 Phase I awards, the 23 minimum performance standard shall be a 24 ratio of at least 0.5 for the number of 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 48 •S 853 IS Phase II awards received as compared to 1 the number of Phase I awards received. 2 ‘‘(ii) C ONSEQUENCE OF FAILURE TO 3 MEET STANDARD.—If the head of a Fed-4 eral agency determines that a small busi-5 ness concern is not meeting the applicable 6 increased minimum performance standard 7 established under clause (i), such small 8 business concern may not participate in 9 Phase I of the SBIR or STTR program of 10 that agency during the 1-year period be-11 ginning on the date on which such deter-12 mination is made and the small business 13 concern may not receive more than 5 total 14 Phase I awards from that agency during 15 each 1-year period thereafter until the 16 small business concern surpasses the min-17 imum performance standard established 18 under clause (i).’’; and 19 (B) in subparagraph (B)— 20 (i) in clause (i), by striking subclauses 21 (I) and (II) and inserting the following: 22 ‘‘(I) with respect to a small busi-23 ness concern, including its affiliates, 24 spinouts, and subsidiaries, that has 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 49 •S 853 IS received more than 25 Phase II 1 awards over its lifetime, require the 2 sum of the annual receipts (as defined 3 in section 121.104 of title 13, Code of 4 Federal Regulations, or any successor 5 regulation) of the small business con-6 cern from sources other than Phase I 7 or Phase II SBIR or STTR awards 8 and investments received by the small 9 business concern to at minimum ex-10 ceed the sum of the dollars awarded 11 through Phase I and Phase II awards 12 since the date of the first such award; 13 and 14 ‘‘(II) with respect to a small 15 business concern, including its affili-16 ates, spinouts, and subsidiaries, that 17 receives more than 25 Phase II 18 awards over its lifetime, require a 19 minimum of 65 percent of the sum of 20 the annual receipts (as defined in sec-21 tion 121.104 of title 13, Code of Fed-22 eral Regulations, or any successor 23 regulation) of the small business con-24 cern and investments received by the 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 50 •S 853 IS small business concern during the 3 1 years preceding the most recent fiscal 2 year come from sources other than 3 Phase I or Phase II SBIR or STTR 4 awards.’’; and 5 (ii) by amending clause (ii) to read as 6 follows: 7 ‘‘(ii) C ONSEQUENCE OF FAILURE TO 8 MEET STANDARD.—If the head of a Fed-9 eral agency determines that a small busi-10 ness concern is not meeting an applicable 11 increased minimum performance standard 12 modified under clause (i), the small busi-13 ness concern may not apply for additional 14 Phase I awards or Phase II awards until 15 the small business concern has received 16 enough annual receipts from sources other 17 than an SBIR or STTR program to sur-18 pass the minimum performance standard 19 established under clause (i).’’. 20 SEC. 502. IMPROVING DIRECT TO PHASE II AUTHORITIES. 21 Section 9(cc) of the Small Business Act (15 U.S.C. 22 638(cc)) is amended to read as follows: 23 ‘‘(cc) P HASEFLEXIBILITY.— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 51 •S 853 IS ‘‘(1) AWARDING A PHASE II AWARD ABSENT A 1 PHASE I AWARD.—Each agency with an SBIR pro-2 gram may provide to a small business concern an 3 award under Phase II of the SBIR program with re-4 spect to a project, without regard to whether the 5 small business concern was provided an award under 6 Phase I of an SBIR program with respect to such 7 project, if the head of the agency determines that 8 the small business concern has completed the deter-9 minations described in subsection (e)(4)(A) with re-10 spect to such project despite not having been pro-11 vided a Phase I award. 12 ‘‘(2) L IMITATIONS ON AWARDS.— 13 ‘‘(A) I N GENERAL.—Except as provided in 14 subparagraph (B), the head of each agency with 15 an SBIR program may award not more than 10 16 percent of the funds allocated for the SBIR 17 program of the agency in a given fiscal year 18 under the authority of this subsection. 19 ‘‘(B) N ATIONAL INSTITUTES OF HEALTH 20 AND DEPARTMENT OF DEFENSE .—The Director 21 of the National Institutes of Health may award 22 not more than 30 percent of the funds allocated 23 for the SBIR program of the National Insti-24 tutes of Health in a given fiscal year and the 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 52 •S 853 IS Secretary of Defense may award not more than 1 30 percent of the funds allocated for the SBIR 2 program of each component in the Department 3 of Defense in a given fiscal year under the au-4 thority of this subsection. 5 ‘‘(C) L IMIT ON ELIGIBILITY FOR 6 AWARDS.—An agency may not make an award 7 under this subsection to a small business con-8 cern, including its affiliates, spinouts, and sub-9 sidiaries, that has received more than 25 Phase 10 II awards. 11 ‘‘(D) L IMIT ON NUMBER OF AWARDS .—An 12 agency may make not more than 25 awards 13 under this subsection to a small business con-14 cern, including its affiliates, spinouts, and sub-15 sidiaries.’’. 16 SEC. 503. IMPROVING SBIR-STTR DATA COLLECTION. 17 (a) A DDITIONALDATAFIELDS INSBIR DATA-18 BASE.—Section 9(k)(1) of the Small Business Act (15 19 U.S.C. 638(k)(1)) is amended— 20 (1) in subparagraph (E)(iv), by striking ‘‘and’’ 21 at the end; 22 (2) in subparagraph (F)(v), by striking the pe-23 riod at the end and inserting ‘‘; and’’; and 24 (3) by adding at the end the following: 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 53 •S 853 IS ‘‘(G) for each award granted, whether the 1 award is classified or designated as— 2 ‘‘(i) Phase 1A, under subsection (pp); 3 ‘‘(ii) direct to Phase II, under sub-4 section (cc); 5 ‘‘(iii) subsequent Phase II, under sub-6 section (bb)(1); 7 ‘‘(iv) strategic breakthrough award 8 under subsection (ff)(3); 9 ‘‘(v) Phase III prime contract award; 10 or 11 ‘‘(vi) Phase III subcontract award.’’. 12 (b) I MPROVINGFPDS DATATRACKING.— 13 (1) I N GENERAL.—The Administrator of Gen-14 eral Services shall update the Federal Procurement 15 Data System described in section 1122(a)(4) of title 16 41, United States Code, or any successor system, 17 to— 18 (A) require reporting on whether an award 19 under the SBIR or STTR program is classified 20 or designated as— 21 (i) Phase 1A, under subsection (pp) of 22 section 9 of the Small Business Act (15 23 U.S.C. 638), as amended by this Act; 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 54 •S 853 IS (ii) direct to Phase II, under sub-1 section (cc) of such section; 2 (iii) subsequent Phase II, under sub-3 section (bb)(1) of such section; 4 (iv) a strategic breakthrough award 5 under subsection (ff)(3) of such section; 6 (v) a Phase III prime contract award; 7 or 8 (vi) a Phase III subcontract award; 9 (B) require reporting on whether a con-10 tract is designated as a Phase III contract; and 11 (C) allow a Government contracting offi-12 cer, when recording a Phase II or Phase III 13 contract following on from work done by a 14 small business concern during a Phase I or 15 Phase II award to reference an SBIR or STTR 16 contract identification number for relevant prior 17 SBIR or STTR work done. 18 (2) N O NEW FUNDS.—No additional funds are 19 authorized to be appropriated for the purpose of car-20 rying out this subsection. 21 SEC. 504. STREAMLINING PROGRAM ADMINISTRATION. 22 Section 9 of the Small Business Act (15 U.S.C. 638), 23 as amended by this Act, is amended— 24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 55 •S 853 IS (1) in subsection (bb)(3), by inserting ‘‘or an-1 other component of the same Federal agency’’ after 2 ‘‘another Federal agency’’; 3 (2) in subsection (gg)— 4 (A) in the heading, by striking ‘‘P ILOT 5 P ROGRAM’’ and inserting ‘‘COMMERCIALIZA-6 TIONREADINESSPROGRAM’’; 7 (B) by striking ‘‘pilot’’ each place the term 8 appears; 9 (C) by striking paragraph (7); 10 (D) by redesignating paragraph (8) as 11 paragraph (7); and 12 (E) by amending paragraph (7), as so re-13 designated, to read as follows: 14 ‘‘(7) D EFINITION.—In this subsection, the term 15 ‘covered Federal agency’— 16 ‘‘(A) means a Federal agency participating 17 in the SBIR program or the STTR program; 18 and 19 ‘‘(B) does not include the Department of 20 Defense.’’; 21 (3) in subsection (hh)— 22 (A) by striking ‘‘F UNDING.—’’ and all that 23 follows through ‘‘Federal agencies partici-24 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 56 •S 853 IS pating’’ and inserting ‘‘FUNDING.—Federal 1 agencies participating’’; and 2 (B) by striking paragraph (2); 3 (4) in subsection (ii)(2)(B)— 4 (A) in clause (ii), by adding ‘‘and’’ at the 5 end; 6 (B) in clause (iii), by striking ‘‘; and’’ and 7 inserting a period; and 8 (C) by striking clause (iv); 9 (5) in subsection (qq)(3), by striking subpara-10 graph (I); 11 (6) in subsection (vv)(3), by striking subpara-12 graph (C); 13 (7) by redesignating subsection (yy) as sub-14 section (xx); 15 (8) in subsection (xx), as so redesignated— 16 (A) in the subsection heading, by striking 17 ‘‘P ILOT’’; 18 (B) by striking ‘‘STTR P ROGRAM.—’’ and 19 all that follows through ‘‘Not later than’’ and 20 inserting ‘‘STTR P ROGRAM.—Not later than’’; 21 (C) by striking paragraph (2); and 22 (D) by striking ‘‘pilot’’; 23 (9) by redesignating subsection (zz) as sub-24 section (yy); and 25 VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB 57 •S 853 IS (10) in subsection (yy), as so redesignated— 1 (A) in the subsection heading, by striking 2 ‘‘P ILOT’’; 3 (B) in paragraph (1)— 4 (i) in the paragraph heading, by strik-5 ing ‘‘P ILOT’’ and inserting ‘‘PROGRAM’’; 6 (ii) in subparagraph (B), by striking 7 ‘‘3.25’’ and inserting ‘‘3.50’’; and 8 (iii) in subparagraph (C), by striking 9 ‘‘0.46’’ and inserting ‘‘0.21’’; 10 (C) by striking paragraph (3); and 11 (D) by striking ‘‘pilot’’ each place the term 12 appears. 13 SEC. 505. EXTENDING SBIR AND STTR AUTHORIZATION. 14 Section 9 of the Small Business Act (15 U.S.C. 638), 15 as amended by this Act, is amended— 16 (1) in subsection (m), by striking ‘‘2025’’ and 17 inserting ‘‘2028’’; and 18 (2) in subsection (n)(1)(A), by striking ‘‘2025’’ 19 and inserting ‘‘2028’’. 20 Æ VerDate Sep 11 2014 22:54 Mar 18, 2025 Jkt 059200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6301 E:\BILLS\S853.IS S853 kjohnson on DSK7ZCZBW3PROD with $$_JOB