At a time when space is clearly a contested battlefield, the United States risks slowing its progress not because of a lack of technology or talent, but because Congress has failed to act on renewing authorization for critical small business innovation funding.
Senior Space Force acquisition officials have publicly warned that lapses in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are already jeopardizing space acquisition timelines. “I’m really, really concerned,” Maj. Gen. Stephen Purdy, acting chief of space acquisition for the Department of the Air Force, said at the Space Force Association’s Spacepower 2025 conference in Orlando. Their concerns reflect the real-world impact of the current legislative impasse.
SBIR and STTR are essential enablers of defense innovation, especially for organizations like the Space Force that rely on small businesses and startups to push technological boundaries. But their funding ran out months ago, leaving the Space Force unable to effectively and rapidly leverage the agility and innovation of small businesses to meet critical national security needs in space. Congress needs to reauthorize them as soon as possible.
SBIR/STTR: America’s Innovation Bridge for Space Technology
Since their inception, the SBIR and STTR have served as America’s seed funding engine for high-risk, high-reward research and development. These programs provide seed capital to small firms exploring technologies that larger firms often overlook. They help startups take ideas from concept to prototype and, importantly, signal credibility that attracts private investment.
For the Space Force, these awards are particularly valuable because they support technologies such as agile and dynamic satellite buses, autonomous on-orbit operations, motion domain awareness tools, and flexible networking and command systems.
Since SBIR/STTR funding ends when authorization expires on September 30, 2025, new requests and awards are effectively paused. Unless Congress reauthorizes these programs, federal agencies cannot issue new funding.
Space Force innovation stalling while Congress debates structure
SBIR/STTR omissions did not occur because the programs lack value or support. A bipartisan extension passed the House and was supported by many members of both parties in the Senate. However, competing legislative approaches ranging from clean short-term extensions to proposals for major reforms have left the issue unresolved.
With this omission, many Space Force and Department of Defense acquisition offices have no choice but to pause new small business awards. This includes programs for rapid prototyping and agile space capabilities, where small companies are often the source of breakthrough ideas. In some cases, requests for proposals involving maneuverable satellite platforms have been delayed because funding authority does not exist.
The warning Major General Purdy issued in Spacepower is straightforward: Some parts of these programs may “need to be fixed,” but “let’s not throw out the baby with the bathwater.” He emphasized that SBIR, along with related funds, “has been very beneficial to the Space Force” due to its large and innovative commercial ecosystem.
Why delays are a strategic risk – not a technical one
Space is no longer an area where America enjoys uncontested dominance. Adversaries are deploying increasingly sophisticated space assets with capabilities that challenge U.S. satellites and space infrastructure. Responding effectively requires speed not only in acquisition processes, but also in the science and technology pipeline.
SBIR/STTR are fundamental to that pipeline because they:
- Lower barriers for non-traditional defense innovators
- Help small companies scale and survive longer
- Improve the diversity of technologies available to military planners
- Signal to private capital markets that it is worth investing in defense innovation.
When those authorities are inactive, both industry and government lose momentum and in a sector where strategic advantage can be defined for decades, this is a huge price to pay.
A call to action for members of Congress
Congress can and must act now, and Members must hear from constituents, defense stakeholders, and national security professionals alike. Specifically, lawmakers should:
- Also immediately reauthorize SBIR and STTR authorities for the Department of Defense as part of a short-term measure to restore the ability to issue new awards as quickly as possible.
- Pass a clean extension that prevents further gaps during debate over broader reforms, allowing continuity for small businesses and Space Force acquisition programs.
- Ensure that any long-term reforms maintain the core strengths of the program: broad participation, access to non-traditional firms, and clear pathways to commercialization and integration into defense systems.
A clear legislative means already exists. Bills such as the SBIR/STTR Reauthorization Act of 2025 (e.g., HR 3169) have been introduced to expand the authority of these programs, but they require action and quick passage by both Houses.
Members of Congress must hear from constituents of the defense industrial base, particularly small firms and startups, that innovation authorization is a threat to both economic competitiveness and national security.
Delay in innovation means missed potential
The Space Force was established to ensure that the United States maintains freedom of action in, from, and in space. This mission demands forward-looking innovation pipelines that are responsive, flexible and robust. Small businesses are essential partners in that effort.
As Major General Purdy’s concerns make clear, the lapse in SBIR/STTR authorization is not a bureaucratic issue, but a real obstacle to progress. Proposals will slow down and investment will stop. These issues and more will create a level of uncertainty for companies that might otherwise power the next generation of space capabilities.
Congress can quickly fix this by reauthorizing these programs and giving innovators the certainty they need to strengthen America’s lead in space. The alternative is to hold off and possibly give advantage to our strategic competitors.
In the area of national security, a delay in innovation means a loss of capability. There is no time to waste
Brent Page is vice president of the Space Force Association’s Western Region.
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