H.R. 7217 — SBIR Administrative Funding Act

This section extends through September 30, 2030 (from September 30, 2025), and increases to 3.3% (from 3%), the portion of Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) program funds that participating federal agencies may use for administrative, oversight, and contract processing costs (i.e., 12 specified purposes such as program management and outreach). (As background, the SBIR and STTR programs require agencies with significant extramural R&D budgets to reserve funds—currently 3.2% for SBIR and 0.45% for STTR—for small business R&D grants and contracts to foster innovation and commercialization.) It further requires the Department of Defense, Department of Energy, Department of Health and Human Services, National Aeronautics and Space Administration, and National Science Foundation, not later than two months after appropriations enactments, to transfer not less than 10% of such agency funds to the Small Business Administration to bolster SBIR and STTR program administration (prohibiting use for Small Business Investment Company programs). This section also authorizes agencies to use a portion of such funds to implement SBIR/STTR policy directives and boost SBIR awards in historically low-participation states, with conforming reporting updates on fund uses.