This part sets up a new pot of money for small firms that have done well before. A big agency may set aside a small slice of its research budget for it. One firm can get up to $30 million, and the work must be done in four years. The firm must raise the same amount from other places. The agency must make the award in 90 days. The whole part ends on September 30, 2031.
The document says “means”Who acts: Federal agencies with a required SBIR expenditure over $100,000,000How: statuteSec. 3 in the PDF
What the document says
“the term `strategic breakthrough allocation' means, with respect to a Federal agency with a required expenditure under subsection (f)(1) in excess of $100,000,000, an expenditure amount from the SBIR allocation under subsection (f)(1) of such agency of not more than 0.50 percent of the extramural budget for research or research and development designated for such agency for fiscal year 2026 and every fiscal year thereafter.”
Subsection (a)(2) adds a new paragraph (3) to subsection (ff) of section 9 of the Small Business Act (15 U.S.C. 638). Subparagraph (A) defines the term used through the rest of the paragraph. The definition reaches only an agency whose required expenditure under subsection (f)(1) is over $100,000,000. For such an agency the allocation is an amount from that same SBIR allocation of no more than 0.50 percent of the extramural budget for research or research and development designated for the agency, for fiscal year 2026 and each fiscal year after it.
What the document actually says
“the term `strategic breakthrough allocation' means, with respect to a Federal agency with a required expenditure under subsection (f)(1) in excess of $100,000,000, an expenditure amount from the SBIR allocation under subsection (f)(1) of such agency of not more than 0.50 percent of the extramural budget for research or research and development designated for such agency for fiscal year 2026 and every fiscal year thereafter.”
That sentence, in plain words
This names a new pot of money. Only a big agency can have one. The pot comes out of money the agency already sets aside. The pot can hold up to half of one percent of its research budget.
What this is about
An agency counts as big here if it must spend over $100 million. The pot starts in the budget year 2026. It is not new money. It is a slice of money the agency already had.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “can”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“A Federal agency may award from a strategic breakthrough allocation not more than $30,000,000 to a small business concern, including its affiliates, in a single award or series of awards based on reaching production or development milestones, if the total period of performance of the project with respect to which such funds are awarded is not more than 48 months.”
Subparagraph (C)(i) of the new paragraph caps what one firm may draw from the allocation. The cap is $30,000,000 to a small business concern including its affiliates. It may come as a single award or as a series of awards paid on reaching production or development milestones. The cap applies only if the total period of performance of the project is 48 months or less.
What the document actually says
“A Federal agency may award from a strategic breakthrough allocation not more than $30,000,000 to a small business concern, including its affiliates, in a single award or series of awards based on reaching production or development milestones, if the total period of performance of the project with respect to which such funds are awarded is not more than 48 months.”
That sentence, in plain words
An agency can give a firm up to $30 million from the pot. It can pay it all at once. It can also pay in steps as the work hits its marks. The work must be done in four years.
What this is about
The cap counts the firm and any firm it is tied to. So a firm cannot get more by splitting itself up. Four years is the longest the job can run.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: small business concernsHow: statuteSec. 3 in the PDF
What the document says
“The small business concern shall-- ``(I) have been awarded not less than 1 prior Phase II award under the SBIR or STTR program; ``(II) demonstrate not less than 100 percent matching funds”
Subparagraph (C)(ii) sets what a firm must show. It must have had at least one prior Phase II award under the SBIR or STTR program. It must demonstrate matching funds of at least 100 percent, drawn from new private capital raised as a result of the award, from new funding awarded by a government agency under a program other than Phase I or II of the SBIR or STTR program as a result of the award, or from a combination of the two. It must also demonstrate a technology that is an effective solution, as determined by market research.
What the document actually says
“The small business concern shall-- ``(I) have been awarded not less than 1 prior Phase II award under the SBIR or STTR program; ``(II) demonstrate not less than 100 percent matching funds”
That sentence, in plain words
The firm must have won a Phase II award before. It must also bring the same amount of money from somewhere else.
What this is about
The other money can come from private backers. It can also come from another arm of government. It can be part one and part the other. The firm must also show its idea works, using market research.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: small business concernsHow: statuteSec. 3 in the PDF
What the document says
“only be eligible for an award from the strategic breakthrough allocation at the Department of Defense if the small business concern-- ``(aa) provides a product, process, or technology that meets a necessary level of readiness and has a commitment for inclusion in a program objective memorandum”
Subclause (IV) of subparagraph (C)(ii) adds three conditions that apply only at the Department of Defense. The firm must provide a product, process or technology that meets a necessary level of readiness and has a commitment for inclusion in a program objective memorandum from an official at or above the rank of program acquisition executive in a Defense acquisition organization. It must provide a product, process or technology that will meet high priority requirements or operational needs of a military department through a successful transition and into the acquisition process. And it must demonstrate that at least 20 percent of the required matching funds come from new funding awarded by the Department of Defense under a program other than Phase I or II of the SBIR or STTR program as a result of the award.
What the document actually says
“only be eligible for an award from the strategic breakthrough allocation at the Department of Defense if the small business concern-- ``(aa) provides a product, process, or technology that meets a necessary level of readiness and has a commitment for inclusion in a program objective memorandum”
That sentence, in plain words
The rules are tighter at the Defense Department. The firm must show its idea is far enough along. A senior officer must promise to plan money for it.
What this is about
A program objective memorandum is a defense spending plan. Getting into it means the money is penciled in. The firm must also show its idea meets a real need. And a fifth of its matching money must come from Defense.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“The Federal agency shall complete any contract awards using strategic breakthrough allocation funds not later than 90 days after receiving a proposal from a small business concern for the award.”
Subparagraph (C)(iii) sets a deadline. The Federal agency completes any contract award made with allocation funds no later than 90 days after it receives the firm's proposal for that award.
What the document actually says
“The Federal agency shall complete any contract awards using strategic breakthrough allocation funds not later than 90 days after receiving a proposal from a small business concern for the award.”
That sentence, in plain words
The agency has 90 days to finish the deal. The clock starts when the firm sends in its plan.
What this is about
Small firms can run out of cash while they wait. This sets a limit on the wait.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“Eligible activities by a small business concern using strategic breakthrough allocation funds are any critical technology areas or requirements deemed necessary by the Federal agency.”
Subparagraph (C)(iv) states what the funds may be spent on. Eligible activities are any critical technology areas or requirements deemed necessary by the Federal agency. The paragraph names no list of areas and leaves the judgment with the agency.
What the document actually says
“Eligible activities by a small business concern using strategic breakthrough allocation funds are any critical technology areas or requirements deemed necessary by the Federal agency.”
That sentence, in plain words
The money can go to any key tech field. The agency decides which fields count.
What this is about
The law names no fields here. Each agency picks its own. That choice is not written into the law.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“In making awards using funds made available under a strategic breakthrough allocation, the Federal agency shall consider-- ``(I) the potential of the small business concern to advance the national security capabilities of the United States;”
Subparagraph (C)(v) names four things the agency considers. They are the firm's potential to advance the national security capabilities of the United States, its potential to provide new technologies or processes or new applications of existing ones that will enable new alternatives to existing programs, whether a customer in a Federal agency has expressed an intent to purchase and integrate the firm's technology into its operations, and whether a particular technology area is undercapitalized by private investment.
What the document actually says
“In making awards using funds made available under a strategic breakthrough allocation, the Federal agency shall consider-- ``(I) the potential of the small business concern to advance the national security capabilities of the United States;”
That sentence, in plain words
The agency must weigh what it picks. One thing to weigh is whether the firm could help keep the country safe.
What this is about
Four things are listed. Another is whether the idea could replace what is used now. Another is whether a buyer in government wants it. The last is whether private backers are staying away from that field.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“Each Federal agency shall implement streamlined processes and requirements for submitting proposals and applying for awards using funds made available under a strategic breakthrough allocation.”
Subparagraph (D) of the new paragraph directs each Federal agency to put in place streamlined processes and requirements for submitting proposals and applying for awards made with allocation funds. The paragraph does not say what a streamlined process is or set a date by which it is to exist.
What the document actually says
“Each Federal agency shall implement streamlined processes and requirements for submitting proposals and applying for awards using funds made available under a strategic breakthrough allocation.”
That sentence, in plain words
Each agency must make it simpler to apply. That covers sending in a plan and asking for the money.
What this is about
The law does not say what simpler means. It also gives no date. Each agency works that out.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“The requirement under paragraph (1) and the requirement to receive a waiver from the Administrator under paragraph (4) do not apply to a Federal agency for awards of not more than $30,000,000 to a small business concern with funds made available under a strategic breakthrough allocation”
Subsection (a)(1) adds a new paragraph (6) at the end of subsection (aa) of section 9 of the Small Business Act. It disapplies two things for awards of $30,000,000 or less made from a strategic breakthrough allocation: the requirement under paragraph (1) of that subsection, and the requirement to receive a waiver from the Administrator under paragraph (4). This Act does not restate what those two paragraphs require, and subsection (aa) is not indexed on this site.
What the document actually says
“The requirement under paragraph (1) and the requirement to receive a waiver from the Administrator under paragraph (4) do not apply to a Federal agency for awards of not more than $30,000,000 to a small business concern with funds made available under a strategic breakthrough allocation”
That sentence, in plain words
Two rules in an older part of the law are set aside here. They do not apply to awards of $30 million or less from the new pot.
What this is about
One of the rules is a cap. The other is a duty to get sign off first. This law does not say what they are. So the site does not say either.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: the Secretary of DefenseHow: statuteSec. 3 in the PDF
What the document says
“ensure, in collaboration with SBIR program managers of each component, that research programs identified under subparagraph (A) are analyzed within the programming and budgeting process as budget requests are developed;”
Subsection (b)(1) rewrites paragraph (2) of subsection (y) of section 9 of the Small Business Act. The existing duty to identify research programs becomes subparagraph (A), and this Act inserts into it a reference to firms holding an award from the strategic breakthrough allocation. New subparagraph (B) adds a further duty: to ensure, working with the SBIR program managers of each component, that the research programs identified under subparagraph (A) are analyzed within the programming and budgeting process as budget requests are developed.
What the document actually says
“ensure, in collaboration with SBIR program managers of each component, that research programs identified under subparagraph (A) are analyzed within the programming and budgeting process as budget requests are developed;”
That sentence, in plain words
The picked research must be looked at when budgets are drawn up. The work is done with the program staff in each part of the agency.
What this is about
This part of the older law is about turning research into things the agency buys. The change ties that work to the budget.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: the Secretary of DefenseHow: statuteSec. 3 in the PDF
What the document says
“provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committees on Small Business and Science, Space, and Technology of the House of Representatives information on the integration of SBIR and STTR awardees in budget rollouts for research, development, testing, and evaluation activities.”
New subparagraph (C) of subsection (y)(2) adds a reporting duty. Information on the integration of SBIR and STTR awardees in budget rollouts for research, development, testing and evaluation activities goes to the Senate Committee on Small Business and Entrepreneurship and to the House Committees on Small Business and on Science, Space, and Technology. No date or interval is set.
What the document actually says
“provide to the Committee on Small Business and Entrepreneurship of the Senate and the Committees on Small Business and Science, Space, and Technology of the House of Representatives information on the integration of SBIR and STTR awardees in budget rollouts for research, development, testing, and evaluation activities.”
That sentence, in plain words
Three groups in Congress must be told how award winners fit into the budget. The budget here is for research and testing.
What this is about
One group is in the Senate. Two are in the House. The law sets no date for this. It does not say how often it must happen.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “is amended”Who acts: the Secretary of DefenseHow: statuteSec. 3 in the PDF
What the document says
“establish a mechanism to provide small business concerns with direct access to program and requirements offices that may purchase technology from the small business concern under Phase III of the SBIR program;”
Subsection (b)(4) adds a new subparagraph (C) to the paragraph of subsection (y) redesignated as paragraph (5). It calls for a mechanism giving small business concerns direct access to the program and requirements offices that may purchase their technology under Phase III of the SBIR program. This Act does not say what form the mechanism takes.
What the document actually says
“establish a mechanism to provide small business concerns with direct access to program and requirements offices that may purchase technology from the small business concern under Phase III of the SBIR program;”
That sentence, in plain words
A way must be set up so firms can reach the offices that might buy from them. Those offices buy under Phase III.
What this is about
Phase III is the stage where the government buys the finished thing. Firms often cannot find the right office. This is meant to fix that.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “means”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“the term ``appropriate committees of Congress'' means-- (A) the Committee on Small Business and Entrepreneurship of the Senate; (B) the Committee on Small Business of the House of Representatives; and (C) the Committee on Science, Space, and Technology of the House of Representatives.”
Subsection (c)(1) defines the term used in the two briefing requirements that follow. It means the Senate Committee on Small Business and Entrepreneurship, the House Committee on Small Business, and the House Committee on Science, Space, and Technology. The definition applies only within subsection (c).
What the document actually says
“the term ``appropriate committees of Congress'' means-- (A) the Committee on Small Business and Entrepreneurship of the Senate; (B) the Committee on Small Business of the House of Representatives; and (C) the Committee on Science, Space, and Technology of the House of Representatives.”
That sentence, in plain words
This says which groups in Congress get the briefings. One is in the Senate. Two are in the House.
What this is about
The word only counts inside this part of the law. It is a short way to name the three groups.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: heads of eligible Federal agenciesHow: statuteSec. 3 in the PDF
What the document says
“shall brief the appropriate committees of Congress on whether that Federal agency plans to make awards pursuant to the authority provided under such paragraph (3), including the reasons why the Federal agency plans to, or does not plan to, use that authority.”
Subsection (c)(2) sets a one time briefing. No later than 60 days after the date of enactment of this Act, the head of each Federal agency eligible to make an award from a strategic breakthrough allocation briefs the committees named in subsection (c)(1). The briefing covers whether the agency plans to make awards under the new paragraph (3), and the reasons it does or does not plan to use the authority. The Act was approved on April 13, 2026.
What the document actually says
“shall brief the appropriate committees of Congress on whether that Federal agency plans to make awards pursuant to the authority provided under such paragraph (3), including the reasons why the Federal agency plans to, or does not plan to, use that authority.”
That sentence, in plain words
The head of the agency must tell Congress its plans. It must say if it will hand out these awards. It must give its reasons either way.
What this is about
This is due 60 days after the law was signed. The law was signed on April 13, 2026. An agency that says no still has to explain.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: heads of Federal agencies using the authorityHow: statuteSec. 3 in the PDF
What the document says
“shall, on a recurring basis until the Federal agency finalizes procedures for making those awards, brief the appropriate committees of Congress regarding the implementation of such paragraph (3) by that Federal agency.”
Subsection (c)(3) adds a repeating briefing for any agency that opts to make awards under the new paragraph (3). The briefings run on a recurring basis until the agency finalizes its procedures for making those awards, and cover the agency's implementation of that paragraph. The Act does not set how often a recurring briefing falls.
What the document actually says
“shall, on a recurring basis until the Federal agency finalizes procedures for making those awards, brief the appropriate committees of Congress regarding the implementation of such paragraph (3) by that Federal agency.”
That sentence, in plain words
An agency that uses the new power must keep briefing Congress. It stops once its rules are set.
What this is about
The law does not say how often. It only says the briefings go on until the agency finishes its rules.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
The document says “shall”Who acts: CongressHow: statuteSec. 3 in the PDF
What the document says
“Effective on September 30, 2031-- (1) this section and the amendments made by this section shall cease to have effect; and (2) the provisions of law amended by this section shall be restored as if such amendments had not been enacted.”
Subsection (d) ends the section on a fixed date. Effective on September 30, 2031, the section and the amendments it makes cease to have effect, and the provisions of law it amended are restored as if the amendments had not been enacted.
What the document actually says
“Effective on September 30, 2031-- (1) this section and the amendments made by this section shall cease to have effect; and (2) the provisions of law amended by this section shall be restored as if such amendments had not been enacted.”
That sentence, in plain words
On September 30, 2031 this part stops working. The older law goes back to the way it read before.
What this is about
Everything in this part has an end date. After that day the changes are undone. It is as if they were never made.
No action is recorded against this proposal. That is not evidence that none has been taken, and nobody has yet read it against the record. See what the tracker does not yet cover.
Small Business Innovation and Economic Security Act, Public Law 119-83, sec. 3, 140 Stat. 759 (2026). https://www.govinfo.gov/content/pkg/PLAW-119publ83/html/PLAW-119publ83.htm
This page
“Phase II Strategic Breakthrough Funding,” Small Business Innovation and Economic Security Act, section 3. Read the Mandate, https://readthemandate.org/small-business-innovation-economic-security-act/section-3/ (retrieved August 26, 2026).
Cite the document when the claim is about what the document says. Cite this page when the indexing, the wording or the record of what has happened is what is being relied on.
What This Page Covers, and What It Leaves Out
Each distinct thing the section does: the definition of the new allocation and its size cap, the award cap and time limit, what a firm must show to qualify, the extra conditions at the Defense Department, the 90 day award deadline, the eligible activities, the selection criteria, the duty to streamline contracting, the disapplication of an existing requirement and waiver, three additions to the commercialization readiness program, the definition of the committees to be briefed, the two briefing duties, and the termination date.
The renumbering in subsection (b) is not recorded proposal by proposal. That subsection strikes one paragraph, redesignates three others, redesignates a subparagraph and strikes an 'and' at the end of a clause. Those are recorded only where they change what somebody must do.
The section works by amending section 9 of the Small Business Act (15 U.S.C. 638), which is not indexed here. What subsections (aa), (ff) and (y) of that statute said before this Act, and what they say once it is applied, are not recorded. Subsection (a)(1) disapplies two requirements of subsection (aa) without restating them, and the site does not restate them either.
