The Federal Funding Landscape Has Changed: Read the Latest Updates

Since entering the Trump administration, the federal funding landscape has undergone significant changes. While these changes and their associated uncertainties may feel overwhelming at first, byunderstanding these updates and learning how to navigate them, you can greatly improve your chances of securing funding.

By staying informed and adaptable, you’ll be better equipped to determine whether federal funding aligns with your goals and which agencies are the best fit for your project – and, of course, our Grant Experts are also here to help you.

We caught up with our Lead Funding Consultant, Debbie Nicol, who explains everything you need to know about the recent changes in the federal funding landscape and, hopefully, put some of your worries to rest!

Reauthorization efforts are already underway, and the SBIR/STTR Programs have bipartisan support.

The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are designed to support small, research-focused businesses in developing early-stage technologies with strong commercial potential. These programs provide non-dilutive funding through grants and contracts from participating federal agencies, each aligned with its mission and priorities.

Although the SBIR/STTR programs have been in place for decades, they are not permanent and must be periodically reauthorized by Congress, which is responsible for determining federal budget priorities. The most recent reauthorization occurred in 2022, extending the programs through September 30, 2025.

Looking ahead, reauthorization efforts are already in progress, with several bills introduced in the Senate and corresponding legislation in the House. For example, the INNOVATE Act bill proposes reforming Phase I of the SBIR/STTR grant programs – see details here. 

These programs have bipartisan support, but key issues remain under discussion. These include improving foreign affiliation disclosures, expanding access to underserved communities, and strengthening pathways to commercialization.

Recently, the President proposed a "skinny budget", which outlines potential funding cuts to several federal agencies that administer SBIR/STTR programs. While this proposal has not yet been formalized or approved by Congress, any reductions in agency budgets could directly impact the total pool of SBIR/STTR funds available. This would likely lead to increased competition for awards, making it even more crucial for applicants to closely align with the mission and priorities of each agency.

However, it's worth noting that at least one bill currently under consideration in the Senate proposes an increase in SBIR/STTR funding (The SBIR/STTR Reauthorization Act of 2025), signaling continued legislative interest in supporting small business innovation.

A number of executive orders have been introduced in recent months that directly impact how federal funding agencies operate. Agencies administering SBIR/STTR programs are actively working to ensure compliance with these directives, which may affect funding priorities, evaluation criteria, and program implementation.

While the federal funding landscape is shifting, these changes also open doors for innovation, adaptation, and renewed focus. By staying informed and aligning strategically with agency priorities, small businesses and researchers can continue to thrive — and help shape the future of science and technology in the process.

Grantify makes this easier by breaking down complex application processes for the SBIR/STTR programs, offering expert guidance, and helping you submit stronger, more competitive proposals. With the right support, you don’t just keep up — you get ahead.

Our free eligibility quiz can help you quickly assess if you're a good fit for programs like SBIR/STTR. That way, you can focus your time and energy on the right opportunities and submit your strongest possible application. If eligible, you can also book in to speak to one of our team about how we can support your application.