Government Shutdown October 2025: What Does This Mean for SBIR/STTR Funding?

The U.S. government has entered a shutdown following the failure to pass a funding bill for the 2026 fiscal year. While the duration of the shutdown is uncertain — previous ones have ranged from a few days to over a month — most tend to be shorter.

Additionally, the SBIR/STTR program was not extended before the shutdown, resulting in a temporary lapse of the program. However, bipartisan support for the program remains strong, and we expect it to be extended once normal operations resume. 

During the shutdown, federal grant agencies such as the NSF and NIH are operating under these constraints: 

• New funding opportunities will not be posted until operations resume.
• Proposal submissions will be accepted, but will not be processed until after the shutdown.
• Panel reviews and new award decisions will be paused until operations resume.
• Current awardees can continue to draw down existing funds, though payments may be processed more slowly.

While it might feel natural to wait, this is actually a strategic moment to get ahead. Here's Why:

• Proposals are still being accepted and will be processed in the order they are received once operations resume. 
• Early submission gains queue position while others pause their efforts.

In short, agencies are effectively ‘on pause’, but proposals can still be submitted to meet deadlines. We'll continue to monitor updates from the NSF, NIH, and other key federal agencies and share news as it becomes available.

Despite the current uncertainty, strong bipartisan support suggests the SBIR/STTR program will be extended once the shutdown ends. Submitting now positions you to move quickly when operations resume.