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Open Letter to the House & Senate Small Business Committees

Reauthorization of the SBIR/STTR Programs

The SBIR/STTR small business community is in pain!  Some companies have already passed away; others are at death’s door. While Congress continues to delay reauthorization of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs[i], the advanced technology community continues to agonize.

For decades there has been a reliable rhythm to the SBIR/STTR programs: a time when agencies released their Phase I and Phase II solicitations; a time when notification of awards was made. Mandated by Congress, agencies have been expected to notify companies of award within 90 days of the stated proposal submission dates[ii]. This rhythm is gone; there is no predictability; there are no notifications; only questions and delays.

Some of this has nothing to do with reauthorization, but with the changes in Agency missions. It takes time to change organizations, to secure new staff as others depart and to decide upon topics that align with new directions. These changes began in January 2025 and still little information is forthcoming. Some companies are waiting to hear if proposals submitted in February have been awarded. Others are waiting to hear when Phase II solicitations originally scheduled for release in early FY26 will actually be released.

Delays and uncertainties have many companies living on a razor’s edge. In order to reduce technical risk, Phase II funding is required to achieve Technology Readiness Level (TRL) 6 or higher. Without reducing technical risk, investments and partnerships won’t happen…and while waiting, some companies will collapse as there is a limit to how much personal financial risk founders can absorb.

Failure to reauthorize the SBIR/STTR programs will be the nail in the coffin for an increasing number of small businesses! Without reauthorization, delays will continue.  It will take years for the participating agencies to once again establish a rhythm for their programs and for small business to regain their footing. House bill H.R. 3169, officially titled the “SBIR/STTR Reauthorization Act of 2025” reflects a true understanding of the SBIR/STTR community and the challenges that they face in commercialization. However, reauthorization is delayed due to the desire to include a number of items originally in the INNOVATE Act (Senate bill, S.853).

One of the items being debated is the introduction of Phase 1a. However, Phase 1a does not acknowledge the fact that agencies such as the Department of Energy through its Phase 0 program and the National Institutes of Health through its Applicant Assistance program have been providing effective proposal preparation services for new companies for many years using funds allocated for Agency Outreach. Implementation of Phase 1a would eliminate funding for these existing and effective programs which are offered at a quarter of the proposed cost for Phase 1a. In addition, agencies such as the National Science Foundation have since 2019 taken extra steps to help new companies through the addition of a Project Pitch mechanism, as well as their outreach initiatives. Thus, participating SBIR agencies have shown they are capable of innovative enhancements to their programs. They do not need Congress tying up re-authorization with its own additions.

The 119th United States Congress is on track for becoming the most anti-small business Congress on record. To dismiss this legacy, to enable the agencies to do their job and America’s small, advanced technology community to survive, Congress should immediately re-authorize the SBIR/STTR programs for one year. Permanent authorization should follow.

[i] For a brief introduction to the history and purpose of the SBIR/STTR program, please consult “The History of the SBIR and STTR programs,”

[ii] See the 2022 Annual Report to Congress, pages 55 and 57 for more information regarding the number of days between solicitation close and award notification by agency.

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Fusion Energy Overview

Fusion is a potential energy source and occurs when one or more lighter elements combine to form a heavier element, releasing energy in the process. [1] Devices designed to harness this energy are known as fusion reactors. [2]   A future fusion plant could use the heat produced by the fusion reaction to produce steam to drive turbines or generators that produce electricity. [3] For almost a century, scientists around the globe have been looking to recreate and harness the power of fusion energy. [4]  

Tokamak
Source: ITER

There are two commonly pursued technologies to create and control plasma. Magnetic confinement uses strong magnets to contain plasma. A widely used configuration known as a tokamak[5] uses powerful magnets to confine the plasma within a toroidal reaction vessel, with the magnetic fields keeping the plasma away from the walls of the vessel to prevent damage and unintended cooling of the plasma.[6]  

Examples of U.S. companies developing magnetic confinement systems are Commonwealth Fusion Systems, TAE Technologies, Tokamak Energy, Helion Energy, and Thea Energy. Inertial confinement uses high-power lasers or electrical discharges to compress a small capsule of fusion fuel to extreme temperatures and pressures for a short time. This approach is used, for example, in the National Ignition Facility at the U.S. Department of Energy (DOE) Lawrence Livermore National Laboratory. [7] Examples of U.S. companies developing inertial confinement systems are Xcimer Energy, Focused Energy, ZAP Energy, and Shine Technologies. In addition to these methods, several companies such as General Fusion,  are pursuing various other pathways to try to create and control fusion reactions, including a hybrid of both magnetic and inertial confinement approaches. [8]

Various fusion fuels are used to power these pursued pathways. According to the U.S. Department of Energy, once developed, first-generation fusion plants may likely use a combination of abundant deuterium and lithium as fuel. [9] Deuterium, lithium and tritium Deuterium-tritium is a highly studied fusion fuel and a likely basis for the first fusion power plants.[10] Lithium is a critical resource for fusion because of its material properties. Lithium is used to breed tritium, the key fuel for fusion. [11] The rare lithium-6 form of the metal, which makes up only 7.5 per cent of all naturally occurring lithium, is the most efficient for sustaining the fusion process. [12] Li-6 is banned in the U.S. because of the harmful mercury waste it generates. [13] So most fusion power concepts rely on “enriched” lithium, where the Li-6 content has been boosted. [14]

Several companies are investing in efforts aimed at commercializing fusion energy. [15] Many of these companies are startups that have raised over $100 million in the past few years. [16]  The global fusion energy market size is projected to reach $611.8 billion by 2034, expanding at a CAGR of 5.56% from 2025 to 2034. [17] 

Current State - Projections of the time to putting Fusion Energy on the Grid

As of October 2025, fusion reactors remain pre-commercial, with no system yet producing net energy. Fusion energy stakeholders provide varying timelines as to when fusion energy will become technically feasible as an energy source for the electrical grid and when it will become commercially viable.  Projections range from 10 years to several decades in the future. [18]   Some companies are claiming that they will achieve commercial fusion energy in the next few years[19] while other stakeholders and experts said fusion energy will take more than 20 years. The Fusion Industry Association reported that many commercial companies predict fusion industry will be commercially viable in the 2030’s time frame. [19] 

Source: The Global Fusion Industry in 2025—Fusion Industry Association

Other stakeholders and experts believe fusion energy might put electricity on the grid in 10 to 20 years, however, significant resources are required to do so.[20] The Figure below illustrates commercialization risks that fusion energy will face on the road to commercial deployment. According to the U.S. Department of Energy, the aspirational timeline as shown is strongly dependent on the level of both public and private investments. [21]

Commercialization risks for fusion

Source. U.S. Department of Energy, Fusion Energy Strategy 2024

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