Two cornerstone authorities for federal contracting quietly expired on September 30, 2025, creating ripple effects that contractors—small and large—cannot afford to overlook.  The Small Business Innovation Research/Small Business Technology Transfer (“SBIR/STTR”) programs, commonly known as “America’s Seed Fund” for their role in fueling early-stage innovation, and the Defense Production Act (“DPA”), the backbone of the government’s ability to prioritize contracts and strengthen the industrial base, both lapsed at the close of the fiscal year.  Although lawmakers have floated temporary or long-term fixes in pending legislation, nothing has yet been enacted.  The simultaneous government shutdown further complicates the picture, making new awards unlikely in the near term and magnifying uncertainty for contractors who rely on these authorities.

As of September 30, 2025, the SBIR and STTR program authorities expired (15 U.S.C. 638).  Lawmakers in both chambers of Congress have introduced bills ranging from short-term extensions to proposals that would make the programs permanent and broaden their features, but none have advanced.  The legislative vehicles most likely to move in the near term—the National Defense Authorization Act (“NDAA”) for Fiscal Year 2026 and a continuing resolution (“CR”)—offer no relief.  Both the House- and Senate-passed versions of the NDAA include multiple SBIR/STTR-related provisions, but none address the statutory sunset.  Likewise, the CR that cleared the House in mid-September contained no SBIR/STTR extension.

Further, as of September 30, 2025, most provisions of the DPA also expired (Chapter 55 of title 50, U.S.C.), leaving critical authorities—such as the power to issue priority ratings for contracts (Title I) and to provide targeted financing and investment support for industrial base projects (Title III)—in limbo (some DPA sections, such as the CFIUS statute, remain in force).  The lapse in DPA authority is already having practical consequences.  For example, after the federal Government announced plans to acquire a 10% stake in minerals explorer Trilogy Metals, Inc., the company disclosed that the investment would not close until “following the reauthorization of the Defense Production Act by the United States Congress,” highlighting the direct impact of the lapse on transaction timing.  

The Senate-enacted version of the NDAA includes a bi-partisan provision that would reauthorize the DPA.  In addition, the House-passed CR would temporarily extend DPA’s sunset to the CR’s end date.  But neither the NDAA nor the CR has been enacted in law, meaning no DPA extension is currently in place. 

These lapses mean agencies are unable to issue new SBIR/STTR or DPA awards until Congress provides clear reauthorization—although contractor performance generally continues on awards already made and funded before September 30, 2025.  The shutdown adds another layer of complexity:  even were Congress to act quickly, agency personnel and contracting offices are unlikely to move forward with new initiatives under either program until the government reopens. 

In short, with both SBIR/STTR and DPA authority in flux—and the government itself shuttered—contractors face a period of heightened uncertainty.  With no appropriated funding in place, agencies cannot issue new awards, even were statutory authority restored.  Large numbers of contracting, program, and legal personnel are furloughed, leaving few staff available to review proposals, process solicitations, or obligate funds.  Even essential personnel who remain on duty are limited in their ability to advance new initiatives while operating under restrictive shutdown guidance.   The combined effect is to stall award timelines and key programmatic decisions.

Companies awaiting near-term SBIR/STTR solicitations or selections, or with pending DPA-related agreements or anticipated Title III solicitations, should anticipate potentially significant delays, as new contracting actions seem unlikely without legislative action.