Chairmen Moolenaar, Williams, and Babin Launch Joint Effort to Protect U.S. Innovation from CCP Exploitation in SBIR and STTR Programs

WASHINGTON, D.C. — Chairman John Moolenaar (R-MI) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP), Chairman Roger Williams (R-TX) of the House Committee on Small Business, and Chairman Brian Babin (R-TX) of the House Committee on Science, Space, and Technology announced today their decision to send joint letters to the 11 federal agencies who participate in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, providing billions of dollars annually to small American technology companies. These letters aim to address concerns over China’s exploitation of American taxpayer-funded innovation and to safeguard U.S. national security.

The SBIR and STTR programs, designed to support small businesses and foster innovation in the U.S., have been increasingly vulnerable to exploitation by foreign adversaries. Specifically, China has targeted strategic innovations developed through these programs, siphoning resources and talent from U.S. companies to bolster its technological and military ambitions. These actions undermine American innovation and put national security at risk.

With the expiration of the SBIR and STTR programs’ authorization set for September 30, 2025, the Committees are taking proactive steps to ensure that these important taxpayer-funded programs work for American businesses and not the CCP’s interests. These letters request crucial information from the participating agencies, including data on flagged applications, security concerns, and adherence to national security protocols.

Chairman John Moolenaar of the Select Committee on China said, “China has systematically exploited American innovation to advance its military and economic objectives, threatening our national security and global competitiveness. Our collaboration with the Small Business and Science, Space, and Technology Committees marks a significant first step in protecting the future of American innovation and ensuring that SBIR and STTR funds are used to support our small businesses, not our adversaries. The severity of this issue demands a full investigation to protect American technology funded by our hard-earned tax dollars and prevent further exploitation by foreign adversaries."

Chairman Roger Williams of the House Committee on Small Business stated, “Small businesses are the backbone of innovation, driving economic growth and strengthening American competitiveness on the world stage. The SBIR and STTR programs help drive the groundbreaking advancements of Main Street America by funding small business development of cutting-edge technology. Unfortunately, a serious lack of oversight of these programs has allowed the CCP to target strategic innovations and extract sensitive information, putting our national security at risk. We stand ready to work with these federal agencies to safeguard American innovation and put Main Street America above our foreign adversaries.”

Chairman Brian Babin of the Science, Space, and Technology Committee commented, "Our nation’s SBIR and STTR programs are vital programs that empower small businesses across the country to innovate and grow by providing crucial federal funding for technology development," House Science, Space, and Technology Chairman Brian Babin said. "However, it is unacceptable that these programs—designed to support American businesses and further our research— could be exploited by the CCP, undermining our homegrown innovation and talent. Moving forward, Congress must collaborate with federal agencies to strengthen research security, enhance transparency, and ensure greater oversight. If we want to maintain our leadership in science and technology, especially with the contributions of our nation’s small businesses, these measures are essential."

Below is a sample of one of the letters sent to each agency.  Full text: 

The Honorable Sethuraman Panchanathan
Director, The National Science Foundation
2415 Eisenhower Avenue
Alexandria, VA 22314

Dear Director Panchanathan,

The House Committee on Small Business, the Committee on Science, Space, and Technology, and the Select Committee on the Chinese Communist Party (CCP) (collectively, “the Committees”) write today to address the systematic exploitation of the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs by China. Indeed, it has become increasingly clear that American taxpayer-funded innovation is being siphoned off to fuel the technological ambitions of our foremost adversary. As a participant in the SBIR and STTR programs, we would like to work with the National Science Foundation to identify vulnerabilities and strengthen safeguards to ensure that these programs put America first by supporting American small businesses, advancing U.S. innovation, and protecting national security.

With the SBIR and STTR programs’ authorization set to expire on September 30, 2025, the Committees of jurisdiction will consider legislative and policy changes to eliminate the CCP’s ability to exploit American taxpayer dollars to advance its technological and military dominance. Indeed, we will consider changes to further bolster American innovation, while safeguarding the national security of the U.S.

The Committees are deeply concerned that China is targeting strategic innovations developed by American small businesses funded by the SBIR and STTR programs. Funds intended to support our small businesses are instead being funneled to foreign adversaries—namely China—through multiple avenues, including CCP-linked venture capital, research partnerships with American universities, and talent recruitment programs.

Requested Information

We respectfully request the following information as soon as possible but no later than March 12, 2025:

• What percentage of the SBIR/STTR applications are unsuccessful annually?
• What percentage of the SBIR/STTR applications are flagged annually for national security risks, foreign influence, or similar concerns?
• Has your agency’s SBIR program adopted the common disclosure requirements as part of the application process?
• A copy of the criteria for what would trigger a flag for national security risks, foreign influence, or similar concerns.
• A copy of the procedure for how the National Science Foundation handles an application/applicant after flagging a suspicious applicant.

In order to coordinate delivery of your response or ask any follow-up related questions, please contact Committee on Small Business majority staff at (202) 225-5821.

Sincerely,

Roger Williams
Chairman, Committee on Small Business

Brian Babin
Chairman, Committee on Science, Space, and Technology

John Moolenaar
Chairman, The Select Committee on the CCP

CC:

• The Honorable Nydia M. Velázquez, Ranking Member, Committee on Small Business
• The Honorable Zoe Lofgren, Ranking Member, Committee on Science, Space, and Technology
• The Honorable Raja Krishnamoorthi, Ranking Member, The Select Committee on the CCP