After watching the US small trade innovation programs, I have seen enough anti -foreign and corporate welfare recipients, I have seen enough. Short business innovation research The program was designed to fund the next generation of American innovators; Engineers in garages across the US, defense tech startups, real small business with success ideas. Instead, we are giving subsidy to research that ends in Beijing, while a handful of millions of “SBIR Mills” in taxpayer dollars.
Sen Joni Ernst (R-Ayova) recently highlighted the amazing scope of this problem: Six of the largest recipients of 25 programs The clear link to China was still received from the Pentagon in 2023 and 2024, and it is considered after appropriate diligence systems. Meanwhile, the top 20 “SBIR Mills” – Companies consuming program resources have received $ 3.4 billion in phase I and II contracts, often producing slightly more than policy white papers. Meanwhile, the real American, meanwhile, struggle to get money through bureaucracy in garage startups at 1 pm.
This is not just ruin – this is a national security crisis in the form of an innovation development difficulty.
From my work with defense technology companies, I have seen this laxity for the first time. Foreign-backed institutions arrive with sophisticated applications, complex education, pre-knowledge and professional-grade documentation that is completely inconsistent to their alleged “startup” status. They represent themselves as small American companies, despite being connected to the vast international network, carefully structures ownership below the limit of detection.
Meanwhile, the four-person garage garage of knock-bangers with real American innovators-global successes faces an impossible labyrinth of paperwork and competition from institutions with a band-oriented backing. This program has become opposite with the intention of the Congress. It is corporate well -being for emerging American businesses, instead of innovation fuel, connected and well funded.
Beijing has made the US open innovation system a weapon against us. China announced a $ 138 billion government -supported venture fund in March 2025Targeting quantum and AI startups, especially, areas where small business innovation research funding is sufficient. The “state-led, enterprise-operated” models allow Chinese institutions to strategically bid for American intellectual property, while American companies face market shortage.
The pattern of our technology self-transformation is clear: foreign institutions use American partners as nominal owners, develop technology with American taxpayers funding, then commercialize innovations abroad. We are truly funding our own technical displacement.
Ernst Innovation act It addresses these problems with targeted reforms that the program is in dire need.
It eliminates corporate welfare. This bill establishes the lifetime cap how much small business innovation research program can be received by each company in the funding of each company including affiliated and subsidiaries. Another more companies to sideline the boundary to create a new limited liability corporation every few years, while the actual startups are frozen.
It also prevents foreign exploitation. The law constantly creates appropriate diligence standards in all federal agencies, requires widespread disclosure of the sources of money and decision -making authority, and applies a 10 -year look period to catch historical relations that recall the current rules.
It also protects American intellectual property. Perhaps most importantly, the bill includes a 10-year clobac provision for the sale of intellectual property to countries of anxiety. If federally funded research benefits adversely, taxpayers may recover their investment with punishment.
It provides real accountability. Reforms focused on companies’ funds on companies, which is actually producing commercially viable technology for American markets, not endless research that never leaves the laboratory.
This is not biased politics, it is the basic ability. When? China is spending $ 55 billion on research and development in 2025 When we are exploiting our innovation programs, the cost of delay every month is a US competitive advantage.
Small Business Innovation Research and Small Business Technology transfer programs end on 30 September. The Congress has a narrow window to implement these important reforms, before we become more crisis than our innovation units. Ernst is actively interacting on bipartisan support, but the time is running short to pass the Innovat Act.
We do not need any other study or any other hearing. Ernst’s report provides evidence. The Innovat Act provides a solution. We need Congress action before the program ends in five weeks.
American innovation created the modern world, but only when we funded real Americans.
The Innovat Act taxpayer dollar fuel ensures US employment generation, US commercialization and American competitive advantage.
This is the time to prevent finance of China’s golden age and start securing their own.
Tyler is the beaver principal Executive strategiesWashington -based firm is working with defense technology companies and small businesses that navigate federal programs.
