SoCal's defense startups secure vital funding boost

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A bill restoring crucial federal funding to defense startups in Southern California is on its way to the president’s desk after making it through Congress on Tuesday.The Small Business Innovation and Economic Security Act was passed following a months-long impasse over funding the Small Business Innovation Research (SBIR), the Small Business Technology Transfer (STTR) and related programs.The dispute imperiled funding that was deemed essential for Southern California’s resurgent defense and aerospace sectors.The bipartisan bill, which extends the programs through 2031, was passed by the Senate this month and, after delays due to the Iran war, was approved by the House on Tuesday.President Trump has vowed to not sign any legislation until Congress approves the SAVE America Act, which would require proof of citizenship to vote — a measure strongly opposed by Democrats.Business A dispute over reforms to an SBA program that funds startups has cut the flow of seed money to Southern California’s defense tech firms.However, the SBIR reauthorization bill can become law before the end of the month without his signature.

The White House did not respond to a request for comment.The SBA programs provide more than $4 billion in seed funding to private startups across various industries that provide valuable services to the government and public, stimulate the economy and help maintain the country’s competitive edge.The money is awarded by multiple agencies, including the Health and Human Services and Energy departments and NASA, with the military distributing the largest portion.The SBA funding ran out Sept.

30 as lawmakers clashed over proposed reforms.The money has helped launch defense and aerospace startups across Southern California founded by SpaceX alumni and other entrepreneurs.In 2024, 71 California companies received $173 million of the SBA funding awarded by SpaceWERX, a...