Trump signs bill reauthorizing federal aid to defense startups
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President Trump has signed a bill restoring federal funding to tech startups in California and elsewhere, money that had been held up for more than six months.The Small Business Administration money, a key source of capital for new aerospace and defense firms in the Los Angeles region, ran out in October after a congressional impasse.The Small Business Innovation and Economic Security Act signed by Trump on Monday funds the Small Business Innovation Research, or SBIR, the Small Business Technology Transfer, or STTR, and related programs.They provide more than $4 billion in seed funding to commercial startups that provide valuable services to the government and public, stimulate the economy and help maintain the country’s competitive edge.Business A bill to reauthorize Small Business Administration programs that fund defense startups in Southern California and elsewhere passed Congress on Tuesday.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 funding has helped launch defense and aerospace startups across Southern California, including Costa Mesa autonomous weapons maker Anduril Industries, now valued at more than $30 billion.Sen.Joni Ernst (R-Iowa), chair of the Senate Committee on Small Business and Entrepreneurship, held up reauthorization over concerns some startups had become reliant on the money instead of developing commercial businesses.
She proposed a bill with a $75-million lifetime funding cap for individual companies.Sen.Ed Markey of Massachusetts, the committee’s ranking Democrat, contended the bill would crimp innovation and hurt companies.
The reauthorization includes no lifetime caps but requires departments to set limits on how many times companies can apply each year for the Small Business Administration funding, prioritizing startu...