US HB4777

Extends SBIR and STTR program authorization through fiscal year 2028 and increases STTR funding allocation to 3.45% of agency extramural R&D budgets, while raising the small business share of STTR cooperative research from 40% to 50%

Creates "Phase 1A" awards of up to $40,000 for first-time SBIR applicants and establishes a "strategic breakthrough allocation" allowing agencies with SBIR budgets over $100 million to award up to $30,000,000 to small businesses for defense-related technology transition without requiring SBA waivers

Caps total Phase I and Phase II awards at $75,000,000 per small business concern (including affiliates and subsidiaries) and limits annual receipts for Phase I applicants to $40,000,000, with restrictions on proposal submissions to 10 per solicitation and 25 total per agency annually

Strengthens foreign influence protections by prohibiting awards to businesses with ties to entities on security risk lists (including UFLPA Entity List, Chinese Military Companies list, and FCC prohibited equipment list) and expanding fund recovery authority for 10 years when award recipients transfer intellectual property to foreign countries of concern

Removes race, gender, and ethnicity considerations from award decisions and prohibits agencies from requiring diversity statements in applications, while refocusing outreach efforts on rural communities and first-time program participants