Representatives Tran, Bacon Introduce Bipartisan Legislation to Promote Small Business Innovation and Protect Intellectual Property
Washington, DC – Today, U.S. Representative Derek Tran (D-CA-45) and Representative Don Bacon (R-NE-02) introduced the Small Business Innovation Research (SBIR) Foreign Interference Safeguard Act. This legislation strengthens small business due diligence programs, which identify and mitigate the risk of intellectual property theft by foreign entities like the Chinese Communist Party (CCP).
The SBIR Foreign Interference Safeguard Act would reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Due Diligence Program through FY 2030, set to expire in September 2025 under current law. The extension would give agencies more time to strengthen their programs, assess those risks, and collect more data for Congress to determine the best security strategies for small businesses.
“Small businesses are at the forefront of American innovation. Congress must ensure that these groundbreaking technologies are protected and best positioned to benefit American consumers,” said Representative Tran. “I’m proud to lead this bipartisan effort with Representative Bacon to extend the SBIR Due Diligence Program, giving federal agencies the tools and time they need to safeguard critical technologies from malign actors like the Chinese Communist Party. This legislation will strengthen our national security and ensure small businesses can continue to safely and securely drive innovation.”
“Protecting American innovation from foreign adversaries such as the Chinese Communist Party, remains one of our most critical national security challenges,” said Rep. Bacon. “I’m pleased to co-lead the bipartisan SBIR Foreign Interference Safeguard Act to strengthen our due diligence programs and prevent these adversaries from exploiting SBIR funded technologies.”
The SBIR program provides funding to small businesses developing innovative technologies, fast-tracking these life-changing technologies’ path to reach consumers. Because of the sensitivity of many of these innovations, foreign malign actors like the CCP exploit cybersecurity gaps and other vulnerabilities to steal technology and slow the progress of American innovation.
The Due Diligence Program was established in the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Extension Act of 2022 to require agencies to assess risks from foreign threats regarding the cybersecurity practices, patents, employee relationships, and foreign ownership of small businesses seeking awards from the SBIR program. Under current law, each agency must set up a due diligence program to assess the award proposals and applications from small businesses under SBIR and STTR to determine and mitigate security risks. Agencies set up these systems throughout 2023, and they have only been in full effect for one solicitation cycle thus far. By extending the program, small businesses can continue to receive critical support for innovative technologies while mitigating the risk of intellectual property theft.
As a small business owner, Representative Tran has remained dedicated to uplifting small businesses in Congress. Tran serves as Ranking Member of the House Small Business Committee Subcommittee on Oversight and has co-led several bipartisan pieces of legislation, which passed the House with overwhelming majorities, to ensure that small businesses across the country have the resources necessary to succeed, including:
- H.R. 787, the Plain Language in Contracting Act, introduced alongside Representative Nick LaLota (R-NY-01), would require contracting opportunities for small businesses to be written in clear, accessible language;
- H.R. 832, the Small Business Advocacy Improvements Act, introduced with Representative Roger Williams (R-TX-25), would ensure that the Office of Advocacy of the Small Business Administration represents the interests of American small businesses before foreign governments, and;
- H.R. 1642, the Connecting Small Businesses with Career and Technical Education Graduates Act, co-led with Representative Roger Williams, would make it easier for small businesses to recruit and retain a strong workforce of graduates from career and technical education programs.
National security also remains a top priority for Tran. He voted in favor of H.R. 881, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act, to safeguard U.S. research and innovation and protect against Chinese intellectual property theft. Representative Tran is also a member of the powerful House Armed Services Committee, overseeing the Department of Defense, and serves as Co-Chair of the House Democratic National Security Task Force.
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