VOTE NO! S.853 Violates EO 14219

S.853 contradicts President Trump's deregulatory mandate

Executive Order 14219: A Clear Mandate

On February 19, 2025, President Trump signed Executive Order 14219, titled "Ensuring Lawful Governance and Implementing the President's 'Department of Government Efficiency' Deregulatory Initiative." This order directs all federal agencies to review their regulations and rescind those that are unlawful, burdensome, or inconsistent with administration priorities.

Section 2(a)(iii) specifically targets "regulations that are based on anything other than the best reading of the underlying statutory authority," a clear directive to eliminate regulatory overreach and reduce burdens on American businesses.

— Executive Order 14219, Section 2(a)(iii)

How S.853 Violates Presidential Intent

Yet S.853—the so-called "INNOVATE Act"—flies in the face of this executive mandate. Crafted outside normal legislative channels and driven by a single unelected senior staffer with alleged ties to venture capital (VC) interests, S.853 imposes a $75 million lifetime cap on Small Business Innovation Research (SBIR) awards.

This cap disproportionately penalizes the 65 to 70 most successful SBIR firms—companies that have delivered critical innovations to the Department of Defense (DoD) and other agencies—potentially forcing them to shut down within a year and lay off thousands of skilled professionals.

This heavy-handed restriction contradicts EO 14219's intent to reduce burdens on small businesses and foster innovation. By disqualifying mission-aligned, security-cleared firms while opening the door to VC-backed entities with potential foreign ties, S.853 increases national security risks and undermines the SBIR program's statutory purpose.

⚠️ Key Violations of EO 14219 by S.853

  • 📜Undermines Deregulatory Intent
    Imposes a burdensome $75M cap, contradicting EO 14219's call to reduce regulatory burdens on small businesses.
  • 🔍Lacks Transparency
    Bypasses normal legislative process with no hearings or data review, violating the order's governance standards.
  • 🛡️Increases Security Risks
    Favors VC-backed firms with potential foreign ties, undermining national security safeguards mandated by the order.
  • ⚖️Contradicts Statutory Authority
    Violates the Small Business Innovation Development Act of 1982 (P.L. 97-219) by inverting SBIR's core mission priorities.

Take Action: Demand a Clean SBIR Reauthorization

The time to act is now. Congress must reject S.853 and honor President Trump's commitment to reducing burdensome regulations while protecting America's innovation advantage.

  • Urge Congress to reject S.853 and support a clean SBIR reauthorization for 1–3 years
  • Call for open hearings to evaluate the bill's impact on national security and innovation
  • Contact your representatives and senators to protect America's innovation ecosystem
Email us: stop_s.853@sbirinsider.org

for more information and talking points to use when contacting your representatives.