Strategic Breakthrough Award

Also called: SBT, strategic breakthrough allocation, Phase II strategic breakthrough award

A large, milestone-based Phase II award created by S. 3971 (April 2026) for companies with a prior Phase II, requiring matching funds, meant to carry proven technology toward production and Phase III.

S. 3971, the Small Business Innovation and Economic Security Act, signed April 13, 2026, created a strategic breakthrough allocation that participating agencies can use for Phase II awards of up to $30 million, in one award or a series tied to milestones, with a total period of performance of no more than 48 months.

The company must secure matching funds that are new as a result of the award: new private capital, or new funding from a government program other than SBIR/STTR Phase I or II.

Agencies run their own versions. DoW (formerly DoD) describes Strategic Breakthrough as moving proven SBIR/STTR technology from successful Phase II to operational use, and requires part of the match to come from DoW program funds outside SBIR/STTR. NSF accepts proposals from Phase II awardees only after they consult their Program Officer.

At AFWERX, the award is a sequential Phase II that builds on a previous Phase II and runs alongside STRATFI/TACFI rather than replacing them.