The NIH announced that the federal SBIR and STTR programs expired effective immediately, halting non‑dilutive seed funding across agencies including HHS, Agriculture, Commerce, Energy and Defense. The lapse cuts off a four‑decade lifeline that delivered over $4 billion annually to small companies and university partnerships and has supported more than 4,000 firms in bridging early‑stage innovation to commercialization. Industry leaders warned the pause will impede startups’ ability to de‑risk programs and attract follow‑on venture capital, potentially forcing program delays and company failures.