The NIH issued a notice that the SBIR and STTR programs have expired "effective immediately," pausing a major federal source of non-dilutive seed funding for life‑science startups. The lapse affects SBIR/STTR across multiple agencies—including Agriculture, Commerce, Energy, HHS and Defense—and threatens a core commercialization bridge that many biotech startups rely on to de-risk early programs and attract follow-on venture funding. Industry leaders warn that the suspension could force companies to delay studies, drop programs, or seek equity funding earlier than planned. The SBIR/STTR portfolio historically channels billions annually into early-stage biotechnology innovation; policymakers and companies are now focused on whether Congress will restore appropriations or provide stopgap measures.