New Report: Ernst Exposes Critical Tech is Vulnerable to China

Report reveals urgent reforms needed in SBIR-STTR programs.
WASHINGTON – Today, U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) released a groundbreakingreportrevealing loopholes and a lack of a consistent due diligence standards that are exposing billions of dollars in sensitive American intellectual property to China.
The report lays out why Congress must pass Chair Ernst’sINNOVATE Actto safeguard the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs that enable small businesses to develop cutting-edge technology critical to America’s national security.
“This alarming report must serve as a wake-up call to Washington,”said Ernst.“The SBIR-STTR programs provide a valuable pipeline of technology that we cannot allow China and other foreign adversaries to steal. Most concerning is that a small group of companies receiving the lion’s share of funding are engaging in problematic business and research relationships with Communist Chinese Party agents. MyINNOVATE Actcreates strong and enforceable due diligence requirements across government to ensure that tax dollars are used to unleash the Golden Age in America and not subsidize research in Beijing.”
Thereportexposes issues including:
Background:
Ernst introduced herINNOVATE Actto reauthorize the SBIR-STTR programs with major reforms to cut red tape to make way for new applicants, eliminate corporate welfare for mills, and strengthen protections against China’s attempts to steal taxpayer-funded intellectual property.
The bill will protect emerging American technology by closing loopholes, creating a consistent baseline for all federal agencies to evaluate foreign risks, and empowering agencies with claw back authority to target bad actors.
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