East Michigan News

Chairmen John Moolenaar, Roger Williams, and Brian Babin have initiated a collaborative effort to address concerns over the exploitation of U.S. taxpayer-funded innovation by the Chinese Communist Party (CCP). This initiative involves sending joint letters to 11 federal agencies participating in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. These programs provide substantial funding to small American technology companies.

The SBIR and STTR programs are designed to support small businesses and foster innovation within the United States. However, there is growing concern that these programs are being exploited by foreign adversaries, particularly China. The exploitation involves siphoning resources and talent from U.S. companies to enhance China's technological and military capabilities, posing a threat to American innovation and national security.

With the authorization for these programs set to expire on September 30, 2025, the committees led by Moolenaar, Williams, and Babin are taking steps to ensure these taxpayer-funded initiatives benefit American businesses rather than serving CCP interests. The letters sent request detailed information from participating agencies regarding flagged applications, security concerns, and adherence to national security protocols.

Chairman John Moolenaar emphasized the severity of this issue: "China has systematically exploited American innovation to advance its military and economic objectives, threatening our national security and global competitiveness." He highlighted the need for a full investigation into protecting American technology funded by taxpayer dollars.

Roger Williams stated that small businesses are essential for driving economic growth: "Unfortunately, a serious lack of oversight of these programs has allowed the CCP to target strategic innovations." He expressed readiness to work with federal agencies to protect American innovation.

Brian Babin noted that while SBIR and STTR programs empower small businesses through crucial federal funding for technology development, it is unacceptable for them to be exploited by the CCP. He stressed that Congress must collaborate with federal agencies to strengthen research security and ensure greater oversight.

A sample letter addressed to Sethuraman Panchanathan, Director of The National Science Foundation, was provided as part of this effort. It outlines concerns about China targeting strategic innovations developed by American small businesses funded through SBIR and STTR programs. The letter requests specific information regarding application success rates, flagged applications for national security risks or foreign influence, disclosure requirements adoption, criteria for flagging applications as suspicious, and procedures following such flags.

The Committees seek responses by March 12, 2025.

Roger Williams

Chairman

Committee on Small Business

Brian Babin

Chairman

Committee on Science, Space, and Technology

John Moolenaar

Chairman

The Select Committee on the CCP