Build to Scale Reauthorization Act of 2026
- Sponsor
- Rep. Stevens, Haley M. [D-MI-11]
- Committees
- Science, Space, and Technology Committee (primary)
- Last action
- May 15, 2026
Bottom line
The bill reauthorizes and enhances a federal program designed to foster regional innovation and economic development through venture support and capital access, with a focus on equitable distribution of resources.
What it actually does
This bill reauthorizes the regional innovation program under the Stevenson-Wydler Technology Innovation Act of 1980, expanding its objectives to include increasing access to capital for innovation-based ventures. It redefines 'venture development organizations' to encompass direct financing and entrepreneurial support, modifies the federal cost-share requirements to allow greater flexibility for needy areas, and mandates targeted outreach to underserved communities. The bill also authorizes $50,000,000 annually for fiscal years 2026 through 2030.
Proponents argue
Supporters argue that this bill is crucial for sustaining and strengthening regional innovation ecosystems across the United States, particularly by addressing the critical need for capital access for startups. They contend that the targeted outreach provisions will ensure that the benefits of innovation and economic growth reach rural, trade-impacted, and economically distressed communities, fostering job creation and competitiveness nationwide.
Opponents contend
Critics, while generally supportive of innovation, might raise concerns about the efficacy of federal intervention in venture capital markets or the potential for federal programs to duplicate efforts better handled by the private sector. Some may also question the overall cost of the program, arguing for fiscal restraint or alternative approaches to economic development.
The bill is concise and can be read quickly, allowing ample time for detailed consideration of its specific amendments and their potential impacts.
Section 2(1)(A)
Expanded Regional Innovation Program Objectives
This provision adds a new objective to the regional innovation program: to increase access to capital for investment in innovation-based business ventures within a geographic region. This broadens the scope of activities the program can support, moving beyond just accelerating commercialization and entrepreneurial support to directly addressing funding gaps.
Supporters argue
Proponents argue that this expansion directly addresses a critical barrier for many startups and growing innovation companies: securing adequate capital. By explicitly including capital access as an objective, the program can more effectively foster the growth of new businesses and technologies.
Critics contend
Some critics might contend that direct federal involvement in capital access could distort private markets or lead to inefficient allocation of funds, suggesting that the private sector is better equipped to make investment decisions.
Tradeoffs
The provision balances the need for direct capital support for innovation with concerns about federal market intervention. It aims to fill gaps in private capital availability, particularly in underserved regions, but requires careful implementation to avoid unintended consequences.
Section 2(1)(B)
Redefinition of Venture Development Organization
This section redefines 'venture development organization' to explicitly include entities that provide direct financing to private innovation-centered businesses, services to accelerate commercialization of research, and entrepreneurial support. This clarifies and potentially broadens the types of organizations eligible for program funding, emphasizing a comprehensive approach to venture support.
Section 2(3)(C)
Adjusting Federal Cost Share Requirements
This amendment modifies the federal share of the cost for activities funded under the program. It sets the federal share at a maximum of 50%, with an additional amount not exceeding 40% that can be provided based on the relative needs of the area, as determined by the Secretary's regulations. This replaces a previous, unspecified cost-share structure.
Section 2(3)(D)
Enhanced Outreach to Underserved Communities
This provision directs the Secretary to conduct specific outreach efforts to encourage participation in regional innovation initiatives from public and private sector entities in rural communities, communities negatively impacted by trade, areas with persistent economic distress, or those that agree to collaborate with local workforce investment area boards. This ensures the program actively seeks out and engages with these specific groups.
Section 2(6)
Program Reauthorization and Funding
This section reauthorizes the regional innovation program and provides its funding. It authorizes the Secretary to obligate and expend any unobligated funds from previous fiscal years. Additionally, it authorizes an appropriation of $50,000,000 for each of fiscal years 2026 through 2030 to carry out the program. This ensures the program's continuity for the next five years.
This amendment changes the Secretary's authority regarding making awards from 'may' to 'shall' make awards, subject to the availability of appropriations.
Section 2(3)(A)(ii)
Why it matters:This is standard legislative drafting practice for modifying agency discretion, rather than an attempt to obscure the change.
Case for: Proponents would argue that this strengthens the program's mandate, ensuring that if funds are appropriated, the Secretary is obligated to disburse them for regional innovation initiatives, thereby reducing potential administrative delays or discretion to withhold funds.
Case against: Critics might suggest that removing the 'may' provides less flexibility for the Secretary to adapt to unforeseen circumstances or to prioritize funds differently if new, more pressing needs arise, even if appropriations are available.
Estimated impact: This change increases the likelihood that appropriated funds for the regional innovation program will be fully utilized, potentially leading to a more consistent flow of resources to eligible initiatives.
This amendment inserts a reference to 'the Regional Technology and Innovation Hub Program under section 28' as an additional data source for evaluating regional innovation initiatives.
Section 2(4)(B)
Why it matters:This is standard legislative practice for cross-referencing related programs and promoting inter-agency coordination, not an attempt to hide policy.
Case for: Proponents would argue that integrating data from related innovation programs allows for a more comprehensive and holistic evaluation of federal investments in technology and innovation, leading to better policy decisions and resource allocation.
Case against: No strong case against this provision, as it is primarily an administrative and data coordination measure aimed at improving program oversight.
Estimated impact: This change facilitates better data sharing and evaluation across federal innovation programs, potentially leading to more efficient and effective use of federal resources in fostering regional technology and innovation.