Build to Scale Reauthorization Act of 2026
- Sponsor
- Sen. Young, Todd [R-IN]
- Committees
- Commerce, Science, and Transportation Committee (primary)
- Last action
- Jul 30, 2026
Bottom line
The bill aims to strengthen and expand federal support for regional innovation ecosystems by reauthorizing funding and refining program parameters to better serve diverse communities and facilitate capital access.
What it actually does
This bill reauthorizes the regional innovation program under the Stevenson-Wydler Technology Innovation Act of 1980, renaming it the "Build to Scale Reauthorization Act of 2026." It expands the program's goals to include increasing access to capital for innovation-based ventures and redefines "venture development organizations" to explicitly include direct financing and entrepreneurial support. The bill also revises federal cost-share requirements, mandates outreach to underserved communities, and authorizes $50 million annually for fiscal years 2026 through 2030.
Proponents argue
Supporters argue that reauthorizing and enhancing the regional innovation program is crucial for fostering economic growth, creating jobs, and ensuring American competitiveness in technology and innovation. They contend that increasing access to capital and targeting outreach to rural and economically distressed areas will democratize innovation, allowing more communities to participate in and benefit from the innovation economy.
Opponents contend
Critics might argue that while the program's goals are laudable, the authorized funding levels may be insufficient to make a significant impact across a diverse range of regions, or that the federal government's role in direct venture financing could distort private markets. Some might also question the effectiveness of such programs without more rigorous performance metrics or a clearer strategy for long-term sustainability beyond federal grants.
The bill is concise and can be read quickly, allowing ample time for stakeholders to understand its provisions.
Section 1
Short Title: "Build to Scale Reauthorization Act of 2026"
This section formally names the act, which reauthorizes and amends the regional innovation program. This new name signals a focus on scaling up innovative ventures and provides a clear identifier for the legislation.
Supporters argue
Supporters argue that a clear, descriptive short title helps stakeholders identify and understand the bill's purpose, emphasizing its goal of building and scaling innovation.
Critics contend
No specific opposition is typically raised against short titles, as they are primarily for identification.
Section 2(a)(1)(A), amending 15 U.S.C. 3722(a)(2)
Expanding Program Goals to Include Access to Capital
This amendment adds "increase access to capital to invest in innovation-based business ventures in the geographic region" as a specific goal of the regional innovation program. This explicitly broadens the program's mandate beyond just fostering innovation to actively facilitating investment, recognizing capital access as a critical component of innovation ecosystem development.
Section 2(a)(1)(B), amending 15 U.S.C. 3722(a)(4)
Redefining "Venture Development Organization"
The bill redefines "venture development organization" to explicitly include entities that provide "Direct financing to private innovation-centered businesses" and "Entrepreneurial support tailored to innovation-centered founders, start-ups, and businesses." This clarifies and expands the types of activities these organizations are expected to perform to qualify for federal support, emphasizing a comprehensive approach to nurturing innovation.
Section 2(a)(3)(C), amending 15 U.S.C. 3722(c)(5)
Revised Federal Cost Share Requirements
The bill revises the federal cost share for activities. The federal share cannot exceed 50%, but an additional amount, not exceeding 40%, can be provided based on the relative needs of the area, as determined by the Secretary. This allows for a total federal share of up to 90% for initiatives in areas with greater economic need, making the program more accessible.
Section 2(a)(3)(D), amending 15 U.S.C. 3722(c)(6)
Expanded Outreach to Underserved Communities
This amendment expands the Secretary's outreach mandate to encourage participation from public and private sector entities in "rural communities," "communities negatively impacted by trade," and "areas with persistent economic distress." It also adds a requirement for entities to collaborate with local workforce investment area boards for workforce or training activities, aiming to integrate innovation with local job development.
Section 2(a)(5), amending 15 U.S.C. 3722(e)
Interagency Coordination Expansion
This amendment expands the interagency coordination requirement to include the Department of Energy (DOE) and the National Science Foundation (NSF) in addition to existing partners. This aims to leverage a broader range of federal expertise, research capabilities, and resources for regional innovation initiatives, fostering a more integrated federal approach.
Section 2(a)(6), amending 15 U.S.C. 3722(h)
Reauthorization of Funding
This section reauthorizes appropriations for the regional innovation program, authorizing $50,000,000 for each of fiscal years 2026 through 2030. It also allows the Secretary to use any unobligated funds from previous fiscal years, providing a stable funding framework for the program's continuation and growth.
Striking of paragraph (4)(D) from 15 U.S.C. 3722(c).
Section 2(a)(3)(B)
Why it matters:This is standard legislative practice for amendments to existing law, but it makes it harder for a casual reader to immediately grasp the full change without external reference.
Case for: Proponents would argue that this streamlines the existing statute by removing an outdated, redundant, or ineffective provision, thereby improving the efficiency or clarity of the program's operations.
Case against: Without knowing the specific content of the struck paragraph, it is impossible to fully assess if its removal has unintended negative consequences, such as eliminating a valuable safeguard, a specific program requirement, or a benefit for certain stakeholders.
Estimated impact: Unknown without the original text of the struck paragraph, but could range from minor administrative streamlining to a significant policy shift regarding program requirements or eligibility.