Passed
427 Yea3 Nay3 Not voting2/3 required
HR-788-119
Received in the Senate and Read twice and referred to the Committee on Energy and Natural Resources.
Sponsored by Nick LaLota (R-NY)
What it does
This bill would require the Secretary of Energy and the Administrator of the Small Business Administration to enter into a memorandum of understanding (MOU) or similar agreement to carry out joint, cross-cutting research and development activities aligned with both agencies' missions. It would require small businesses to be included in those activities where appropriate, allow reimbursable agreements with outside entities, and permit collaboration with other federal agencies. The bill also requires a report to Congress within two years on coordination, achievements, and future opportunities. Notably, the bill explicitly authorizes no new appropriations — any activities must be funded within existing budgets.
Who benefits
Small businesses working in energy technology, research, and development — particularly those already participating in DOE programs like the Small Business Innovation Research (SBIR) or Small Business Technology Transfer (STTR) programs. Energy-sector startups and entrepreneurs seeking federal partnerships. DOE national laboratories that may gain access to a broader pool of small business innovators. The SBA, which would expand its technical mission footprint. Researchers and scientists at both agencies who could pursue collaborative projects. Indirectly, consumers and industries that may eventually benefit from energy technologies developed through these partnerships.
Who is hurt
Larger energy companies and research contractors that currently hold DOE research agreements may face increased competition from small businesses gaining a stronger foothold in federal R&D. Taxpayers could bear indirect administrative costs of establishing and maintaining the MOU and reporting requirements, even if no new funds are appropriated. Federal agency staff at both DOE and SBA would absorb new coordination and reporting workloads within existing budgets, potentially diverting resources from other priorities.
Supporters argue
Supporters argue that small businesses are disproportionately responsible for breakthrough innovations but often lack the institutional access to partner with large federal agencies like DOE. They contend that formalizing a DOE-SBA collaboration would lower barriers for small businesses to participate in federally funded energy R&D, leveraging the SBA's existing small business network alongside DOE's world-class research infrastructure. The bill's CUTGO-compliant, no-new-appropriations structure demonstrates fiscal discipline while still advancing national energy and economic competitiveness goals.
Opponents argue
Opponents argue that the bill creates a new bureaucratic coordination layer — an MOU, reporting requirements, and interagency agreements — without authorizing any funding to make those activities meaningful, raising questions about whether the mandate is achievable in practice. They contend that DOE and SBA already have separate, well-established small business R&D programs (SBIR/STTR) and that adding an unfunded interagency framework may produce paperwork and reports rather than substantive research outcomes, diverting limited staff time from existing, proven programs.
Constitutional context
No significant constitutional tension is present. Congress has broad authority to direct executive agency coordination and interagency agreements under the Necessary and Proper Clause (Art. I, §8, cl. 18) in conjunction with its Commerce Clause powers (Art. I, §8, cl. 3). The bill does not delegate broad new rulemaking authority to agencies, so the major questions doctrine (West Virginia v. EPA, 2022) and post-Chevron scrutiny (Loper Bright v. Raimondo, 2024) are not implicated.
Checks and balances
The executive branch (DOE and SBA) gains a new coordination mandate, but Congress retains oversight through the required two-year report and controls any future funding through the appropriations process.
Historical precedent
Congress has previously directed interagency R&D coordination through vehicles such as the America COMPETES Act (2007, reauthorized 2010, 2022), which established cross-agency research frameworks, though none specifically paired DOE and SBA in this manner.
Passed