WASHINGTON, D.C. — October 8, 2026 — The federal government opens fiscal year 2027 without full-year funding for U.S. international assistance. A continuing resolution funds agencies at current levels through December 11. The House passed its National Security, Department of State, and Related Programs appropriations bill on July 15; the Senate has yet to act.
The next few months will shape who can compete for this work for years to come. Two decisions set the terms: the full-year bill Congress writes, and how the Department of State structures its awards.
SBAIC members are seeing more assistance move through grants and cooperative agreements instead of contracts. The small business set-asides and participation goals in the Federal Acquisition Regulation apply only to contracts. As the mix shifts, the rules that keep small firms in the competition cover less of the work.
Congress set a government-wide goal of awarding at least 23 percent of the total value of all prime contracts to small businesses each fiscal year. That goal counts contracts. Grants and cooperative agreements fall outside it, and they bar recipients from earning a profit unless the award explicitly allows it, a difficult model for any for-profit firm.
Grants and cooperative agreements have their place. They let the government work directly through local partners and move quickly in a crisis. The concern is balance, especially when the government is buying a defined product or service.
Small businesses make up 99.9% of U.S. businesses, according to the SBA Office of Advocacy, and they are the backbone of American communities and daily commerce. Overseas, they bring that same entrepreneurship to the local partners they work alongside. Keeping them in the competition for international assistance serves taxpayers.
SBAIC’s more than 150 member firms, based in Congressional districts across 41 states, deliver on time and on budget, stretch government dollars further, and serve as prime contractors on 80% of the work they implement. Their work ranges from disease surveillance and anti-corruption programs to food-systems resilience in the places where crises start.
“We applaud the Administration’s commitment to increasing U.S. private sector participation in international assistance,” said Betsy Bassan, Chair of the SBAIC Board of Directors. “There is no better exemplar of that than America’s small businesses. Our members reflect the American entrepreneurial spirit, and bring small business’ signature agility, innovation, and ability to work hand in hand with local partners.”
Before the continuing resolution expires on December 11, SBAIC asks Congress and the Department of State to:
- When the government is buying a defined product or service, award it as a contract, so small business set-asides and goals apply.
- Report small business participation across all U.S. international assistance, including grants, cooperative agreements, and subawards, so Congress can see where the work goes.
- Consider SBAIC’s American Small Business Innovations Initiative, designed to increase small business utilization in foreign assistance acquisition.
Small businesses working internationally can join SBAIC and add their voice at sbaic.org.
About SBAIC
The Small Business Association for International Companies (SBAIC) is a coalition of more than 150 small American businesses that serve U.S. international assistance programs. SBAIC members are located in Congressional districts across 41 states and are prime contractors on 80% of the work they implement, with contracts ranging from $100,000 to $42 million. Learn more at sbaic.org.
Contact: SBAIC Executive Committee, executive-committee@sbaic.org
