Neuroscience Funding in 2026: SBIR Reauthorization, Increased NIH Budget, and New ARPA-H Opportunities 

SBIR funding HHS; federal policy and funding for brain research; euroscience research funding; biotech and medtech federal funding;
Picture of Prepared by: Colin Cremault

Prepared by: Colin Cremault

Colin Cremault serves as Research Analyst for the firm’s Advanced Technology Practice. Leveraging his background in the life sciences, Colin’s role heavily revolves around supporting the firm’s for-profit biotechnology clients in achieving their research and development goals. This includes proposal development, strategic intelligence, policy communications, and congressional engagement. His focus lies primarily on NIH, ARPA-H, FDA, and CDC grants, but also extends to biotechnology research funded by the Department of Defense.

McAllister & Quinn and the National Brain Tumor Society are hosting a webinar titledThe State of Federal Policy and Funding for Brain Research in 2026 on May 28 at 2:00pm ET which will provide a landscape of available funds, and what organizations need to do to leverage these programs.

 

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Neuroscience and Biotech Federal Funding Expands in 2026

Earlier in 2026, a successful appropriations season saw large investments directed towards neuroscience research when many feared federal spending would be pared back for biotechnology and medical technology sectors. With the addition of the Small Business Innovation and Economic Security Act passage in April, a clear picture of available funding for biotechnology has materialized, with McAllister & Quinn’s experts ready to help navigate, identify, and pursue funding. 

NIH Retains Global Research Leadership with $47.2 Billion in Funding.

Despite the Trump administration’s proposed cuts to the National Institutes of Health (NIH), the NIH has retained its status as the preeminent global sponsor for health research with an FY26 budget of $47.2 billion in federal funding  set by Congress — $216 million more than FY25. 

This budget includes a $100 million increase for Alzheimer’s and related dementias research, a $15 million increase for ALS research, and dedicated support for the National Parkinson’s Project. Of all the institutes within the NIH, the National Institute of Neurological Disorders and Stroke (NINDS) received the largest funding increase ($155.6 million), taking its total funding for FY26 up to $2.8 billion. 

The budget also includes a $4 million FY26 funding increase for neuroscience research within the BRAIN Initiative, on top of the outlaid $195 million through the CURES Act. 

Congress Reauthorizes SBIR/STTR Through 2031

Congress reauthorized the Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) program in April, which had lapsed in funding on September 30, 2025. The measure approves ~$1.2B in SBIR funding for the Department of Health and Human Services (HHS) through September 30, 2031. This includes a new “Strategic Breakthrough Allocation” program allowing agencies to allocate awards of up to $30m per project for applicants who have previously been awarded a Phase II SBIR/STTR and demonstrate commercial viability. 

Key Federal FundingOpportunities for Biotech and Neuroscience

Also housed under HHS is the Advanced Research Projects Agency for Health (ARPA-H) – an agency with a standalone budget maintained by Congress at $1.5 billion through FY26. ARPA-H’s research portfolio is focused on “moonshot” concepts – those without clinical validation but with transformative potential, ideal for investigators in the rapidly evolving field of neuroscience. ARPA-H makes funds available through three distinct tracks:  

The latter two options accept a wide range of innovative technological and pharmacological solutions. The four concurrently open Mission Office ISOs allow for interested parties to self-sort their solution into, while frequent SBIR solicitation releases contain several open topic areas. 

Interested in learning more about federal investments in neuroscience research?

McAllister & Quinn and the National Brain Tumor Society are hosting a webinar titled “The State of Federal Policy and Funding for Brain Research in 2026” on May 28 at 2:00pm ET which will provide a landscape of available funds, and what organizations need to do to leverage these programs.