DEFENSE FUNDING SURGE 2025-2026
Unprecedented Opportunities in DoW Grants, Loans, and Innovation Programs
Strategic Advisory from Grant Management Associates | January 2026
Executive Summary: Why Now?
The Department of War is mobilizing billions of dollars in grants, loans, and innovation funding to address critical national security priorities. From the Office of Strategic Capital's nearly $1 billion loan program to DARPA's cutting-edge research initiatives, organizations that act decisively stand to secure transformative funding. This advisory provides GMA clients with a comprehensive roadmap to the most significant defense funding opportunities available today.
I. Office of Strategic Capital – Credit Program
PROGRAM OVERVIEW: The DoD's Office of Strategic Capital (OSC) represents a paradigm shift in how the Pentagon supports critical technology development. Established in December 2022 and formally authorized by Congress in the FY2024 NDAA, OSC provides loans and loan guarantees to companies developing dual-use technologies essential to national security.
Funding Available
• Total Loan Authority: $984 million through FY2026
• Individual Loans: $10 million to $150 million per project
• Interest Rates: As low as U.S. Treasury rate of similar maturity
• Loan Terms: Up to 50 years based on asset useful life
• Cost Share: 80% of capital must come from non-federal sources
Priority Technology Categories
OSC has identified 31 Covered Technology Categories, with particular interest in:
High-Priority Categories
Additional Focus Areas
• Advanced Manufacturing
• Autonomous Mobile Robots
• Battery Storage
• Microelectronics
• Quantum Computing
• Cybersecurity
• Hydrogen Generation/Storage
• Spacecraft Systems
• Synthetic Biology
• Edge Computing
Application Status & Timing
The initial application window closed February 3, 2025, attracting over 200 applications totaling $8.9 billion in financing requests across 38 states. OSC is currently reviewing applications and expects to approve financing in 2025. Future funding opportunities will be announced in the Federal Register and on OSC's website. GMA is actively monitoring for new solicitations.
II. SBIR/STTR Programs – Critical Update
⚠ IMPORTANT: Congressional authority for SBIR/STTR programs expired on September 30, 2025. While negotiations continue for reauthorization, agencies may face delays in issuing new awards. GMA recommends clients prepare proposals now for immediate submission once authorization is restored.
Program Overview
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs have invested over $70 billion in small business-led R&D since inception. These programs remain critical pathways for small businesses to engage with DoD and transition technologies to the warfighter.
DoD SBIR/STTR Funding Phases
• Phase I: Feasibility studies (typically $50,000 - $250,000)
• Phase II: Full R&D (typically $500,000 - $1.7 million)
• Phase III: Commercialization (non-SBIR funding, including DoD procurement)
Service Branch Focus Areas
Army SBIR/STTR: AI/ML, autonomous systems, directed energy, soldier lethality, and survivability
Navy SBIR/STTR: Undersea warfare, naval aviation, cyber/electronic warfare, expeditionary warfare
Air Force SBIR/STTR: Hypersonics, space systems, advanced computing, next-gen propulsion
III. DARPA – Defense Advanced Research Projects Agency
DARPA represents the most prestigious and well-funded pathway for transformative research. With six technical offices and dozens of active programs, DARPA offers opportunities across the innovation spectrum.
Young Faculty Award (YFA) – Open Now
• Deadline: January 20, 2026
• Purpose: Engage rising academic stars with DoD needs and DARPA's mission
• Eligibility: Junior faculty at universities and non-profit research institutions
• Focus: Microsystems, biological technologies, defense sciences
Tactical Technology Office (TTO) – Office Wide BAA
• Deadline: December 22, 2026 (Rolling)
• Focus: Revolutionary platforms and systems with cutting-edge technology
• Award Types: Contracts, cooperative agreements, grants, other transactions
Biological Technologies Office (BTO) – BAA
• Deadline: September 30, 2026 (Rolling)
• Focus: AI/ML for biological science, warfighter health, diagnostics, countermeasures
IV. Additional DoW Funding Opportunities
Defense University Research Instrumentation Program (DURIP)
FY2026 DURIP provides funding for research equipment acquisition at U.S. universities conducting defense-related research.
• Anticipated Funding: ~$34 million
• Award Range: $50,000 to $3 million
• Sponsoring Offices: ONR, ARO, AFOSR
• Eligibility: Accredited U.S. institutions of higher education
Defense Manufacturing Community Support Program (DMCSP)
While FY2025 funding is currently unavailable, this program has historically awarded $30+ million per cycle to strengthen the defense manufacturing industrial base.
• Historical Funding: $110 million (FY2020-FY2023)
• Focus Areas: Battery/energy storage, microelectronics, castings/forgings, workforce development
• Impact: 5,366 defense businesses and 100,000 workers supported
SBICCT Initiative (SBA Partnership)
The Small Business Investment Company Critical Technology Initiative provides fund-level leverage up to $175 million per fund for managers investing in DoD's 14 Critical Technology Areas.
V. Why Grant Management Associates
Securing DoD funding requires more than strong technical merit—it demands deep understanding of defense priorities, compliance requirements, and reviewer expectations. GMA brings unparalleled expertise to defense funding.
Our Track Record
• 90.2% win rate since 2009
• $2+ billion in total grant wins; $500+ million in the past 24 months
• 503 clients served—from startups to Fortune 500s
• 59 grant specialists, including 13 Ph.D.s
Our DoW Funding Team
Major General Rob Moore, U.S. Army National Guard (Ret.)
• 20+ years managing DoD contracts and operations
• Oversaw portfolios up to $17 billion supporting 340,000+ personnel
• Former strategic planner for Office of the Secretary of Defense
• Current consultant to the National Reconnaissance Office
• Top Secret SCI clearance
Michael Gilroy – Defense Manufacturing Expert
• Led $230 million DoD grant program for U.S. manufacturing/national security
• Created $50 million Defense Manufacturing Communities grant program
• Current consultant to DoD Manufacturing Program
Sonia Vohnout – SBIR/STTR Specialist
• 30+ years helping startups and small businesses win tens of millions in non-dilutive funding
• Extensive experience with DoD, Navy SBIR/STTR, DARPA, NASA, NIH, NSF, DOE
• Expert in commercialization strategy and Technical & Business Assistance (TABA)
Serving as strategic advisors, Brandon Mendez-Lynch and Charles Hatley, Co-Founders of Black Mountain Strategies, bring deep experience in defense innovation, federal contracting, and dual-use technology strategy, helping startups and small businesses access DoD markets, funding, and partnerships.
Capt Brandon Mendez-Lynch, U.S. Air Force Intelligence, Ret. U.S. Air Force Academy graduate and decorated Intelligence Officer with over a decade in Special Operations and defense acquisition. Managed $270M in airborne assets and $60M in defense contracts while leading counter-terrorism and intelligence operations for the NSA, DIA, and joint agencies. Expert in helping emerging technologies transition into federal and defense programs; holds an active TS/SCI clearance.
Maj-Select Charles Hatley, U.S. Air Force Aviator, Sep. U.S. Air Force veteran, Squadron Officer School (SOS) Instructor, and defense consultant skilled in operations, strategy, and small business growth. Former aviator managing multimillion-dollar flight and cyber programs. Certified PMP and Lean Six Sigma Green Belt with a proven record helping dual-use startups secure DoD funding and scale in federal markets.
VI. Take Action: Your Next Steps
GMA's DoW Funding Services
1. Strategic Funding Assessment: Comprehensive analysis of your technology, capabilities, and alignment with DoD priorities
2. Opportunity Identification: Proactive monitoring and matching with highest-probability funding sources
3. Proposal Development: End-to-end support including technical writing, budget development, and compliance review
4. Key Considerations Analysis (KCA): Pre-scoring methodology that identifies weaknesses and maximizes competitiveness
5. Post-Award Support: Contract negotiations, compliance, reporting, and audit preparation
Schedule a Consultation
The DoD funding landscape is dynamic and competitive. Organizations that engage early with experienced partners have significant advantages. Let GMA help you navigate the complexities of defense funding with confidence.
CONTACT GRANT MANAGEMENT ASSOCIATES
Brad Zerbe, Director of Business Development
(623) 332-0506 | bzerbe@grantmanagementassoc.com
"Considered by many to be the premier grant firm in the world."