U.S. DOT SBIR Fiscal Year 2026 (FY26) Phase I
Below is a brief summary. Please check the full solicitation before applying (link in resources section).
Executive Summary:
The U.S. DOT SBIR FY26 Phase I Pre-Solicitation is now open and represents an early opportunity to align with upcoming federal R&D funding across transportation, AI, safety, and infrastructure.
The pre-solicitation is open through May 29, 2026, at 5:00 p.m. ET, which is the key near-term deadline to engage, ask questions, and position your solution.
While this is not the formal application window, companies that act now—by refining their concept, engaging in Q&A, and aligning to specific topics—will be significantly better positioned for the estimated solicitation period: June 3, 2026 – July 7, 2026.
How much funding would I receive?
Phase I funding is up to $200,000 for 6 months.
RESEARCH TOPICS:
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This topic seeks an integrated system combining AI, edge/cloud computing, and V2X communication to detect, predict, and mitigate traffic congestion in real time across multiple intersections or regions. The solution should ingest diverse traffic data, generate location-specific operational guidance (e.g., speed, lane changes, detours), and securely deliver it to vehicles, infrastructure, and agencies. A key focus is on balancing workloads between edge and cloud systems while ensuring low latency, scalability, and secure communications.
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FHWA is looking for a vehicle-mounted, multi-sensor inspection system that can assess catch-basin conditions (e.g., water, sediment, debris) without removing grates or requiring manual inspection. The system should use sensors (optical, lidar, radar, etc.) and AI to interpret basin conditions while in motion, improving safety and efficiency for DOTs managing large, distributed infrastructure networks.
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This topic calls for a mobile system capable of safely discharging high-voltage lithium-ion battery systems (BESS) in rail vehicles after accidents or during maintenance. The system must handle at least 400 kW of stored energy, include robust safety features, and be operable by trained personnel. It should support multiple discharge methods (resistive, regenerative, or hybrid) and integrate with emergency response and rail maintenance workflows.
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FTA seeks an AI-powered trip planning tool that supports the entire “Complete Trip,” from deciding to use transit through navigation and adaptation during travel. The system should integrate multimodal transportation data, personalize recommendations based on user preferences, and ensure accessibility for all users, including those with disabilities. The goal is to make transit a seamless, intuitive option compared to other modes.
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This topic focuses on developing predictive analytics tools that use AI and integrated data sources to proactively identify safety risks in commercial transportation. A core component is a “Trusted Intermediary” framework that securely combines private industry data with public datasets while preserving privacy. The system should generate actionable, explainable insights to improve safety outcomes and resource allocation.
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This topic seeks an AI-enabled system that predicts freight bottlenecks and supply chain disruptions using multimodal data, edge analytics, and federated learning. The solution should provide real-time insights and decision-support tools for public and private stakeholders, including dashboards and alerts. It aims to improve corridor efficiency, resilience, and coordination across transportation systems.
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PHMSA is looking for a safe, fast, and cost-effective method to remove residual energy from end-of-life lithium-ion batteries, reducing explosion risk during transport. The solution should enable safer shipping and improve the economics of recovering critical minerals, with potential to support regulatory changes and broader commercialization.
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This topic seeks a thermochromic coating for hazardous materials packaging that visibly changes color when internal temperatures reach dangerous levels. The coating should be durable, low-cost, and compatible with various packaging materials, providing first responders and operators with a clear, intuitive warning signal during transport or emergencies.
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PHMSA is interested in self-repairing materials or coatings that can automatically fix damage (e.g., cracks, corrosion, punctures) in hazardous materials packaging. The solution must meet existing regulatory standards and improve safety, durability, and cost-effectiveness across bulk and non-bulk packaging applications.
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This topic calls for a low-cost, easy-to-deploy solution to suppress lithium-ion battery fires quickly and prevent reignition. The system should work across different battery types and scenarios, integrate with emergency response workflows, and be scalable for widespread use by first responders, shippers, and operators.
Are there any additional benefits I would receive?
Not explicitly specified, but the document indicates:
Opportunities to work with federal agencies and transportation operators
Potential pilot deployments with state/local partners
Path to Phase II funding for prototype development and validation
Early positioning in priority areas like AI, safety, and infrastructure modernization
What is the timeline to apply and when would I receive funding?
Key dates provided:
Pre-solicitation open through May 29, 2026, at 5:00 p.m. ET
Pre-solicitation Q&A period: April 29, 2026 – May 29, 2026 at 5:00 p.m. ET
Estimated solicitation period: June 3, 2026 – July 7, 2026
Funding timing after submission is not specified in the provided materials.
Where does this funding come from?
Funding comes from the U.S. Department of Transportation (U.S. DOT) SBIR program, including:
Federal Highway Administration (FHWA)
Federal Railroad Administration (FRA)
Federal Transit Administration (FTA)
Office of the Secretary (OST)
Pipeline and Hazardous Materials Safety Administration (PHMSA)
Who is eligible to apply?
For-profit small businesses
What companies and projects are likely to win?
Based on the topic descriptions:
Companies building real, testable systems (not just concepts)
Teams that integrate:
AI + real-world data
Hardware + software systems
Existing infrastructure (e.g., V2X, sensors, rail systems)
Proposals that demonstrate:
Clear Phase I feasibility approach
Path to Phase II deployment
Partnerships with agencies or industry stakeholders
Solutions that address:
Safety, reliability, and scalability
Real-world operating constraints (latency, environment, compliance)
Human usability and adoption
Are there any restrictions I should know about?
Examples from the topics include:
Must integrate with existing infrastructure and systems
Must meet safety, regulatory, and operational requirements
Some topics require industry partnerships (e.g., rail stakeholders)
Certain exclusions apply (e.g., radioactive materials excluded in PHMSA 26-PH3)
Solutions must be practical, scalable, and deployable
How long will it take me to prepare an application?
Given the timeline:
You effectively have until July 7, 2026 (estimated) to prepare for submission once the solicitation opens
Early preparation during the pre-solicitation period (through May 29, 2026, at 5:00 p.m. ET) is strongly implied
How can BW&CO help?
BW&CO can help you:
Select the right topic across FHWA, FRA, FTA, OST, and PHMSA
Translate your product into a Phase I-ready technical concept
Build a clear commercialization and Phase II pathway
Develop a competitive SBIR proposal aligned to DOT expectations
Use the pre-solicitation window to refine positioning and de-risk your application
