AFWERX STRATFI / TACFI

AFWERX TACFI

Provides matching investment to small businesses bridging from Phase II toward Phase III commercialization.

AFWERX TACFI Program Year 26.2 (PY26.2) is a Tactical Funding Increase cycle administered by AFWERX and SpaceWERX that provides $375,000 to $2,000,000 in matching investment to small businesses bridging from SBIR/STTR Phase II toward Phase III commercialization and fielding. TACFI was designed specifically to address the 'Valley of Death' — the funding gap between Phase II R&D contracts and the larger Phase III production and deployment contracts. As of the research date (May 26, 2026), PY26.2 TACFI was announced as forthcoming with guidance documents and submission details not yet released; the Notice of Opportunity was expected imminently.

Eligibility requirements for TACFI are the same as for STRATFI: the Small Business Concern must be on an active SBIR/STTR Phase II contract or have completed Phase II within two years of Capability Package submission; must be at least 90 days into Phase II execution; and must not currently be executing a STRATFI effort. TACFI awards ($375K–$2M) require matching funds from a government program office, private investors, or both. As with STRATFI, all submissions must be completed by a government Point of Contact — companies coordinate with their government counterpart to initiate the application. Anticipated work must be performed in the United States.

Recent PY24.2 Space TACFI awardees include Agile Space Industries, ConductorAI, Electroninks, Hydrosat, Rise8, and Wallaroo Labs, illustrating the program's focus on space and dual-use defense technologies. TACFI is positioned as an on-ramp to the larger STRATFI program: companies that successfully execute a TACFI award and demonstrate strategic impact may be considered for a subsequent STRATFI cycle at the $3M–$15M tier. Applicants should monitor afwerx.com and spacewerx.us for the PY26.2 NOO release and prepare Phase II performance documentation and co-investment evidence in advance.