As a solution to the problem of scalable propulsion in small satellite architectures, the microfabricated ion Electrospray Propulsion System (iEPS) developed by MIT's Space Propulsion Laboratory has progressed to a point where it is ready to be characterized on a realistic testbed. In this paper, developments in the iEPS thruster design and testing equipment are outlined. Design changes address the performance and testing issues encountered with the first version. These changes include features to mitigate the formation of liquid current paths and ease grid-to-tip alignment and grid removal. Additionally, a 1-DOF free-floating CubeSat testbed with an integrated autonomous remote control system and high-voltage PPU has been developed and tested for use as a thrust balance and attitude control demonstrator.