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Federal Continuing Resolution Would Keep Regional Innovation, R&D Funding Stable

December 11, 2014

Earlier this week, congressional appropriators reached a tentative agreement on spending levels for the 2015 fiscal year just a few days before the Thursday deadline. The continuing resolution omnibus, “cromnibus,” spending package would, if approved by the House, Senate and president, avert a government shutdown and again defer budget negotiations until next September. Under the agreement, most agency budgets would remain at similar levels to those enacted for FY14.

The package includes $250 million for the Economic Development Administration (EDA), a 1.4 percent increase over the FY14 enacted budget level. The entirety of the small increase would boost funding for Economic Development Assistance Programs (EDAP), which would receive a total of $213 million (1.7 percent increase). EDAP represents several programs of note for the innovation community, including the Regional Innovation Strategies program (see related article). Additional language included in the legislation would extend the authorization for EDA’s trade adjustment assistance for firms by one year.

A total of $887.6 million would be provided for the Small Business Administration (SBA), down 4.5 percent from FY14 enacted levels. Despite the overall decrease, funding for SBA’s Entrepreneurial Development Programs would receive a significant boost, with $220 million (12.2 percent increase). These programs include Entrepreneurship Education, which would receive $7 million, the Regional Innovation Clusters Program, $6 million, and the Growth Accelerators program, $4 million. The legislation directs SBA to require a $4 match for every $1 awarded through the Growth Accelerators program and requests a report on FY14 spending within 60 days of enactment.

The National Institutes of Standards and Technology (NIST) would be funded at $863.9 million (1.6 percent increase), including $675.5 million (3.8 percent increase) for its Scientific and Technical Research and Services $138.1 million (3.4 percent decrease) for Industrial Technology Services (ITS). NIST’s allocation for ITS includes funding for the Hollings Manufacturing Extension Partnership, which would receive $130 million (1.6 percent increase). The Advanced Manufacturing Technology Consortia would receive the remaining $8.1 million, which combined with $6.9 million in previous year available balances, would bring its total funding level to $15 million (same funding level).

National Science Foundation (NSF) funding would be set at $7.3 billion (2.4 percent increase), with $866 million (2.2 percent increase) reserved for research and related activities. The legislation instructs NSF to work with the Interagency Working Group on Neuroscience and the Brain Research through Advancing Innovative Neurotechnologies (BRAIN) initiative to establish a National Brain Observatory working group.

The omnibus package adopts language from the Revitalize American Manufacturing and Innovation (RAMI) Act of 2014, passed by the House of Representative earlier this year, creating a national network of manufacturing innovation institutes. The effort would connect and expand work done by the regional innovation institutes that have already been launched. President Obama has separately announced two new competitions for new manufacturing innovation institutes (see related article).

Additional offices and initiatives of interest to the innovation community include:

  • Department of Agriculture Rural Development programs – $2.4 billion (0.2 percent increase);
  • Department of Treasury Community Development Financial Institutions (CDFI) Fund program - $230 million (2 percent increase); and,
  • Department of Energy, Energy Efficiency, Advanced Manufacturing - $200 million (10.8 percent increase), including $79 million for Next Generation Manufacturing Research and Development projects, $25 million for the fourth year of the Critical Materials Energy Innovation Hub and $56 million for four Clean Energy Manufacturing Institutes.

Federal research agency highlights include (comparisons are to enacted FY14 funding except where noted):

  • National Institutes of Health — $30.1 billion (0.5 percent increase);
  • National Science Foundation — $7.3 billion (2.4 percent increase);
  • DOE Office of Science — $5.1 billion (unchanged);
  • NASA Science — $5.2 billion (1.8 percent increase);
  • Defense Advance Research Projects Agency — $2.9 billion (4.9 percent increase);
  • U.S. Geological Survey — $1 billion (1.3 percent increase);
  • EPA Science and Technology — $764.6 million (3.2 percent decrease);
  • NASA Space Technology — $596 million (3.5 percent increase); and,
  • Advanced Research Projects Agency-Energy — $280 million (unchanged).

 

congress, white house, federal agency, fy15budget