The Distressed Area Recompete Pilot Program, a program authorized by the CHIPS and Science Act, targets areas where the share of prime-age (25-54 years) employment is significantly lower than the national average. The program’s goal, according to a press release from EDA, is “closing this gap through flexible, locally-driven investments.”

In a recent State of the Science address, National Academy of Sciences President Marcia McNutt called attention to what she sees as an alarming trend: the federal contribution to basic research is stagnating while industry funding is rising. The federal share of U.S. spending on basic research, she said, was down from about 60% in 2011 to 40% in 2021. The fall is mostly the result of a sharp increase in basic research funding from industry (see this SSTI article and this National Science Board report for more details on this topic). McNutt proposed that a national research strategy should strive to reverse this trend so that the federal government regains its leadership position in funding basic research.

Following its announcement of implementation awards to 12 Tech Hubs regions, the U.S. Economic Development Administration made Consortium Accelerator Awards of $500,000 to each of the additional 19 Tech Hubs designated regions. This funding should enable regions to continue dedicated efforts to strengthen their strategies and partnerships and to pursue alternative sources of implementation project funding. The National Science Foundation made similar awards to the Regional Innovation Engines finalists earlier this year, and SSTI witnessed the potential value of such support while working with RTI International and the Build Back Better Regional Challenge finalists, which did not receive such continuation assistance. While EDA has not issued a separate release about the awards, local coverage can be found from Chicago, Kansas City, Oregon, and Rhode Island.

This year’s legislative sessions saw a handful of governors and lawmakers proposing noteworthy reforms or other changes to their states’ institutions of higher education—from system overhauls to the expansion of tuition-free community college programs—all in efforts to align their state’s education investments with current and future workforce needs, as well as address future costs under tightening budgets.

Note: This brief quasi-book review/book synopsis is the first item in an experimental new section of SSTI’s newsletter, potentially joining other regular sections such as Useful Stats, Fed/Leg News, State News, Member Updates, and Recent Research. Its periodic continuation after the contributions we present over the summer will depend on feedback from our members and Digest readers. Comments may be shared with skinner @ ssti.org

The positive impacts of addressing any single priority for reducing greenhouse gas (GHG) emission could be of only marginal benefit without simultaneous efforts along other key priorities, warns the U.S. Department of Transportation (DOT). DOT Report to Congress: Decarbonizing U.S. Transportation lays out three strategies for reducing greenhouse gas emissions that DOT argues must be enacted in unison if the U.S. is to make significant progress in meeting its GHG emission goals. By way of example of why a holistic or coordinated approach is required, the reports notes that increases in vehicle driving and the movement of goods have canceled out the GHG emissions benefits of improved fuel economy in the US.

On Aug. 1, Massachusetts lawmakers ended their 19-month formal session. In the flurry of legislation that was passed, the Legislature failed to agree on the governor’s proposed $3.5 billion economic development package (the Mass Leads Act), which featured $2.8 billion in bond authorizations combined with tax credits and considered a top priority for both the administration and legislative leaders. As part of Gov. Maura Healey’s proposal were marquee investments totaling $1 billion that would reauthorize state investments in the life sciences industry and launch similar support for the nascent climate tech industry—dedicating hundreds of millions of dollars to the sectors. However, the House and Senate differed widely on how much to spend: Senate lawmakers proposed to borrow $225 million over five years for the life sciences sector—less than half of the $500 million over a decade that Healey and House lawmakers sought —and $200 million for the Clean Energy Investment Fund to facilitate research and development, commercialization, and deployment of climate technologies, as well as another $200 million for the Massachusetts Offshore Wind Industry Investment Trust Fund to support the growth of the offshore wind industry. The Senate also included a climate tech tax credit, a climate tech jobs credit, and a climate tech research credit. While the climate tech initiatives appeared to be better received in the Senate proposal, it still was less than the $500 million the House was administration has requested. Upon conclusion of the session, Healey called for lawmakers to reconvene in a special session to address the stalled economic development measure.

The U.S. Department of Commerce has announced a new $25 million Good Jobs Challenge Notice of Funding Opportunity for investment in high-quality, locally led workforce training programs that lead to good jobs. EDA anticipates making 5-8 awards ranging from $1 to $8 million, which are expected to be announced in winter 2024. Projects that align with and advance a Tech Hub designee’s strategy are eligible to earn up to five award points, according to the NOFO (pg. 45).

The U.S. Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), recently announced the site selection process for the first three CHIPS for America Research and Development (R&D) facilities for the NSTC and National Advanced Packaging Manufacturing Program (NAPMP). The goal of these facilities, as outlined here, is to allow U.S. innovators to collaborate and solve the most challenging problems in microelectronics. Due to the different timelines and technical requirements, there will be a separate site selection process for each facility, while still including an integrated assessment of all the factors considered in each selection process.

Significant differences between the House and Senate versions of the FY 25 budget numbers for science and the quadrennial election cycle might explain the increased language one hears concerning national security, competitiveness and global economic conditions. Data presented in a July issue brief by the National Science Board (NSB), however, should help raise the issue to encourage honest discussion about how the federal government will take on the challenges to U.S. leadership in innovation. Additionally, a new paper from the Aspen Strategy Group et al. provides supporting arguments to the NSB facts and policy recommendations to help address educational aspects of what many in the innovation space consider a growing or looming crisis for the country.

The U.S. Department of Defense released requests for information regarding a new loan program for critical technologies that will be launched through the Office of Strategic Capital. The office, launched in 2022, has focused on a Small Business Investment Company-Critical Technologies (SBICCT) license that can provide technical and cybersecurity expertise and resources to funds willing to concentrate their portfolios on certain tech. In the FY 2024 budget, Congress provided the office $49 million to create a pilot loan and guarantee program to support companies developing the same critical technologies. To prepare for the program’s launch, the department released two requests for information—one for financiers and one for all other stakeholders—intended to help identify market challenges and capital needs. One of the RFI’s goals may be to narrow the list of eligible technologies from the 31 listed in the program’s authorization, like the 12 emphasized in the current SBICCT license. Another goal of the RFI may be to decide which federal lending agency to partner with or copy for program delivery, as the office’s investment strategy indicates an interest in an interagency agreement, and multiple questions in the RFI are directed at experiences with other federal programs. Responses to both RFIs are due Oct. 22.

The U.S. Department of the Treasury has made multiple announcements about the State Small Business Credit Initiative (SSBCI) in recent weeks, including new program approvals, providing an update on uses of funds through the first two years of the program, and highlighting venture capital success stories, and releasing a database of participating lenders. In addition to covering these updates below, SSTI is collecting Treasury’s resources in revised SSBCI tracking pages.

A Notice of Funding Opportunity (NOFO) for a new artificial intelligence-focused Manufacturing USA institute is now available on Grants.gov. The U.S. Department of Commerce’s National Institute of Standards and Technology (NIST), which posted the NOFO on July 22, anticipates funding of up to $70 million over five years, subject to the availability of federal funds, according to their press release. Concept papers are due Sept. 30. Applicants with the best concepts will be invited to submit full proposals. The notice on Grants.gov lists additional deadlines and other important dates.