federal budget

On Monday, President Obama released his $4 trillion budget request for FY16. His proposal is again unlikely to find support in Congress, but serves as a useful guide to the administration’s priorities and a source of new ideas. This year’s budget document is being presented as a policy pathway to rebuilding middle class opportunities, embracing “Middle Class Economics for the 21^st Century.” In embracing this agenda, the administration has included several new programs and significant spending increases for STEM education, manufacturing and R&D, though the proposed funding levels for most offices appear similar to those included in the administration’s past budget requests.

President Obama’s proposed FY16 budget would provide $25 million for the EDA’s Regional Innovation program, a key legislative initiative for the technology-based economic development community. The Regional Innovation Program was authorized under the American COMPETES Act and is designed to provide funding to support regional innovation activities. The program received its first funding of $10 million in FY14 after extensive work on the Hill by SSTI, its members and others. A second infusion of $10 million was provided in the December FY15 continuing resolution/omnibus spending bill. More than 60 organizations signed a letter urging Congress to fund the program at $20 million (see August 7, 2014 Digest article) for FY15. The U.S. Department of Commerce announced that the FY14 solicitation had received 254 applications requesting more than $100 million in funding.

This week, President Obama signed off on the continuing resolution omnibus spending package that will keep the federal government open for another nine months (see last week’s analysis).The spending bill provides stable funding for R&D and most research agencies, according to analysis by the American Association for the Advancement of Science (AAAS). About $137.6 billion is appropriated for federal R&D, a modest 1.7 percent increase over FY14. Most science and technology agencies would receive small increases, with a few exceptions. Department of Defense applied research funding would decline, funding for most institutes of the National Institutes of Health would not keep pace with inflation and the Department of Energy’s Office of Science and ARPA-E would receive flat funding. Read the AAAS science and technology summary…

Included in the continuing resolution/omnibus spending bill for FY15 is $10 million for the Regional Innovation program. The Regional Innovation Program was authorized under the American COMPETES Act and is designed to provide funding to support regional innovation activities. The program received its first funding of $10 million in FY14 after extensive work on the Hill by SSTI, its members and others. More than 60 organizations signed a letter urging Congress to fund the program at $20 million (see August 7, 2014 Digest article) for FY15. Last week, the U.S. Department of Commerce announced that the FY14 solicitation had received 254 applications requesting more than $100 million in funding.

Australian Minster Tony Abbott announced a $400 million AUD (approximately $352M USD) national Industry Innovation and Competitiveness Agenda focused on building the country’s innovation economy, supporting apprenticeship and workforce programs that address the needs of industry, and promoting science, technology, engineering and mathematics (STEM) education.  The centerpiece of the agenda is a $188 million AUD (approximately $165.5M USD) initiative to create industry growth centers in five sectors: food and agribusiness; mining equipment, technology and services; oil, gas and energy resources; medical technologies and pharmaceuticals and advanced manufacturing services. These industry-led centers would provide funding and technical assistance to support the commercialization of products developed via university-industry partnerships. The government also calls for immigration reforms that ease English language and skills requirements to attract more skilled workers. Read the agenda…

Recent memoranda issued by the Office of Management and Budget and the Office of Science and Technology policy include the support of lab-to-market technology commercialization as a key pillar of cross-agency spending for the upcoming fiscal year.  The White House instructs agencies to explain how resources are being redirected from low priority efforts to multi-agency collaborations in specific fields, including advanced manufacturing, clean energy, earth observation, global climate change, information technology, life sciences, homeland security and research policy-making. The memos encourage the expansion of efforts to boost the economic impact of federally funded research. Read the memos…

A progress report from the White House Office of Science and Technology Policy (OSTP) provides a useful overview of the Obama administration’s ongoing STEM efforts and the roster of STEM initiatives included in the president’s FY15 budget request. Under the proposed budget, federal spending on STEM education would reach $2.9 billion in FY15, a 3.7 percent increase over FY14 funding as enacted. The largest agency increases would come from the Department of Education, which would receive $658 million (35.7 percent increase) with support for a new STEM Innovation Networks program, and the Department of Transportation, which would receive $100 million with funding for a University Transportation Centers Program (16.3 percent increase).  Read the report…