legislation

The federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs, providing nearly $4 billion in technology research and development funding, expire — in just six weeks — on Sept. 30. Unlike many federal programs that regularly operate beyond the end of their authorization, there is no direct SBIR appropriation that will ensure the program continues as-is without congressional action. Instead, SBIR would be on an agency-by-agency basis. The Department of Defense already announced it “cannot continue funding new or ongoing” projects without reauthorization, and the Federal Laboratory Consortium for Technology Transfer (FLC) has warned that even the agencies that carry on may have challenges with SBIR data rights (a non-disclosure obligation on the federal government for certain information developed under an SBIR/STTR award) and post-award (i.e., Phase III) purchases of SBIR-developed technologies by federal agencies.

President Joe Biden has signed the Inflation Reduction Act, a $740-billion bill that largely focuses on clean energy and climate resiliency, deficit reduction and health care, funded through tax changes. Unlike the initial proposals for a reconciliation spending package, this legislation provides little spending that will directly affect tech-based economic development strategies, although its climate provisions will spur significant growth opportunities for cleantech. There are multiple provisions and opportunities included in the act that are important for regions to understand.

With the fiscal year coming to a close and the U.S. Senate having yet to advance any appropriations bills for the next year, the Senate Democrats have released their proposals for FY 2023 funding levels. Due to the potential for substantial changes when the final FY 2023 budget is passed, this article only covers specific funding levels that are a high priority for the tech-based economic development (TBED) field. Funding levels from the House Committee on Appropriations for FY 2023 and FY 2022 enacted amounts also are provided in parentheses for comparison purposes.

This week, Congress approved a new version of legislation to incentivize semiconductor manufacturing facilities, create a Regional Technology Hubs program, and reauthorize many science-related agencies. The Senate passed the bill on the 27th, and the House passed the legislation a day later.

Since the inception of cryptocurrency mining over a decade ago, the state of New York has become a hotspot for the digital coins, encompassing 19.9 percent of the total U.S. hashrate, or the collective computing power of miners. However, concerns over the environmental impacts of, and high electricity demands for, these mining operations have been increasingly thrust into the spotlight. With the goal of addressing the above, two highly contested bills have been making their way through the legislative system in New York.

Earlier this week, House Democrats released its version of a wide-ranging innovation policy bill. This legislation includes authorization for Regional Technology and Innovation Hubs — a program SSTI’s Dan Berglund testified about before the House science committee last June. The bill also would establish a new directorate within the National Science Foundation (NSF), reauthorize the National Institutes of Standards and Technology (NIST) and the Department of Energy (Energy) Office of Science, and fund incentives for U.S.-based semiconductor manufacturing.

This week, Congress reached an agreement on the FY 2022 defense authorization bill (i.e. “NDAA”). The legislation includes support for expanding the Defense Innovation Unit’s (DIU) reach, research at minority-serving institutions, and commercialization pilots, as well as a $7 billion increase in research funding. While the NDAA does not provide appropriations, the bill is a strong signal for where the FY 2022 appropriations are likely to land. Procedurally, the House passed the NDAA this week, and the Senate is expected to pass the bill without amendments. Highlights from innovation provisions in the FY 2022 NDAA follow.

Congress passed the bipartisan infrastructure framework, formally, the Infrastructure and Investment Jobs Act, and President Joe Biden is expected to sign it the week of Nov. 15. While small as a percentage of the trillion-dollar total, there are a number of proposed items that can support regional innovation economies, with broadband being the highest funded. Other proposals of interest include funding that will stimulate demand for clean energy innovations, further cybersecurity development and reauthorizing the Minority Business Development Agency (MBDA).

President Joe Biden this morning delayed his planned departure for Europe to announce a framework for the Build Back Better Act, a $1.75 trillion plan that the president said he was confident could pass both houses of Congress. While the Build Back Better Framework is not as large as initially proposed, the White House says it represents the largest effort to date to combat climate change, promises to create millions of good-paying jobs, spur long-term growth and meet clean energy ambitions. The plan includes $40 billion for higher ed and workforce by raising the maximum Pell Grant and providing support to Historically Black Colleges & Universities, Hispanic Serving Institutions, Minority Serving Institutions, and Tribal Colleges and Universities. It also would invest in workforce development, including community college workforce programs, sector-based training, and apprenticeships. There is another $90 billion targeted for equity and other investments, but it is unclear as of this writing if that would include some of the innovation initiatives that were outlined earlier.

Editor’s note, Sept. 16: This article has been updated to include additional science- and innovation-related funding proposals announced as the House continues its work on the reconciliation bill.

Committees have marked up their drafts for the $3.5 trillion reconciliation bill, and the proposals include multiple, significant investments that could strengthen regional innovation economies. This article identifies more than $85 billion in potential innovation-focused spending without including much of the legislation’s potential R&D investments. Among the latest items are an additional $4 billion for Regional Technology Hubs and a manufacturing-focused $1 billion for the State Small Business Credit Initiative. These add to the previously-announced $5 billion for Regional Technology Hubs, nearly $3 billion to support incubators and accelerators, and dramatic increases in tuition support for higher education. Further action is required in the House and Senate before final funding is approved.