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White House Announces New Manufacturing Innovation Hubs Competition

Today, the President announced nearly $290 million in public-private investment for two new Manufacturing Innovation Hub Competitions. The two New Manufacturing Innovation Hub Competitions will consist of two competitions for manufacturing innovation institutes today—one in smart manufacturing at the Department of Energy and one in flexible hybrid electronics at the Department of Defense. Each institute will receive $70 million or more of federal investment to be matched by at least $70 million from the private sector for a total of more than $290 million in new investment.

  • The Department of Defense will lead a competition for a new public-private manufacturing innovation institute in flexible hybrid electronics. Flexible hybrid electronics combine advanced materials that flex with thinned silicon chips to produce the next generation of electronic products seamlessly integrated into the things around us.  These include items as diverse as comfortable, wireless medical monitors, stretchable electronics for robotics and vehicles, and smart bridges capable of alerting engineers at the first signs of trouble. For the nation’s warfighters, these new technologies will make lifesaving advances and improve mission effectiveness. For example, intelligent bandages and smart clothing will alert soldiers to first signs of injury or exhaustion; structural integrity sensors will offer real-time damage assessment for helicopters or aircraft after engagement; and small, unattended sensors will give soldiers greater situational awareness.
  • The Department of Energy will lead a competition for a new public-private manufacturing innovation institute focused on smart manufacturing, including advanced sensors, control, platforms, and models for manufacturing.  By combining manufacturing, digital, and energy efficiency expertise, technologies developed by the institute will give American manufacturers unprecedented, real-time control of energy use across factories and companies to increase productivity and save on energy costs. For energy intensive industries – like chemical production, solar cell manufacturing, and steelmaking – these technologies can shave 10-20% off the cost of production.  The new institute will receive a federal investment of $70 million that will be matched by at least $70 million in private investments and represents a critical step in the Administration’s effort to double U.S. energy efficiency by 2030.

More information on the manufacturing innovation institute competitions is at Manufacturing.gov.

 

FY15 Appropriations Released

Last night, House and Senate Appropriators unveiled a $1.1 trillion spending package that is a combination of all but one of the Fiscal Year 2015 (FY15) appropriations bills rolled into an omnibus for the remainder for FY15, plus a continuing resolution (CR) funding the Department of Homeland Security through February 2015. The FY15 appropriations package, dubbed the “Cromnibus,” would provide new funding for all government agencies and programs, except the Department of Homeland Security, and is designed to gain bipartisan support and avert both a government shut down or another continuing resolution, as was seen in FY 2014. The current CR runs through tomorrow (December 11, 2014). 

The deal is a victory for appropriators, who have insisted that spending caps set under the 2013 budget agreement would allow them to move most of the annual measures for FY15. The Homeland Security stopgap portion is an effort by Republicans leaders to force a showdown with the White House on immigration in the new Congress, when Republicans will control both chambers of Congress.

The Cromnibus will move as HR 83, a previously considered piece of energy legislation. By using a previously considered bill, House and Senate leadership is trying to overcome Senate procedural hurdles so that measure could be cleared as early as Friday. Regardless, with the current stopgap funding expiring on tomorrow, the House will likely pass a two- or three-day CR to guarantee there is no shutdown before the Senate takes action and sends the “cromnibus” to the President.

For domestic agencies, flat funding is the norm, with some spending tradeoffs made to build political support. For example, the bill’s education programs are almost level funded at $70.5 billion, only $100 million less than last year. Democrats, however, will be pleased with level funding of $8.5 billion for Head Start and $22.5 billion for Pell grants, an amount that would raise the maximum grant award by $100 to $5,830.

Overall, Appropriators said the entire Labor-HHS-Education section of the spending bill would contain $156.8 billion in discretionary money, roughly the same level enacted last year. The title is always among the most contentious of the annual spending bills because of the wide reach of the programs under its jurisdiction and has become even more of a lightning rod since passage of the health care overhaul in 2010.

Additionally, the bill would provide $100 million, a $1.6 million increase, for the Office of Civil Rights, which is responsible for investigating Title IX complaints of inappropriate campus response to sexual violence. Moreover, the Student Aid Administration received a $230 million increase from last year to $1.4 billion with part of that funding going to increased enforcement and data collection under the Clery Act. The Committee commended the Education Department for its emphasis on campus sexual assault prevention.

The Defense Department, however, would see its base budget rise $3.3 billion over current funding to $490.2 billion, an amount still $500 million less than what was requested by the Pentagon.

Of note in the Cromnibus:

  • National Institutes of Health received $30.1 billion, which is $150 million more than FY14.
  • National Science Foundation received $7.34 billion, which is $172.3 million above the 2014 enacted level. NSF’s MREFC received $200.8 million.
  • The Department of Education was cut by $166 million overall. Pell grants, however, received a net increase for ED of $137 million increasing the maximum award to $5,830. Federal Work Study received an increase of $15 million. The Student Aid Administration received an increase of $230.924 million. Race to the Top was eliminated.
  • National Aeronautics and Space Administration (NASA) received $18.01 billion for which is $363.7 million more than the 2014 enacted level.
  • National Oceanic and Atmospheric Administration (NOAA) received $5.4 billion, which is $126.4 million more than the 2014 enacted level.  Big winners at NOAA were Weather, which received $90.8M, which is $9.6M above the FY14 enacted level. Climate accounts remained relatively level with previous funding. Sea Grant received level funding of $62 million. NOAA Cooperative Labs and Institutes received $60 million, which is level funding. The bill provides $60 for Climate Competitive Research, Sustained Observations and Regional Information, the same as the FY14; $38M for Regional Climate Data and Information; $8.5M for Integrated Ocean Acidification, which is $1.5M above the FY14 enacted level; $41.3 for Sustained ocean observations and monitoring, which is comparable to the FY14 enacted level
  • National Weather Service operations received $954.2 million for, which is $526,000 above the 2014 enacted level.
  • The US Geological Survey received $5 million in additional funding Early Earthquake Warning funding on the Pacific Coast.
  • The Department of Defense’s S&T programs generally enjoyed increases in funding (6.1: $2.279 billion (+$112 million over FY14); 6.2: $4.605 billion (-$38 million below FY14);  6.3: $5.530 billion ($155 million above FY14)

The House is expected to pass the measure on Thursday and send to the Senate. The Senate is expected to pass it Thursday or Friday. The President is expected to sign it into law Friday.

Federal Relations will continue to update information on the Cromnibus as it move through the Congress and becomes law.

House Considers Charitable Tax Extenders

Last week, the House voted to renew most extenders for one year — restoring them for the current 2014 tax year so that companies and individuals can make use of the breaks when filing their 2014 tax returns. The Senate expects to clear that measure in the coming days.

Today, the House considered HR 5806, the Support America’s Charitities Act, which would make permanent a number of popular charitable tax provisions related to food contributions, conservation property and contributions from certain retirement accounts to charitable entities..

The measure’s provisions were previously passed by the House as part of December’s one-year tax extender bill (HR5771) passed last week. This measure, however, makes these provisions permanent.

Of not for universities,  the legislation would make permanent the rule allowing certain tax-free distributions from individual retirement accounts (IRAs) for charitable purposes. Taxpayers must be at least 70-and-a-half years old and make distributions of $100,000 or less per year directly to a qualifying charitable organization.  According to the House Ways and Means Committee, in the first two years that the IRA provision was available, it led to more than $140 million in charitable donations, with the median gift just under $4,500. The Joint Committee on Tax has previously estimated that enacting this provision would reduce revenues, and thus increase federal budget deficits, by about $8.4 billion over 10 years.

The measure is noncontroversial and is expected to pass under suspension of the rules. It is unlikely the Senate will consider the bill. The Administration issued a Statement of Administrative Policy against the legislation, which included a veto threat.

This Week in Congress

With the current continuing resolution set to expire on Thursday, December 11, all eyes and ears are on House and Senate negotiators as they work toward an agreement on an omnibus spending bill that would fund the federal government through the remainder of the fiscal year.
 
Here are the committee hearings we’re paying attention to this week.
 
Tuesday, December 9
 
Senate Judiciary Committee
SEXUAL ASSAULT ON UNIVERSITY CAMPUSES
10 a.m. Dec. 9, 226 Dirksen Bldg.
Subcommittee Hearing
 
Wednesday, December 10
 
Senate Judiciary Committee
OBAMA IMMIGRATION POLICY
Dec. 10, 2:30 p.m., 226 Dirksen Bldg.
Full Committee Hearing
 
Senate Foreign Relations Committee
INTERNATIONAL RESPONSE TO EBOLA
10:30 a.m., 419 Dirksen Bldg.
Subcommittee Hearing
 
House Foreign Affairs Committee
U.S. AND THE ARCTIC
2 p.m., 2200 Rayburn Bldg.
Subcommittee Hearing