FY12 Commerce-Justice-Science Bill Released

Posted on July 6, 2011October 17, 2012

The House Appropriations Committee today released their FY12 Commerce, Justice, Science Appropriations bill, which will be considered in subcommittee tomorrow. The bill funds the Department of Commerce, the Department of Justice, the National Aeronautics and Space Administration (NASA), the National Science Foundation (NSF), and other related agencies. In total, the draft legislation contains $50.2 billion in funding. This is a reduction of $3.1 billion or 6 percent below FY11 levels, and $7.4 billion or 13 percent below the President’s request for these programs. This total is also 3 percent below the pre-stimulus, pre-bailout level of 2008.

Bill Highlights:

Department of Commerce – The bill contains $7.1 billion for the Commerce Department – a reduction of $464 million or 6 percent below last year’s level, and $1.7 billion or 19 percent below the President’s request. This includes funding for the following agencies:

Patent and Trademark Office (PTO) – The bill provides $2.7 billion for the PTO – the full amount requested by the President. This funding is equal to the estimated amount of fees to be collected by the PTO during FY12, and is an increase of $588 million or 28 percent above FY11 enacted level. The bill also includes language that allows PTO to keep and use any fees in excess of the estimated collected amount, subject to standard Congressional approval, and includes language requiring PTO to report on efforts to reduce the patent application backlog
National Institute of Standards and Technology (NIST) – NIST is funded at $701 million in the bill, which is $49 million below last year’s level and $300 million below the President’s request. Within this total, important core research activities to help advance US competitiveness, innovation, and economic growth are increased by $10 million above the FY11 level.
National Oceanic and Atmospheric Administration (NOAA) – The legislation contains $4.5 billion for NOAA, which is a cut of $103 million below last year’s level and $1 billion below the President’s request. Within this total, National Weather Service operations and systems are fully funded at the requested level, and an increase of $430 million is included for the Joint Polar Satellite System weather satellite program to ensure the continuation of important weather data collection.
Economic Development Administration (EDA) – The bill includes $258 million in funding for the EDA – $26 million below last year’s level and $67 million below the President’s request. This includes $5 million in grant funding to attract US jobs that have gone to other countries back into the US, and $5 million in loan guarantees to help advance innovative manufacturing technologies.

National Aeronautics and Space Administration (NASA) – NASA is funded at $16.8 billion in the bill, which is $1.6 billion below last year’s level and $1.9 billion below the President’s request. This funding includes:

$4.5 billion for NASA Science programs, which is $431 million below FY11 enacted levels. The bill also terminates funding for the James Webb Space Telescope.

National Science Foundation (NSF) – The legislation funds NSF at $6.9 billion, the same as last year’s level and $907 million below the President’s request. Within this funding, NSF’s core research is increased by $43 million to enhance basic research that is critical to innovation and US economic competitiveness.

Other Provisions – The bill includes several general provisions, including:

A prohibition on the transfer or release of Guantanamo detainees into the U.S.
Rescissions of over $1 billion in unobligated balances left over from previous years
A prohibition on NASA or the Office of Science and Technology Policy from engaging in bilateral activities with China unless authorized by Congress.

Budget & Appropriations Update

Posted on July 6, 2011October 17, 2012

Latest Budget Talks: President Obama has summoned lawmakers to the White House Thursday for a fresh round of talks on the budget and debt limit. While some progress has been made over the holiday weekend, but there is the two sides are still a long way apart if they want to reach agreement before the August 2 deadline for raising the nation’s borrowing limit. The President supports the idea of increasing revenue to reach a deal and but is opposed to a short-term extension of the nation’s borrowing authority — an idea floated by some Republicans — saying it would only “kick the can down the road.”

Meanwhile, Senate Budget Chairman Kent Conrad (D-ND), is aiming to influence those talks by releasing a FY12 budget resolution on today. T he long-delayed spending and tax blueprint will aim to trim the deficit by at least $4 trillion over a decade by closing tax loopholes, cutting spending, and reducing interest payments on the debt.

Appropriations: The House will resume debate on the FY12 Defense appropriations bill today. The chamber is expected to focus largely on foreign policy issues rather than Pentagon spending as it considers amendments under an open rule. Overall, the $530.5 billion bill is $8.9 billion less than President Obama’s budget request and $17 billion (3.3 percent) more than the FY11 enacted level. The House is expected to focus on amendment debate today, with a passage vote on the usually bipartisan measure on Thursday or Friday.

The FY12 Defense appropriations measure will be the fourth spending bill to pass in the House, where appropriators and GOP leaders have vowed to restore “regular order” to the appropriations process. The chamber may take up the Energy-Water appropriations measure later in the week. That bill contains significant cuts and would provide nearly 19 percent less funding than the President requested.

Details on an additional three spending bills are due to be released today. The FY12 Legislative Branch, Interior-Environment, and Commerce-Justice-Science measures are all expected to be marked up Thursday morning by their respective House subcommittees. House appropriators have been releasing draft text and summaries of spending bills a day before subcommittee markups in an effort at increased transparency. The Office of Federal Relations will provide more details on these bills when the drafts are made public.

Progress This Week

Posted on June 30, 2011October 17, 2012

Congressional Schedule: The House is in recess this week and the Senate is scheduled for recess next week (week of July 4^th). The House has another recess scheduled for the week of July 18^th, and both chambers have recess scheduled for the month on August (August 8^th through September 6^th).

Debt Negotiations Continue: Yesterday, President Obama used a White House news conference to urge lawmakers to “do their job” and make the “tough choices” needed to get the nation’s fiscal house in order as the August 2^nd deadline for raising the debt ceiling approaches. He said those choices might include a Medicare overhaul, cuts in defense spending, and increasing taxes. Calling the early August date a “hard deadline,” Obama said lawmakers should scrap any recesses until they hammer out a budget deal. The House has been in recess this week and has another recess schedule for the week of July 18^th. The Senate is scheduled to be in recess next week.

Appropriations Update: The Senate Appropriations Committee will hold its first markup of FY12 spending legislation today, starting with the least controversial of the 12 annual bills — the measure funding veterans’ programs and military construction. The House passed its FY12 Military Construction-VA bill on June 14^th. Additionally, the House has already approved FY12 bills for Agriculture and Homeland Security, and the Defense and Financial Services bills have been approved by committee and are ready for floor action.

Pell Grant Program Vulnerable: Amid a political climate in congress where virtually every corner of federal spending is in jeopardy, the Administration says it wants to protect Pell grants for low-income college students. But the quasi-entitlement program faces a huge funding shortfall for FY12 and has become a tempting target for Republican budget hawks, who say that it is a prime example of overspending and “promises we can’t keep.” Those close to talks on a debt reduction deal are saying little about which programs are likely to be on the chopping block, but education experts say the large increases required to sustain the Pell grant program make it particularly vulnerable.

The Pell grant program is one of the federal government’s largest education initiatives, and has been one of President’s top priorities. The program faces a shortfall each year because it is partially funded through discretionary spending, not just mandatory dollars that would sustain it automatically. With the economic difficulties of the past few years, more people are qualifying for the grant and more people are going back to school to earn degrees, leaving the program strapped for cash. Program costs have more than doubled since 2008, from $16 billion to an estimated $35 billion in FY12. In order to maintain the current $5,550 maximum award, lawmakers must make up for an estimated $11 billion shortfall. Lawmakers in both parties are looking at proposals to restructure the Pell grant program to reduce costs, but those decisions are unlikely to be made until after the White House and congressional leaders negotiate a deficit reduction plan.

Bipartisan Support for Tax Reform: Leaders of the Senate Finance Committee sounded a rare bipartisan note Wednesday on a tax issue. They called for scrapping the current code and replacing it with a far simpler one that would help increase federal revenue. Lawmakers said making it easier for individuals and businesses to pay taxes would go a long way toward closing the $300 billion gap between taxes actually owed and those that are paid. The remarks came at the latest in a series of Senate Finance hearings on rewriting the tax code.

Congressional Pay Freeze: Lawmakers in both the House and Senate have introduced nearly 20 pieces of legislation this year to try and slash or freeze their own paychecks for 2013. Attacks on their six-figure salaries have become increasingly popular in recent years, as members face the wrath of constituents dissatisfied with the state of the economy and often plagued by personal financial challenges themselves. With heated discussions under way on whether to raise the debt ceiling by August 2^nd, several lawmakers have introduced bills that would nix any congressional increase in pay for every year that the government runs a deficit. The last pay increase members received was in 2009, when they got a 2.8 percent raise. The House and Senate have frozen their salaries for 2011 and 2012 at $174,000. But pay raises for 2013 are still in order. Members of Congress, under current law, automatically receive a cost-of-living pay adjustment each year unless they vote against it, as they’ve done each year since 2010.

Immigration Reform Legislation Begins to Emerge: On June 22 Senator Menendez (D-NJ) reintroduced the Comprehensive Immigration Reform Act of 2011 (S 1258). As in past years, his legislation focuses primarily on issues such as border security and guest worker visas, but it also includes language that would exempt individuals with an “advanced degree” in a science, math, or engineering field from visa caps. Meanwhile, on June 14 Congresswoman Lofgren (D-CA) introduced the Immigration Driving Entrepreneurship in America (IDEA) Act of 2011 (HR 2161), which would ease green-card applications for non-immigrants with advanced STEM degrees, but would also protect fair wages. The primary legislative driver, however, for comprehensive immigration reform in the Congress is the Development, Relief, and Education for Alien Minors Act of 2011, also known as the DREAM Act of 2011, which does not address foreign nationals studying in a STEM field. The DREAM Act has been reintroduced in both the House (HR 1842) and the Senate (S 952).

DOE Offers $120 Million to Support Innovative Manufacturing Processes: As part the Advanced Manufacturing Partnership launched June 24^th by President Obama, the Department of Energy is offering an investment of up to $120 million over three years to develop transformational manufacturing technologies and innovative materials. The Advanced Manufacturing Partnership is a national effort bringing together industry, universities, and the federal government to invest in emerging technologies that will create high-quality manufacturing jobs and enhance US competitiveness. For more information, see the funding opportunity announcement and the DOE press release.

Navy Increases Support for STEM Education: Secretary of the Navy Ray Mabus announced the Navy’s commitment to improve science, technology, engineering, and math (STEM) education. The Navy will increase funding for STEM education initiatives from $54 million in 2010 to over $100 million by 2015. The Navy views this as an investment in its future workforce.

The Week in Review

Posted on June 24, 2011October 17, 2012

Calendar: The House is preparing to begin its Fourth of July holiday recess today and is slated to return July 5, while the Senate remains in session throughout next week before their scheduled recess during the week of July 4th.

Deficit Negotiations Stalled: Attempts by Congress and the White House to broker a budget deal that would allow for raising the debt ceiling stalled Thursday as two key Republican negotiators walked away from the table, blaming the impasse on Democratic demands for tax increases. Debt reduction talks now move up to the highest levels, between President Obama and House Speaker Boehner, as had been expected to occur eventually. In a press conference yesterday morning, Boehner said that to reach an agreement by the end of this month “the president is going to have to engage,” while also adding that “tax hikes are off the table.” Boehner also reiterated that House Republicans would not agree to raise the debt limit “without serious spending cuts and reforms to the way we spend the American people’s money.”

House Science Committee Examines NOAA’s Climate Service: On Thursday this week, the House Committee on Science, Space, and Technology held a hearing to review the Administration’s FY12 budget request proposal to reorganize the National Oceanic and Atmospheric Administration (NOAA) to create a Climate Service. NOAA Administrator Jane Lubchenco was taken to task by the committee chair for her agency’s slow response to committee member’s questions over the past several months. Read more at the House Science Committee web page.

Defense Appropriations Moves Forward: On Thursday, the House began work on its FY12 Defense appropriations bill. Numerous objections were raised by the White House regarding funding levels for various activities, citing insufficient funding for the Defense Advanced Research Projects Agency (DARPA) for high-priority science and technology programs, acquisitions of certain satellites and classified programs, and for the Air Force’s Rockey Systems Launch Program. Additionally, the White House objects to language in the bill that would limit the use of funds to transfer detainees held at the US Naval base in Guantanamo Bay. Floor debate on this bill will resume when the House returns from recess.

Patent Overhaul Approved in House: The House passed a broad overhaul of the US patent system Thursday, after overcoming opposition to changes in provisions related to patent office fees. But the changes will make it harder for the House and Senate to agree on a final compromise on the legislation. The bill would reform how the US Patent and Trademark Office is funded and how it regulates inventions. Despite the ultimate 304-117 victory in the House, the bill has a dim future in the Senate where a handful of Senators have already expressed their opposition to the bill.

FY11 Funding for University Link: The Federal Transit Administration has announced its FY11 New Starts and Small Starts funding. The agency is doling out money to eight existing full funding grant agreements, four full funding grant agreement projects listed as pending, six projects recommended for future full funding grant agreements, and nine Small Starts recommended for funding. Sound Transit’s University Link LRT Extension will receive $110,000,000 as expected.

Progress on Debt and FY12 Appropriations

Posted on June 22, 2011October 17, 2012

FY12 Appropriations

Senate appropriators have been holding off on their FY12 bills, waiting for an agreement on overall discretionary spending to be reached through the ongoing bipartisan debt reduction talks. But because the end of the current fiscal year is just over three months away, they indicated yesterday that the Senate would move forward with their process despite not having a top-line discretionary number. The Senate Appropriations Committee will reveal their first FY12 spending bill next week. The first bill to be considered will be the Military Construction-VA bill. The House version of that bill passed the House on June 14, and the Senate subcommittee has indicated that they will follow the House’s lead and produce a similar bill. The House bill boosts funding for VA programs and benefits, while reducing military construction spending because of a lower need for base-closing funds. Overall discretionary spending is reduced by just $615 million. The Senate subcommittee markup is tentatively scheduled for Tuesday, June 28^th.

In addition to the Military-VA bill, the House has passed two other bills — Homeland Security and Agriculture. On Thursday, the House is set to begin debate on its FY12 Defense bill. Defense is the only House bill slated to get a spending boost over current levels, and might be a likely candidate for quick Senate consideration.

Debt Limit

The bipartisan debt reduction group being led by Vice President Biden meets again today, as leaders in both chambers yesterday said every effort should be made to reach a long-term deal and avoid a short-term increase in the debt limit as Senate Minority Leader McConnell (R-KY) suggested. McConnell believes that a short-term increase in the debt limit might be necessary if a major debt reduction deal involving entitlements cannot be reached before the August 2^nd deadline for raising the debt limit.

Reaching a majority in the House for any increase in the debt limit will be a challenge, which may have factored into McConnell’s contingency planning for a short-term measure as a backup. A number of House GOP freshmen promised they would never vote to increase the debt limit, while many others, along with GOP conservatives, want fundamental changes to dramatically cut the size of government. Negotiators may know by the end of the week whether a deal is possible. Central to that effort is resolving questions regarding revenues and entitlements, with debate over entitlements focused on whether there should be fundamental changes to Medicare and Medicaid as proposed by House Republicans, or whether billions could be saved through various adjustments to the programs, such as raising Medicare co-payments or deductibles.