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Clocks Continues to Tick on Shutdown, Debt Ceiling

As predicted, the Senate yesterday was not able to adopt the House-passed legislation that would keep the government funded past midnight Friday and raise the debt ceiling through mid-December 2022.  As promised, no Senate Republicans voted to move the measure forward for a vote.  While Senate Republicans have publicly supported keeping the government open and opposed a shutdown, they have also stated that they will not vote in favor of legislation that includes both a continuing resolution to fund the government and provisions to raise the debt ceiling.  With the Senate divided 50-50, Democrats will need to come up with a Plan B to address both a looming shutdown and a potentially catastrophic default.

In a related development, Treasury Secretary Janet Yellen stated earlier today that the federal government may run out of ways to meet its obligations and may breach the debt ceiling on October 18.

Read more about the current situation herehere, and here.

House Committees Do Their Part on Reconciliation

As instructed by their budget reconciliation instructions, 13 House committees wrapped up by yesterday their respective portions of the $3.5 trillion budget package.  The different pieces will be combined into a single vehicle by the House Budget Committee.  The package represents one of the center pieces of the Biden Administration’s domestic agenda.  There has not yet been any official comparable action on the Senate side yet.

Various pieces produced by the different committees are of great interest to UW and the broader higher education and scientific research community.  Some of the highlights of the different bills are provided below.

Education and Labor

The legislation approved by the Education and Labor Committee, which was passed along party lines, includes myriad provisions with direct impact on higher education.  How much these provisions change in the Senate and the actual details of possible implementation remain to be seen.

Arguably the biggest and costliest higher education-related provision in the bill is an attempt to make two years of community college free.  The bill would create a federal-state partnership that seeks to discourage states from charging tuition and fees for community colleges.  The bill would also increase the Pell Grant maximum by $500.

In keeping with the Administration’s focus on MSIs, the bill would also provide additional funds to reduce the tuition levels of students attending such institutions for their first two years.  In addition, the legislation calls for a new R&D infrastructure program for MSIs, with a priority to those with research volumes less than $10 million per year.

In addition, the committee-approved bill includes funding for a number of teacher-prep, -training, and K-12 leadership programs.

The text of the base bill before the markup is available here and a summary of the legislation produced by the majority staff on the committee is available here.

Science, Space, and Technology

Like the bill that was produced by the Education and Labor Committee, the legislation that was marked up by the Science, Space, and Technology Committee is also of significant relevance to the higher education and research community.

Not surprisingly, the committee’s bill includes a number of provisions related to NSF.  For example, it would provide $3.4 billion for “research-enabling equipment, facilities, and infrastructure”, of which $1 billion would support academic research facilities (including a $300-million set-aside for MSIs).  The legislation also includes more than $7.5 billion to fund or extend new or existing awards, fellowships, and scholarships, of which $700 million would be reserved for MSIs.  It also includes language indicating that the funds could be used to fund the new Directorate at the agency focused on technology, which is the center piece of separate bills in both chambers of Congress.

Also not surprising is the bill’s support for climate-related science and research, including, but not limited to, efforts at NOAA, EPA, and NASA.  For example, the legislation would allocate more than $1.2 billion for weather, ocean, and climate research and forecasting and $765 million for climate adaptation and resilience activities at NOAA.  It also calls for nearly $390 million for climate change-related research and development at NASA and more than $260 million for climate change-related research at the EPA.

The legislation would also provide more than $740 million for deferred maintenance needs of NOAA research infrastructure.

The text of the legislation before the markup is available here.

Natural Resources

The bill produced by this committee would also provide additional funds for climate-related research and resilience and adaptation efforts.  For example, under the bill, NOAA Coastal Hazards and Sea Level Rise programs would receive $500 million to increase support for IOOS, shoreline mapping, decision-support frameworks, and research and development activities.  In addition, the committee-approved legislation would provide $9.5 billion for the Coastal and Great Lakes Restoration and Technical Assistance Program.

At the USGS, the bill would increase funding for the Climate Adaptation Science Centers program by $100 million.

As part of a larger effort in the legislation, fire science and research would also receive funding.

The committee used this version of the legislation as the basis for the markup.

Energy and Commerce

The Energy and Commerce Committee very broad jurisdiction, including in many instances, healthcare.  The legislation that was approved by the committee includes provisions in that area.  For example, the bill would provide $3 billion for the creation of an Advanced Research Projects Agency-Health (ARPA-H), a proposal initially advanced by Biden Administration.

The legislation also seeks to provide additional resources for medical education as well s as nursing education and program, including payments to teaching health centers that operate graduate medical education programs.

A copy of the base bill for the markup is available  here.

Judiciary

The bill produced by the House Judiciary Committee includes several changes to current immigration law that would be welcomed by the higher education committee.  However, depending on decisions that are forthcoming from the Senate Parliamentarian regarding whether such provisions are allowed in a reconciliation package, the prospects of these provisions going forward remain unclear.

The legislation would extend green card eligibility to several categories of individuals, including those historically meeting the definitions laid out in the DREAM Act.  It would also provide additional work- and family-based green cards by recapturing such unused visas, going back to FY1992.

A copy of the bill that served as the base bill for the markup is available here.

Ways and Means

The Ways and Means Committee-approved bill also includes several provisions of interest to UW and the broader higher education community.

For example, it would reinstate advanced refunding bonds and would create new direct pay bonds.  It would also remove the taxability of the portion of the Pell Grant not used for tuition and fees and would ensure that the interplay between the Pell Grant and the Lifetime Learning and the American Opportunity Tax Credit would not impact the tax credits for students and families.  It would also phase out the Paid Leave Tax Credit first created by the FFCRA two years early.

This bill would also create a tax credit program for contributions made to public universities for research infrastructure purposes; priority would be given to institutions with FTE student populations of less than 12,000.

Portions of the bill that served as the starting points for the committee are available here and here.  Summary documents are here and here.

Next Steps

As noted above, the House Budget Committee is expected to combine the different bills into a single package, perhaps as soon as next week.  How the Senate proceeds on reconciliation remains to be seen.

We will continue to provide updates.

White House Outlines FY23 R&D Priorities

White House Office of Management and Budget Acting Director Shalanda D. Young and White House Office of Science and Technology Policy Director Eric Lander issued a memorandum outlining the Administration’s FY23 R&D priorities for agencies submitting budget requests to OMB. The memo focuses heavily on pandemic preparedness, climate change, national security, and emerging technologies.

Deal Reached on an Infrastructure Package

Today the White House announced a deal has been reached with the Administration and a group of bipartisan Senators on the outline of a $1 trillion (including approx. $579 billion new spending) traditional infrastructure package. These priorities include roads, bridges, public transit, electric vehicles, coastal infrastructure, rural broadband access, and supporting IRS tax collection efforts on high earners. The legislation must still be written and pass both chambers.

Calls from within the Democratic caucus for a “human” infrastructure package- addressing paid leave, childcare, housing, and community college, is likely to go through the budget reconciliation process in a similar manner to the American Rescue Plan Act. The President indicated he would want to see both pieces of legislation arrive on his desk together.

Read more here.

Some Budget Details Available

As was reported on Friday, the Biden Administration released its detailed budget request late that afternoon.  The government-wide budget documents are now available here.  As agency-specific documents and details become available, we will provide updates.

Initial details about the budget requests for various agencies are provided below.

NSF

NSF as a whole would see a total of $10.12 billion under the Biden Administration proposal, an increase of 19.8 percent.  The funding breaks down in the following manner:

  • Research and Related Activities (R&RA): $8.14 billion ($1.23-billion increase, or 17.8%)
  • Education and Human Resources: $1.29 billion ($319.3-million increase, or 33.0%)
  • Major Research Equipment and Facilities Construction: $249.0 million ($8.0-million increase, or 3.3%)

Within R&RA, given the Administration’s emphasis on climate science, it is not surprising that the NSF budget proposal calls for an estimated increase of 19.0% for Geosciences over the FY2021 estimates.

Under the budget proposal, NSF would play a key role in a number of Administration-wide research priority areas.  For example, the budget request calls for significant increases for the agency in the following areas:

  • US Global Change Research Program—46.3%
  • Artificial Intelligence—31.4%
  • Biotechnology and Clean Energy—both would see increases of 31.7%
  • Quantum—23.8%
  • Microelectronics/ semiconductors—56.7%

The entire set of NSF budget documents is available here:  https://www.nsf.gov/about/budget/fy2022/toc.jsp.

 

NASA

NASA also released its detailed budget documents on Friday, which are available here.

Overall, NASA is slated for $24.8 billion, an increase of $1.53 billion, or 6.57 percent, over the current funding level.

The President budget request calls for funding the Science Mission Directorate (SMD) at $7.93 billion, $630.6 million (8.6%) above the FY2021 level.  Within SMD, the Administration proposal breaks down in the following manner:

  • Planetary Science: $3.20 billion
  • Earth Science: $2.25 billion
  • Astrophysics: $1.40 billion
  • Heliophysics: $796.7 million
  • Webb Space Telescope: $175.4 million
  • Biological and physical sciences: $109.1 million

The Aeronautics Directorate would be funded at $914.8 million while Space Technology would see $1.43 billion under the budget proposal.

The Office of STEM Engagement, which supports the Space Grant program, would see an increase of $20 million to $147.0 million.  The requested amount allow Space Grant to increase by $6 million in FY2022.

A set of facts sheets about the different missions areas is available here.

 

NOAA

While the detailed budget documents are not yet available, a press release that highlights some of the key themes of the agency budget notes that NOAA would see an increase of $1.5 billion in its discretionary budget, an increase of 27.3 percent, taking the total to $7.0 billion.

A key driver of the increase is the renewed focus on climate change and the budget proposal calls for an additional investment of $855 million in activities related to the issue.

Detailed documents are expected in the coming days.

 

Department of Education

Unveiled in previous proposals, the Education Department (ED) budget request details a number of the Biden Administration’s key higher education priorities.  ED proposes to boost a number of programs aimed at Minority-Serving Institutions (MSIs), including those funded through Title III of the Higher Education Act.  The Administration is asking $4.6 billion to eliminate tuition at MSIs for families with incomes below $125,000 per year.  The budget also seeks $14.3 billion for a federal-state partnership to make community colleges tuition free.

The maximum Pell Grant award would be increased by $1,875 to $8,370.  The SEOG and Federal Work Study programs would be level-funded at $880 million and $1.19 billion, respectively.  At the same time, TRIO and GEAR UP would see increases of $200.8 million and $40 million, respectively; as a result, TRIO would be funded at $1.3 billion and GEAR UP would be funded at $408 million.

Title VI international education programs and GAANN would be level funded at $78 million and $23.5 million, respectively, while the Institute for Education Sciences would receive an increase of $95 million, or 14.8 percent, to $737.5 million.

ED’s budget documents are available here.

 

NIH

The budget request seeks $51.93 billion for NIH.  This includes a proposal to increase the base budget by $2.5 billion while seeking $6.5 billion to create a new Advanced Research Projects Agency-Health (ARPA-H).

Topline information about the Department of Health and Human Services, of which NIH is a part, is available here.

We will provide further details about the NIH budget after additional analysis.

 

USGS

Under the Biden Administration’s budget proposal, USGS is expected to play a significant role in the government’s efforts to address climate change.  While the agency would seen an increase of $326.9 million over the FY2021 funding level to a total of $1.6 billion, $205.0 million of the increase would be directed to investments in climate science research.

Among the new investments would be $42.5 million for Climate Science Adaptation Science Centers (CASCs) as well as tribal climate science activities.  In fact, the budget for the CASC program would more than double under the budget request, going from $41.3 million to $84.4 million.  The USGS would also contribute $60.0 million to the newly proposed Advanced Research Projects Agency-Climate (ARPA-C).

The Cooperative Research Unit program would see a modest increase of $0.5 million.

The ShakeAlert earthquake early warning system—which is now capable of sending our public alerts along the entire West Coast—would be level-funded at $25.7 million under the Biden Budget.

Initial information about the UGSS budget proposal is available  here.

 

Other agencies/ Additional details

Again, the Office of Federal Relations will continue to provide updates as more details become available and after further analysis.