Skip to content

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.

NDAA Sent to Senate

The House passed HR 3979 the FY15 National Defense Authorization Act (NDAA) by a vote of 300-119. The Senate is expected to take up and pass the measure next week.

The measure, which must be passed annually, authorizes all Pentagon and defense-related programs for the fiscal year. In FY15, the measure authorizes $577.1 billion for the Pentagon and defense-related programs for FY 2015, of which $63.7 billion is war-related funding — including $5.1 billion requested by the president to counter the Islamic State in Iraq and Syria. Defense spending continues to account for well over 50% of overall federal discretionary spending.

The bill extends the administration’s authority to train and equip Syrian rebels fighting both ISIS and the Assad regime and authorizes funding to help train the Iraqi Army in its fight against ISIS. It includes new provisions to combat sexual assault in the military, continues restrictions on the transfer of Guantánamo Bay detainees and allows the Pentagon to slightly reduce servicemembers’ housing allowances and impose a small copay for prescription drugs. It also includes a major package of non-defense-related land management provisions, including an appropriation for the PILT program and provisions creating new National Park units.

Additionally, the legislation includes strong language on increasing military cyber security.  These efforts come in the wake of two years of leaks from Defense Department insiders and cyberattacks on both the department and its contractors, including Manning and Snowden.

The measure would require the Defense Department to report back to Congress by March 2015 on its efforts to build both interim and long-term capabilities to continuously evaluate the security status of employees with access to classified information. Another provision in the bill is directly linked to a report the Senate Armed Services Committee released in September detailing what congressional leaders called a disturbing lack of communication on cyberattacks between agencies.

Additionally, the bill would add cybersecurity to the department’s list of major force programs. The department groups certain activities into those groups for budgeting and mission planning — the current list includes programs such as special operations, mobility forces and guard and reserve forces. Breaking cybersecurity out into its own major force would serve a symbolic move to show that the issue has been elevated to a high priority for the department.

 

New Deadline on RFI for National Network for Manufacturing Innovation (NNMI)

Last year, President Obama launched a major, new initiative focused on strengthening the innovation, performance, competitiveness, and job-creating power of U.S. manufacturing called the National Network for Manufacturing Innovation (NNMI). Key design elements for the NNMI are captured within National Network for Manufacturing Innovation: A Preliminary Design, a report issued by the White House National Science and Technology Council on January 16, 2013. The NNMI is comprised of Institutes for Manufacturing Innovation (IMIs). The President has proposed up to 45 IMIs around the country. Congress is currently considering bills in both houses similar to the President’s proposal.

A Request for Information (RFI) was published June 2, 2014 on FedBizOps. Responses were originally due October 24, 2014 but that deadline has been moved up to October 10, 2014. The RFI seeks information about the following Technical Focus Areas:

  • Flexible Hybrid Electronics
  • Photonics
  • Engineered Nanomaterials
  • Fiber and Textiles
  • Electronic Packaging and Reliability
  • Aerospace Composites

IMIs will bring together industry, academia (four- and two-year universities, community colleges, technical institutes, etc.), and federal and state agencies to accelerate innovation by investing in industry-relevant manufacturing technologies with broad applications. Each Institute will have a specific technology or market focus and will serve as a regional hub of manufacturing excellence in that focus area, providing the critical infrastructure necessary to create a dynamic, highly collaborative environment spurring manufacturing technology innovations and technology transfer leading to production scale-up and commercialization. When established, each IMI will be a public-private partnership via a Cooperative Agreement and key part of the NNMI network of institutes.

This Week in Congress

Today the Senate reconvenes at 2 p.m. and is in a period of morning business until 6 p.m. No votes are expected.

In the other chamber, the House reconvenes at 2 p.m. for legislative business and is expected to begin consideration of a number of bills, including HR 5016, which would make appropriations for financial services in FY 2015. Roll call votes will be postponed until 6:30 p.m.

Here’s what we’ll be paying attention to in committee this week:

TUESDAY, JULY 15

Senate Appropriations Committee
Fiscal 2015 Appropriations: Defense
Subcommittee Markup
10 AM; 192 Dirksen Senate Building

House Appropriations Committee
Fiscal 2015 Appropriations: Interior-Environment
Full Committee Markup
9 AM; 2359 Rayburn Building

THURSDAY, JULY 17

Senate Appropriations Committee
Fiscal 2015 Appropriations: Defense
Full Committee Markup
10:30 AM; 106 Dirksen Senate Building

Senate Commerce, Science & Transportation Committee
Research and Development Investments
Full Committee Hearing
2 PM; 253 Russell Senate Buliding

House Energy & Commerce Committee
Technological Advancements in Health Care
Subcommittee Joint Hearing
9:30 AM; 2123 Rayburn House Building

House Science, Space & Technology
Innovative Medical Achievements
Subcommittee Hearing
9 AM; 2318 Rayburn House Building