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House Appropriations Releases List of Proposed Reductions

Today, the House Appropriations Committee released a list of 70 agencies/programs targeted for reductions from the President’s FY11 budget request. The list contains several agencies of importance to the higher education community, including:

  • National Institutes of Health:  $1 billion below President’s request (level-funded when compared to FY2010)
  • National Science Foundation:  $139 million below President’s request (an increase of approximately $360 million over FY2010)
  • Department of Energy, Office of Science:  $1.1 billion below President’s request (approximately $900 below FY2010)
  • National Oceanic and Atmospheric Administration:  $336 million below President’s request (an increase of $481 million above FY2010)
  • U.S. Geological Survey:  $27 million below President’s request (level funded when compared to FY2010)
  • National Endowment for the Humanities:  $6 million below President’s request each ($14 million below FY2010)
  • DOE Energy Efficiency and Renewable Energy:  $899 million below President’s request
  • Agricultural Research:  $246 million below President’s request

The cuts proposed by the House will eventually need to be reconciled with figures put forward in the Senate. As a result, the closeout of the FY11 appropriations process remains fluid.

Full List of House Appropriations’ Proposed Reductions

Congress Works to Finalize FY11 Budget

The Republican effort to roll back non-security discretionary spending to FY08 levels officially gets started this week with the return of House lawmakers from their one-week recess.  On Tuesday, House Republicans will set their new, enforceable spending limits for FY11, and later in the week unveil their package to cut spending for the remainder of the year.  House Budget Chairman Paul Ryan (R-WI) announced last week that the new discretionary spending cap will represent a $32 billion reduction from the annualized spending level under the stopgap continuing resolution (CR) currently funding federal government. This proposed cap assumes a $41 billion reduction in non-security spending (i.e., programs other than defense, homeland security, and veterans), while providing a nominal increase for security spending.  The new cap is intended to reduce non-security spending to FY08 levels for the final seven months of the current fiscal year (FY11). The current CR expires March 4th.

Also this week, the House Appropriations Committee plan to adopt spending allocations for each of the 12 individual funding bills for FY11, which determine the level of cuts each domestic spending bill will incur.  GOP appropriators have been working for weeks to identify specific program cuts for each bill. We expect to see a draft of the CR extension that will reflect those spending cuts, in preparation for House floor action on the measure next week. No committee markup of the legislation is expected, and GOP leaders haven’t yet announced whether a full Defense spending will be considered. Analysis of the proposed spending caps show that while on average non-security spending for the remainder of the fiscal year would be cut by more than 15 percent, discretionary spending for some bills would be cut much more deeply. Transportation-HUD programs, for instance, face a 26 percent cut, with Agriculture to be cut 24 percent, and Energy-Water cut 20 percent.

The Office of Federal Relations continues to advocate for maintaining federal funding at the FY10 level, with some targeted investments in research.  While the House is likely to agree to drastic cuts for FY11, the Senate – controlled by the Democrats – will not agree to such severe cuts.  It is not yet clear where we will end up but it looks like we may see the remainder of FY11 funded at levels somewhere between FY09 and FY10.  Stay tuned…

Senate Joins Earmark Moratorium

Yesterday, Senate Appropriations Chairman Daniel Inouye (D-HI) announced that the Senate will not advance earmark requests during the FY11 and FY12 appropriations cycles. The annoumcement follows decisions by the House of Representatives and President Obama to oppose the inclusion of special member projects in appropriations bills. Senator Inouye’s statement affirms his belief that Members of Congress should be able to direct spending in support of meritorious constituent projects and commits to reviewing the earmark process so that improvements can be made.

Full Statement

Startup America Partnership

As part of the Obama Administration’s innovation agenda, the White House today announced the launch of the Startup America Partnership, a “public/private effort to promote entrepreneurship with new initiatives to encourage private sector investment in job-creating startups and small firms.”  The effort “brings together an alliance of the country’s most innovative entrepreneurs, corporations, universities, foundations, and other leaders, working in concert with a wide range of federal agencies, to dramatically increase the prevalence and success of America’s entrepreneurs.” 

The goals of the initiative are expanded commercialization of the results of federally funded research, and a greater number of “high-impact entrepreneurship education programs” at high schools, community colleges, and universities.

White House Website for Startup America

State of the Union Offers Encouraging News for Research

In his State of the Union address last night, President Obama urged Congress to invest in critical priorities, reorganize the government, and begin addressing growing debt and deficits in order to ensure US success in the future. Obama proposed increased spending on education, infrastructure, and research and technology — particularly clean energy technology — that the President said would both create jobs and enhance US competitiveness in the world.

 “We need to out-innovate, out-educate, and out-build the rest of the world,” he said. “We have to make America the best place on Earth to do business. We need to take responsibility for our deficit, and reform our government. That’s how our people will prosper. That’s how we’ll win the future.”

The promise of technology heavily underpinned the President’s address, as he emphasized the importance of clean tech, broadband, and science education in achieving his goal. He made the case for continued investment in research funding, and a renewed commitment to immigration reform that’s designed to keep talented foreign workers in the country.

While this all sounds encouraging for the research and higher education communities, the President proposes to pay for those investments by cutting other domestic programs.  He is proposing a five-year freeze on non-security discretionary spending, which he said would save more than $400 billion over 10 years and bring discretionary spending to the lowest level as a share of the economy since the Eisenhower administration. It remains to be seen whether the President can actually motivate Congress into acting on his proposals, some of which appeared in Obama’s prior State of the Union addresses. It was in 2010 that the president sounded similar notes on innovation, taxes and trade, but those reforms often lagged in a Congress more focused on other big-ticket items like healthcare.

One surprise in the President’s address was his threat to veto any legislation that includes earmarks, essentially closing the door on any earmarks for FY12. Democrats in the Senate denounced the President’s call as a power grab that will have little-to-no impact on the federal budget deficit.

But the reality is that Democrats face a political climate that makes it virtually impossible to get any earmarks through this Congress if Obama and Republicans in congress maintain their opposition. Speaker John Boehner (R-OH) has already said that no appropriations bills with earmarks will pass the House, and Senate Republicans have also embraced a moratorium on the pet projects. That means House Republicans, Senate Republicans, and the President would have to cave in if any earmarks are to become law this year.

In other budget news, the House Republicans on Tuesday moved forward in their push to sharply reduce spending and draw contrasts with President Obama’s budget priorities. They adopted a resolution calling for non-security discretionary spending to be cut to FY08 levels or less for the last seven months of FY11. House Republican leaders also announced that they are planning to bring a government funding measure to the floor the same week the president is expected to release his budget (week of February 14th). During that same week, the House will also consider another stopgap spending measure to fund the government for the remainder of FY11. The current stopgap funding expires March 4th.

The Office of Federal Relations is closely monitoring all of these events and will provide additional information on this site as it becomes available. In the meantime, we are anticipating major programmatic cuts in the President’s FY12 Budget and are currently developing materials to defend those federal programs that the UW works with the most.