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March 11, 2008

Subcommittee Reviews NIST’s FY09 Budget Request

(Washington, DC) – Today, the House Committee on Science and Technology’s Subcommittee on Technology and Innovation held a hearing to discuss the National Institute of Standards and Technology’s (NIST) FY09 budget request. Subcommittee Chairman David Wu (D-OR) and Members discussed how NIST is addressing the requirements and funding levels set forth in the America COMPETES Act (PL 110-69) and the overall direction of the agency.

The America COMPETES Act (H.R.2272), a bill to improve the nation’s economic competitiveness through increased innovation, was signed into law by the President on August 9, 2007. Although the COMPETES Act put NIST’s budget on a ten-year path to doubling, authorizing $881.8 million in FY09, NIST’s FY09 budget request is $243.8 million lower than this authorized amount.

"The COMPETES Act clearly established Congressional priorities for NIST. However, the budget request this year largely ignored Congress’ input. The request is 28 percent lower than NIST’s FY09 authorization," said Wu. "In fact, NIST is the only science agency included in COMPETES whose budget request is actually lower this year than last year."

Also, the COMPETES Act requires NIST to submit a 3-year strategic plan with their budget request to Congress. This document must address NIST’s programs under the Scientific and Technical Research and Services, Construction of Research Facilities, and Industrial Technology Services accounts.

"The document that NIST delivered falls far short of this requirement. It leaves out several of NIST’s most important programs, and it does not lay out a strategic plan to ensure that NIST’s investments are suitable for the competitive challenges of the 21st century," added Wu. "I am very concerned that NIST has still not developed a comprehensive programmatic planning document."

NIST’s Industrial Technology Services account is composed of two programs: the Manufacturing Extension Partnership (MEP) and the Technology Innovation Program (TIP). The MEP is the only federal program specifically designed to target small and medium sized manufacturers and help them modernize their operations, improve their competitiveness, and reduce job loss. Although Congress has repeatedly stated its support for MEP’s mission and authorized $122 million in the COMPETES Act – NIST’s FY09 budget requests only $4 million to cover the cost of eliminating federal support for this program.

"COMPETES put MEP on a ten-year budget path to doubling to enhance its ability to help small manufacturers modernize their operations and remain globally competitive," stated Wu. "I am disappointed to see that the Administration proposes to eliminate this program. In addition, COMPETES created the TIP program to provide cost-shared grants to small, high-tech companies that are working to bring new technologies from concept to reality. TIP updated and replaced the highly successful Advanced Technology Program, and it will help reap the benefits of the federal investment in research. I am very disappointed that the Administration wants to eliminate this key component of a comprehensive innovation agenda."

The COMPETES Act authorized $131.5 million for TIP, a program to promote and accelerate innovation in the U.S. through high-risk, high-reward research in areas of critical national need. NIST’s FY09 budget request eliminates all funding for TIP.

Chairman Wu restated his commitment to working with NIST to ensure that all of its programs, including MEP and TIP, continue to support and improve U.S. innovation and economic competitiveness.

Members heard testimony from Dr. James Turner, Acting Director for NIST; Dr. James Serum, Chair of the NIST Visiting Committee on Advanced Technology; Dr. Mary Good, Founding Dean at the University of Arkansas at Little Rock; Dr. Peter Fiske, Vice President of R&D at PAX Scientific Inc.; and Dr. Michael Coast, President of the Michigan Manufacturing Technology Center.

For more information please visit the Committee’s website at www.house.gov/science.

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