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President Bush's 2005 Budget: Defense and Homeland Security R&D Up; Other Programs Down or Flat

In his FY 2005 budget, released on February 2, President Bush proposed $132 billion for research and development (R&D) across all federal agencies, a 10 percent increase from FY 2004. Nearly all of President Bush’s proposed $132 billion request in R&D went to the Department of Defense (DOD), the Department of Homeland Security (DHS), and the National Institutes of Health (NIH); in aggregate, funding for all other R&D agencies remained flat.

The release of the President’s budget occurred just two weeks after Congress finally passed an omnibus appropriations bill setting Federal spending levels for fiscal year (FY) 2004, which began on October 1, 2003. The bill passed after many weeks of acrimonious debate among Senate and House negotiators, and was signed into law by President Bush on January 23, 2004.

Following are highlights from some of the FY 2004 spending bills and FY 2005 funding requests affecting the interests of TechVision21 clients:

Department of Defense (DOD)
     
The Department of Defense's (DOD) Defense Advanced Research Projects Agency (DARPA) received $2.9 billion for unclassified projects in FY 2004. This includes funds for further research and development into sensor and guidance technology; biological warfare technology; and other technological developments that will advance the warfare capabilities of the United States Armed Forces. President Bush requested an extra 10% increase for DARPA in his FY 2005 DOD budget request.
     
Department of Homeland Security (DHS)
     
 

For FY 2004, DHS has received $918 million for S&T, $115 million above the amount requested by the President. These funds are targeted to research, development and deployment of innovative technologies, including those proposed by universities, national laboratories, private companies and non-profit organizations:

   

$70 million for university-based centers of excellence;

$40 million to deploy sensors to detect aerosolized bio-threats in large metropolitan areas;

$60 million for R&D and testing of antimissile devices for commercial aircraft;

$75 million for rapid deployment and prototyping of homeland security technologies;

$88 million to initiate construction of the National Biodefense Analysis and Countermeasures Center ; and $455 million to develop radiological, chemical, nuclear, biological, and high explosives countermeasures.
 
  President Bush requested over $1 billion for R&D at DHS in FY 2005, including an increase of $65.0 million for a new initiative on Bio-Surveillance. This initiative is a direct outgrowth of the recently completed joint Homeland Security Council– National Security Council (HSC-NSC) Bio-Defense End-to-End study which identified the need for an integrated, real-time, human-animal-plant surveillance system as a top priority national need. The additional $65.0 million will bring total program funding to $118 billion in FY 2005.
     

Department of Commerce (DOC)

 
  The Economic Development Assistance (EDA) programs at the Department of Commerce (DOC), received $319 million to assist communities struggling with long-term economic downturns, as well as sudden and severe economic hardship. This is the same funding level as FY 2003. EDA requests a very small increase of $5 million in FY 2005.
     
 

The Advanced Technology Program (ATP) remains a point of bitter contention among the White House, Senate and House. The Bush Administration has repeatedly attempted to eliminate the program, and the House denied funding for ATP in preliminary FY 2004 budget bills. Nevertheless, Congressional negotiators agreed to fund ATP at $179.2 million in FY 2004, including over $60 million for new awards. The fireworks are likely to continue since the Bush Administration has once again proposed termination of the program in FY 2005.

     
  The future of the Manufacturing Extension Partnership (MEP) also is unclear. The final MEP budget approved by Congress for FY 2004 was $39.6 million, down from $106 million in FY 2003. In its recently released Manufacturing Strategy, the Administration called for a “re-competition for all MEP centers, with a focus on effectiveness and cost-efficiency.” Administration officials have been quoted as committed to keeping the program alive, but with “reforms.”
     
   

The Administration has not explained what reforms it believes are necessary. However, the President's budget proposal calls for a flat funding level of $39.6 million for FY 2005. If there is a new competition for all existing MEP centers, this funding level would be insufficient to support MEP centers serving all 50 states, as MEP's current network does.

     
 

The Technology Opportunities Program (TOP) of the National Telecommunications and Information Administration also remains controversial. In FY 2004, the Bush administration proposed elimination of this program. However, Congressional negotiators agreed to a $14 million allocation for TOP. President Bush requested no funds for this program in his FY 2005 budget request.

     
 

The US Patent and Trademark Office (PTO) FY 2005 request supports efforts of PTO to keep pace with workload growth, and to enhance the quality of its services. In FY 2005, the Administration proposes giving PTO full access to its fees, an increase of $310.9 million. With these funds, the PTO will improve processing capacity by hiring additional patent examiners, deliver an operational electronic patent application processing system, continue moving to an electronic trademark operation, and expand quality reviews to all stages of patent and trademark examination.

     
National Science Foundation
 
 

The National Science Foundation's (NSF) FY 2004 budget increased $300 million over its FY 2003 level and $130 million over the Administration's budget request, bringing FY 2004 funding to $5.5 billion, the largest NSF budget ever. This figure still remains a billion dollars below the $6.6 billion called for in the NSF authorization bill, signed into law in December 2002, which proposed doubling the NSF budget by FY 2007. The funding increases come in $4.3 billion dollars for research; $945 million for education and human resources; and $156 million for research equipment. All other areas of the agency's budget remained flat.

     
   

The Bush Administration has requested a 3.0% increase for NSF for FY 2005. This represents an increase of $167.2 million over the current year's budget.

     
Multi-Agency Initiatives
 
 

President Bush's FY 2005 budget included several multi-agency science and technology initiatives: Combating Terrorism ($4.4 billion), Networking and Information Technology ($2 billion), Climate Change (1.7 billion), and the National Nanotechnology Initiative ($982 million). The President also has proposed a new Manufacturing Initiative, consisting of increasing the budget for the National Science Foundation's Design, Manufacture and Industrial Innovation Division to $66 million, and the budget for the Manufacturing Engineering Laboratory at the National Institute of Standards and Technology to $30 million.

     
Department of Labor (DOL)
 
 

The H1-b Visa Grant Program, which has provided substantial funds for IT skills training, funded by application fees required of companies for each worker brought into the US, is at an end as of January 14, 2004 . The Department of Labor announced that it has suspended the program for review; although there is some thought that it will not be renewed because its authorization has expired. If so, remaining funds may be directed to some of the Administration's FY05 job training proposals.


Department of Education
 
    The Bush Administration has continued its efforts to reduce, phase out or
eliminate most of the Education Department's educational technology programs
designed to help bridge the digital divide, prepare K-12 teachers to
effectively use computer and Internet Technology in the classroom, or
enhance the value of technology in education. Some of these programs
include:
     
  Educational Technology Block Grants, flat funded at $692 million in both FY
2004 and FY 2005;
     
  Star Schools, funded at $20.4 million (down from $27.3 million in FY 2003),
and proposed for elimination in FY 2005;
     
  Community Technology Centers, funded at only $9.9 million in FY 2004 (down
from $32.3 million in FY 2003), and proposed for elimination in FY 2005;
     
  and Preparing Teachers For Tomorrow, which was not funded in FY 2004, is
proposed for formal elimination in FY 2005.
     
    For additional information on funding for science and technology, please contact us at (202) 263-0168 or info@techvision21.com
     
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