Mission
The U.S. Department of Commerce's National Institute of Standards and Technology (NIST) is the "lead national laboratory for providing the measurements, calibrations, and quality assurance techniques which underpin United States commerce, technological progress, improved product reliability and manufacturing processes, and public safety."1
By statute, NIST is "to assist private sector initiatives to capitalize on advanced technology; to advance, through cooperative efforts among industries, universities, and government laboratories, promising research and development projects, which can be optimized by the private sector for commercial and industrial applications; and to promote shared risks, accelerated development, and pooling of skills which will be necessary to strengthen America's manufacturing industries."2
NIST conducts leading-edge research in its seven research laboratories located in facilities in Gaithersburg, MD, and Boulder, CO.3 NIST employs approximately 3,000 scientists, engineers, technicians, and support personnel, and hosts about 3,500 guest researchers and associates from academia, industry, and other government agencies, who collaborate with NIST staff and access user facilities. Research is focused on measurement, standards, test methods, and basic "infrastructural technologies" that enable development of advanced technologies. Infrastructural technologies assist industry in characterizing new materials, monitoring production processes, and ensuring the quality of new product lines. Cooperative research with industry to overcome technical barriers to commercialization of emerging technologies is a major component of NIST's work.
In addition, NIST manages extramural programs such as the Hollings Manufacturing Extension Partnership program, the Advanced Manufacturing Technology Consortia program, and the Network for Manufacturing Innovation. These programs are discussed in the next section.
History and Selected Statutory Authorities
Unlike most federal laboratories, NIST has a mission specified by statute (15 U.S.C. 271-282a), has a separate authorization and appropriation, and is headed by a Senate-confirmed presidential appointee. NIST was originally created by the NBS Organic Act of 1901 (P.L. 56-177) as the National Bureau of Standards (NBS), at a time when the first centralized industrial labs were being established.4
Under the act, NBS was charged with working on "the solution of problems which arise in connection with standards" and to engage in the "determination of physical constants and the properties of materials, when such data are of great importance to scientific or manufacturing interests and are not to be obtained of sufficient accuracy elsewhere." These objectives remain central to NIST's laboratory work today.
Malcolm Baldrige National Quality Improvement Act of 1987
In 1987, the Malcolm Baldrige National Quality Improvement Act of 1987 (P.L. 100-107) established the Malcolm Baldrige National Quality Award under the management of NBS.5 The act directs the President or the Secretary of Commerce to "periodically make the award to companies and other organizations which in the judgment of the President or the Secretary have substantially benefited the economic or social well-being of the United States through improvements in the quality of their goods or services resulting from the effective practice of quality management, and which as a consequence are deserving of special recognition."6
Omnibus Trade and Competitiveness Act of 1988
The following year, amid widespread concerns about the state of U.S. industrial competitiveness, the Omnibus Trade and Competitiveness Act of 1988 (P.L. 100-418) significantly expanded the role of NIST as the "lead national laboratory for providing the measurements, calibrations, and quality assurance techniques which underpin United States commerce, technological progress, improved product reliability and manufacturing processes, and public safety" by "moderniz[ing] and restructur[ing] that agency to augment its unique ability to enhance the competitiveness of American industry."7 The act also changed the name from NBS to the National Institute of Standards and Technology to reflect its expanded mission. In addition to its long-standing work in standards and metrology,8 NIST was directed to offer support to the private sector for the development of pre-competitive generic technologies and the diffusion of government-developed innovation to users in all segments of the U.S. economy. Among its provisions, the act established the Advanced Technology Program, and a program now known as the Hollings Manufacturing Extension Partnership (MEP) program.
Hollings Manufacturing Extension Partnership Program
The MEP is a program of regional centers that assist smaller, U.S.-based manufacturing companies in identifying and adopting new technologies. Operating under the auspices of NIST, centers in all 50 states and Puerto Rico provide technical and managerial assistance to firms. Federal funding for the centers is matched by nonfederal sources.9
Advanced Technology Program
The Advanced Technology Program (ATP) was designed "to serve as a focal point for cooperation between the public and private sectors in the development of industrial technology," according to the report accompanying the bill, and to help solve "problems of concern to large segments of an industry." Placed within the National Institute of Standards and Technology in recognition of the laboratory's ongoing relationship with industry, ATP provided seed funding to single companies or to industry-led consortia of universities, businesses, and/or government laboratories for development of generic (broad-based), pre-competitive technologies that have many applications across industries. Awards, based on technical and business merit, were for high-risk work past the basic research stage but not yet ready for commercialization. Market potential was an important consideration in project selection. Scientific and technical review generally was performed by federal and academic experts. Business plan assessments were made by individuals from the private sector.
America COMPETES Act/America COMPETES Reauthorization Act of 2010
The America COMPETES Act (P.L. 110-69) and the America COMPETES Reauthorization Act of 2010 (P.L. 111-358) authorized NIST appropriations and several programs and activities.
Technology Innovation Program
In 2007, the America COMPETES Act replaced ATP with a new program, the Technology Innovation Program (TIP). While similar to ATP in the promotion of R&D expected to be of broad-based economic benefit to the nation, TIP appeared to have been structured to avoid what was seen as government funding of large firms that opponents argued did not necessarily need federal support for research. The committee report to accompany H.R. 1868, part of which was incorporated into P.L. 110-69, stated that TIP replaced ATP in consideration of a changing global innovation environment focusing on small and medium-sized companies. The design of the program also "acknowledges the important role universities play in the innovation cycle by allowing universities to fully participate in the program."10 Appropriations for TIP were provided from FY2008 to FY2011, but no funding has been provided for the program thereafter.
NIST Doubling Effort
The America COMPETES Act authorized appropriations for NIST accounts for FY2008-FY2010, and the America COMPETES Reauthorization Act of 2010 authorized appropriations for NIST accounts for FY2011-FY2013. The authorization levels for NIST were part of a larger effort to double funding for selected accounts—all of the National Science Foundation, the Department of Energy Office of Science, and the NIST laboratory and construction accounts—that support physical sciences and engineering research.11 Congress's appropriations fell short of the authorizations in these acts and President Obama's FY2017 request did not refer to the doubling goal.
Middle Class Tax Relief and Job Creation Act of 2012
As part of the Public Safety Trust Fund provided for in the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96), a share of spectrum auction proceeds are to be made available to NIST as part of a Wireless Innovation (WIN) Fund to help develop cutting-edge wireless technologies for public safety users. WIN funds are to be used for developing leading-edge wireless technologies for public safety users, including helping industry and public safety organizations conduct research and develop new standards, technologies, and applications to advance public safety communications in support of the initiative's efforts to build an interoperable nationwide broadband network for first responders. The spectrum auction provided NIST with approximately $285.0 million for this purpose;12 efforts began in FY2015 and are continuing in FY2017.
Revitalize American Manufacturing and Innovation Act of 2014/ Network for Manufacturing Innovation
In his FY2013 budget, President Obama proposed the creation of a National Network for Manufacturing Innovation (NNMI) to help accelerate innovation by investing in industrially relevant manufacturing technologies with broad applications, and to support manufacturing technology commercialization by bridging the gap between the laboratory and the market. Congress did not act on this request or a subsequent one made in President Obama's FY2014 request. President Obama renewed the request in his FY2015 budget. In December 2014, Congress enacted the Revitalize American Manufacturing and Innovation Act of 2014 (RAMI Act) as Title VII of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235), establishing a Network for Manufacturing Innovation (NMI), largely similar to President Obama's concept for the NNMI. As specified in the act, the purpose of the NMI is to improve the competitiveness of U.S. manufacturing and to increase the production of goods manufactured predominantly within the United States; to stimulate U.S. leadership in advanced manufacturing research, innovation, and technology; to facilitate the transition of innovative technologies into scalable, cost-effective, and high-performing manufacturing capabilities; to facilitate access by manufacturing enterprises to capital-intensive infrastructure, including high-performance electronics and computing, and the supply chains that enable these technologies; to accelerate the development of an advanced manufacturing workforce; to facilitate peer exchange and the documentation of best practices in addressing advanced manufacturing challenges; to leverage nonfederal sources of support to promote a stable and sustainable business model without the need for long-term federal funding; and to create and preserve jobs.13
The act did not appropriate funds specifically for the NMI program but instead authorized NIST to spend up to $5.0 million of its appropriated funds each year from FY2015 to FY2024 to carry out the program. In addition, the act authorizes the Department of Energy (DOE) to transfer up to a total of $250.0 million to NIST between FY2015 and FY2024 to carry out the program. The act also allows existing manufacturing centers to be classified as centers for manufacturing innovation, making them eligible to participate in the network. President Obama initiated the establishment of several such centers prior to enactment of the RAMI Act under the general statutory authority of several agencies, including the Department of Defense and Department of Energy.
While no funding has been transferred from DOE to NIST as authorized by the RAMI Act, in December 2015, the Consolidated Appropriations Act, 2016 (P.L. 114-113) provided specific funding, for the first time, for the establishment and coordination of institutes under the provisions of the RAMI Act. The act provides NIST with $25.0 million for FY2016 for the NNMI, to include funding for establishment of institutes and up to $5.0 million for coordination activities.14 The explanatory statement accompanying the act directs NIST to
follow the direction of the Revitalize American Manufacturing and Innovation Act of 2014 in requiring open competition to select the technological focus areas of industry-driven manufacturing institutes.15
On February 19, 2016, NIST launched a competition to establish and operate one or more institutes. According to the announcement, NIST intended to provide up to a total of $70 million per institute over five to seven years, with federal funding matched by private and other nonfederal sources. On December 16, 2016, NIST awarded the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), led by the University of Delaware, "to advance U.S. leadership in biopharmaceutical manufacturing."16 The Consolidated Appropriations Act, 2017 (P.L. 115-31) provides $25 million to NIST for the NNMI, to include funding for center establishment and up to $5,000,000 for coordination activities. These funds may allow NIST to award a second institute in 2017 based on the 2016 competition.
Other NIST Programs
In July 2013, NIST launched two new programs: the Advanced Manufacturing Technology Consortia (AMTech) program and the Manufacturing Technology Acceleration Centers (M-TAC) program.
Advanced Manufacturing Technology Consortia Program
Originally included in President Obama's FY2013 budget request, AMTech makes planning awards to "establish industry-led consortia to identify and prioritize research projects supporting long-term industrial research needs." AMTech seeks to incentivize manufacturers to share financial and scientific resources with universities, state and local governments, and nonprofit organizations.17 AMTech does not have a statutory authorization; the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6) provided first year funding of $14.5 million.
In December 2015, the Consolidated Appropriations Act, 2016 (P.L. 114-113) directed NIST to merge the Advanced Manufacturing Technology (AMTech) Consortia program with the NNMI;18 President Obama's FY2017 request included no separate funding for AMTech19 and the Consolidated Appropriations Act, 2017, provided no funding for AMTech.
Manufacturing Technology Acceleration Centers Program
The M-TAC program, a pilot effort under MEP, seeks to address "the technical and business challenges encountered by small and mid-sized U.S. manufacturers as they attempt to adopt, integrate, and execute advanced product and process technologies into their operations."20
NIST Appropriations
Overview of NIST Appropriations Accounts
Discretionary funding for NIST is generally provided through three appropriations accounts:
- The Scientific and Technical Research and Services (STRS) account supports NIST in-house laboratory research. The account also provided funding for the Baldrige Performance Excellence Program through FY2011.
- The Construction of Research Facilities (CRF, also referred to in this report as construction) account supports construction, maintenance, and repair of NIST facilities at its facilities in Gaithersburg, MD, and Boulder, CO. From FY2008 to FY2010, CRF provided funding for a competitive grant program that funded the construction of research facilities at U.S. universities and research institutions.
- The Industrial Technology Services (ITS) account supports a number of extramural programs. In FY2016, the ITS account provides funding for the MEP and NNMI programs. Congress has directed that the AMTech program, previously funded as a separate line in the ITS account, be merged into NNMI. In earlier years, ITS provided funding for the Advanced Technology Program, the Technology Innovation Program.
NIST FY2017 Appropriations
President Obama requested $1.015 billion in discretionary funding for NIST in FY2017, an increase of $50.5 million (5.2%) over the FY2016 enacted discretionary appropriation of $964.0 million. (See Table 1.) In addition, President Obama's request included funding characterized as mandatory that was intended not to be counted against the FY2017 discretionary spending cap. President Obama requested $2.0 billion in mandatory funding for NIST, including $1.9 billion for the National Network for Manufacturing Innovation (NNMI) to complete the development of a network of 45 institutes by FY2025,21 and $100.0 million to supplement the Construction of Research Facilities discretionary funding request to renovate and modernize NIST facilities to maintain and improve current R&D capabilities.22
President Obama's discretionary request included $730.5 million for R&D, standards coordination, and related services in the NIST STRS account, an increase of $40.5 million (5.9%) above the FY2016 level. Funding for laboratory programs would have increased by $33.5 million (5.5%) to $638.7 million, corporate services by $4.0 million (23.1%) to $21.3 million, and standards coordination and special programs by $3.0 million (4.4%) to $70.5 million.23
President Obama requested $189.0 million for the NIST ITS account for FY2017, up $34.0 million (21.9%) from the FY2016 level. The ITS request included $142.0 million for the Manufacturing Extension Partnership (MEP) program, up $12.0 million (9.2%) from FY2016, and $47 million for the NNMI, up $22.0 million (88.0%).24 P.L. 114-113 provided NIST $25.0 million for the NNMI in FY2016 and the explanatory language accompanying the act directed NIST to merge its Advanced Manufacturing Technology (AMTech) Consortia program with the NNMI; President Obama's FY2017 request included no separate funding for AMTech.25
President Obama requested $95.0 million for FY2017 for the NIST CRF account, down $24.0 million (20.2%) from the FY2016 level.26 President Obama's mandatory funding request would have, in part, provide $100.0 million in supplementary funding for activities supported by this account.
On April 21, 2016, the Senate Committee on Appropriations reported its FY2017 CJS appropriations bill (S. 2837). The Senate-reported bill would provide a total of $974.0 million for NIST in FY2017. Of this amount, the bill would provide $700.0 million for the STRS account, $10.0 million (1.4%) more than the FY2016 level and $30.5 million (4.2%) less than the requested level. The bill would provide $155.0 million for the ITS account, the same as the FY2016 level and $34.0 million (18.0%) less than the request. Within the ITS account, the MEP would receive $130.0 million, equal to the FY2016 level and $12.0 million (8.5%) less than the request, and the NNMI would receive $25.0 million, the same as the FY2016 level and $22.0 million (46.8%) less than the request. Up to $5.0 million of the NNMI funding would be made available to coordinate activities of the network. CRF funding includes $60.0 million for continued renovation of NIST's radiation physics laboratories. The CRF account would receive $119 million, the same as the FY2016 level and $24.0 million (25.3%) more than the request.
On June 7, 2016, the House Committee on Appropriations reported its FY2017 CJS appropriations bill (H.R. 5393). The House-reported bill would provide a total of $865.0 million for NIST in FY2017, $99.0 million (10.3%) less than the FY2016 level, $149.5 million (14.7%) less than the requested level, and $109.0 million (11.2%) less than the Senate-reported level. The bill would provide $680.0 million for the STRS account, $10.0 million (1.4%) below the FY2016 level, $50.5 million (6.9%) below the requested level, and $20.0 million (2.9%) below the Senate-reported level. The bill would provide $135.0 million for the ITS account, $20.0 million (12.9%) below the FY2016 level and the Senate-reported level, and $54.0 million (28.6%) below the request. Within the ITS account, the MEP would receive $130.0 million, equal to the FY2016 level and the Senate committee-reported level, and $12.0 million (8.5%) less than the request. The NNMI would receive $5.0 million, $20.0 million (80.0%) below the FY2016 level and the Senate-reported level, and $42.0 million (89.4%) less than the request. The CRF account would receive $50.0 million for FY2017, $69.0 million (58.0%) below the FY2016 level and the Senate-reported level, and $45.0 million (47.4%) below than the request.
On December 10, 2016, President Obama signed into law the Further Continuing and Security Assistance Appropriations Act, 2017 (P.L. 114-254). Division A, Further Continuing Appropriations Act, 2017, which provided continuing appropriations for NIST and most federal agencies at 99.8% of FY2016 funding through April 28, 2017, subject to other provisions in the act, pending final action on the remaining 11 regular appropriations acts for FY2017. Previously, on September 29, 2016, President Obama signed into law the Continuing Appropriations and Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2017, and Zika Response and Preparedness Act (P.L. 114-223). This act, among other things, had provided continuing appropriations for most federal agencies through December 9, 2016, at about 99.5% of FY2016 funding.
In May 2017, Congress passed and President Trump signed into law, the Consolidated Appropriations Act, 2017 (P.L. 115-31), providing, in part, appropriations for NIST.
This section will be updated when President Trump puts forward his FY2018 budget request to Congress.
|
FY2016 |
FY2017 |
FY2017 |
FY2017 Senate-reported (S. 2837) |
FY2017 |
|
|
Discretionary Funding |
|||||
|
Scientific and Technical Research and Services (STRS) |
$690.0 |
$730.5 |
$680.0 |
$700.0 |
$690.0 |
|
Industrial Technology Services (ITS) |
155.0 |
189.0 |
135.0 |
155.0 |
155.0 |
|
Manufacturing Extension Partnership (MEP) |
130.0 |
142.0 |
130.0 |
130.0 |
130.0 |
|
Advanced Manufacturing Technology Consortia (AMTech) |
0 |
0 |
0 |
0 |
|
|
National Network for Manufacturing Innovation (NNMI)c |
25.0d |
47.0 |
5.0 |
25.0 |
25e |
|
Construction of Research Facilities (CRF) |
119.0 |
95.0 |
50.0 |
119.0 |
109.0 |
|
Total, NIST Discretionary |
964.0 |
1,014.5 |
865.0 |
974.0 |
954.0 |
|
Mandatory Funding |
|||||
|
NIST Public Safety Communications Research Fundf |
7.3 |
0 |
0 |
0 |
0 |
|
Mandatory CRF |
0 |
100.0 |
0 |
0 |
0 |
|
Mandatory NNMI |
0 |
1,900.0 |
0 |
0 |
0 |
|
Total, NIST Mandatory |
7.3 |
2,000.0 |
0 |
0 |
0 |
|
Total NIST |
971.3 |
3,014.5 |
865.0 |
974.0 |
954.0 |
Source: U.S. Department of Commerce, Department of Commerce, Budget in Brief, Fiscal Year 2017, http://www.osec.doc.gov/bmi/budget/FY17BIB/AllFilesWithCharts2.pdf; P.L. 115-31 and accompanying explanatory statement.
Notes:
a. President Obama's FY2017 request for NIST includes funding characterized as mandatory that is intended not to be counted against the FY2017 discretionary spending cap.
b. The explanatory language for P.L. 114-113 states that the AMTech Consortia activity is to be merged with the NNMI.
c. The Revitalize American Manufacturing and Innovation Act of 2014 authorizes NIST to use $5 million per year for FY2015-FY2024 from funds appropriated to its Industrial Technology Services account to carry out the NMI program. The act also authorizes the Department of Energy to transfer to NIST up to $250 million over the FY2015-FY2024 period from funds appropriated for advanced manufacturing R&D.
d. The explanatory language for P.L. 114-113 states that up to $5 million of the NIST NNMI appropriation may be used for coordination activities.
e. P.L. 115-31 authorizes up to $5.0 million of the $25.0 million provided for the NNMI to be used for coordination of the institutes.
f. The spectrum auction authorized by the Middle Class Tax Relief and Job Creation Act of 2012 provided approximately $285.0 million for NIST as part of the as part of the National Wireless Initiative; under the act, these funds are to be used in FY2015 and future years.
Funding Trends for NIST Accounts and Selected Programs
This section provides an overview of appropriations data for NIST in total and for each of its appropriations accounts, as well as for the Manufacturing Extension Partnership and the Advanced Technology Program and Technology Innovation Program. Appendix A provides requested and enacted funding levels for NIST and its accounts for FY2003-FY2015. Appendix B provides requested and enacted funding levels for selected NIST programs.
Total NIST Funding
Figure 1 illustrates total requested and enacted NIST funding levels. Total appropriations for NIST grew from $707.5 million in FY2003 to $964.0 million in FY2017, a compound annual growth rate (CAGR) of 2.2%. Appropriations exceeded requests through FY2010; since then, requests have exceeded appropriations.
|
Figure 1. Total NIST Appropriations Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. |
Scientific and Technical Research and Services Account
Figure 2 illustrates requested and enacted funding levels for the NIST STRS account. This account has seen a steady rise in both request and appropriations levels. Total appropriations for the STRS account grew from $357.1 million in FY2003 to $690.0 million in FY2017, a compound annual growth rate of 4.8%. Appropriations and requests have grown concurrently, with appropriations trailing requests somewhat.
|
Figure 2. Scientific and Technical Research and Services Account Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. |
Construction of Research Facilities Account
Figure 3 illustrates requested and enacted funding levels for the NIST CRF account. The construction account saw substantial fluctuations from FY2006 through FY2011. CRF funding jumped from $72.5 million in FY2006 to $173.7 million in FY2007, fell to $58.7 million in FY2008, and then rose to $532.0 million in FY2009 (of which $172.0 million was provided for in regular appropriations and $360 million provided under ARRA)27. In 2010, funding fell to $147.0 million, and fell again in 2011 to $69.9 million. From FY2012 through FY2015, appropriations have been relatively flat, ranging from $50 million to $56 million per year. In FY2016, CRF appropriations jumped to $119.0 million; $60.0 million of the increase was designated for beginning "the design and renovation of [NIST's] outdated and unsafe radiation physics infrastructure." In FY2017, CRF appropriations are $109.0 million; as in FY2016, $60.0 million is designated for design and renovation of NIST's radiation physics infrastructure.28
In fiscal years 2008, 2009, and 2010, the CRF account provided funding for the competitive construction grant program that funded the construction of research facilities at U.S. universities and research institutions. Appropriations for CRF also included funding for congressionally designated projects in some years. Figure 4 illustrates the funding levels for the NIST CRF account excluding congressionally directed projects and the competitive grant program (requested appropriations for FY2003-FY2017 and enacted appropriations for FY2003-FY2016). From this perspective, funding for NIST internal construction, major renovations, safety, capacity, maintenance, and major repairs has been comparatively flat during this period, rising somewhat from FY2005 to FY2009, falling somewhat through FY2011, then remaining flat.
|
Figure 3. Construction of Research Facilities Account Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. Notes: ARRA = American Recovery and Reinvestment Act. |
|
Figure 4. Construction of Research Facilities Account, excluding funding for congressionally directed projects and the competitive construction grant program Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. Notes: ARRA=American Recovery and Reinvestment Act. |
Industrial Technology Services Account
Figure 5 illustrates requested and enacted funding levels for the NIST ITS account. ITS requests and appropriations during this period have included the MEP, NNMI, AMTech, ATP, TIP, and Baldrige programs in some or all years. Total appropriations for the ITS account fell from $284.8 million in FY2003 to $128.4 million in FY2012, and has grown slowly since then through FY2017. Substantial fluctuations in the levels of funding requested and provided for the MEP, ATP, and TIP programs are reflected in aggregate in Figure 5, and illustrated and discussed in more detail on the following pages.
|
Figure 5. Industrial Technology Services Account Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. |
Manufacturing Extension Partnership Program
Figure 6 illustrates requested and enacted funding levels for the NIST MEP program. FY2003 enacted appropriations of $106.0 million were cut to $38.6 million in FY2004, but returned to near the FY2003 level in FY2005 ($107.5 million) and stayed near that level through FY2007. The MEP funding dipped again in FY2008, to $89.6 million, then rose over the next several years to $130 million in FY2015. Requests from FY2003 to FY2009 were substantially lower than appropriations, falling to a low of $2 million in FY2009. In FY2010, the Obama Administration requested $124.7 million for MEP, and requests have since been consistently somewhat higher than enacted appropriations. Appropriations have remained steady since FY2010.
|
Figure 6. Manufacturing Extension Partnership Program Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. |
Advanced Technology Program/Technology Innovation Program
The Advanced Technology Program saw its requests fall from $107.9 million in FY2003 to zero in FY2005, and its appropriations fall from $178.9 million in FY2003 to zero in FY2008; no funding was requested in FY2005 and subsequent years. The Technology Innovation Program, which replaced ATP, was first funded at $65.2 million in FY2008 and rose to $69.9 million in FY2010 before falling to $45.0 million in FY2011, and zero in FY2012. The $69.9 million requested for TIP in FY2010 was fully funded; in FY2011 the TIP request was $79.9 million, and in FY2012 was $75.0 million. Requests for TIP in FY2013 and subsequent years have been zero.
|
Figure 7. Advanced Technology Program and Technology Innovation Program Requested and Enacted Appropriations, FY2003-FY2017 (in millions of current dollars) |
|
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement. |
Concluding Observations
When NBS was renamed NIST under the provisions of the Omnibus Trade and Competitiveness Act of 1988, the laboratory was given additional missions and supporting programs. Two of the new programs—the Advanced Technology Program and the Manufacturing Extension Partnership program—were intended to improve U.S. innovation and industrial competitiveness. These programs generated criticism from some policymakers and analysts who objected to them on a variety of grounds, including whether such activities are appropriate for the federal government to undertake; whether they might result in suboptimal choices of technologies, choices better left to market forces; whether certain technologies, companies, or industries might be chosen for support based on criteria other than technical or business merit; and whether tax dollars should be awarded to already-profitable firms.
In contrast, NIST's historical mission of conducting laboratory research in support of standards and metrics continued to enjoy broad support and faced little controversy. Evidence of this support can be seen in the selection of the STRS account—through which NIST laboratory work is funded—as one of the targeted accounts in the doubling efforts of former President George W. Bush, President Obama, and successive Congresses. However, even with broad support and the absence of controversy, funding for the NIST STRS account did not grow at the pace its advocates supported in presidential budget requests and successive authorizations of appropriations due to tight overall fiscal constraints on the federal budget.
These issues are discussed in more detail below.
NIST Doubling Effort
In the early 2000s, many industry, academia, and policy leaders expressed growing concern that federal investments in physical sciences and engineering research were not growing fast enough to keep America on the leading edge of technological innovation and commercial competitiveness. In his 2006 State of the Union remarks, President Bush announced the American Competitiveness Initiative (ACI) which, among other things, sought to double funding for targeted appropriations accounts that fund physical sciences and engineering research over a 10-year period. Among the targeted accounts were the NIST STRS and construction accounts. Subsequently, Congress passed the America COMPETES Act (P.L. 110-69), which set appropriations authorizations for the targeted accounts for FY2008-FY2010 that represented a compound annual growth rate (CAGR) of 10.1% that would have, if continued, resulted in a doubling over approximately seven years.
In his FY2010 Plan for Science and Innovation, President Obama stated that he (like President Bush) would seek to double funding for basic research over 10 years (FY2006 to FY2016) at the ACI agencies. Actual appropriations, however, did not keep pace with the America COMPETES Act authorization levels. In his FY2011 budget request, President Obama extended the period over which he intended to double these agencies' budgets to 11 years. In 2010, Congress enacted the America COMPETES Reauthorization Act of 2010 (P.L. 111-358) setting appropriations authorizations for the targeted accounts for FY2011-FY2013 at a level that effectively set an 11-year doubling pace (a 6.3% CAGR). However, as with the original act, appropriations did not keep pace with the authorization act levels. While reiterating President Obama's intention to double funding for the targeted accounts from their FY2006 levels, President Obama's FY2013 budget request did not specify the length of time over which the doubling was to take place. President Obama's FY2014 budget expressed a commitment to increasing funding for the targeted accounts, but did not commit to doubling. President Obama's FY2017 budget did not address the doubling effort. From FY2006, the base year for the doubling effort, through FY2016, funding for the NIST STRS and construction accounts grew by 42.3% in nominal terms, a compound annual growth rate of 3.6%, a rate that would result in doubling in about 20 years. President Obama's FY2017 request sought an increase aggregate funding for these accounts of 2.0%. The doubling effort appears to no longer be a priority for Congress or the President. It remains to be seen how support for internal R&D at NIST will evolve.
NIST Technology Policy
Some of NIST's external programs have faced substantial opposition over time. Beginning with the 104th Congress, many Members expressed skepticism over a "technology policy" based on providing federal funds to industry for development of pre-competitive generic technologies. This philosophical shift from previous Congresses, coupled with pressures to balance the federal budget, led to significant reductions in funding for NIST's external programs. The Advanced Technology Program and the Manufacturing Extension Partnership, which accounted for over 50% of the FY1995 NIST budget, were proposed for elimination. Although in the past strong support by the Senate led to their continued financing, funding for ATP remained controversial. Beginning in FY2000, the House-passed appropriations bills did not contain funding for ATP, and many of the budget proposals submitted by former President George W. Bush called for abolishing the program. In the 110th Congress, the America COMPETES Act eliminated ATP and replaced it with the TIP initiative. While TIP received appropriations from FY2008 to FY2011, it has received no appropriations since. In his FY2003 budget proposal, President Bush also recommended suspension of federal support for those MEP centers in operation for more than six years; the following year funding for the MEP program was significantly reduced. However, the FY2005 Omnibus Appropriations Act brought support for MEP back up to the level necessary to fully fund the existing centers. Since then, funding has grown from $107.5 million in FY2005 to $130.0 million in FY2016. President Obama requested $142.0 million for MEP for FY2017, an increase of $12.0 million (9.2%); Congress provided $130 million an amount equal to its FY2016 level. For more information on the MEP program, see CRS Report R44308, The Manufacturing Extension Partnership Program, by [author name scrubbed]
National Network for Manufacturing Innovation
In his FY2013 budget, President Obama requested $1 billion in mandatory funding for the creation of a National Network for Manufacturing Innovation29 to help accelerate innovation by investing in industrially relevant manufacturing technologies with broad applications, and to support manufacturing technology commercialization by bridging the gap between the laboratory and the market. Congress did not act on this request or on President Obama's FY2014 request for the same amount. In FY2015, President Obama requested $2.4 billion for the NNMI as part of his Opportunity, Growth, and Security Initiative. President Obama also requested $5.0 million for coordination of manufacturing innovation institutes as part of NIST's budget request. In December 2014, Congress enacted the Revitalize American Manufacturing and Innovation (RAMI) Act of 2014 as Title VII of Division B of the Consolidated and Further Continuing Appropriations Act, 2015 (P.L. 113-235), establishing a Network for Manufacturing Innovation (NMI). The act does not appropriate funds specifically for the NMI program but instead authorizes NIST to spend up to $5.0 million of funds appropriated to NIST's ITS account each year from FY2015 to FY2024 to carry out the program. In addition, the act authorizes the Department of Energy (DOE) to transfer up to $250.0 million to NIST for the 10-year period FY2015 to FY2024 to carry out the program.30 As of the date of this report, DOE has not transferred any funding to NIST for this purpose.
Through the end of calendar year 2015, seven NNMI institutes sponsored by the Department of Defense (DOD) and Department of Energy had been awarded, and two additional institutes were being competed. In December 2015, Congress appropriated specific funding, for the first time, for the establishment and coordination of institutes under the provisions of the RAMI Act. The Consolidated Appropriations Act, 2016 (P.L. 114-113) provides NIST with $25.0 million for FY2016 for the NNMI, to include funding for establishment of institutes and up to $5.0 million for coordination activities. The explanatory statement accompanying the act directs NIST to
follow the direction of the Revitalize American Manufacturing and Innovation Act of 2014 in requiring open competition to select the technological focus areas of industry-driven manufacturing institutes.31
NIST subsequently announced its intention to establish two institutes.32 On December 16, 2016, NIST awarded the National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), led by the University of Delaware, "to advance U.S. leadership in biopharmaceutical manufacturing."33 NIST may announce the selection of a second institute in 2017, subject to the availability of FY2017 funding.
P.L. 115-31 provided $25.0 million for NIST NNMI efforts in FY2017, to include funding for center establishment and up to $5.0 million for coordination activities. President Obama had requested $25.0 million in discretionary funding and $1.9 billion in mandatory funding for NIST to establish institutes and coordinate the activities of the network.
As of the date of this report, 14 NNMI institutes have been established, eight by DOD, five by DOE, and one by the Department of Commerce.
As Congress completed the FY2017 appropriations process, an overarching issue was how funding for NIST would be allocated between the core standards and measurement functions performed by its laboratories and its external programs, such as MEP, AMTech, and the NMI.
For a broader discussion about the Network for Manufacturing Innovation and associated policy issues, see CRS Report R44371, The National Network for Manufacturing Innovation, by [author name scrubbed]
Appendix A. Requested and Enacted Discretionary Appropriations for NIST Accounts
Table A-1. Requested and Enacted Appropriations for NIST Accounts
FY2003-FY2017
(in millions of current dollars)
|
Fiscal Year |
NIST, Total |
Scientific and Technical Research and Services |
Industrial Technology Services |
Construction of Research Facilities |
||||
|
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
|
|
2017 |
$1,014.5 |
$954.0 |
$730.5 |
$690.0 |
$189.0 |
$155.0 |
$95.0 |
$109.0 |
|
2016 |
1,119.7 |
964.0 |
754.7 |
690.0 |
306.0 |
155.0 |
59.0 |
119.0 |
|
2015 |
900.0 |
863.9 |
680.0 |
675.5 |
161.0 |
138.1 |
59.0 |
50.3 |
|
2014 |
928.3 |
850.0 |
693.7 |
651.0 |
174.5 |
143.0 |
60.0 |
56.0 |
|
2013b |
857.0 |
769.4 |
648.0 |
579.8 |
149.0 |
133.6 |
60.0 |
56.0 |
|
2012 |
1,001.1 |
750.8 |
678.9 |
567.0 |
237.6 |
128.4 |
84.6 |
55.4 |
|
2011c |
918.9 |
750.1 |
584.5 |
507.0 |
209.6 |
173.2 |
124.8 |
69.9 |
|
2010 |
846.1 |
856.6 |
534.6 |
515.0 |
194.6 |
194.6 |
116.9 |
147.0 |
|
2009d |
636.0 |
819.0 |
535.0 |
472.0 |
4.0 |
175.0 |
99.0 |
172.0 |
|
2009 ARRAe |
- |
580.0 |
- |
220.0 |
- |
- |
- |
360.0 |
|
2008f |
640.7 |
755.8 |
500.5 |
440.5 |
46.3 |
154.8 |
93.9 |
160.5 |
|
2007 |
581.3 |
676.9 |
467.0 |
434.4 |
46.3 |
183.8 |
68.0 |
58.7 |
|
2006g |
532.0 |
752.0 |
426.3 |
394.8 |
46.8 |
183.6 |
58.9 |
173.7 |
|
2005h |
521.5 |
699.2 |
422.9 |
378.8 |
39.2 |
247.9 |
59.4 |
72.5 |
|
2004i |
496.8 |
608.5 |
387.6 |
336.5 |
39.6 |
207.8 |
69.6 |
64.3 |
|
2003j |
577.5 |
707.5 |
402.2 |
357.1 |
120.8 |
284.8 |
54.5 |
65.7 |
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement.
Notes: Dashes in cells in this table indicate no request or appropriation was made for that year. Accounts may not add to totals due to rounding.
a. Funding for the Baldrige Performance Excellence Program was provided in the STRS account appropriation through FY2011; in FY2012, funding was requested in the ITS account appropriation.
b. Enacted levels reflect the 1.877% rescission, 0.2% rescission, and the 5% sequester applied to 2013 annualized CR level.
c. Enacted levels include 0.2% across-the-board rescission.
d. Enacted levels for STRS appropriation include $3.475 million in congressionally directed projects. The FY2009 amount for CRF appropriation includes $44 million in congressionally directed projects and $30 million for a competitive construction grant program.
e. The American Recovery and Reinvestment Act of 2009 (ARRA) amount for CRF includes $180 million for a competitive construction grant program for research science buildings. Not reflected above, ARRA also included a $20 million transfer from the Department of Health and Human Services for standards-related research on electronic medical records and an expected $10 million from a Department of Energy interagency agreement to help develop a comprehensive framework for a nationwide smart electrical grid.
f. The enacted FY2008 level for STRS appropriations includes $893,000 in congressionally directed projects. The enacted FY2008 level for CRF appropriations includes $51.3 million in congressionally directed projects and $30 million for a new competitive construction grant program that was not requested by President Bush.
g. Enacted levels reflect across-the-board rescissions enacted in P.L. 109-108, FY2006 Science, State, Justice, and Commerce Appropriations Act and in P.L. 109-148, FY2006 Defense Appropriations Act ($9.7 million). Does not reflect MEP unobligated balances rescission of $7 million. The amounts for STRS and for the Construction of Research Facilities appropriation include $11.9 million and $125.4 million for congressionally directed projects, respectively.
h. Enacted levels reflect across-the-board rescissions enacted in P.L. 108-447, FY2005 Consolidated Appropriations Act ($9.5 million). Does not reflect ATP unobligated balances rescission of $3.9 million. The amounts for STRS and for the Construction of Research Facilities appropriation include $8.8 million and $42.9 million for congressionally directed projects, respectively.
i. Enacted levels reflect across-the-board rescissions enacted in the FY2004 Consolidated Appropriations Act, P.L. 108-199 ($6.6 million) and NIST's share of the Department of Commerce's unobligated balances rescission ($13.0 million).
j. Enacted levels reflect an across-the-board rescission enacted in P.L. 108-7 ($4.6 million).
Appendix B. Requested and Enacted Appropriations for Selected NIST Programs
Table B-1. Requested and Enacted Appropriations for Selected NIST Programs
FY2003-FY2017
(in millions of current dollars)
|
Fiscal Year |
Hollings Manufacturing Extension Partnership |
Advanced Manufacturing Technology Consortia |
Manufacturing Innovation Institutes Coordination |
National Network for Manufacturing Innovation |
Advanced Technology Program |
Technology Innovation Program |
||||||
|
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
|
|
2017 |
$142.0 |
$130.0 |
$ - |
- |
$ - |
$47.0 |
$25.0 |
$ - |
- |
$ - |
- |
|
|
2016 |
141.0 |
130.0 |
15.0 |
- |
- |
150.0 |
25.0 |
- |
- |
- |
- |
|
|
2015 |
141.0 |
130.0 |
15.0 |
8.1 |
5.0 |
- |
- |
- |
- |
- |
||
|
2014 |
153.1 |
128.0 |
21.4 |
15.0 |
- |
- |
- |
- |
- |
- |
- |
|
|
2013d |
128.0 |
123.0 |
21.0 |
10.6 |
- |
- |
- |
- |
- |
- |
- |
|
|
2012 |
142.6 |
128.4 |
12.3 |
- |
- |
- |
- |
- |
- |
- |
$75.0 |
- |
|
2011e |
129.7 |
128.4 |
- |
- |
- |
- |
- |
- |
- |
- |
79.9 |
$44.8 |
|
2010 |
124.7 |
124.7 |
- |
- |
- |
- |
- |
- |
- |
- |
69.9 |
69.9 |
|
2009 |
2.0 |
110.0 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
65.0 |
|
2008 |
46.3 |
89.6 |
- |
- |
- |
- |
- |
- |
- |
- |
- |
65.2 |
|
2007 |
46.3 |
104.7 |
- |
- |
- |
- |
- |
- |
- |
$79.1 |
- |
- |
|
2006f |
46.8 |
104.6 |
- |
- |
- |
- |
- |
- |
- |
79.0 |
- |
- |
|
2005g |
39.2 |
107.5 |
- |
- |
- |
- |
- |
- |
- |
140.4 |
- |
- |
|
2004h |
12.6 |
38.6 |
- |
- |
- |
- |
- |
- |
$27.0 |
169.1 |
- |
- |
|
2003i |
12.9 |
105.9 |
- |
- |
- |
- |
- |
- |
107.9 |
178.8 |
- |
- |
Source: Department of Commerce and NIST budget documents, FY2003-FY2017; P.L. 115-31 and accompanying explanatory statement.
Notes: Empty cells in this table indicate no request or appropriation was made for that year.
a. P.L. 115-31 authorizes NIST to use up to $5.0 million of the $25.0 provided for the National Network for Manufacturing Innovation for coordination activities of the network.
b. P.L. 113-235 states that, "To the extent provided for in advance by appropriations Acts, the Secretary may use not to exceed $5,000,000 for each of the fiscal years 2015 through 2024 to carry out this section from amounts appropriated to the Institute for Industrial Technical Services."
c. President Obama requested $1 billion in mandatory funding for the NNMI for FY2013; $1 billion in mandatory funding for FY2014; and $2.4 billion in mandatory funding for FY2015.
d. Enacted levels reflect the 1.877% rescission, 0.2% rescission, and the 5% sequester applied to 2013 annualized CR level.
e. Enacted levels include 0.2% across-the-board rescission
f. Enacted levels reflect across-the-board rescissions enacted in P.L. 109-108, FY2006 Science, State, Justice, and Commerce Appropriations Act and in P.L. 109-148, FY2006 Defense Appropriations Act.
g. Enacted levels reflect across-the-board rescissions enacted in P.L. 108-447, FY2005 Consolidated Appropriations Act ($9.5 million). Does not reflect ATP unobligated balances rescission of $3.9 million.
h. Enacted levels reflect across-the-board rescissions enacted in the FY2004 Consolidated Appropriations Act, P.L. 108-199, and NIST's share of the Department of Commerce's unobligated balances rescission.
i. Enacted levels reflect an across-the-board rescission enacted in P.L. 108-7.