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 (MEP) program and the Network for Manufacturing Innovation (NMI, also referred to as Manufacturing USA). Several other extramural programs previously conducted by NIST have been eliminated or integrated into other NIST activities. 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 (the Under Secretary of Commerce for Technology and Standards). 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 precompetitive 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 (ATP), and a program now known as the Hollings Manufacturing Extension Partnership 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 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), precompetitive 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; no appropriations have been provided for TIP since FY2011.
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. President Trump's FY2018 and FY2019 budgets do not include any reference to the doubling effort.
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 FY2018.
Revitalize American Manufacturing and Innovation Act of 2014
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
In September 2016, Commerce Secretary Penny Pritzker announced that "Manufacturing USA" would be the new brand name for the National Network for Manufacturing Innovation. Congress continues to use the term National Network for Manufacturing Innovation in appropriations reports.
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) provided $25 million to NIST for the NNMI, to include funding for center establishment and up to $5 million for coordination activities. The Consolidated Appropriations Act, 2018 (P.L. 115-141) provides $15 million to NIST for the NNMI for FY2018, to include funding for center establishment and up to $5 million for coordination activities. President Trump is requesting $15.1 million for FY2019 for Manufacturing USA, including $5.1 million for coordination activities.
Previous 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
Manufacturing Technology Acceleration Centers Program
The M-TAC program was a pilot effort under MEP that sought 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."19 The funded project work on all the MTAC projects has been completed and a final presentation was made by each awardee to MEP Center directors and staff in May 2016.
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 Industrial Technology Services (ITS) account supports NIST's extramural programs. In FY2018, the ITS account provides funding for the MEP and NNMI programs. In earlier years, ITS provided funding for the Advanced Technology Program, the Technology Innovation Program, and the AMTech program.
- 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.
NIST FY2020 Appropriations
Total NIST Funding for FY2020
The President requested $974.8 million for NIST in FY2020, a decrease of $10.7 million (1.1%) from the FY2019 enacted appropriation of $985.5 million. (See Table 1.) On June 25, 2019, the House passed H.R. 3055 (the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2020) which would have provided $1.040 billion for NIST for FY2020, $54.7 million (5.6%) more than the FY2019 level, and $65.4 million (6.7%) more than the request.
In December 2019, Congress enacted the FY2020 Consolidated Appropriations Act (H.R. 1158, P.L. 116-93) providing $1,034.0 billion for NIST for FY2020, an increase of $48.5 million above FY2019 (4.9%) and $59.2 million (6.1%) above President Trump's request.
Scientific and Technical Research and Services
The President's FY2020 request included $611.7 million for R&D, standards coordination, and related services in the STRS account, a decrease of $112.8 million (15.6%) from the FY2019 level.20
The House bill would have provided $751.0 million for the STRS account for FY2020, $26.5 million (3.7%) more than the FY2019 level, and $139.3 million (22.8%) more than the request.
P.L. 116-93 provides $754.0 million for STRS for FY2020, $29.5 million (4.1%) above the FY2019 level and $142.3 million (23.3%) above the request.
Industrial Technology Services
The FY2020 request would have provided $15.2 million for the ITS account, down $139.8 million (90.2%) from FY2019. Within the ITS account, the request would have provided no funding for the Manufacturing Extension Partnership (MEP) program, a reduction of $140.0 million from FY2019; MEP centers in each state would have been required to become entirely self-supporting. President Trump had also proposed ending federal funding for MEP in his FY2019 request, and $6.0 million in his FY2018 request "for an orderly shutdown of the program."
The FY2020 request would have provided $15.2 million for Manufacturing USA (also referred to as the National Network for Manufacturing Innovation or NNMI), slightly higher than the FY2019 level of $15.0 million. Of these funds, approximately $10 million would have been for continued support of the NIST-sponsored National Institute for Innovation in Manufacturing Biopharmaceuticals (NIIMBL), with the balance (approximately $5 million) to be used for coordination of the Manufacturing USA network.21
The House bill would have provided $169.2 million for the ITS account for FY2020, $14.2 million (9.2%) above the FY2019 level, and $154.0 million (1,013.2%) above the request. The House bill would have provided the $15.2 million requested for the Network for Manufacturing Innovation and $154.0 million for the MEP program.
P.L. 116-93 provides $162.0 million for ITS for FY2020, including $146.0 million for the MEP program, $6.0 million (4.3%) more than for FY2019, and $16.0 million for Manufacturing USA for continued support of the NIST-sponsored National Institute for Innovation in Manufacturing Biopharmaceuticals and coordination of the Manufacturing USA network.
Construction of Research Facilities
In his FY2020 budget, the President requested $59.9 million for the NIST CRF account, down $46.1 million (43.5%) from the FY2019 enacted level.22 In addition, elsewhere in the budget, the President requested mandatory funding for a GSA Federal Capital Revolving Fund that would have provided, among other things, an additional $288.0 million in funding for NIST construction activity in FY2020 to be paid back to the fund over 15 years from future discretionary appropriations.23 However, the Congressional Budget Office (CBO) estimated this proposal in a manner consistent with current practice that capital expenditures are recorded on a cash basis in the federal budget, scoring the $288.0 million as a request for NIST discretionary spending for FY2020. Therefore, the total CRF request, as calculated by CBO, was $347.9 million. The House bill would have provided $120.0 million for the CRF account, $14.0 million (13.2%) above the FY2019 level, $60.1 million (100.3%) above the request in the President's budget and NIST budget justification, and $227.9 million (65.5%) below the CBO calculated level.
P.L. 116-93 provides $118 million for CRF, an increase of $12.0 million (11.3%) above the FY2019 level.
|
Budget Account |
FY2019 |
FY2020 |
FY2020 |
FY2020 |
FY2020 |
|
|
Scientific and Technical Research and Services |
$724.5 |
$611.7 |
$751.0 |
$754.0 |
||
|
Industrial Technology Services |
155.0 |
15.2 |
169.2 |
|||
|
Manufacturing Extension Partnership |
140.0 |
0.0 |
154.0 |
146.0 |
||
|
Network for Manufacturing Innovation |
15.0 |
15.2 |
15.2 |
16.0 |
||
|
Construction of Research Facilities |
106.0 |
59.9 |
120.0 |
118.0 |
||
|
Construction of Research Facilities, transfer from proposed GSA Federal Capital Revolving Fund |
— |
288.0b |
0.0 |
— |
||
|
NIST, Total |
$985.5 |
$974.8 |
$1,040.2 |
$1,034.0 |
||
Source: The FY2019 enacted amounts are from H.Rept. 116-9. The Administration's request and the House committee-reported amounts are from H.Rept. 116-101.
Note: Columns may not add to totals due to rounding.
a. The Senate did not pass an FY2020 appropriations bill prior to enactment of P.L. 116-93.
b. According to the NIST FY2020 budget justification, "NIST's Building 1 project at the Boulder campus has been identified as a candidate project to be funded through the GSA Federal Capital Revolving Fund [that was proposed in the President's FY2020 budget]. The Fund would provide up-front funding, estimated to be $288.0 million, to renovate Wing 5, Wing 4, Spine, Wing 1, Wing 2 and a portion of the Headhouse (auditorium, library, front lobby, conference rooms, police dispatch, and cafeteria). At the FY 2020 base funding level, NIST would repay this GSA revolving fund through annual discretionary appropriations in 15 annual payments of $19.2 million." However, the Congressional Budget Office (CBO) estimated this proposal in a manner consistent with current practice that capital expenditures are recorded on a cash basis in the federal budget. (For more information, see https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53461-cashaccrualmeasures.pdf.)
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 (eliminated in 2007) and the Technology Innovation Program (last funded in 2011). Appendix A provides requested and enacted funding levels for NIST and its accounts for FY2003-FY2020. 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 $1,198.5 million in FY2018, a compound annual growth rate (CAGR) of 3.6%. In FY2019, appropriations fell to $985.5 million, a decrease of $213.0 million (17.8%) over FY2018. In FY2020, appropriations grew to $1,034.0 million, an increase of $48.5 million (4.9%) over FY2019. Appropriations exceeded requests through FY2010; from FY2010 to FY2017, requests exceeded appropriations. From FY2018 to FY2020, appropriations once again exceeded the request. President Trump requested $974.8 million for NIST in FY2020 (including $288.0 million in funding that the Administration included in its request for mandatory funding for a GSA revolving fund but that CBO scored as a discretionary funding request); the NIST request excluding these funds is $686.8 million. With the $288.0 million included, the total President's request represented a $10.7 million (1.1%) decrease from the FY2019 enacted level; excluding the $288.0 million, the President's request represented a $298.7 million (30.3%) decrease from the FY2019 level.
Scientific and Technical Research and Services Account
Figure 2 illustrates requested and enacted funding levels for the NIST STRS account. This account saw a steady rise in both request and appropriations levels through FY2016. STRS funding requests declined from FY2016 to FY2020. In FY2020, Congress appropriated $754.0 million, an increase of $28.5 million (4.1%) above the FY2019 level. Total appropriations for the STRS account grew from $357.1 million in FY2003 to $754.0 million in FY2019, a compound annual growth rate of 4.5%.
Construction of Research Facilities Account
Figure 3 illustrates requested and enacted funding levels for the NIST CRF account. Construction account funding has fluctuated. CRF funding jumped from $72.5 million in FY2005 to $173.7 million in FY2006, fell to $58.7 million in FY2007, rose to $160.5 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).24 Funding fell from FY2010 to FY2012, dropping to $55.4 million, then it remained relatively flat through FY2015 (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 were $109.0 million, of which $60.0 million was designated for design and renovation of NIST's radiation physics infrastructure.25 In FY2018, CRF appropriations jumped to $319.0 million, $210.0 million (192.7%) above the FY2017 level. In FY2019, CRS appropriations fell to $106.0 million, a decrease of $213.0 million (66.8%), then rose to $118 million in FY2020.
In FY2008, FY2009, and FY2010, the CRF account provided funding for a competitive construction grant program that funded the construction of research facilities at U.S. universities and research institutions. Appropriations for CRF have 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.
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, grew to $155.0 million in FY2016 and have since remained flat. President Trump requested $15.2 million for ITS in FY2020; Congress appropriated $162.0 million. 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.
Manufacturing Extension Partnership Program
Figure 6 illustrates requested and enacted funding levels for the NIST MEP program. FY2003 enacted appropriations of $105.9 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 $140.0 million in FY2018. Requests from FY2003 to FY2009 were substantially lower than appropriations, falling to $2.0 million in FY2009. In FY2010, the Obama Administration requested $124.7 million for MEP. From FY2012 to FY2017, requests were somewhat higher than enacted appropriations. For FY2018, President Trump requested $6.0 million for the MEP program to provide "for the orderly wind down of federal funding for the program"; however, Congress appropriated $140.0 million.26 For FY2019, President Trump requested no funding for MEP; Congress appropriated $140.0 million. For FY2020, President Trump again requested no funding for MEP; Congress appropriated $146.0 million.
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 succeeded 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. The TIP program received no funding in FY2012 or in subsequent years. The $69.9 million requested for TIP in FY2010 was fully funded; in FY2011 the TIP request was $79.9 million, and in FY2012 it was $75.0 million. No funding has been requested for TIP since FY2012.
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 Presidents George W. Bush and Barack 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 the United States 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 in aggregate funding for these accounts of 2.0%. President Trump's budget requests for FY2018-FY2020 did not mention doubling. 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 precompetitive 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 FY2017, Congress provided $140.0 million for MEP. President Trump's FY2018 budget request sought to end the MEP program, providing $6.0 million in FY2018 to provide "for the orderly wind down of federal funding for the program."27 President Trump's FY2019 request would provide no funding for MEP. For more information on the MEP program, see CRS Report R44308, The Manufacturing Extension Partnership Program, by John F. Sargent Jr.
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 Innovation28 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.29 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) provided 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 directed 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."30
NIST subsequently announced its intention to establish two institutes.31 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."32 NIST did not award a second institute due to a lack of funds.
P.L. 116-93 provided $16.0 million for NIST NNMI efforts in FY2020, to include funding for NIIMBL and for network coordination activities.
As of the date of this report, 14 NNMI institutes have been established—8 by DOD, 5 by DOE, and 1 by the Department of Commerce.
As Congress undertakes the FY2021 appropriations process, an overarching issue will be how to respond to the Trump Administration's FY2021 NIST budget request (expected in February 2020) and its policy implications, how much funding to provide to NIST in aggregate, and how to allocate NIST appropriations among the core standards and measurement functions performed by its laboratories and NIST 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 John F. Sargent Jr.
Appendix A. Requested and Enacted Discretionary Appropriations for NIST Accounts
Table A-1. Requested and Enacted Appropriations for NIST Accounts
Enacted Appropriations, FY2003-FY2020; Requested Appropriations, FY2003-FY2020
(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 |
|
|
2020 |
974.8 |
1,034.0 |
611.7 |
754.0 |
15.2 |
162.0 |
347.9 |
118.0 |
|
2019 |
629.1 |
985.5 |
573.4 |
724.5 |
15.1 |
155.0 |
40.5 |
106.0 |
|
2018 |
725.0 |
1,198.5 |
600.0 |
724.5 |
21.0 |
155.0 |
104.0 |
319.0 |
|
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 |
Sources: Department of Commerce and NIST budget documents, FY2003-FY2018; P.L. 115-141 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
Enacted Appropriations, FY2003-FY2020; Requested Appropriations, FY2003-FY2020
(in millions of current dollars)
|
Fiscal Year |
Hollings Manufacturing Extension Partnership |
Advanced Manufacturing Technology Consortia |
Manufacturing Innovation Institutes Coordination |
NNMI/ Manufacturing USA |
Advanced Technology Program |
Technology Innovation Program |
||||||
|
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
Request |
Enacted |
|
|
2020 |
$0.0 |
146.0 |
— |
— |
5.2 |
—a |
10.2 |
16.0a |
— |
— |
— |
— |
|
2019 |
$0.0 |
140.0 |
— |
— |
5.1 |
5.0b |
10.0 |
10.0b |
— |
— |
— |
— |
|
2018 |
6.0 |
$140.0 |
— |
— |
5.0 |
5.0c |
10.0 |
$10.0c |
— |
— |
— |
— |
|
2017 |
142.0 |
130.0 |
— |
— |
— |
5.0d |
47.0 |
20.0d |
— |
— |
— |
— |
|
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 |
— |
— |
— |
— |
— |
— |
— |
|
|
2013g |
128.0 |
123.0 |
21.0 |
10.6 |
— |
— |
— |
— |
— |
— |
— |
|
|
2012 |
142.6 |
128.4 |
12.3 |
— |
— |
— |
— |
— |
— |
— |
$75.0 |
— |
|
2011h |
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 |
— |
— |
|
2006i |
46.8 |
104.6 |
— |
— |
— |
— |
— |
— |
— |
79.0 |
— |
— |
|
2005j |
39.2 |
107.5 |
— |
— |
— |
— |
— |
— |
— |
140.4 |
— |
— |
|
2004k |
12.6 |
38.6 |
— |
— |
— |
— |
— |
— |
$27.0 |
169.1 |
— |
— |
|
2003l |
12.9 |
105.9 |
— |
— |
— |
— |
— |
— |
107.9 |
178.8 |
— |
— |
Sources: Department of Commerce and NIST budget documents, FY2003-FY2018; P.L. 115-141 and accompanying explanatory statement.
Notes: Empty cells in this table indicate no request or appropriation was made for that year.
a. P.L. 116-93 and the accompanying Explanatory Statement state that $16.0 million is provided for the NNMI, but neither explicitly references funding for coordination activities of the network.
b. H.Rept. 116-9 states that $15.0 million is appropriated for the NNMI, of which $5.0 million may be used for coordination activities of the network.
c. House Print 29-456 states that $15.0 million is appropriated for the NNMI, of which $5.0 million may be used for coordination activities of the network.
d. House Print 25-289 states that $25.0 million is appropriated for the NNMI, of which $5.0 million may be used for coordination activities of the network.
e. P.L. 113-235 states, "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."
f. 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.
g. Enacted levels reflect the 1.877% rescission, 0.2% rescission, and the 5% sequester applied to 2013 annualized CR level.
h. Enacted levels include 0.2% across-the-board rescission.
i. 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.
j. 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.
k. 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.
l. Enacted levels reflect an across-the-board rescission enacted in P.L. 108-7.