On Monday, June 28, the House passed bipartisan legislation to boost the U.S.’s competitiveness on research and development (R&D), H.R. 2225, the National Science Foundation (NSF) for the Future Act (345-67), and H.R. 3593, the Department of Energy Science for the Future Act (351-68). The NSF for the Future Act authorizes nearly $80 billion over five years in funding for existing and new NSF programs, include a new science and technology directorate. The DOE Science for the future Act authorizes around $50 billion over five years for the DOE Office of Science programs, and helps establish new research initiatives. The companion bills are likely to feature as the foundation for the House’s counter proposal to the Senate’s U.S. Innovation and Competition Act. The path forward for a comprehensive agreement to ensure U.S. competitiveness in R&D is currently unclear, but both chambers have a foundation for a future package by passing these bills.
The ongoing global supply chain hurdles and associated manufacturing slowdowns, combined with geopolitical strife around everything relating to China, has created an atmosphere of relative bipartisan agreement around investing in technology development and the industrial base. On June 8, the U.S. Senate passed the United States Innovation and Competition Act (USICA) of 2021, with bipartisan support and a vote for passage (68-32). The final agreement passed by the Senate includes around $250 billion in increased spending – according to Congressional Budget Office the legislation includes nearly $190 billion for domestic technology markets – and incorporates input from six Senate Committees with jurisdiction over policies covered in the bill. The Senate’s bipartisan support of the legislation shows the commitment of its Members to provide important resources to both the U.S. government and industry to compete on a global scale.
The bill aims to boost U.S. competitiveness with China through increased investments in science and technology, manufacturing, research and development, supply chains, intellectual property, STEM education and national security. On May 27, the Senate passed a key procedural vote (68-30) to invoke cloture on Senate Majority Leader Chuck Schumer’s (D-NY) substitute amendment – an expansion of the Endless Frontier Act. Senators submitted over 600 amendments to the legislation - over 20 were considered - and nine were agreed to on a bipartisan basis.
The bill provides $52 BILLION in supplemental funding for the previously passed CHIPs act, which provides incentives for semiconductor research and development programs including legacy chip production, advanced packaging, advanced materials, and related technologies. This funding is directly aimed at recent concerns that semiconductor shortages are hampering domestic manufacturing, but is unlikely to spur immediate resolution of those issues.
The largest impact of the Endless Frontier Act is to massively change the prerogative of the National Science Foundation from an academic research focused institution to one that drives industry and economic dominance in the technology field. The legislation establishes a new Technology Directorate, authorized at $29 BILLION at the NSF to fund research and development at collaborative institutes, supporting academic technology transfer and intellectual property protection, establishing technology testbeds, and awarding scholarships and fellowships. This would nearly double the existing NSF budget.
Creates a Foundation for Energy Security and Innovation, a non-profit intended to help the Department of Energy raise private funds for commercializing new energy technologies. The amendment incorporates a version of the Partnerships for Energy Security and Innovation Act.
Authorizes an additional $3.5 billion per year of funding for five years for the Defense Advanced Research Projects Agency (DARPA) research and development efforts in technology focus areas. The amendment double DARPA’s funding through FY2026.
The Trade Act of 2021 includes provisions related to trade authority, including language to renew and extend expired exclusions for Section 301 tariffs, provide retroactive duty refunds on certain products, establishes a newly reformed exclusion application process.
To remove prevailing wage - Davis-Bacon provisions - requirements for the semiconductor manufacturing industry to receive the funding included in the CHIPS for America provisions.
Requires the voluntary collection of demographic information - including gender, race, military or veteran status, and other relevant data - for patent inventors.
* Authorized over five years, FY2022-2026