The Federal R&D Budget Part 2: The Congressional Process Matt Hourihan September 13, 2018 For the AAAS Science & Technology Policy Fellows AAAS R&D Budget and Policy Program http://www.aaas.org/program/rd-budget-and-policy-program

The Basic Budget Process at a Glance Executive Branch Legislative Branch White House Budget Committees Budget Resolution OMB Agencies OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x12)

The Basic Budget Process at a Glance Executive Branch Legislative Branch White House Budget Committees Budget Resolution OMB Agencies OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x12) Congress has the Power of the Purse (per U.S. Constitution, Article I, Section 9) Does the President’s science budget matter? Yes and no…more “no”

Appropriations Committees & Subcommittees The Budget Resolution Legislative Branch Established by the 1974 Congressional Budget and Impoundment Control Act Intended to reassert, and broaden, legislative control over the budget Also created the House and Senate budget committees, which write the Resolution Overall framework: Revenue, deficit, and total spending targets Typically includes programmatic recommendations Key for science spending: discretionary spending limit to govern appropriations Isn’t law and can’t change law, but can set up reconciliation instructions (i.e. tax reform) Best seen as a political document as much as a governing document Partly because it isn’t always adopted… Budget Committees Budget Resolution Appropriations Committees & Subcommittees SPENDING BILLS (x12)

Enter the Appropriators Executive Branch Legislative Branch White House Budget Committees Budget Resolution OMB Agencies OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x12)

From Budget to Appropriations Budget Resolution limits  Appropriations Committee Chairs  Subcommittees (302(b) limits) Information gathering: Hearings with agencies “Dear colleagues” and other input from members, authorizers Constituents, experts, lobbyists Subcommittee  Committee  Floor Bills AND reports: Appropriations reports provide important guidance to agencies Can be amended throughout, subject to 302(b) caps Bills have to pass both chambers; differences are negotiated/resolved in conference committee Senate can sometimes moderate Appropriators and their choices “All politics is local” Personal legislator interest Ideology and party preferences Key: Getting a bill that can actually pass (duh) Incrementalism helps

Energy & Water Subcommittee House Senate Chair Mike Simpson (ID) Lamar Alexander (TN) Ranking Member Marcy Kaptur (OH) Dianne Feinstein (CA) Tradeoffs: Balancing basic research and facilities, labs, tech portfolio, NNSA; also Army Corps, Bureau of Reclamation NNSA funding has been a big priority of late Office of Science: as basic science arm, generally supported in more bipartisan fashion National labs help Technology programs: Congress tends to fund when funding is available, but can also be first on the chopping block Some value innovation programs more than others Regional energy politics and economics

Labor, HHS, Education Subcommittee House Senate Chair Tom Cole (OK) Roy Blunt (MO) Ranking Member Rosa DeLauro (CT) Patty Murray (WA) Deep divisions over public health programs, education, labor But everybody loves NIH! We have now had multiple years of multibillion dollar increases Alzheimer’s, cancer, neuroscience, opioids among the big priorities lately Congress has so far protected NIH awardees from indirect cost changes, salary cap changes, etc Other programs also have their supporters (BioShield, BARDA, CDC, etc)

Commerce, Justice, Science Subcommittee House Senate Chair John Culberson (TX) Jerry Moran (KS) Ranking Member Jose Serrano (NY) Jeanne Shaheen (NH) How to balance different missions? NSF: many appropriators still value basic research Disciplinary fights and attacks? NASA: recent priority, especially popular with current cardinals Again: labs and research centers help (J-O-B-S) Balancing the science portfolio? NOAA and NIST: more controversy but aspects of these agencies do have supporters, often for locally-driven reasons (i.e. Sea Grant has been protected) NOAA: climate research funding can be a source of dispute, of course NIST: lab programs often get support, but industrial innovation/manufacturing programs can be a target

The Budget Process at a Glance Executive Branch Legislative Branch White House Budget Committees Budget Resolution OMB Agencies OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x12)

The Budget Process at a Glance Executive Branch Legislative Branch White House Budget Committees Budget Resolution OMB Agencies OSTP February Budget Request Appropriations Committees & Subcommittees SPENDING BILLS (x12) “Please don’t veto us!”

Other Legislative Appropriations Tools Continuing Resolutions: often necessary to avoid a shutdown October 1 …with depressing regularity Length can vary, from a day to a year Uncertainty? New starts? Spending slowdowns? Omnibus (multi-bill package) Or minibus, or megabus, or cromnibus, or… Supplementals i.e. Zika, Ebola, Hurricanes Also war funding Not subject to spending caps

The Federal Budget Cycle Gov’t is usually working on 3 budgets at a time (However, presidential transitions complicate things)

Mandatory Spending: An Alternate Path for R&D? Appropriating discretionary dollars is basically a two-step process First authorization from authorizing committees (i.e. House Energy & Commerce), then appropriation from Appropriations Committee Mandatory or direct spending only requires the first step Recent examples: Foundation for Food and Agriculture Research (FFAR) Diabetes Research (NIH) Biomass R&D Program (USDA) Other Recent Proposals: Obama’s FY 2017 budget request 21st Century Cures, originally Potential challenges: Shifting power away from appropriators Can make it harder for Congress to intervene Paying for it Potential advantages: Stability?

But Congress did not go along with these changes… Senate rules: need 60 votes to change the caps That gives minority Democrats a measure of power, and thus mandates deal-making (same story with individual spending bills) Defense hawks: wanted to see bigger increases for defense spending; accepted nondefense increases to get it Moderate Republicans: not in favor of harsh fiscal choices, or otherwise are “Senate realists” "This is once again an act of Senate denial," Rep. Charlie Dent (R-PA), on talks to get Defense spending through alone Fiscal conservatives: revolted against budget deal, but didn’t have votes to stop it Ultimately…

Where Are We Headed? Good progress; conference reports for several bills done in September?? Energy + veterans already done Some appropriations won’t be fully finalized until later in the fall given midterms, requiring a partial CR FY 2020 and 2021: cap negotiations one more time Who controls Congress next year? Will widening deficit impact the negotiations? How likely is it that the discretionary budget – and thus, research spending – keeps growing?

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mhouriha@aaas.org 202-326-6607 http://www.aaas.org/rd For more info… mhouriha@aaas.org 202-326-6607 http://www.aaas.org/rd