1. The Federal R&D Budget, Part 2: The Congressional Process
Matt Hourihan
September 8, 2017
For the AAAS S&T Policy Fellows
AAAS R&D Budget and Policy Program

2. Congress in the Federal Budget Cycle
Congress has the Power of the Purse
U.S. Constitution, Article I, Section 9: “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law; and a regular Statement and Account of the Receipts and Expenditures of all public Money shall be published from time to time.”

3. Natural Resources Cmte
House
Budget
Cmte
Natural Resources Cmte
Approps Cmte
Subc on Interior + Env
Subc on Energy + Water
Energy + Commerce Cmte
Senate
Energy and Nat Res Cmte
Env and Pub Works Cmte
And many others…
Also revenue (tax) committees (House Ways and Means, Senate Finance)

4. Natural Resources Cmte
House
Budget
Cmte
Natural Resources Cmte
Approps Cmte
Subc on Interior + Env
Subc on Energy + Water
Energy + Commerce Cmte
Senate
Energy and Nat Res Cmte
Env and Pub Works Cmte
Budget Committees

5. The Budget Resolution Established by 1974 Congressional Budget Act
Overall framework and statement of priorities
Discretionary spending
Also revenue, deficit, and total spending targets
Also non-binding recommendations from majority/leadership
Isn’t law and can’t change law, but can set up reconciliation instructions
This year, for tax reform
The budget resolution is a political document
(and therefore, often not passed!)

7. Two Spending Categories: Discretionary vs. Mandatory
Mandatory Spending (aka Direct Spending)
Mostly entitlements, mostly on “autopilot”
Potential for high political sensitivity = “third rail”
New spending requires new legislation from the authorizing committees
Discretionary Spending:
Adjusted annually through appropriations bills via the appropriations committees
Easy (nondefense) targets?
i.e. Sequestration
Vast majority of federal R&D is discretionary

16. Natural Resources Cmte
House
Budget
Cmte
Natural Resources Cmte
Approps Cmte
Subc on Interior + Env
Subc on Energy + Water
Energy + Commerce Cmte
Senate
Energy and Nat Res Cmte
Env and Pub Works Cmte
Appropriations Committees

17. From Budget to Appropriations Committees
Budget Resolution limits  Approps Committees  Subcommittees [302(b) allocations]
These caps remain in place all the way to floor, but can be revised as needed
Twelve Appropriations Subcommittees
Eight responsible for >$1 billion of R&D
Led by “Cardinals”
Committee Chairs: Rep. Rodney Frelinghuysen (NJ), Sen. Thad Cochran (MS)
Ranking Members: Rep. Nita Lowey (NY), Sen. Patrick Leahy (VT)
Appropriators will have their own priorities
All politics is local
“President proposes, Congress disposes”
One challenge for cardinals: balancing priorities to get a bill that can pass

18. Energy & Water ~$40 billion
House
Senate
Chair
Mike Simpson (ID)
Lamar Alexander (TN)
Ranking Member
Marcy Kaptur (OH)
Dianne Feinstein (CA)
~$40 billion
Tradeoffs: Balancing basic research and facilities, national labs, DOE technology portfolio, NNSA; also Army Corps, Bureau of Reclamation
Partisan debates over energy technologies (renewables vs. nuclear vs. fossil)
Basic vs. applied? Climate research?

19. Commerce, Justice, Science
House
Senate
Chair
John Culberson (TX)
Richard Shelby (AL)
Ranking Member
Jose Serrano (NY)
Jeanne Shaheen (NH)
~$55 billion
Tradeoffs: Balancing Depts. of Justice and Commerce, NASA, NSF
NSF: social and geo science funding? Facilities?
NASA: planetary exploration, climate research, human spaceflight (and where do we fly?)
Commerce: NOAA climate research and NIST industrial technology programs controversial

20. Defense
House
Senate
Chair
Kay Granger (TX)
Thad Cochran (MS)
Ranking Member
Pete Visclosky (IN)
Dick Durbin (IL)
Over $600 billion
Tradeoffs: balancing force modernization, readiness, personnel costs, RDT&E
War funding

21. Appropriations Process
Budget Resolution Limits  Appropriations Committees  Subcommittees [302(b) allocations]
These caps are always in place throughout the process, but can be revised as needed
Information gathering:
Hearings with agency testimony
“Views and estimates” from other authorizing committees
Projections from CBO
Behind-the-scenes agency contact
Constituents, experts, lobbyists
Subcommittee  Committee  Floor
Bills AND reports
Can be amended throughout
Subject to 302(b) caps
Bills have to pass both chambers
Can be filibustered or vetoed
Differences are negotiated/resolved in conference committee

22. Other Legislative Appropriations Tools
Continuing Resolutions
…with depressing regularity
Uncertainty? New starts?
Omnibus
Or minibus, or megabus, or cromnibus, or…
Supplementals
i.e. Zika, Ebola, Hurricanes
Also war funding
Not subject to spending caps

23. Natural Resources Cmte
House
Budget
Cmte
Natural Resources Cmte
Approps Cmte
Subc on Interior + Env
Subc on Energy + Water
Energy + Commerce Cmte
Senate
Energy and Nat Res Cmte
Env and Pub Works Cmte
Authorizing Committees

24. Authorizations vs. Appropriations
Creates and modifies programs and policies
Sets funding ceilings
Can provide mandatory spending
Appropriations
Provides funding to discretionary programs
Appropriating federal dollars is basically a two-step process
First authorization, then appropriation
However: unauthorized appropriations (and unfunded authorizations) are ever-present
Mandatory or direct spending only requires the first step

25. Mandatory Spending: An Alternate Path for R&D?
Two current examples:
Diabetes Research (NIH)
Biomass R&D Program (USDA)
Recent Proposals:
FY 2017 budget request
21st Century Cures, originally
Potential challenges:
Shifting power away from appropriators
Can make it harder for Congress to intervene
PAYGO rules
Potential advantages: Stability?

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

27. Looking Ahead FY18 spending caps: Where do we end up?
House to vote on budget resolution in September? But…
Will need to work with Democrats on any deal to change the caps
FY18 appropriations:
House to finish omnibus this week?
Senate a bit further behind
Very mixed year
CR likely
What does White House think?
Debt ceiling? Tax reform?
FY19: Guidance memo issued

29. For more info…