Hard Times Ahead for New Research Funding
Duke federal relations officials believe it will be a challenge to maintain growth in federal research funding
Friday, January 17, 2003
The 108th Congress convened last week to face many challenges, exacerbated by the continuing war on terrorism, the crisis in the Middle East and a ballooning federal deficit. These factors all contribute to dire predictions of a lean year for federal funding of new, non-defense related research and development.
"This will be a particularly challenging year to seek funding increases for science and student aid," said Nan Nixon, Assistant Vice President for Federal Relations. "But to secure our future economic well being, we must build upon the investments of the past in scientific and medical research funding and increased access to higher education.
"All eyes are on the release of the president's budget in February. With the Republicans controlling both Houses of Congress this year and a new and more conservative chairman of the Senate Budget Committee, the administration stands to have much greater control over the direction and distribution of the appropriations process this year."
The first order of business faced by the new Congress is completing the Fiscal Year 2003 appropriations work from the last session; otherwise, all non-defense elements of the government must continue to operate on a Continuing Resolution (CR) that maintains last year's spending levels with some adjustment for inflation.
The Association of American Universities, of which Duke is a member, sent a letter to the president and congressional leaders last October outlining the likely chilling effects of a long-term CR on the ability of universities to conduct much-needed research. These effects could include a reduction in the number of new grants and projects awarded this year by such research agencies as the National Institutes of Health (NIH) and the National Science Foundation (NSF).
In addition, fewer and unclear federal resources could result in delays and hardships for student financial aid recipients. During the holidays, Duke President Nannerl O. Keohane followed up on her October communication to the 15 members of the North Carolina Congressional delegation by asking them to "encourage the House and Senate Appropriations Committee leadership to move as quickly as possible to complete the remaining appropriations bills and to provide the highest funding level possible for the National Institutes of Health, the National Science Foundation, the Department of Energy's (DOE) Office of Science and federal student aid programs."
Partially in response to such concerns, Congress last week passed another CR that will keep the federal government running at fiscal 2002 levels through Jan. 31. Meanwhile, Senate appropriators have marked up a huge fiscal 2003 omnibus spending package that includes $385 billion to fund the 11 unfinished fiscal 2003 spending bills (only Defense and Military Construction have been approved). To meet President Bush's limit on discretionary appropriations, Republican appropriators cut more than $9 billion from spending bills approved last year by the Senate Appropriations Committee. Labor, Health and Human Services, and Education would take the hardest hit, a $2.7 billion cut that could imperil plans to increase funding for NIH by 16 percent in FY2003.
Likewise, student aid funding would be trimmed, with the maximum Pell Grant kept at $4,000. In anticipation of this move, 43 Senate Democrats sent a letter to Bush last week asking him to substantially increase spending on education this year, including an increase in the maximum Pell Grant to $4,500.
Congressional leaders hope to complete last year's appropriations business prior to next week's State of the Union address, in order to clear the decks for the FY 2004 budget. Early reports of the president's proposed budget for FY 2004 are troubling for research funding. NIH may receive only a 1 percent increase in the president's budget request (less than inflation).
All other non-defense agencies (such as NSF and DOE's Office of Science) face similar austerity. This situation is further complicated by a leaked Congressional Budget Office report that estimates the $1.6 trillion surplus of two years ago will become an $850 billion deficit within the next five years. And one former senior member of the administration has said a war in Iraq as well as the president's proposed stimulus package could drive this figure up to $1.35 trillion by 2008.
In the face of these dismal reports, Congressional leaders are already working to build support for research funding. U.S. Rep. Judy Biggert , R-Ill., has reintroduced her bill reauthorizing the DOE's Office of Science that would increase research funding by up to 15 percent over the next five years. North Carolina Congressmen David Price and Bob Etheridge co-sponsor this legislation.
Last year's successful reauthorization of the NSF calls for increases of 15 percent over the next three years and support is building to fund this initiative as well. Funding for bioterrorism research will be supported by the administration again this year, and this year's reauthorization of the Higher Education Act will provide another opportunity to increase support for student aid and international education.