Jennifer Zeitzer, Director of Legislative Relations ACDP Retreat Dec. 1, 2017
Reflection on the Last 11 Months Lately it occurs to me what a long, strange trip it's been. Truckin, The Grateful Dead www.faseb.org
Trump Administration Update New Administration Still Getting Organized Key science positions remain unfilled OSTP Acting Director is Ted Wackler (hold over from Obama) Presidential Science Advisor vacant PCAST On Sept. 29, 2017 President Trump signed an Executive Order continuing PCAST through September 2019 HHS Secretary Alex Azar nomination is pending; Senate HELP committee hearing (Nov. 29); Senate confirmation?? Science Agencies Are Mostly Stable NIH Dr. Francis Collins staying on as Director NSF Dr. France Cordova remains as Director DOE Office of Science vacant www.faseb.org
White House Office of American Innovation Led by Jared Kushner Established by President Trump on March 27, 2017 RESPONSIBILITIES Launch initiatives with a focus on innovation, coordinate implementation of any resulting plans, and create reports for the President setting forth policy recommendations Gather information, ideas, and experiences from other parts of Government, from the private sector, and from other thought leaders and experts outside of the Federal Government
New (115 th ) Congress Republicans Maintain Control of the House Paul Ryan (R-WI) re-elected Speaker Nancy Pelosi (D-CA) re-elected Minority Leader 240 Republicans; 194 Democrats; 1 vacancy (PA-18) Republicans Maintain Control of the Senate Sen. Mitch McConnell (R-KY) re-elected Majority Leader Sen. Chuck Schumer (D-NY) elected Minority Leader 52 Republicans; 46 Democrats; 2 independents
New Committee Leadership House Appropriations Chair: Rodney Frelinghuysen (R-NJ/ Morristown) House Budget Chair: Diane Black (R-TN/Gallatin) Ranking Member: John Yarmuth (D-KY/Louisville) House Energy & Commerce Chair: Greg Walden (R-OR/Bend) Senate Appropriations Ranking Member = Patrick Leahy (D-VT) www.faseb.org
Champions for NIH The Committee strongly believes that in this difficult budget environment that the Labor-HHS- Education appropriations bill must continue to prioritize and recognize the essential role that biomedical research plays in every American s life. We want this to become a regular pattern for Congress, to make these NIH investments in a regular, manageable, and predictable way so that the scientific community knows they will continue. Senate LHHS Appropriations Subcommittee Chair Roy Blunt (R-MO) House LHHS Appropriations Subcommittee Chair Tom Cole (R-OK) www.faseb.org
Our Message Is Getting Through Funding increases Approved for NIH and Other Agencies 21 st Century Cures authorized + $4.8B for NIH FY 2016 omnibus appropriations bill provided +$2 billion for NIH FY 2017 omnibus appropriations bill increased funding: +$2 billion for NIH +$9 million for NSF Small Business Innovation Research (SBIR) Set-Aside Maintained At Current Level Strong Support for Letters to Appropriations Committees 216 House members signed letter requesting +$2 billion for NIH in FY 2018 162 House members signed letter requesting +$500 million for NSF in FY 2018 57 Senators signed letter asking for a strong commitment to maintaining NIH funding Made Progress on Regulatory Issues Government travel regulations Relaxed current restrictions in place since 2013! No prior approval needed to attend scientific conferences Micro-purchasing threshold retained at $10,000
NIH Appropriations in Current and Constant Dollars $40,000 $35,000 $34,229 $32,311 Senate: $36,100 House: $35,200 Dollars (Millions) $30,000 $25,000 $20,000 $15,000 $10,000 $11,300 $27,167 $21,080 $17,629 $17,074 President's Budget: $26,920 Senate: $18,107 House: $17,655 President's Budget: $13,502 $5,000 Current $ (Millions) 1995 Constant $ (Millions) With Supplemental Appropriations (ARRA) $0
FY 2016 at NIH With the $2 billion increase, NIH: Funded More Research Project Grants Funded More R01 Equivalent Grants Increased success rates RPG R01 Equivalent 2015 2016 2015 2016 Applications 52,190 54,220 28,970 30,106 Awards (n) 9,540 10,372 5,467 6,010 Amount ($ millions) $4,300 $5,026 $2,461 $3,042 Success Rate 18.3% 19.1% 18.9% 20.0%
21 st Century Cures (HR 34) Reauthorizes NIH for FY 2018 FY 2020 Created new Innovation Fund for NIH $4.8 billion over 10 years (2017-2026) Supports Cancer Moonshot, BRAIN Initiative, Precision Medicine Initiative, and regenerative medicine research Addressed regulatory burden for researchers Creates new Research Policy Board Calls for review of existing polices related to sub-recipient grant monitoring and laboratory animal regulations Passed House on Nov. 30, 2016 by a vote of 392-26 Passed Senate on Dec. 7, 2016 by a vote of 94 to 5 President Obama signed bill Dec. 13, 2016
21 st Century Cures: NIH Innovation Account $1,200 Annual Authorization ($ Millions) $1,000 $800 $600 $400 $200 $0 Adult Stem Cells Cancer Research BRAIN Precision Medicine 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Mood In Washington Disagreements Between Congress & Administration Over Policy Repeal/replacement of Affordable Care Act Tax reform Foreign policy Immigration Renewal of Children s Health Insurance Program (CHIP) Frustration Over Lack of Accomplishments See also: all of the above Ongoing tension between House and Senate Governing by Executive Order vs. passing legislation Focus Shifting to Mid-Term Elections in 2018 All members of the House up for re-election 34 Senate seats up for re-election
Outlook for FY 2018 Federal Funding Return of Fiscal Austerity Overall spending cap is $5 billion below FY 2017 Sequestration will be turned back on Changing the cap will require a bipartisan agreement Pressure to Increase Defense Spending Priority for President Trump Growing support in Congress as well Fights Over Other Spending Priorities Border wall Tax reform/ tax cuts Disaster recovery/response
Trump FY 2018 Budget Request Increased the defense budget by cutting almost all areas of non-defense spending Eliminated sequestration cuts to defense programs/agencies Requested targeted investments in highest national priorities Border security and immigration enforcement Infrastructure Reforming welfare Proposed Deep Cuts to Science Agencies
Proposed 2018 Funding for Research Agency NIH (Program Level) Trump Administration Request Change From FY 2017* $26.92 billion -$7.16 billion (21%) NSF $6.65 billion -$820 million (11%) DOE SC $4.47 billion -$919 million (17%) AFRI $349 million -$26 million (6.9%) VA Research $640 million -$35 million (5.18%) * Compared to FY 2017 omnibus appropriations bill (Public Law 115-31)
Trump Budget Proposal: Other Impacts on NIH Eliminate the Fogarty International Center (FIC) Provide $25 million for international research in the Office of the Director FY 2017 funding for FIC was $70.3 million Transfer AHRQ operations to NIH Rename Nat l Institute for Research on Safety & Quality Provide $272 million for health services research Include full amount of 21 st Century Cures funding ($496 million) Institute a 10% cap on facilities and administrative costs (F & A)
February March April May September FY 2018 Appropriations Process Regular Order vs. Reality Date Administration s Role Congress Role Outcome President s Budget sent to Congress Appropriations & Authorizing Committees review agency requests Hearings with cabinet officials/agencies Testimony from stakeholders Adopts Budget Resolution House & Senate votes Conference Committee Approval of 302(a) allocation (total amount of $) and 302(b) subcommittee allocations Appropriations Committees pass 12 spending bills Subcommittee Full Committee House & Senate votes President Trump submits FY 2018 skinny budget to Congress Congress passes FY 2017 omnibus appropriations bill Trump submits full FY 2018 budget proposal to Congress Appropriations Committee hearings on Trump budget Appropriations Committees approve FY 2018 allocations House Appropriations Committee passes 12 bills House passes FY 2018 omnibus Senate Appropriations Committee passes 8 bills House/Senate pass CR through December 8, 2018 October Congress passes continuing resolution (CR) Congress passes FY 2018 Budget resolution
Proposed FY 2018 Funding for Research Agencies NIH NSF Agency House Senate DOE SC VA AFRI $35.2 billion (+$1.1 billion) $7.34 billion (-$133 million) $5.37 billion (no change) $691 million (+$16 million) $375 million (no change) $36 billion (+$2 billion) $7.3 billion (-$161 million) $5.55 billion (+$158 million) $722 million (+$47 million) $375 million (no change)
Budget Control Act Caps: Impact on Discretionary Spending 2013 2014 2015 2016 2017 2018 2019 2020 2021 BCA Limit After ATRA 1,047-4 1043 1,066-8 1058 1,086 1,107 1,131 1,156 1,182 1,208 1,234 Total limit after automatic cuts Defense limit after automatic cuts NDD limit after automatic cuts 1,002 1,012 1,013 1,066 1,070 1,065 1,091 1,118 1,146 518 520 521 548 551 549 562 576 591 484 492 492 518 519 516 529 542 555 The Oldaker Group
Re-Thinking The Budget Control Act Sequestration Only Went Into Effect in FY 2013 The BCA Caps Have Been Raised Twice December 2013 the Ryan-Murray Deal Bipartisan Budget Act of 2013 (Public Law 113-67) Raised the defense and non-defense (NDD) caps FY 2014 = +$22 billion each FY 2015 = +$9 billion each December 2015 John Boehner Retirement Gift Bipartisan Budget Act of 2015 (Public Law 114-74) Raised the defense and NDD caps FY 2016 = +$25 billion each FY 2017 = +$15 billion each
www.faseb.org #RaiseTheCaps
Path Forward on FY 2018 Spending The FY 2018 Omnibus Passed By the House Will Not Become Law Defense portion exceeds the 2018 cap which would trigger sequestration for military agencies The Senate is refusing to consider the House-passed bill Current Continuing Resolution (CR) Expires Dec. 8 Congress must pass another CR to avoid a government shut down Democrats have significant leverage because their votes will be needed to pass another CR or funding package Republican leaders considering (as of Nov. 30): Second CR to fund government through December 22 Third CR to fund government through January www.faseb.org
Impact of the CR on Agencies Can t start/fund new projects or hire staff Can only spend money approved in the previous year (e.g 2016) Can t enter in to long term contracts Grants to state & local agencies will be delayed NIH holding back 10% of funds previously committed to existing grants NIH unlikely to make notices of new awards
Next Steps A bill to Raise the Caps Must Pass House and Senate and be Signed By the President Stand alone OR attached to something else (third package of disaster funding?) Latest rumor deal to raise the caps for FY 2018 & FY 2019 +$54 billion for defense +$37 billion for non-defense Appropriations Committees Receive New Allocations Reflecting Higher Spending Levels Negotiations to Resolve Differences Between House and Senate Funding Levels For Agencies/Programs Led by Appropriations Subcommittee chairs Congress Passes Omnibus Bill Finalizing FY 2018 Budget
Reasons To Be Optimistic Appropriators/Congressional Leaders Want to Raise the Caps Republicans and President Trump want increased defense spending Senate Democrats are demanding equal increases for non-defense spending Previous Deals to Raise the Caps = More Funding for NIH +$2 billion in FY 2016 +$2 billion in FY 2017 Sequestration is Deeply Unpopular Republicans and Democrats have said sequestration will not happen again Republican Leadership Does Not Want A Government Shutdown Military Leaders Say That CR Past December Will Harm Readiness We re Not Talking About Going Into Next Year, We re Going to Get It [Government Funding] Done This Year www.faseb.org Paul Ryan, Nov. 14, 2017
Reasons To Be Concerned Pressure to Add Other Politically Difficult Issues to A Year- End Funding Bill DACA/Dreamers Affordable Act cost sharing reduction payments Reauthorization of Children s Health Insurance Program More disaster relief Decision About Raising the Caps Unlikely to Be Made Until Early December (best case scenario) Democratic Leaders Refused to Attend A Meeting With President Trump on Tuesday (Nov. 28) www.faseb.org
Higher Ed Provisions in Tax Bills Provision House Bill Senate Bill American Opportunity Tax Credit (AOTC) Lifetime Learning Credit Student Loan Interest Deduction Graduate Student Tuition Waivers Deduction for Tuition/Related Expenses Excise Tax on University Endowments Tax on Research Income Consolidates AOTC, Hope Scholarship, and Lifetime Learning into one new AOTC Repeals current credit and consolidates with new AOTC Repeals deduction Treats as taxable income Repeals deduction 1.4% tax on net investment income for institutions with assets of $250K/student Income from research not made publicly available would be treated as UBIT No change No change No change No change No change 1.4% tax on net investment income for institutions with assets of $250K/student No change
Status of Tax Legislation House Passed HR 1 Nov. 16 (vote was 227-205) Senate Expected to Pass Different Version of HR 1 today?? Speaker Ryan Said House Will Not Consider Senate Bill Majority Leader McConnell Rejected Idea of Senate Considering House Bill Conference Committee Will Be Appointed to Reconcile the Differences between the 2 Bills www.faseb.org
Forecast for 2018 & Beyond FY 2019 Trump Budget Request Expected in February 2018 Will be very similar to FY 2018 e.g. cuts to research agencies FY 2019 Appropriations Expect bills to move through Appropriations Committees CR from September to?? is all but certain Higher Education Act Reauthorization (PROSPER Act) Un-specified caps on borrowing by parents & students Eliminate loan forgiveness programs for public service employees New regulations for grant funds to HBCU s Farm Bill Reauthorization of USDA s competitive research programs Mid-Term Elections (Nov. 2018) Senate could flip to Democratic control
What Is FASEB Doing? In District Meetings Op-Ed s/ LTE s E-Action Alert Letter to Congressional Leadership Support #RaisetheCaps Campaign Letter sent to Congress on November 14 Print ads in WSJ (regional edition), Politico, Weekly Standard, and Washington Examiner Nov. 13 17 Online ads in The Hill, Roll Call/CQ, Daily Caller Extensive social media presence www.faseb.org
How Can You Help? Contact Your Elected Officials Participate in a Capitol Hill Day Email your Senators/Representative Invite your elected officials to visit your lab Visit their state/district office Attend town hall meetings Get the Word Out to the Public Write a letter to your local newspaper Be a resource for reporters Tweet about science policy issues Contribute content to your society newsletter Involve grad students, young scientists, and trainees in advocacy Subscribe to FASEB Washington Update & E-Action Alerts
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For More Information FASEB Office of Public Affairs http://faseb.org/science-policy--advocacy-and- Communications.aspx Jennifer Zeitzer Director of Legislative Relations jzeitzer@faseb.org (301) 634-7128 @FASEB.org @FASEBopa