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Jan. 26, 2005 — Lawmakers signaled at the close of the 108th Congress that science and technology will not be spared as they look for ways to trim spending to deal with the growing budget deficit and pay for other priorities.
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Even though the National Science Foundation (NSF) enjoys widespread support on Capitol Hill, the agency found itself on the receiving end of congressional scissors. The omnibus spending bill passed by Congress in November and signed into law in December would provide $105 million less in fiscal year 2005 for the NSF — a lead agency involved in the National Nanotechnology Initiative (NNI) — than lawmakers appropriated for 2004.
In addition to providing funding for NSF, the spending bill also covered several departments, including Commerce and Energy.
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It remains to be seen how nanotechnology funding at NSF will be affected by the cut. Lawmakers did not spell out how much money should be directed to nanotechnology. Instead, that task is left to agencies involved in the initiative to allocate money for federal nanotechnology programs, a process that could take two or three months, according to Cate Alexander, spokeswoman for the National Nanotechnology Coordination Office.
But in an e-mail response to a question, David Stonner, who heads NSF’s congressional affairs office, said he didn’t “expect nano to take a disproportionate share of the reduction, but I don’t think it will be completely protected, either.”
In a Nov. 20 speech on the House floor during consideration of the omnibus spending bill, Rep. Vernon Ehlers, R-Mich., chairman of the Science Committee’s Environment, Technology and Standards Subcommittee, expressed strong concerns about the cut to NSF.
“This decision shows dangerous disregard for our nation’s future, and I am both concerned and astonished that we would make this decision at a time when other nations continue to surpass our students in math and science and consistently increase their funding of basic research,” he said. “If we want to remain competitive in the international marketplace, we must provide funding that stimulates innovation and supports education.”
The Advanced Technology Program (ATP), a Commerce Department program that partners with the private sector to fund high-risk research and development, also took a $26.8 million hit compared with fiscal year 2004 but was again saved from elimination.
The program, however, may have trouble surviving. The omnibus funding bill included language barring ATP from making any new awards. In addition, one of the program’s champions in Congress, Sen. Ernest Hollings, D-S.C., opted to retire at the end of the 108th Congress. Hollings served as the top Democrat on the Senate Appropriations subcommittee with jurisdiction over the program.
Some nanotechnology supporters say ATP has provided a bridge between the research lab and the marketplace. “There is a gap between early stage research and early stage” venture capital, said Josh Wolfe, managing partner for the nanotech venture capital firm Lux Capital. But he said he remains confident that promising ideas will find necessary funding even if ATP is eventually eliminated.
“I’m of the persuasion that if a technology is sufficiently important, no matter how early or risky, it’ll find backers,” Wolfe said.
Noting the potential demise of ATP, Rep. Mike Honda, D-Calif., introduced legislation aimed at helping nanotechnology research reach the marketplace. Honda’s spokesman said his boss plans to reintroduce the bill in the 109th Congress and is more hopeful for action on the measure, given the continued concerns about ATP.
Industry officials say one of their top priorities in the 109th Congress will be to push for adequate funding for nanotechnology. While acknowledging the pressures facing non-defense discretionary programs like those in the NNI, Paul Stimers, a lobbyist for the NanoBusiness Alliance and a lawyer with the Preston Gates & Ellis law firm in Washington, D.C., said he is hopeful that lawmakers and the Bush administration will maintain their strong support for nanotechnology.
President Bush has “been consistently trying to come up with new ways to move the ball on science and technology,” Stimers said. “It’s something that gives us cause for optimism.”
In its closing days, Congress did take action on other legislation that will likely impact nanotechnology. The Senate approved the nomination of Arden Bement on Nov. 20 to become director of the NSF for a six-year term. Bement had been serving in the job on an acting basis since February 2004.
In addition, Congress also passed legislation (S. 2192) that would ensure that work done under a joint research agreement does not preclude someone from getting patents on similar, but somewhat different work, according to Charles “Chad” Wieland, who heads the nanotech practice at the Burns, Doane, Swecker & Mathis law firm in Alexandria, Va. As of press time, President Bush had not signed the bill into law.
“The effect is there will be fewer barriers to entering into joint research agreements with universities, and this should benefit small tech companies enormously,” Wieland said.
Meanwhile, Bush’s nomination of Kellogg Chief Executive Officer Carlos Gutierrez to succeed Commerce Secretary Don Evans is drawing praise from nanotech industry representatives despite his non-tech background.
He understands “what it means to have to be accountable to shareholders and investors and to be accountable to employees and wake up every morning to design products that people will be interested in,” Stimers said. “The NanoBusiness Alliance, being most concerned with commercialization and getting concepts into products, is going to be pleased to see Mr. Gutierrez in that position.”
Bush’s pick of Deputy Treasury Secretary Sam Bodman, who also has served as deputy Commerce secretary, to succeed Spencer Abraham as secretary of the Energy Department drew applause from House Science Committee Chairman Sherwood Boehlert, R-N.Y.
The former Massachusetts Institute of Technology professor and corporate executive “has a broad experience in industry, academia and government, excellent management skills, and boundless intellectual curiosity,” Boehlert said Dec.10. The committee is “especially pleased that the Energy Department will have leadership with great interest and expertise in the department’s important science responsibilities.”