Legislative and federal news

Large federal slice of patent pie looming? 
In an exclusive interview with Mike Allen on The Axios Show, U.S. Commerce Secretary Howard Lutnick floated the idea that the federal government should receive “half the benefits” of federal R&D, referring to a direct share of the financial returns from patents stemming from R&D funded by the federal government. 

House Approps cuts NSF; preserves EDA and MEP  
The House Appropriations Committee voted on the Commerce, Justice, Science (CJS) bill for FY 2026 spending levels on September 10. Among the agencies included in the bill is annual funding for Commerce, NASA, and the National Science Foundation (NSF).  

The big news is the committee’s recommendation for NSF Research and Related Areas to be cut to $6.373 billion, $803.5 million less than FY 2025. EPSCoR would receive $250 million. The Regional Innovation Engines are tagged as being funded at a recommended level of $205 million. 

The Economic Development Administration’s assistance programs appropriation of $256.5 million includes $50 million for grants through the Regional Innovation Programs/Build to Scale program, $41 million for Regional Technology and Innovation Hubs (Tech Hubs) and $41 million for the Distressed Area Recompete Pilot Program. The balance of the funding would support traditional PWEDA programs, of which assistance to coal communities would receive $80 million. The accompanying budget report prior to the committee vote states: “The fiscal year 2026 recommendations for [Economic Development Assistance Programs] reflect reduced congressional support.” 

The House CJS bill, as approved by the House Appropriations Committee, also includes $175 million for the Hollings Manufacturing Extension Partnership and $37 million for the Manufacturing USA program. For MEP, the committee report is rather explicit in its disagreement with the Administration’s goal of eliminating the program, stating: “The Committee supports the MEP and the continuation of current State awards that bolster the local manufacturing economy. The Committee directs that no less than 85 percent of appropriated funds be allocated directly to MEP Centers through base awards, competitive, or expansion award pilot programs “ 

NIH R&D portfolio survives House Approps virtually intact 
The Labor, Health and Human Services, Education and Related Agencies bill, passed by the House Appropriations Committee September 9, maintains the current NIH structure in how it presented its budget allocations and includes nearly $48 billion “to support biomedical research, a necessary counter to China’s growing threat in basic science research.” A marked departure above the administration’s request for a $19 billion cut, the committee bill does, however, reduce NIH funding by more than $450 million. 

DOE Science increased in narrow House vote  
The House Energy and Water bill was passed by the full House by a single vote, 214-213, on September 4, approving a 2% increase for the Department of Energy, which had been slated for a 14% cut in the administration’s budget request. The House bill does cut the Office of Energy Efficiency and Renewable Energy by 50%.  

SBA budget clears House Approps with RICs funding 
The House Financial Services and General Government bill, passed out of the Appropriations Committee on September 3 includes $8 million for the SBA’s Regional Innovation Clusters Program, consistent with the chamber’s recommendation in FY 2025. No funding is provided in the bill for the FAST program, which supports state outreach and technical assistance to broaden participation in the federal SBIR/STTR programs.