MEP, ATP Sail Through Senate Appropriations

Both the Manufacturing Extension Partnership (MEP) and the Advanced Technology Program (ATP) would see budget increases in FY 2005 if the version of the Commerce, Justice, State Appropriations Bill that passed the Senate Appropriations Committee last week survives what is expected to be a contentious conference with the House on an mega-omnibus appropriations bill sometime after the election.

The Senate Appropriations Committee approved $112 million for MEP, $6 million more than the House approved and nearly $73 million more than was requested by the Bush Administration. Opposition from the White House to at least the House figures is likely to be muted as President Bush's opponent, Sen. John Kerry, has made doubling the federal funds available to MEP part of his presidential campaign platform.

Additionally, the Senate took considerable exception to the Administration's plans for MEP after the program funding level was cut by 63 percent last year. Language from the committee's report on the bill explicitly states, "The Committee also recommends bill language prohibiting the Secretary of Commerce from recompeting any existing Manufacturing Extension Center prior to 2007. Of the funds recommended, $6,000,000 is provided to ensure small and rural States receive necessary manufacturing assistance and services. The Committee has reviewed the Department of Commerce's report `Manufacturing in America' recommendations and is concerned that it is reorganizing the MEP program around a regional approach. The Committee recognizes that the original concept of 12 regional centers for MEP is not the best model to address the needs of small and medium-sized manufacturers. The Committee supported MEP's expansion in order to equalize services to all types of manufacturers across the country. The Committee directs the Undersecretary of Technology Administration and NIST to provide the necessary coverage for small and medium-sized manufacturers. In addition, the Committee is concerned about the ability of small and rural States to provide adequate `matching' funds. The Committee directs MEP to develop a program which will provide additional assistance to small and rural States and report back to the Committees on Appropriations by December 31, 2004, with an implementation plan."

Regarding ATP, the Senate appropriation figures of $203 million -- a 14 percent increase above FY 2004 appropriations -- may have a tougher ride in conference, however, since both the Administration and the House of Representatives have chosen to terminate the program. The Advanced Technology Program provides early stage investments to industry for the development of innovative technologies that promise significant commercial payoffs and widespread benefits for the nation.

Side Note on SBIR FAST and Technical Assistance (Rural Outreach): Both programs are funded by name in the Senate version of the bill at $2 million and $250,000 respectively.