SSTI Digest

Understanding how federal funding for the science and engineering (S&E) activities of the nation’s institutions of higher education (IHEs) is distributed locally within states can help innovation leaders develop programs and policies tailored more carefully to the varying conditions of regional innovation economies. This edition of Useful Stats builds on our previous state-level analyses of federal S&E support to IHEs by type of S&E activity and by funding agency, using 2019 data on individual institutions from the National Science Foundation’s Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions, providing a detailed city-level view of the distribution of federal S&E funding to IHEs within states.

A new Congressional Research Service (CRS) primer provides an overview of the bioeconomy and offers some potential federal policy considerations for strengthening the competitiveness of the U.S. in the global bioeconomy. Although it does not cover individual sectors that contribute to the bioeconomy, it gives a broad, macro-level perspective that may aid in a general understanding of that segment of the economy. The report offers an overview of past federal and legislative bioeconomy initiatives, but notes that it is not a comprehensive compilation of those activities.

The U.S. Economic Development Administration (EDA) has launched the FY 2021 $2 million STEM Talent Challenge to support programs to train science, technology, engineering, and math (STEM) talent and fuel regional innovation economies across the nation. The challenge will provide funding for work-and-learn programs to increase America’s workforce in emerging and transformative sectors such as space commerce, aeronautics, digital manufacturing, biotechnology, advanced manufacturing and cybersecurity. 

Competitive applications will demonstrate how the program will develop or expand regional STEM workforce capacity to support entrepreneurial ventures, industries of the future, and other innovation-driven businesses.

Yesterday, the U.S. Small Business Administration issued 33 grant awards up to $125,000 each for specialized training, mentoring, and technical assistance for research and development (R&D)-focused small businesses under the Federal and State Technology (FAST) Partnership Program.  FAST seeks to improve outcomes in the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs for underserved communities by increasing participation from women-owned, rural-based, and socially or economically disadvantaged small businesses.

The FAST program provides funding to organizations to execute state and regional programs that increase the number of SBIR/STTR proposals leading to an increase in the number of SBIR/STTR awards. Money is used for outreach to increase the pipeline of SBIR/STTR applicants; for technical and business assistance; and, financial support.

Early on Wednesday, the Senate passed a budget resolution that will serve as the framework for a human infrastructure bill. The current proposal is for $3.5 trillion in spending. This legislation, should it pass, seems likely to include substantial funding for regional innovation. More specifically, the Senate’s plans indicate that funding would support Regional Technology Hubs and other components of the US Innovation and Competition Act (USICA). 

The budget resolution includes high-level directions to congressional committees on the amount of spending they will be allowed to propose within the $3.5 trillion.

Federal funding is a major source of support for the science and engineering (S&E) activities of the nation’s institutions of higher education (IHEs). This week’s edition of Useful Stats shows that in 2019 (the most recent year for which data is available), the vast majority — 87.6 percent or $33.4 billion— of that federal support came from only three agencies: the Department of Health and Human Services (HHS), the National Science Foundation (NSF), and the Department of Defense (DoD). This analysis builds on our previous article using NSF’s data from the Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions to show that while the remaining agencies contributed relatively little to the national S&E effort of IHEs, there was still a wide range in the mix of agency funding at the state level in 2019.

In an unexpected turn of events, some college students around the country have been logging into their accounts to check on account balances and finding them canceled. Many institutions of higher education across the country have been taking advantage of federal assistance provided through the CARES Act Higher Education Emergency Relief funds (HEERF) to cancel student debt. HEERF I, II and III represent three programs that Congress appropriated to higher education to help prevent, prepare for, and respond to coronavirus, including emergency financial grants to students.

The City University of New York said it is providing one of the largest debt-forgiveness programs in the nation due to the pandemic in its announcement of the CUNY Comeback Program, a plan to erase as much as $125 million in outstanding tuition and fee balances for more than 50,000 CUNY students who experienced grave hardships during the pandemic using HEERF funds.

Other examples of universities using the HEERF funds to cancel student debt include:

Developing local assets and nurturing local talent in science and engineering (S&E) is paramount to productive innovation economies. Institutions of higher education (IHEs) are arguably the most important elements of these local knowledge-capital assets — housing physical R&D infrastructure, training new scientists and engineers, and creating and disseminating new knowledge across the academic, public, and private sectors. As such, understanding how federal funding to support S&E at IHEs is dispersed across states can help local innovation leaders develop programs and policies to continue growing their local innovation economies.

To assist in this goal, this edition of Useful Stats explores data from the National Science Foundation’s Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions. Specifically, this analysis examines state-level data for total S&E obligations to IHEs and the shares of total S&E funding by type of activity in 2019.

The U.S. National Science Foundation has announced the establishment of five new NSF INCLUDES Alliances to enhance preparation, increase participation and ensure the inclusion of individuals from historically underrepresented groups in science, technology, engineering and mathematics education. The investment is part of an effort to address diversity, inclusion and participation challenges in STEM at a national scale.

"Creating pathways to success for a STEM workforce reflective of the U.S. population is of national importance to ensuring America's competitiveness in a global research landscape," said Sylvia Butterfield, acting assistant director for NSF's Education and Human Resources Directorate, in a prepared announcement. "NSF INCLUDES Alliances provide a structure to address this issue and for the STEM enterprise to work collaboratively to achieve inclusive change."

The National Science Foundation has announced the establishment of 11 new NSF National Artificial Intelligence Research Institutes, reaching a combined investment of $220 million and including a total of 40 states when adding the original seven institutes announced last year. The institutes are expected to act as connections in a broader nationwide network and will be led by NSF in partnership with the U.S. Department of Agriculture National Institute of Food and Agriculture, U.S. Department of Homeland Security, Google, Amazon, Intel and Accenture. All but one of the 11 new institutes will be led by universities. The exception is the NSF AI Institute for Adult Learning and Online Education (ALOE), which will be led by SSTI member, the Georgia Research Alliance (GRA).

Editor’s note: The Senate passed the Infrastructure and Investment Jobs Act on Aug. 10, 2021. This article has been updated to reflect the final amendments and new information on next steps for the legislation.

This week, the Senate passed the bipartisan infrastructure agreement, formally, the Infrastructure and Investment Jobs Act. While small as a percentage of the trillion-dollar total, there are a number of proposed items that can support regional innovation economies, with broadband being the highest funded. Other proposals of interest include funding that will stimulate demand for clean energy innovations, further cybersecurity development and reauthorizing the Minority Business Development Agency (MBDA).

Note that this analysis is based on the text of amendments available through congress.gov as of Aug. 11, 2021 and may be subject to change once the final bill text is made available.

Technology and innovation highlights from the bill include the following:

The American Rescue Plan Act provides $10 billion for the State Small Business Credit Initiative (SSBCI) as part of the national response to the coronavirus pandemic-induced recession. This funding is unlike other small business assistance programs funded during the emergency so far in that SSBCI specifically provides funds to states — at least $56 million per state — to use for their own capital access initiatives, including programs that make investments in small businesses.

SSTI has made our brief, Addressing Capital Access in 2021, available for you to download. The paper is focused on helping states and their partners make the most of the opportunity presented by the newly-refunded State Small Business Credit Initiative (SSBCI 2.0), which provides $10 billion to states to support capital access. Topics covered include a review of SSBCI 1.0, the current landscape for debt and investment access, and recommendations for states developing programs in 2021.

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