Chairman Rogers, Rating Member Cartwright, and members of the Subcommittee, thanks for this chance to debate President Biden’s Fiscal Yr (FY) 2024 Funds Request for the U.S. Division of Commerce.
The Commerce Division is tough at work. Due to main investments just like the Bipartisan Infrastructure Regulation and the CHIPS and Science Act, and your help by means of the appropriations course of, the Commerce Division is making substantial progress on a few of our nation’s most urgent financial and nationwide safety priorities, together with these associated to our provide chains, manufacturing, innovation, and workforce. However world competitors stays fierce, and we won’t take our foot off the fuel. I’m right here in the present day to ask you to construct on these investments in Fiscal Yr 2024 so we are able to maintain the momentum going and proceed to ship on behalf of the American individuals. I’m grateful on your help as we sit up for engaging in much more in FY 2024.
The President’s Funds requests $12.3 billion in discretionary funding and $4 billion in necessary funding for the Division of Commerce. The investments proposed on this finances will allow the Division to proceed fulfilling its mission to create the circumstances for financial progress and alternative for all communities.
At this time, I’ll concentrate on seven key areas of funding throughout the Division of Commerce.
First, the President’s Funds makes strategic investments in innovation, manufacturing, and provide chains.
With out manufacturing energy in the USA, and the innovation that flows from it, we’re at a transparent drawback within the race to invent and commercialize future generations of expertise. The FY 2024 Funds invests in applications that allow resilient provide chains to make sure our financial prosperity and nationwide safety.
The Funds requires $1.6 billion to help the work of the Nationwide Institute of Requirements and Know-how, or NIST, together with $277 million for the Manufacturing Extension Program, or MEP. At this time, 51 MEP facilities work with producers throughout the nation to assist them develop new merchandise and clients, develop and diversify markets, undertake new expertise, and improve worth.
inside provide chains. The extra funding we suggest in MEP for FY 2024 will allow MEP facilities to develop coordination with personal sector producers to slim gaps in provide chains and undertake important applied sciences to make U.S. producers extra resilient to world market disruptions.
The Funds additionally consists of $98 million to develop NIST’s position in Manufacturing USA. The U.S. authorities at the moment funds 16 Manufacturing USA Institutes, one in all which is sponsored by the Division of Commerce. The Division of Commerce will add an extra institute this 12 months utilizing FY 2023 common appropriations and as much as three extra semiconductor centered institutes leveraging CHIPS and Science Act funding. With the funding requested in FY 2024, the Division of Commerce will finance $60 million in new aggressive awards to allow current Institutes to advertise home manufacturing of institute-developed applied sciences.
The Funds additionally proposes $713 million for the Worldwide Commerce Administration (ITA) together with a $26 million enhance to make ITA’s provide chain resilience efforts extra proactive. Of this, $21 million is to ascertain a provide chain resiliency workplace throughout the Worldwide Commerce Administration to establish and assess financial and nationwide safety dangers to provide chains; develop methods to mitigate dangers; and implement these methods. The remaining $5 million is a rise for SelectUSA that can additional enable that program to draw international direct funding that can strengthen provide chain resilience.
Second, the Funds protects U.S. applied sciences, capital, and experience.
As the USA continues to degrade Russia’s army and protection industrial base by means of export controls and handle the nationwide safety threats posed by the Individuals’s Republic of China (PRC), the Funds consists of funding for the Bureau of Business and Safety (BIS) and ITA to proceed actions that advance U.S. nationwide safety, international coverage, and financial pursuits.
The Funds consists of $6 million ($3 million at BIS and $3 million at ITA) to proceed supporting Committee on International Funding in the USA (CFIUS) examinations. The Administration can be contemplating establishing a program to deal with nationwide safety dangers related to outbound investments to forestall U.S. capital and experience from financing advances within the important sectors of nations of concern that undermine U.S. nationwide safety.
Such a program should be meticulously calibrated to make sure it doesn’t place an undue burden on U.S. buyers or companies. The Funds consists of $5 million to allow ITA to help the Division of the Treasury in scoping and implementing such a program.
Third, the Funds allows us to associate with our allies to advance our shared values and form the strategic setting through which the PRC operates.
The Funds additionally consists of $420 million for ITA’s International Markets program to make sure that U.S. companies and industrial pursuits have a sturdy advocate and first line of engagement on international commerce and market entry obstacles. This consists of an extra $17 million for International Markets to counter financial coercion and unfair commerce practices by the PRC and improve U.S. export competitiveness in in strategic areas of important financial and nationwide safety concern. The Funds additionally consists of $3 million to reaffirm U.S. financial engagement within the Indo-Pacific area by tackling mutual challenges, selling long-term inclusive progress and stability, and advancing shared values by means of the Indo-Pacific Financial Framework for Prosperity (IPEF), and $2 million to develop the requirements attaché program in ITA.
Fourth, the Funds invests in applications that allow all Individuals to have a chance to take part within the twenty first century economic system.
For too many Individuals, the pandemic was only one in a sequence of financial shocks which have battered their communities, decreased wages, and eradicated complete native industries. But, all U.S. areas have current belongings that, with the best partnerships and investments, may be constructed upon to make sure that these areas can thrive within the trendy, world economic system. The Funds requests $4 billion in necessary funding and $804 million in discretionary funding for the Financial Growth Administration (EDA) to advertise innovation and competitiveness and put together American areas for progress and success within the worldwide economic system. This consists of $4 billion in necessary funds and $50 million in discretionary funds for the Regional Know-how and Innovation Hub Program to foster geographic range in innovation and create high quality jobs in underserved and weak communities. The Division additionally requests $200 million for the Recompete Pilot Program to offer grants to distressed communities and join employees to good jobs that help long-term complete financial improvement by lowering excessive prime- age employment gaps. Moreover, it consists of $100 million for the Good Jobs Problem to fund employer-led workforce coaching programs and partnerships to coach and place American employees into high-quality jobs and help regional economies. The Funds additionally invests $110 million within the Minority Enterprise Growth Company, together with $20 million in rural enterprise facilities, to bolster companies offered to minority-owned enterprises and assist slim racial wealth gaps throughout the nation.
Fifth, the Funds expands local weather science, adaptation, and resilience.
Addressing the local weather disaster should be a prime precedence for the nation, and we should use each instrument at our disposal to assist handle this disaster and associated financial impacts. The Funds leverages all of the Division’s bureaus, and our devoted workforce, to make sure communities throughout the nation have the information, instruments, and assets they should put together for the impacts of local weather change whereas constructing a greater, extra resilient, America.
The Funds consists of $6.8 billion for the Nationwide Oceanic and Atmospheric Administration (NOAA), $451 million or 7% greater than the enacted stage. Inside this request, the Administration proposes $2.1 billion for the nation’s climate and local weather satellites, $370 million greater than the 2023 enacted stage, to maintain the nation’s climate and local weather satellites in operation and on schedule for future deployment. The Division additionally proposes to fund the Nationwide Climate Service at $1.3 billion and consists of $231 million for NOAA’s local weather analysis applications to help the continuing work of the Nationwide Local weather Evaluation and proceed high-priority, long-term observing, monitoring, researching, and modeling actions. The Funds additionally invests in increasing offshore power whereas conserving and defending high- precedence pure assets by offering NOAA $60 million to develop offshore wind allowing actions, a $39 million enhance above the FY 2023 enacted stage. This extra funding will enable NOAA to make use of the very best accessible science to assist deploy 30 gigawatts of offshore power by 2030, whereas defending biodiversity and selling sustainable ocean co-use.
Sixth, the Funds gives the information leaders in communities, trade, and authorities have to drive U.S. competitiveness, innovation, and job progress.
The Funds gives the Census Bureau with $1.6 billion to allow it to proceed its transformation from a twentieth century survey-centric bureau to a twenty first century data-centric group that gives extra well timed and related information merchandise to our stakeholders. The Funds additionally consists of $21 million in two new applications on the Nationwide Telecommunication Data Administration (NTIA) to enhance the environment friendly use of spectrum by enhancing spectrum sharing.
Seventh, and at last, the Funds invests within the elementary infrastructure that makes science attainable and the grant oversight that protects the American taxpayer.
The Funds invests practically $500 million in elementary analysis infrastructure throughout the Division. Sixty-three % of NIST analysis amenities are in poor or important situation.
NIST’s world-class scientists can not proceed to do the analysis to make sure tomorrow’s
competitiveness in yesterday’s crumbling amenities. Subsequently, the Funds consists of $262 million for NIST Security, Capability, Upkeep, and Majors Repairs, greater than double the FY 2023 enacted stage. The Funds additionally consists of $146 million for NOAA to start to deal with deferred upkeep and different building necessities and $75 million for the continued
recapitalization of NOAA’s ageing marine fleet. Lastly, the Funds consists of $8 million for amenities upkeep at NTIA’s Desk Mountain Discipline Web site and Radio Quiet Zone, the one Radio Quiet Zone accessible for analysis and improvement.
The Division should keep ample oversight of the grants it makes. Whereas grantees can draw down on broadband grants offered underneath the Infrastructure Funding and Jobs Act and financial improvement grants offered underneath the American Rescue Plan till the late 2020s or early 2030s respectively, the Division will start to expire of funding to supervise sure applications in FY 2024. The Funds consists of $35 million for EDA and NTIA to proceed acceptable oversight of these grants.
Whereas the Commerce Division is a various company that covers every thing from patents to the climate, the widespread thread among the many investments I’ve simply outlined is that they’re all important to fulfilling our mission of making the circumstances for financial progress and alternative for all communities.
With these good, focused investments we’ll bolster our financial and nationwide safety, make our provide chains extra resilient, promote American manufacturing and innovation, and assist extra employees and companies compete and win within the twenty first century world economic system.
Thanks for inviting me to seem in the present day. I sit up for working with you, and I’m completely satisfied to reply your questions.