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<title>FR FY 2000 Budget</title>
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<h1>Federal Relations <img src="RWB_LINE.gif" width="600" height="10"></h1>
<h2><a href="approp%20chart.doc">View Final FY 2000 Appropriations Outcomes</a></h2>
<p><font face="Arial" size="3"><b>President Clinton transmitted his FY
2001 Budget Proposals to Congress on February 7, 2000.&nbsp; <a href="http://w3.access.gpo.gov/usbudget/fy2001/maindown.html">Click
here</a> to view an interactive pdf version of the budget.</b></font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>Highlights</b></font></p>
<p><font face="Arial" size="3">In FY2001, the President will emphasize
investments in research as a major component of his budget. In his FY2001
budget, the President proposes a new Science and Technology Initiative that
seeks to build on his 21<sup>st</sup> Century Research Fund for America, which
he included in the FY2000 budget. As a major tenet of this new initiative, the
budget seeks to create a more balanced research portfolio between biomedical
research and research in the other sciences. Furthermore, the budget would seek
to fund university-based research at $17.831 billion in FY2001, an increase of
$1.284 billion, or 8 percent, over the FY2000 level.</font></p>
<p><font face="Arial" size="3">As a part of this new emphasis on research, the
Administration will seek to push a number of new multi-agency research
initiatives, including the Information Technology Research Initiative and the
National Nanotechnology Initiative.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>Education</b></font></p>
<p><font face="Arial" size="3">In education, the President’s FY2001 budget
proposes to increase the maximum Pell grant award by $200 to $3,500. The overall
appropriations for Pell grants would be increased by $717 million over the
FY2000 level.</font></p>
<p><font face="Arial" size="3">The Supplemental Education Opportunity Grant (SEOG)
program would be funded at $691 million, an increase of $30.0 million, or a
4.8-percent increase, over the FY2000 level.</font></p>
<p><font face="Arial" size="3">The Administration proposes to fund the federal
work-study program at $1.011 billion, an increase of $77 million, or an
8.2-percent increase, over the FY2000 level.</font></p>
<p><font face="Arial" size="3">Perkins capital contributions would be
level-funded at $100 million. The FY2001 budget proposes to increase the funding
for Perkins loan cancellations to $60 million, an increase of $30 million.</font></p>
<p><font face="Arial" size="3">The Leveraging Educational Assistance Partnership
(LEAP) program would be level-funded at $40 million.</font></p>
<p><font face="Arial" size="3">Under this budget, TRIO programs would be funded
at $725 million. This is an increase of $80 million, or 12.4 percent, over the
FY2000 level. The GEAR UP program would be funded at $325 million, an increase
of $125 million.</font></p>
<p><font face="Arial" size="3">In FY2000, the Javits Program received $10
million for fellowships for academic year 2000-2001 and $10 million for
fellowships for academic year 2001-2001. The FY2001 seeks $10 million for
fellowships in academic year 2002-2003.</font></p>
<p><font face="Arial" size="3">In addition, the FY 2001 budget contains a number
of new higher education tax incentives, including the College Opportunity Tax
Cut. Under the new proposal, families would be able to choose between taking a
tax deduction or claiming a 28-percent tax credit for tuition and fees to pay
for postsecondary education.</font></p>
<p><font face="Arial" size="3">The initiative proposes to cover up to $5,000 of
education expenses in 2001 and 2002, and up to $10,000 starting in 2003. When
fully phased in, the proposal would give families tax cuts up to $2,800. The cut
would phase out at incomes between $50,000 and $60,000 for individuals and
between $100,00 and $120,000 for joint filers under the current Lifetime
Learning Tax Credit.</font></p>
<p><font face="Arial" size="3">The budget also includes a provision that would
reinstate the exclusion of employer provided education benefits, also known
popularly as &quot;Section 127,&quot; for graduate education. The proposal would
allow workers to exclude from their taxable income up to $5,250 of
employer-provided education benefits for graduate education.</font></p>
<p><font face="Arial" size="3">Furthermore, the budget would eliminate the
60-month limit on student loan-interest deduction.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>National Science Foundation</b></font></p>
<p><font face="Arial" size="3">In this budget, the President proposes a $675
million increase for the National Science Foundation. This represents a
17-percent increase. Under this proposal, NSF would be funded at $4.5 billion
for FY2001.</font></p>
<p><font face="Arial" size="3">In FY2001, in addition to supporting its core
activities, the NSF will seek to highlight four major initiatives. First, NSF
will serve as the lead agency for the multi-agency initiative on information
technology (IT) research. The Administration will seek $740 million for IT
research and development at NSF. This represents an increase of 43 percent.</font></p>
<p><font face="Arial" size="3">Second, NSF, along with other agencies, will
invest heavily in nanoscale technology through the National Nanotechnology
Initiative (NNI). The budget seeks $217 million, an increase of $120 million, or
124 percent, for the NSF portion of this initiative.</font></p>
<p><font face="Arial" size="3">The National Science Foundation will also promote
the Biocomplexity in the Environment (BE) Initiative. Furthermore, NSF will seek
to create Centers for Teaching and Learning as the cornerstone of the 21<sup>st</sup>
Century Workforce Initiative.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>National Institutes of Health</b></font></p>
<p><font face="Arial" size="3">For the NIH, the President is proposing a budget
of $18.813 billion, a $1.0 billion increase, or 5.6 percent.</font></p>
<p><font face="Arial" size="3">Of the $18.813 billion for FY2001, $10.713
billion, or 56.9 percent, would be allocated to research project grants.</font></p>
<p><font face="Arial" size="3">During FY2001, the NIH will seek to promote four
areas with special emphasis. The first area that will be highlighted is genetic
medicine. Second, NIH will focus more closely on clinical research. Third, NIH
will seek ways to foster more interdisciplinary research. Furthermore, NIH will
continue in its efforts to eliminate health disparities between majority and
minority populations.</font></p>
<p><font face="Arial" size="3"><b><font color="#FF0000">Agriculture</font></b></font></p>
<p><font face="Arial" size="3">Overall the President's FY 2001 recommendation
represents a 2.3% increase in the CSREES budget over FY 2000. This is an overall
increase of $22,1999,000. Included in the total is mandatory funding of
$120,000,000 for the Initiative for Future Agriculture and Food Systems
(Sec.401), at least $20,000,000, for the Fund for Rural America, and an increase
from $39,541,000 to $76,194,000 in the Integrated Activities account (Sec. 406).
Most of the additional funds included in the Integrated Activities account came
from other areas of the budget (e.g. Special Research Grants) but some new
moneys were added to the account. Included is $1,000.000 for International
Science and Education grants and $4,000,000 for the Small Farms Inititative. The
National Research Initiative is recommended at $150,000,000. There were also
substantial increases in several programs in Higher Education.</font></p>
<p><font face="Arial" size="3">Base Program funds were recommended at the same
level as last year. This is the first time in several years that these funds
haven't been recommended for cuts.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>Defense</b></font></p>
<p><font face="Arial" size="3">In the overall FY2001 Pentagon budget, basic
research (6.1) is funded at $1.217 billion, an increase of $56 million, or 4.8
percent. Applied research (6.2) would be funded at $3.144 billion, a decrease of
$266 million, or 7.8 percent.</font></p>
<p><font face="Arial" size="3">Army 6.1 research would be funded at $201
million, a decrease of $3.0 million, or 1.5 percent, from the FY2000 level. Army
62 research would be funded at $602.5 million, a decrease of $185.4 million, or
23.4 percent.</font></p>
<p><font face="Arial" size="3">Navy 6.1 research would be funded at $397.5
million, an increase of $23.2 million, or 6.2 percent. Navy 6.2 research would
be funded at $527.1 million, a decrease of $95.3 million, or 15.3 percent.</font></p>
<p><font face="Arial" size="3">Air Force 6.1 would be reduced by $7.7 million,
or 3.6 percent, to $206.1 million. Air Force 6.2 would be reduced by $6.5
million, or 1.1 percent, to $590.3 million for FY2001.</font></p>
<p><font face="Arial" size="3">Defense-wide 6.1 would be funded at $412.8
million, an increase of $44.4 million, or 12 percent. Defense-wide 6.2 would be
funded at $1.424 billion, an increase of $24.1 million, or 1.7 percent.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>Energy</b></font></p>
<p><font face="Arial" size="3">At the Department of Energy, the FY2001 budget
proposes to invest $7.6 billion in research and development, an increase of 8
percent. More specifically, the budget provides $3.15 billion, a 13-percent
increase, over FY2000 for research programs in physics, chemistry, biology,
materials, environmental, and computer sciences.</font></p>
<p><font face="Arial" size="3">The budget includes a $337 million increase in
the Science account. It also includes $281 million for Spallation Neutron Source
as well as $234 million for fusion research and $70 million for the Large Hadron
Collider.</font></p>
<p><font face="Arial" size="3">Like many other agencies, DOE will also feature
the IT Research Initiative in FY 2001.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>NASA</b></font></p>
<p><font face="Arial" size="3">The President’s budget would fund NASA at
$14.035 billion for FY2001, an increase of $434.5 million.</font></p>
<p><font face="Arial" size="3">Space Science would be funded at $2.4 billion, an
increase of $210 million. Life and Microgravity Sciences would be funded at
$302.4 million, an increase of $27.7 million. Earth Science would be funded at
$1.405 billion, a decrease of $37.6 million. Aero-space Technology would be
funded at $1.193 billion, an increase of $68.1 million.</font></p>
<p><font face="Arial" size="3" color="#FF0000"><b>Additional Budget Information</b></font></p>
<p><font face="Arial" size="3">The federal budget is available on the world-wide
web at the following URL:</font></p>
<p><font face="Arial" size="3"><a HREF="http://w3.access.gpo.gov/usbudget/">http://w3.access.gpo.gov/usbudget/</a>
&lt;<a HREF="http://w3.access.gpo.gov/usbudget/">http://w3.access.gpo.gov/usbudget/</a>&gt;
.</font></p>
<p><font face="Arial" size="3">Additional details on the budget will be provided
when they become available.</font></p>
<p align="left">&nbsp; </p>
<p align="left">&nbsp; </p>
<p align="left"><font size="2"><em>For additional information on Federal Relations contact
Jerold Roschwalb in the Office of Federal Relations -- Higher Education 202/478-6025, fax
202-478-6046, or click here to e-mail: <a href="mailto:jroschwalb@nasulgc.org">jroschwalb@nasulgc.org</a><br>
<br>
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