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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. <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 "Section 127," 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> | |
| <<a HREF="http://w3.access.gpo.gov/usbudget/">http://w3.access.gpo.gov/usbudget/</a>> | |
| .</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"> </p> | |
| <p align="left"> </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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