The Federal Landscape:What’s Ahead for

Research & Training?

Sponsored by

UHARI

The Federal Landscape: What’s Ahead for Research and Training?

Jennifer PoulakidasVP, Congressional & Governmental Affairs

Association of Public and Land-grant Universities

6 October 2017Research Corporation of the University of Hawai‘i

APLU Overview• Oldest higher ed association – founded in 1887• One of six presidential associations• Public research universities, including all land-grants• 230+ members – all 50 states, territories,

– U.S. 195 campuses, 24 systems– 5 Mexican, 9 Canadian

• Three mission pillars:– increasing degree completion and academic success– advancing scientific research– expanding engagement

• Councils and commissions – CoP, CGA, CoR, CICEP, etc

www.aplu.org @APLU_News @APLU_GovAffairs

Federal budget & appropriations cycle

Budget and Appropriations Process

in House and Senate

Formulate and Introduce

President’s Budget Request

Agency PlanningNegotiate and

finalizebudget proposal

w/OMB via passbacks

Budg

etRe

leas

e Write, pass, and conference twelve

appropriations bills

Execute Fiscal Year Budget

• Budget Resolution

• 302(a) & (b) alloc.

• Hearings

CR CR

Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

FY 2017

FY 2018

FY 2019

Omnibus

FY18 We are here.

Percent of university R&D funding by source

Source: NSF, National Center for Science and Engineering Statistics, Higher Education R&D series, based on national survey data. Includes Recovery Act funding. © 2016 AAAS

Industry

Federal

State & local

Universities

Other

FY2017 federal spending breakdownDefense

Discretionary*$529

[Defense R&D]*$79

Nondefense Discretionary*

$557

[Nondefense R&D]*$68

Social Security$967

Medicare$598

Medicaid$386

Other Mandatory$656

Net Interest$303

In billions.

*Approximately $4 billion for R&D is classified as mandatory spending. Figures are estimates.

Source: Budget of the United States Government FY 2017. Projected deficit is $503 billion. © 2016 AAAS

Budget Control Act: discretionary budget caps

$950

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

Billi

ons o

f con

stan

t 201

6 do

llars

Based on past budget resolutions, the Budget Control Act, and subsequent legislation. Adjusted for inflation using deflators from the FY17 budget request. Excludes war funding proposals. © 2016 AAAS

We like budget deals!

$950

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

Billi

ons o

f con

stan

t 201

6 do

llars

Actual base budget authority

Based on past budget resolutions, the Budget Control Act, and subsequent legislation. Adjusted for inflation using deflators from the FY17 budget request. Excludes war funding proposals. © 2016 AAAS

And we need another deal…

$950

$1,000

$1,050

$1,100

$1,150

$1,200

$1,250

Billi

ons o

f con

stan

t 201

6 do

llars

Based on past budget resolutions, the Budget Control Act, and subsequent legislation. Adjusted for inflation using deflators from the FY17 budget request. Excludes war funding proposals. © 2016 AAAS

FY2018 PBR: defense discretionary spending

Perc

ent c

hang

e in

def

ense

spen

ding

from

FY

2010

FY2018 PBR: nondefense discretionary spending

Perc

ent c

hang

e in

non

defe

nse

spen

ding

from

FY

2010

The President proposes and Congress disposes…

-120.00%

-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

Current Appropriations for Select Science & Tech AgenciesEstimated percentage change from FY2017 enacted levels, nominal dollars

White House House Senate

NSFUSDA NIFA

NIH

NASA

NOAARESEARCH

DOD S&TDOE SCIENCE

USGS

EPA S&T

ARPA-E

Other issues• F&A cap• NIH salary cap• fetal tissue research• ARPA-E, climate sci,

NEH & NEA• DACA deadline• HEA reauth

• debt ceiling• disaster aid• reauths: CHIP, FAA,

flood insurance• health care?• tax reform?• reg reform?• infrastructure?

F&A education tools

• FAQs• foundation example• campus comms• infographics

– building/lab– research dollar

The Federal Landscape –What’s Ahead for Research and Training

1An association of research universities, affiliated medical centers, and independent research institutes

Research Corporation of the University of Hawaii Meeting

Anthony DeCrappeo, President

2

COGR Overview Council on Governmental Relations (www.cogr.edu),

established in 1948

190 Member Institutions

Staff of 6 and 4 Committees: 1) Costing Policies, 2) Research Compliance, 3) Intellectual Property, 4) Research & Regulatory Reform

Active Board and Committees, comprised of 25 individuals from Member institutions

Regular Collaboration with other Partners

3

Proposed F&A Cap Spring and Early SummerHouse and Senate Appropriations Hearings • HHS Secretary Price indicated that changes to indirect costs

could reduce budgets without negatively impacting science

President’s FY 2018 Budget Proposal• NIH - includes a provision to limit indirect cost reimbursement

to 10% of the total award

House Science Hearing• Research & Technology and Oversight Subcommittees held a

hearing on indirect costs on May 24

4

Proposed F&A Cap Into the SummerLetters to Secretary Price and OMB Director Mulvaney• Associations and institutions sent over 115 letters detailing

the anticipated effects of a significant F&A rate cut and copied their congressional delegations.

Senate Appropriations Hearing• Senators spoke out strongly against proposed plans to

replace negotiated indirect cost rates with a flat 10% rate at the June NIH appropriations hearing.

5

Proposed F&A Cap Late Summer and ForwardLHHS Appropriations Bill Language

“The Administration’s proposal to drastically reduce and cap reimbursement of facilities and administrative (F&A) costs to research institutions is misguided and would have a devastating impact on biomedical research across the country.”

“The bill includes a new general provision directing NIH to continue reimbursing institutions for F&A costs according to the rules and procedures described in 45 CFR 75 (with the exception of existing waivers for training grants). This provision also prohibits funds in this Act from being used to implement any further caps on F&A cost reimbursements.”

6

Proposed F&A CapLate Summer and Forward “Dear Colleague Letter” from Reps. DelBene

(D) and King (R) … Dear Speaker Ryan and Minority Leader Pelosi

Community Letter from 109 Higher Ed and Science Associations … Dear Director Mulvaney and Secretary Price

LHHS Appropriations Bill (previous slide); though CR language may be more necessary!

7

Proposed F&A CapThe Foundation Issue The Administration’s budget called out the Gates

Foundation and 10%: “… bring NIH's reimbursement rate for indirect costs more in line with the reimbursement rate used by private foundations, such as the Gates Foundation …”

COGR outreach with FasterCures, Milken Institute and Foundation community to address baseline F&A, direct charging “Research Operating Costs”, IP/Licensing, Reporting Templates and partnership opportunities to establish common terms and practices.

8

Regulatory ReformHouse LHHS Budget Report “…there are opportunities to reduce the administrative burden on

research institutions through legislative, regulatory, and administrative means... The National Academies…publication ‘Optimizing the Nation’s Investment in Academic Research: A New Regulatory Framework for the 21st Century’ put forth several recommendations for reducing burden.

“The Committee directs NIH to identify the most appropriate and potentially impactful recommendations and submit a plan to the Committees on Appropriations of the House of Representatives and the Senate within 90 days of enactment of this Act outlining concrete steps to achieving these goals.”

9

Regulatory ReformStatutory Requirements

21st Century Cures Act– Dec. 13, 2016• Sets in motion many of the recommendations made by the

National Academies Committee on Federal Research Regulations and Reporting Requirements.

National Defense Authorization Act (NDAA)– Dec. 23, 2016

American Innovation and Competitiveness Act (AICA)– Jan. 6, 2017

10

Regulatory Reform21st Century Cures Provisions

Subrecipient Monitoring • NIH Director to reduce administrative burden • Possible exemption where subrecipient is subject to single audit

Review Financial Conflict of Interest Policies • Review by the HHS Secretary within two years of enactment

Evaluation of Financial Reporting Procedures• Avoid duplication between HHS and NIH and minimize burden

Clarify or Affirm Alternatives to Effort Reporting• HHS Secretary to clarify applicability of the UG for management

and certification systems, including those for documentation of personnel expenses.

11

Regulatory Reform21st Century Cures Provisions

Review of Animal Research Regulations• Within two years of enactment NIH, USDA and FDA are

charged with identifying and eliminating inconsistent, overlapping or unnecessarily duplicative regulations and policies and improving coordination.

FASEB, AAMC and COGR Workshop and Report • Workshop on animal research regulatory reform

conducted on April 17 in Washington, DC• Report and recommendations expected in September.

12

Regulatory Reform21st Century Cures Provisions

OMB to establish the Research Policy Board

Federal and non-federal/university members

Charged with:• Coordinating and improving regulations and policies• Discussing policy and regulatory gaps and challenges • Ongoing assessment of regulatory burden

Expert subcommittees

13

Regulatory ReformAICA, NDAA, and EOs AICA: Interagency Working Group on Research

Regulations

AICA: $10,000 MPT (NSF, NASA, NIST)

NDAA: $10,000 MPT (All Agencies)

Executive Orders 13771 (2 for 1) and 13777 (Agency plans and performances)

And to Ponder … Correlation between reducing regulatory burden and F&A rates???

14

Single Audit andOIG Developments Reimbursement/Advance Payment Methodology. What

constitutes “payment”? Securing Student Information, Department of Education (ED).

Safeguarding data and the information security program; 2018 Compliance Supplement.

Annual Compliance Audit, Student Financial Aid (SFA) Cluster. Annual compliance audit per ED; inconsistent with the UG.

October 31, 2017: Deadline for public comments to the 2017 Compliance Supplement.

NSF IG; FDP Payroll Certification and Memo to OMB. Should be fine, but pay attention to the two “observations”: monthly/bi-monthly reconciliations and provide full allocations to PIs.

15

Also on the List … OMB FAQs: Formal COGR comments, TBD UG Updates? DS-2, UCA, Subrecipient Safe Harbor, etc. OMB Report to Congress; DATA Act (Aug. 10, 2017) Procurement: “Instructional Guidance” (NDAA and AICA still need

implementation language)! NIH “March-in”: Federally funded research and drug-pricing Common Rule/Human Subjects: Delay one more year for compliance? (eff.

date would remain Jan. 19, 2018) Single IRB (eff. date extended to Jan. 25, 2018) NIH/HHS Timely Closeouts (GONE Act) NIH Grant Support Index (GSI) is NA, but early career and success rates

remain on the radar

16

Questions?

Tony DeCrappeotdecrappeo@cogr.edu

The Federal Landscape –What’s Ahead for Research and Training

October 6, 2017

Jennifer Sabas, President, Kaimana Hila

and Consultant to University of Hawai‘ i

Awards by Federal Departments for Fiscal Years 2015, 2016 and 2017

(dollars are in the millions)

FY 2015 FY 2016 FY 2017

COMMERCE 24.9 22.1 19.7

DEFENSE 53.2 32.1 45.2

EDUCATION 36.8 38.9 39.4

HHS 65.5 60.5 59.7

NASA 25.9 18.1 22.8

NSF 32.8 50.6 39.3

OTHER 41.1 26.3 24.6

TOTAL $280.2 $248.6 $250.7

Appropriations (budget authority in millions of dollars)

Agency FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 House

Committee-Reported

FY2018 Senate

Committee-Reported

NOAA 5,050.7 5,314.6 5,441.0 5,765.6 5,675.4 4,965.7 5,590.3

NSF 6,884.1 7,171.9 7,344.2 7,463.5 7,472.2 7,339.5 7,311.1

NASA 16,879.5 17,646.5 18,010.2 19,285.0 19,762.3 19,871.8 19,529.3

DEPARTMENT OF DEFENSE ** Research Development Test & Evaluation (RDT&E)

2013 -- $64 billion

2014 -- $62 billion

2015 -- $63.5 billion

** Doesn’t include all of the DOD health, DARPA, IC, DOD labs, etc.

Supplemental Nutrition Assistance Program (SNAP) – Food Stamps

• Currently $400 million - 100% Federally Funded• Proposed change would require a 25% match; the State would need to come up with $100

million.• 1 in 8 Hawaii residents got food stamps in 2016

• 3,100 educators• 5,300 health care workers

Medicaid

• $4 billion comes to Hawaii for Medicaid, CHIP (children’s health insurance), and financial assistance for insurance coverage.

• 300,000 Hawai‘i residents rely on Medicaid• 35% are children• 20% are seniors, and people with disabilities