American Competitiveness in the 21 st Century: An Analysis of the America COMPETES Act of 2007

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1 Passiment 1 American Competitiveness in the 21 st Century: An Analysis of the America COMPETES Act of 2007 By Michael J. Passiment The Policy Tree November 2011

2 Passiment 2 Second only to a weapon of mass destruction detonating in an American city, we can think of nothing more dangerous than a failure to manage properly science, technology and education for the common good... This quote was taken from a comprehensive national security study conducted by the United States Commission on National Security for the 21 st Century. The issue of American competitiveness in technology, science, engineering, education, mathematics, etc., is a crucial one. Unfortunately this issue is usually neglected in light of issues that seem to be more expedient. In this paper I plan to analyze the issue of American competitiveness, examine the actions taken by Congress to investigate and attempt to resolve this broad issue through the America COMPETES Act of 2007, and consider the future of American competitiveness based on the resulting consequences of Congress actions. The first major initiative to evaluate the current status of, and future goals of, American competitiveness came in Senator Lamar Alexander (R-TN) and Senator Jeff Bingaman (D-NM) of the Committee on Energy and Natural Resources, in conjunction with Representative Sherwood Boehlert (R-NY) and Representative Bart Gordon (D-TN) of the House Committee on Science and Technology, sent a request to the United States National Academies. The request was for a comprehensive analysis of a multi-part question concerning American competitiveness. The question read, What are the top 10 actions, in priority order, that federal policymakers could take to enhance the science and technology enterprise so that the United States can successfully compete, prosper, and be secure in the global community of the 21 st century? What strategy, with several concrete steps, could be used to implement each of those actions?

3 Passiment 3 This congressional committee request posed a daunting task to the National Academies. In response they formed the Committee on Prospering in the Global Economy of the 21 st Century. This committee was made up of a diverse group of individuals from varying backgrounds and career fields. Current and former CEOs, university presidents, researchers, and presidential appointees were just a few of those involved. The committee s timeframe for a response did not allow for an exhaustive study. At just 10 weeks, the committee had to move quickly, yet thoroughly, as they developed policy recommendations that would, potentially, impact the future of the entire nation. The actions they would advise Congress to make would affect American technological competitiveness, encourage reform of the American education system, provide increased funding and support for research in the sciences, and reevaluate and encourage 21 st century job creation. The committee s final report was titled The Gathering Storm, a 500-page report that provided in-depth analysis of several key areas of American domestic policy. The committee focused the report on four key, overarching recommendations. The first was to reform the United States K-12 education system in science and mathematics to a leading position by global standards. The second recommendation advised Congress to double federal investment in basic research in mathematics, physical sciences, and engineering over the course of the next seven years. The third recommendation was brief, calling for Congress to encourage more U.S. citizens to pursue careers in mathematics, science, and engineering, as these are areas crucial to American competitiveness on the global stage. The fourth, and final, recommendation calls for measures to revamp and rebuild the competitive ecosystem in the United States. This ecosystem is broad and impacts many

4 Passiment 4 areas of public law, including tax policy, patent laws, immigration policy, and even the litigation process. In addition to these broad recommendations, the National Academies committee also composed 20 implementation actions for Congress to take. The first actions were in regards to K-12 education reform, with the recommendations titled 10,000 teachers educating 10 million minds. The committee recommended that Congress initiate new 4- year college scholarships to students pursuing degrees in mathematics or science who also plan to obtain their teaching certificate. A clause was also recommended by the committee to require these recipients to teach in a public school for five years after graduation. The next action plan was in regards to current teachers of math and science, and would find Congress subsidizing continued education, such as Master s degrees, for current teachers. Additionally, the committee expressed hopes that American teachers could develop worldclass math and science curriculums that could be adopted in local school districts across the country. The final action plan for K-12 education reform was to increase the number of teachers qualified to teach Advanced Placement (AP) courses, as well as the number of students in these courses. The next recommendation concerned federal funding of research in the math and science fields. The committee advised that Congress increase federal basic-research funding for the physical sciences, math, and engineering by 10% each year over seven years, expand research grants to early-career researchers, approve funding for improving research facilities, and institute a Presidential Innovation Award to encourage competition for advances for the national interest.

5 Passiment 5 The third recommendation dealt with higher education. The committee called for nearly 25,000 new undergraduate scholarships of up to $20,000 for 4 years in the physical and life sciences, mathematics, and engineering. It also advised that Congress award portable graduate fellowships in fields of national need. Finally, the committee called for the creation of tax credits for employers who encouraged continued education in the science and engineering fields, and a more efficient visa processing system for international students. The committee also advised that several policies be adopted to encourage international student attendance and academic achievement at U.S. institutions of higher learning. The fourth, and final, recommendation concerns the creation of an innovative environment. The first action plan advised by the committee is one that was just acted on recently in the United States Senate. The plan calls for the creation of a first-to-file patent system to speed up the process and limit the red tape. In reviewing the tax code, the committee advised that Congress continue, and make permanent, the Research and Development (R&D) tax credits. A reform of the corporate income tax would also spur competition among corporate entities and lead to higher levels of job creation, according to the committee. Finally, the committee explained its belief that broadband Internet access should be more widely available across the country. The committee s report was well received in Congress, and served to inform the debate in the coming months. This was a great example of Congress ability to use experts and outside resources to make informed decisions on matters of public interest. After much review, the members of Congress decided to act on the information they had acquired from the National Academies. On March 13, 2007, a hearing was held by the House Committee

6 Passiment 6 on Science and Technology, to be followed by a hearing of the Subcommittee on Energy and Environment on April 26. On May 10, Representative Bart Gordon brought H.R to the floor, carrying the title, The America Creating Opportunities to Meaningfully Promote Excellence in Technology, Education, and Science Act of 2007, better known as the America COMPETES Act of The ultimate goal of Congress in passing the America COMPETES Act was to improve U.S. economic competitiveness by increasing support for scientific research, and increasing the number of students pursuing careers in science, technology, engineering, and mathematics (STEM) fields. Education would be the primary reform vehicle for economic competitiveness. The Act would authorize $33.6 billion from FY 2008 through There would be four federal agencies receiving funding to implement the goals of the Act, the Department of Education, the Department of Energy, the National Institute of Standards and Technology (which is incorporated within the Department of Commerce), and the National Science Foundation. The Act called for the expansion and creation of programs to increase federal investment in scientific research and STEM education. Research is another key area of the America COMPETES Act. The Department of Energy s role would be to meet the country s need for economic and energy security. To do this, the Act created the Advanced Research Projects Agency-Energy (ARPA-E). The agency would be charged with supporting the adoption of breakthrough energy technology research. In the area of STEM, Congress was strongly in support of high-risk, high-reward research. To create an environment conducive to such research, the Act established action criteria for how agencies should conduct STEM research. There are three actions defined in the Act for research. The first is goal setting, and requires agencies to report whether or not they

7 Passiment 7 have a funding goal for high-risk, high-reward research. The next action is spending toward the goal, and calls for a breakdown of how activities are being funded. Finally, the Act mandates that agencies report the information established in their goals to Congress on an annual basis at the time of a new budget cycle. According to CQ, the America COMPETES Act would change the language of fourteen existing laws, a testament to the broad scope of the legislation. H.R had seven original cosponsors; the most involved being Ralph Hall (R-TX) and David Wu (D-WA), in addition to primary sponsor Bart Gordon. Once the bill had left committee, it received an additional fourteen cosponsors. On May 21, 2007, Representative Wu motioned to suspend the rules and pass the bill by voice vote. The measure passed the House, was received in the Senate the following day, and placed on the Senate Legislative Calendar. The measure remained dormant for a period and did not come up for discussion in the Senate until July 19, this proving the slower nature of Senate proceedings. The Senate did not pass the bill in the House form. Senator Harry Reid (D-NV) motioned to strike all language after the enacting clause of H.R and insert the language from S. 761 as an amendment. S. 761 as a standalone measure had been amended nearly 80 times in the Senate. On the same day the Senate voted unanimously to pass the House measure as amended by the Senate. Insisting on its amendments and certain that this measure would end up in conference committee, thirteen senators were named conferees for the bill, including Senator Bingaman, who had been one of the members requesting information from the National Academies. On July 31, Representative Wu took to the House floor once more. He motioned that the House disagree to the amendments made to H.R in the Senate, and that the House

8 Passiment 8 agree to a conference with the Senate. In the same legislative day, Representative Hall motioned to instruct the House conferees to insist on House-passed language on authorization levels. The House selected 17 members to serve in the conference committee, including Bart Gordon, several members from the House Committee on Science and Technology, and members of the House Education and Labor Committee. On July 31, the conference committee convened for what appeared to be a short session. On the same day as their inaugural meeting, the conference committee filed a conference report, carrying the number H. Rept On the following day, August 1, the House Rules Committee passed a resolution, H. Res. 602, which established rules for debate on H. Rept The resolution provided for one hour of debate on the conference report. On August 2, the House passed H. Res. 602, thereby agreeing to the debate terms for the conference report. On the same day, Rep. Gordon brought the conference report to the floor for debate. The debate over the conference report seemed to be progressing favorably until Representative John Shimkus (R-IL), apparently not pleased with the conference s work, motioned to recommit the report. However, the majority of the House disagreed with Shimkus and his measure to recommit failed by a vote of Finally, just after 6pm on August 2, the House voted to approve the conference report, by a vote of Before Congress went into recess on August 2, the Senate also agreed to the conference report, by unanimous consent. The America COMPETES Act was now ready for President Bush to act on. The topic of American competitiveness was not a new one to President Bush. Recognizing the importance of American excellence in the STEM areas in the 21 st century,

9 Passiment 9 President Bush, in his 2006 State of the Union address, announced the American Competitiveness Initiative (ACI). The program proposed by President Bush committed $5.9 billion in the FY 2007 budget to increase investments in research and development (R&D), encourage entrepreneurship, and strengthen key educational areas. President Bush s plan was certainly a step in the right direction, and created many new goals for American competitiveness, many of which appeared in the National Academies Gathering Storm report. President Bush, in his statement upon signing the America COMPETES Act, referred to ACI as one of my most important domestic priorities because it provides a comprehensive strategy to help keep America the most innovative nation in the world by strengthening our scientific education and research, improving our technological expertise, and providing 21 st century job training. The American COMPETES Act would be a replacement to Bush s American Competitiveness Initiative, by expanding funding and providing for additional programs. President Bush was pleased with most aspects of the America COMPETES Act, with the exception of the sections of the law that he believed expanded government. In his signing statement, President Bush was critical of at least thirty new programs created under the America COMPETES Act that he considered mostly duplicative or counterproductive. He also believed that these and other programs under the Act were given excess authorizations that would divert resources from more important areas of American competitiveness, such as basic research. Despite these concerns, President Bush was pleased with the willingness of both parties in Congress to come together to work on an issue of the upmost importance. The America COMPETES Act had truly been a bipartisan bill. On August 9, 2007, the America COMPETES Act of 2007 became Public Law

10 Passiment 10 In 2010, the 111 th Congress revisited the America COMPETES Act to deliberate the Act s reauthorization. On April 22, Representative Bart Gordon, serving as prime sponsor once again, introduced H.R on the floor of the House of Representatives. H.R was referred to the Committee on Science and Technology, as well as the House Committee on Education and Labor. The Speaker chose to refer the bill to both committees so that each committee could exercise jurisdiction over its respective sections of the America COMPETES Act. With a total of 101 cosponsors for the America COMPETES Reauthorization Act (99 Democrats and 2 Republicans) it is clear that the issue of American competitiveness remained vital. On May 7, the Committee on Science and Technology, still chaired by Representative Bart Gordon, issued H. Rept On the same day the Committee on Education and Labor discharged the bill. On May 11, the House Rules Committee reviewed the reauthorization bill and agreed to H. Res. 1344, establishing one hour of debate and other details for the bill s progression through the House deliberation process. H. Res passed the House on the following day and the debate process was agreed to. Although the passage of the rules for deliberation on the reauthorization of the America COMPETES Act was passed in a timely manner, the same could not be said for the reauthorization bill itself. Debating began on May 12 when the House resolved itself into the Committee of the Whole House. There were a number of amendments to the reauthorization bill, and each took a considerable amount of debate time. On May 28, Representative Gordon managed to convince the House to take up the final unfinished business on the reauthorization bill. By a vote of , the America COMPETES Act reauthorization bill passed the House.

11 Passiment 11 The America COMPETES Reauthorization Act would authorize $84 billion for research, education, and innovation programs for a period of 5 years. The funding would be directed to the National Science Foundation, the Department of Energy, and the National Institute of Standards and Technology. In preparing a bill to reauthorize the America COMPETES Act, members of Congress surely consulted the Government Accountability Office (GAO). On October 7, 2010, the GAO issued a report on the status of the America COMPETES Act of The GAO noted several areas of progress being made under the direction of the Act, but also noted area that still require investment and direction. As noted earlier, the Act allocated $30 billion to four agencies for FY 2008 through FY The GAO announced that of that $30 billion, $27 billion was used for scientific research, and $3 billion was used to fund the STEM education obligations. There was, however, room for improvement in the area of high-risk, high-reward research. It was reported that three of the four agencies had not consistently set percentage funding goals for such research, as directed by Congress. It was also discovered that two of the agencies did not report research allocation information in their annual budget submissions. At the time of the GAO s report, it was deemed too early to assess the effectiveness of the programs implemented under the America COMPETES Act. Although the GAO did report that all four agencies receiving funding and direction under the Act were taking the necessary steps to implement the directives from the Act. In its summary, the GAO recommended that the Department of Energy, the National Science Foundation, and the National Institute of Standards and Technology set goals for funding high-risk, high reward research, and that there be coordination in their efforts. Finally, the GAO advised the agencies to include information on research projects in their annual budget requests.

12 Passiment 12 On June 9, the reauthorization bill was received in the Senate, but the bill was not brought up until June 29. On that day the bill was read and referred to the Committee on Commerce, Science, and Transportation. The committee took a very long time to take up the reauthorization bill, finally discharging it by unanimous consent on December 17. On the same day, the reauthorization bill passed the Senate at large by unanimous consent. The reauthorization bill was then sent back to the House of Representatives. On December 21, the House Rules Committee issued H. Res to establish rules for debate on the Senate amendment to H.R Later that day on the floor of the House, Representative Gordon motioned to agree to the Senate amendment, prompting one hour of debate over the measure. By the end of the day on December 21, the reauthorization bill, as amended by the Senate, passed the House by a vote of The reauthorization bill would now be sent to President Obama for his approval or rejection. Due to the intervening holiday, the reauthorization bill for the America COMPETES Act was not presented to President Obama until December 28. Finally, on January 4, after having time to review the reauthorization, President Obama signed H.R into law, changing its designation to Public Law , The America COMPETES Reauthorization Act. In conclusion, the topic of American competitiveness remains a pertinent issue, and one that requires great depth of study. This paper discussed the America COMPETES Act of 2007, which is a direct action by Congress to take a proactive stand on this issue, but there is much more to this issue than this one act. Our nation s expertise in the STEM fields of science, technology, engineering, and mathematics will be a determining factor in where we stand as a nation in the 21 st century. The economic factors of such excellence cannot be

13 Passiment 13 neglected either. According to Eric Hanushek, a professor at Stanford University, An investment in education, designed to improve and increase students skills, is the best and most effective strategy for stimulating economic recovery. Professor Hanushek, members of Congress in support of the America COMPETES Act, experts at the various agencies of the National Academies, the Department of Energy, and the National Institute of Standards and Technology, can all agree that reforms in education, science and research will serve to create a 21 st century job force. Indeed the brightest, most educated nation of people will hold the competitive edge in this century. As Ben Wildavsky, Senior Fellow at the Kauffman Foundation, put it, Ideas are the new currency in a worldwide knowledge economy. American competitiveness is an issue that we cannot afford to neglect; it is a public policy issue that has a significant impact on our domestic policy. It is a public policy issue that requires continual review and regular action, as it is of the upmost importance to the future of the United States of America.

14 Passiment 14 References CQ.com (n.d.). CQ BillTrack - H.R GAO.gov (Oct. 7, 2010). America COMPETES Act. Rising above the Gathering Storm, Revisited: Rapidly Approaching Category 5. Washington, DC: National Academies, Print. Thomas.Loc.gov (n.d.). H.R The America COMPETES Act. UCSB.edu (Aug. 9, 2007). President Bush Signing Statement The America COMPETES Act of

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