Budget Update: The President Proposes, Congress Does Nothing

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It looks as though Congress will once again fail to pass a budget this year.

Faced with the start of a new fiscal year on Oct. 1, Congress passed a continuing resolution (CR) in September that kept the government open until Dec. 9. Now, that august body will pass another CR that will keep the lights on until March 31.

By then, a new Congress will have convened (albeit with most of the same members) and a new president, Donald Trump, will be in office. Fiscal year 2017 will be half over, and everyone involved will be grappling with passing a budget for fiscal year 2018.

CRs make life difficult for government agencies, keeping funding at the same levels as the previous fiscal year and making it hard to start new programs and initiatives.

“We must continue to keep our federal agencies and programs open for business, while looking towards future progress on these vital Appropriations bills,” said House Appropriations Chairman Hal Rogers (R-KY) in a press release. “While I’m disappointed that the Congress is not going to be able to complete our annual funding work this year, I am extremely hopeful that the new Congress and the new Administration will finish these bills. I am also hopeful for a renewed and vigorous ‘regular order’ on future annual funding bills, so that the damaging process of Continuing Resolutions will no longer be necessary.”

Congress’ Chronic Under Funding of NASA’s Commercial Crew Program

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Excerpted from, “NASA’s Commercial Crew Program: Update on Development and Certification Efforts,” NASA Office of Inspector General, Report No. IG-16-028, September 1, 2016

Past Funding Shortfalls Have Delayed NASA’s Commercial Crew Plans

As discussed in our previous report, for several years during its early development, the Commercial Crew Program received significantly less funding than requested.14 As shown in Table 2, to date the cumulative difference between the President’s budget requests for the Program and actual appropriations is approximately $1.1 billion. However, under the current CCtCap phase of the Program, Boeing and SpaceX are operating under firm-fixed price contracts, which provide a more stable cost estimate for the remaining work needed to certify the commercial crew vehicles. Further, in December 2015 – for the first time in 6 years – NASA received the full amount the President requested for the Program: $1.2 billion for FY 2016. Although not the only factor, the shortfall contributed to slippage in the Program’s schedule. NASA officials said while full funding in FY 2016 will help reduce risks related to budget uncertainty, it will do little to address technical Program risks.
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Bridenstine’s Bill Would Radically Restructure NASA

NASA LOGOBy Douglas Messier
Managing Editor

NASA would be given a mandate to pioneer the development and settlement of space and a commission dominated by Congressional appointees to oversee those efforts under a bill proposed by Rep. Jim Bridenstine (R-OK).

The measure’s basic premise is that NASA’s problems stem from unstable presidential commitments to space exploration as opposed to Congress’ tendency to support expensive programs that bring funding into particular states and districts.

“Over the past twenty years, 27 NASA programs have been cancelled at a cost of over $20 billion to the taxpayer,” according to a statement on a website devoted to the measure. “Many of these have come as a result of changes in presidential administrations.

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Why the Space Leadership Preservation Act Solves Nothing

Michael Griffin, Eileen Collins and Cristina Chaplain testify (Credit: House Science Committee)
Michael Griffin, Eileen Collins and Cristina Chaplain testify (Credit: House Science Committee)

By House Science Committee Democrats

WASHINGTON, DC  – Today, the Committee on Science, Space, and Technology held a hearing to receive testimony on H.R. 2093, the Space Leadership Preservation Act, and to consider the issue of maintaining a “constancy of purpose” for the National Aeronautics and Space Administration (NASA). The Committee also held a hearing on the Space Leadership Preservation Act last Congress.
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Why the Space Leadership Preservation Act is Necessary

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By House Science Committee Republicans

WASHINGTON, D.C. – The House Science, Space, and Technology Committee today held a hearing on The Space Leadership Preservation Act and the need for stability at NASA. The hearing featured input from former astronaut and first female Space Shuttle pilot and commander, Eileen Collins, former NASA Administrator Michael Griffin, and Rep. John Culberson, author of the Space Leadership Preservation Act.

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AIAA Applauds FY2016 Omnibus Spending Bill

aiaaBill Provides Increased Funding for Important Aerospace Programs

RESTON, Va., (AIAA PR) — The American Institute of Aeronautics and Astronautics (AIAA) applauds congressional passage of the “Consolidated Appropriations Act of 2016.” The $1.15 trillion spending bill provides funding for key programs at NASA, the Department of Defense, and the FAA.

The bill increases NASA funding to $19.3 billion, more than $1.3 billion dollars over FY15 funding. Among the allocations are $1.24 billion for the Commercial Crew program, which will allow the transport of astronauts from the United States to the International Space Station. The bill also funds the agency’s planetary sciences program at $1.63 billion and the Space Launch System at $2 billion. These increased levels will help us maintain our long-standing global leadership in space exploration and scientific discovery.

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AIA Welcomes House Extension of R&D Tax Credit

aialogosmStatement by Aerospace Industries Association President and CEO David F. Melcher on the House voting to extend the R&D Tax Credit permanently.

Arlington, Va. — AIA welcomes the House vote to permanently extend the research and development tax credit which lapsed at the end of 2014. It provides an important incentive during these times of fiscal austerity for thousands of companies to make long-term investments in innovation and is critical to creating economic growth. Particularly at a time when DOD is actively seeking new sources of innovation, it’s imperative that we do everything in our power to incentivize companies in every sector to invest in innovative ideas and solutions.

This credit supports companies that invest working capital in basic research and in applied research aimed at the creation or improvement of products. More than 70 percent of the credit is used to fund the salaries of R&D workers who hold the kinds of high-quality jobs that fuel our national economy, with the remainder applied to investment in new plant and equipment.

Currently, the U.S. significantly trails other leading countries in providing incentives for companies to conduct research and development.  Making this critical tool for spurring investment and innovation permanent helps maintain the American edge in innovation and provides companies with the certainty they need for long range planning.  The House is to be congratulated for voting to ensure American companies can rely on this credit going forward and we encourage the Senate to pass the bill as soon as possible.

International Institute of Space Law Weighs in on Space Mining Law

IISL_logoINTERNATIONAL INSTITUTE OF SPACE LAW

Position Paper on Space Resource Mining
Adopted by consensus by the Board of Directors on 20 December 2015

I. The U.S. Commercial Space Launch Competitiveness Act

On 25 November 2015, the President of the United States signed into law the U.S. Commercial Space Launch Competitiveness Act (H.R. 2262).1 It consists of four Titles: I. Spurring Private Aerospace Competitiveness and Entrepreneurship; II. Commercial Remote Sensing; III. Office of Space Commerce; and IV. Space Resource Exploration and Utilization.

Title IV, which is of interest here, addresses in a preliminary way space resource exploitation.

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More NASA Funding Provisions From the Omnibus Spending Bill

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Here are some additional provisions included in the omnibus spending measure unveiled by Congress on Wednesday.

Commercial Crew

“This Act provides up to $1,243,800,000 for NASA’s Commercial Crew Transportation Capability to safely send the Nation’s astronauts to and from the ISS by 2017. The Committees note that NASA notified Congress in an August 2015 letter of its decision to modify an existing contract with the Russian government for crew transportation services beyond 2017. That decision was made prior to any final action by Congress on NASA’s Commercial Crew Transportation Capability funding for fiscal year 2016.

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AIA Praises Ex-Im Bank Reauthorization

aialogosmStatement by Aerospace Industries Association President and CEO David F. Melcher on reauthorization of the Export Import Bank of the United States.

Arlington, Va. — AIA welcomes last night’s passage of a five-year transportation bill – this is the first time in 17 years that the House and Senate have come together to produce a transportation bill of this length and duration and we congratulate them on that accomplishment.

In particular, we are relieved and delighted that the bill served as a vehicle for a four-year reauthorization of the Export-Import Bank of the United States. The Ex-Im Bank is a valuable tool supporting exports in the aerospace industry – the leading export industry in the U.S. manufacturing sector with a trade surplus of nearly $62 billion. By reauthorizing the Bank, America is sending a clear signal that we are serious about competing in the global marketplace and will take the necessary steps to ensure American exporters have a level playing field.

One last item remains for the Ex-Im Bank to become fully functional again. Currently the bank does not have the required number Directors on their Board to approve any transaction over $10 million. Filling the other seats requires the cooperation of the U.S. Senate and the White House. We urge President Obama and Senate leadership to nominate and confirm new Members to the Ex-Im Board expeditiously.

We applaud the leadership shown by the champions of Ex-Im Bank. Without their tireless work and energy, passage of this bill would not have been possible. We will need their continued support and leadership in future debates impacting the health and global competitiveness of the aerospace industry.

AIA Calls on Congress to Pass FY 2016 Budget

aialogosmStatement by Aerospace Industries Association President and CEO David F. Melcher calling for full appropriation consistent with the Bipartisan Budget Act of 2015.

Arlington, Va. — AIA calls on Congress to pass an omnibus appropriations bill in early December that would avoid the specter of a year-long continuing resolution. The Bipartisan Budget Act of 2015 provides badly-needed funds and a measure of stability across all government agencies for the next two years.  Congress should follow the dictates of the budget deal they negotiated less than two months ago and pass a full-year appropriations bill for fiscal year 2016.

A full year continuing resolution – or one that delays decisions into 2016 – could lock in 2015 funding levels and prevent agencies from executing contracts on new programs.  It would inject uncertainty into the budgeting process and prevent both government and industry from making plans and investments to support our longer-term national security and economic objectives.

Military leaders have been sounding the alarm this year about the increasingly chaotic situation in the Middle East and emboldened military actions by Russia, China, Iran and North Korea.  Non-defense agencies such as the Federal Aviation Administration, NASA, NOAA, and the U. S. Coast Guard are critical for our nation’s public safety, economy, and global stature in science, exploration and aerospace technology.  The responsible course of action is for Congress to follow through on the commitment made in the Bipartisan Budget Act of 2015 and pass a full appropriation.

Transportation Bill Would Revive Suspended Ex-Im Bank

Capitol BuildingSome good news for supporters of the Export Import Bank, a group that includes a number of aerospace companies that use the institution to help finance their overseas sales.

Senate and House of Representatives negotiators reached agreement on Tuesday on a $305 billion, five-year transportation bill that would fund roads, bridges and mass transit, while also reviving the embattled Export-Import Bank.

The legislation would renew the EXIM Bank’s charter through Sept. 30, 2019, after it expired on June 30 in the face of conservative opposition.

The measure to revive the bank, which helps Boeing Co and other companies with foreign competitors, has wide support in Congress. The agreement would reduce EXIM’s total lending limit by $5 billion to $135 billion and provide a number of reforms aimed at improving transparency and governance.

Read the full story.

Moon Express Praises Senate Vote on Space Mining

me-word-logo2WASHINGTON, DC, November 11th, 2015 (Moon Express PR) – Last night, the Senate passed landmark legislation on a unified vision for the growth of the commercial space industry. Title IV of the “U.S. Commercial Space Launch Competitiveness Act (CSLCA, or H.R. 2262 as amended)”, provides the first ever codification of rights under United States law for the extraction and utilization of space resources obtained from a celestial body.

Moon Express, Bigelow Aerospace, and many other companies are applauding the Senate for supporting the creation of a stable and predictable environment for private sector development while encouraging investments into the bold new field of outer space resource exploration and utilization. This legislation protects and supports U.S. interests as private sector companies expand the economic sphere of Earth to the Moon and beyond.

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Commercial Spaceflight Federation Praises Passage of Space Bill

CSF_logo2WASHINGTON, D.C. (CSF PR) – Last night the Senate passed the bi-partisan U.S. Commercial Space Launch Competitiveness Act (CSLCA, or H.R. 2262 as amended), which represents one of the most significant modernizations of commercial space policy and regulatory legislation since the original Commercial Space Launch Act (CSLA) was enacted in 1984. CSF applauds Senators John Thune (R-SD), Bill Nelson (D-FL), Ted Cruz (R-TX), Gary Peters (D-MI), Marco Rubio (R-FL), Cory Gardner (R-CO), Patty Murray (D-WA) and Tom Udall (D-NM) for their leadership and vision in authoring and co-sponsoring this much-needed and comprehensive legislation.

CSLA was last updated in 2004, creating a regulatory framework for commercial human spaceflight that resulted in a wave of investment, innovation, jobs and economic growth for the U.S. This new legislation sets the stage for the continued growth and expansion of the space transportation industry, while enabling rapid advances in safety for spaceflight participants. It also promotes investments in new commercial space applications, promising future spaceflight capabilities that will benefit all Americans.

“The members of the Commercial Spaceflight Federation commend Senators Thune, Nelson, Cruz, Peters, as well as all their cosponsors, for their leadership and perseverance in passing this critical piece of bipartisan legislation to ensure that America remains the leader in space,” CSF President Eric Stallmer said. “CSF looks forward to quick action on this bill in the House of Representatives when it returns next week.”