Commerce FY 2012 Budget Request Would Increase Funds for Export Initiative, Keep Wool Fund

The Administration’s FY 2012 budget request for the Commerce Department would provide $8.8 billion in discretionary funds, a $5 billion reduction from the FY 2010 enacted level. However, the request would increase funding for certain activities, such as those associated with the President’s National Export Initiative.

(Note that FY 2011 funding has yet to be approved, and short-term continuing resolutions are being planned by both House and Senate leaders. See ITT’s Online Archives or 02/28/11 news, 11022818, for BP summary.

Would Increase ITA Funds, Especially for National Export Initiative

The President’s FY2012 budget request includes approximately $517 million for the International Trade Administration, a 13% increase from 2010 enacted levels. The bulk of the increase would go toward funding ITA’s National Export Initiative activities. ITA funding will also be targeted to help small business exports, enforce international trade agreements, eliminate barriers to sales of U.S. products, and improve the competitiveness of U.S. firms.

Wool Trust Fund Would Continue Using DHS-Transferred Funds

The FY 2012 budget request would transfer $5 million from the Department of Homeland Security to the ITA to provide grants to U.S. manufacturers of worsted wool fabric under the Wool Trust Fund, pursuant to the Miscellaneous Trade and Technical Corrections Act of 2004, and extended by Public Law 110--343.

(Note that in its FY 2011 budget request, Commerce proposed to eliminate these worsted wool grants, stating that eligible manufacturers had already received sufficient subsidies to counter increased foreign competition. See ITT’s Online Archives or 02/18/10 news, 10021820, for BP summary.)

Increased Funds for BIS Would Add Export Enforcement, Special Agent Positions

The Bureau of Industry and Security’s FY 2012 budget request would increase to $111 million from approximately $101 million under FY 2010 enacted levels. BIS’ budget requests provides for positions in the Office of Export Enforcement and the Office of Enforcement Analysis to support increased counter- proliferation, counterterrorism and national security programs and investigations.

In addition, in FY 2012, BIS plans to expand its Special Agent resources in the field by placing four Resident Agent in Charge (RAC) offices in Arizona, Georgia, Ohio and Oregon. BIS says that this increase in its investigative posture would allow the agency to more efficiently execute its duties within new regional areas of responsibility enhancing its ability to prevent the proliferation of dual-use goods and technology contrary to the national security interests of the U.S. In addition, this expanded local presence would expand BIS’s export promotion capabilities.

Would Increase NIST Research Funds for Nanotechnology, Etc.

While overall funding for the National Institute of Standards and Technology would decrease, the FY 2012 budget request would increase NIST's laboratory research budget by providing $626 million to expand research and development in areas such as nanotechnology; “21st Century Manufacturing,” and interoperability standards of emerging technologies, among other priorities.

Budget Request Would Restructure ITA, Eliminate Foreign Posts, Cut Programs

According to Commerce, the programs the President is proposing to cut or eliminate include:

• $20 million by restructuring the ITA to focus on high-priority markets and industries. This means eliminating a number of foreign posts, among other cost savings;
• $15.8 million from eliminating the Economic Development Administration’s (EDA) Trade Adjustment Assistance for Firms program;
• $37.3 million from eliminating EDA’s 21st Century Innovation Infrastructure program;
• $43 million by eliminating the Emergency Steel Guaranteed Loan Program;
• More than $2 million by reducing the reliance of the Baldrige Performance Excellence Program on federal funding and shifting it to a private sector footing;
• $20 million by eliminating the Public Telecommunications Facilities, Planning and Construction Program.

Commerce Dept. press releases, dated 02/14/11, available here, here and here.

BIS budget information available here.

Office of Management and Budget documents available here.