Feb. 6, 1997                            TA 97-1

Contact:  Michael E. Newman             PRESIDENT'S FY 1998 BUDGET SEEKS
          (301) 975-3025                $702 MILLION FOR TECHNOLOGY
          michael.newman@nist.gov       ADMINISTRATION TO FOSTER
                                        LONG-TERM ECONOMIC GROWTH

     President Clinton's fiscal year 1998 budget request for the
Commerce Department's Technology Administration is $701.7 million,
Commerce Secretary William Daley announced today.

     Daley said, This budget request reflects the President's
commitment to a solid technology base upon which to build our nation's
economic growth, create new jobs and assure that the United States
continues to be a dominant force in the global marketplace."

     Led by the Under Secretary for Technology, the Technology
Administration includes the Office of the Under Secretary for
Technology, the Office of Technology Policy, the National Institute of
Standards and Technology, and the National Technical Information
Service.

     The President's request for TA includes:

    $9.2 million (a decrease of $270,000 from the FY 1997
     appropriation) for the Office of the Under Secretary for Technology
     and the Office of Technology Policy to support (1) oversight
     activities of TA's components; (2) TA's lead role in the Committee
     on Technological Innovation of the President's National Science and
     Technology Council and the Partnership for a New Generation of
     Vehicles; (3) the Under Secretary's role as technology
     representative on binational programs (the U.S.-Japan Economic
     Framework Talks, the U.S.-Egypt Partnership for Economic Growth,
     the U.S.-Israel Science and Technology Commission, and the
     Presidential initiative to support the peace process in Northern
     Ireland); and (4) the OTP's role as the Executive Branch's
     principal civilian technology policy analyst and advocate.

    $692.5 million (an increase of $120.5 million from the FY 1997
     appropriation) for the National Institute of Standards and
     Technology to operate--in close partnership with the private
     sector--a set of four civilian technology support programs that
     focus on the country's technology infrastructure. These are jobs that
     neither government nor industry can accomplish separately but are
     important to the nation's global competitiveness and economic
     future.

     Gaps in funding, expertise and/or information often slow progress.
     NIST's mission is to help fill these gaps by providing industry
     with the technology, measurement and standards support it needs. At
     the proposed funding level, NIST's budget would continue to
     represent only about 1 percent of the total federal R&D expenditure.
     However, NIST leverages this small federal investment to deliver
     broad-based economic benefits for all types of industries and all
     sizes of companies.

Office of the Under Secretary for Technology/Office of Technology Policy

     The FY 1998 request will enable US/OTP to meet critical
Administration and Congressional civilian technology priorities. Among
the efforts that this funding will help support are: (1) coordination of
the Partnership for a New Generation of Vehicles, a collaboration
between the federal government and the auto industry to aggressively
explore new technologies that will lead to cleaner, more fuel-efficient
vehicles; (2) OTP's role as the federal government's primary advocate
for innovation and industrial competitiveness, analyst of civilian
industrial technology issues, and incubator of new models of domestic
and international technology cooperation; and (3) the National Medal of
Technology.

     The $2.5 million U.S.-Israel Science and Technology External Grant
Fund will conclude at the end of FY 1997, providing an opportunity for
new domestic and international activities. Funding of $1.7 million in FY
1998 will be assigned to a new effort to extend the benefits of existing
federal science and technology efforts through closer cooperation and
collaboration with traditionally under-represented states (the
Experimental Program to Stimulate Competitive Technology Initiative).
Also, $350,000 will be used to create international economic and
technology development programs in support of the Administration's
foreign policy and peace efforts (in joint programs with the Balkans,
Egypt, Greece, Israel, Jordan, Northern Ireland, the Republic of
Ireland, Russia, South Africa and the Ukraine).

National Institute of Standards and Technology

     The FY 1998 budget request for NIST is divided into three separate
appropriations:

    $399 million for technology development and industrial outreach
     under the Industrial Technology Services (ITS) appropriation that
     includes (1) cost-shared funding to industry for preproduct
     development of high-risk, potentially high-payoff, economically
     important technologies through the Advanced Technology Program; and
     (2) more widely distributed services and expanded hands-on
     technical assistance to smaller manufacturers through a nationwide
     network of centers under the Manufacturing Extension Partnership.

     This request provides:

     - $275.6 million for the Advanced Technology Program. This includes
       an additional $50.6 million in funding over FY 1997 to expand
       further the program which successfully promotes industry's
       ability to make technologically challenging efforts that have
       broad economic benefits. The additional funds will enable the ATP
       to conduct one general competition and several focused program
       competitions in FY 1998.

     - $123.4 million for the Manufacturing Extension Partnership. The
       requested increase of $28.4 million over FY 1997 will be used to
       provide the federal share of funding needed to support the
       network of manufacturing assistance centers serving all 50 states
       and Puerto Rico. These centers provide hands-on assistance to the
       nation's 381,000 smaller manufacturers.

       The FY 1998 request also will allow MEP to improve its services
       through application of advanced information technologies to small
       business needs, optimization of supply chains by improving the
       business practices of smaller suppliers, and better utilization
       of advanced technologies for the modernization of processes and
       the continued improvement of products.

       FY 1998 marks the first year in which NIST assumes full funding
       for all centers. The Department of Defense's Technology
       Reinvestment Project provided a one-time funding transfer to NIST
       to help accelerate the deployment of extension centers, with the
       intent that these TRP-funded centers would "rollover" to NIST
       funding.

    $276.8 million for efforts under the Scientific and Technical
     Research and Services (STRS) appropriation that includes funding
     for two components: (1) the NIST Laboratory Program--planned and
     conducted with U.S. industry--to develop measurement technologies
     and standards and (2) the Baldrige National Quality Program, which
     helps U.S. companies reach their full potential through the
     practice of quality strategies and performance excellence.

This request includes:

     - $271.5 million for the NIST Laboratory Program. The requested FY
       1998 increase of $6.5 million will be applied to two critical
       industry measurement and standards needs: new measurement tools
       and services for the semiconductor device, equipment and
       materials industries that reduce costs and improve international
       competitiveness; and a comprehensive approach to technical
       measurements and standards needed to help support rising exports
       of U.S. products.

     - $5.3 million for the Baldrige National Quality Program. The
       requested FY 1998 increase of $2.3 million would allow
       establishment of quality criteria and parallel award programs for
       the healthcare and education communities. NIST already has
       conducted a successful pilot program applying quality guidelines
       to these sectors.

    $16.7 million for improving NIST's 30- to 45-year-old research
     facilities to ensure a safe working environment for NIST staff.
     Congress provided no appropriation for this line item in FY 1997
     and instructed NIST to redirect previously appropriated funds
     intended for new construction and facilities renovations toward
     completion of a new chemistry laboratory building and maintenance
     and necessary fire and safety upgrades at other NIST facilities.

     The advancing age of NIST buildings has caused a substantial
     backlog of critical safety and maintenance projects such as
     inadequate fire safety alarms, lack of sprinkler systems and
     inadequate chemical exhaust systems. Proposed FY 1998 funding would
     be used to address the highest priority backlogged needs.

National Technical Information Service

     NTIS is a self-supporting agency, and there is no request for
federal appropriations in FY 1998.

                              - 30 -

For more details see "FY98 Technology Administration Budget Highlights."