The Big Story: Endless Frontier Act advances through key Senate Committee with changes.
The Senate Commerce Committee voted this week to advance a pared down version of the Endless Frontier Act, clearing it’s path for a floor vote. The bill would invest funds to prioritize research into advanced technologies and would authorize $10 billion to create at least ten regional technology hubs. While the original iteration of the legislation directed $100 billion over five years to the bill’s newly created tech directorate at the National Science Foundation (NSF), after amendment, much of this funding would be directed to other NSF activities, with a portion of funds marked toward the directorate to be diverted to the Department of Energy’s National Laboratories.
Sponsored by Senate Majority Leader Chuck Schumer (D-N.Y.) and Sen. Todd Young (R-Ind.), the legislation was originally scheduled for markup shortly after its hearing in April, but was pulled after more than 200 amendments were submitted. A total of nine amendments were adopted, with some considered that were largely unrelated to technology or countering the competitive threat of China. The legislation has received broad support from dozens of organizations who view a national investment strategy into research and development of emerging technologies as critical for the U.S. competitiveness in technological innovation. Engine joined these organizations to encourage passage of this critical legislation, which would “provide a lifeline to the future of the American economy, prepare the U.S. workforce to compete globally, encourage new company formation, and create high skilled, good-paying American jobs.”
As Engine noted following a hearing on the bill, long-term investments in the innovation sector are crucial for economic recovery as the U.S. emerges from a global pandemic. And bold investments in research and development will help drive the creation of new, innovative companies across the country. The slimmed-down legislation now faces a Senate floor vote, which could come as early as next week, and the House is still poised to consider the bill at its original funding levels.
Policy Roundup:
DHS withdraws proposed removal of International Entrepreneur Rule. This Monday, the Biden Administration officially withdrew the previous administration’s proposed removal of the International Entrepreneur Rule—an Obama-era effort to allow foreign entrepreneurs to grow promising companies in the U.S. The IER would allow entrepreneurs that meet certain requirements, including at least $250,000 in capital investment, to obtain immigration status for a period of 2.5 years, with possibility for extension. Full implementation of the IER is an essential first step to embracing the contributions of foreign-born entrepreneurs and will provide critical support as the economy rebounds from the coronavirus pandemic.
Merger fee bill clears committee. Bipartisan Legislation that would adjust the premerger fees paid by companies passed out of the Senate Judiciary committee this week. The bill, known as the “Merger Filing Fee Modernization Act of 2021,” would increase fees for mergers valued at more than $1 billion and reduce fees for those under $1 billion.
Senate committee advances FTC nominee. The Senate Commerce Committee voted this week to move forward with Lina Khan’s nomination to the Federal Trade Commission, with just four Republican members of the panel opposed. Khan has been critical of acquisitions of tech companies. According to our recent report, acquisitions are strongly correlated with investment in startups, especially outside of the nation’s top startup hubs, making them a crucial component of the startup ecosystem.
Senate, House, hold hearings on trade agenda. United States Trade Representative Katherine Tai testified before the Senate Committee on Finance and the House Committee on Ways and Means this week regarding the Administration’s 2021 Trade Agenda. As USTR reviews current agreements, considers updates to old agreements, and pursues new ones, it is critical for the startup ecosystem that strong digital trade provisions are included to ensure cross-border data flows, provide certainty around intermediary liability frameworks, and implement balanced and consistent IP frameworks globally.
Startup Roundup:
#StartupsEverywhere: Portland, Oregon. Nombolo is a social media platform that enables users to engage with one another in real time, to answer questions and share experiences through geo-positioned videos and requests. We spoke with Prince Mlaudzi—Founder and CEO of Nombolo—to learn how he developed the idea for the platform from his love of basketball, the challenges he faces as a small platform developing systems for responsible content moderation, and how the government can do more to support underrepresented founders.
Startup Policy Seminar Series: Join Engine on June 9 at 4 p.m. ET where, together with an expert panel, we will explore the current landscape of workforce mobility & immigration public policy, particularly focusing on how these issues impact startups and how startups can get involved in these policy debates. The event will feature a discussion moderated by Engine’s Policy Manager, Jennifer Weinhart, and several expert panelists. You can RSVP here.
