The Final Months of 2022 in the Nation’s Capital in Review

Uncertainty and delay are on full display as the 118th Congress begins its work this month. As congressional leadership and priorities are still taking shape, we look back at what did happen to wrap up 2022. Over the fall semester months, states tallied up November’s midterm election results and Congress finished the year in dramatic fashion, narrowly passing its FY23 omnibus spending package just in time to avoid a government shutdown over the Christmas holiday. We recap all that and more, plus what we can expect for Duke’s federal priorities heading into the new year.  

Midterm Elections Recap

The 2022 midterm elections wielded a strong influence on this fall’s overall activity and priorities in Washington, DC. There were several key races in North Carolina as Congressman David Price (D-NC), who represents Duke University and Durham, and longtime Senator Richard Burr (R-NC) both retired at the end of the 117th Congress. State Senator Valerie Foushee (D-NC) won her election to replace Mr. Price and will represent the 4th Congressional District and Duke University in the 118th Congress. Meanwhile, former Congressman Ted Budd (R-NC) defeated Cheri Beasley and will join Senator Thom Tillis (R-NC) in the Senate. Our DC Digest includes additional information regarding the new North Carolina delegation makeup.

For a complete list of the North Carolina delegation and other congressional news relevant to Duke, you can access the 118th Congress tab on the Duke Government Relations website.

Budget & Appropriations

After passing three temporary stopgaps and only a few hours before a government shutdown, Congress successfully passed the $1.7 trillion FY23 omnibus spending package on December 23rd. The year-end legislation included approximately $800 billion for non-defense spending, an increase of $68 billion over FY22, and $858 billion for defense spending, an increase of $76 billion over FY22. The massive bill holds significant implications for the higher education community, many of which are outlined in this DC Digest.

Below is a table representing Duke University’s funding priorities for the current fiscal year.

Status of Duke University’s Funding Priorities in the Federal Budget Process

ARPA-H

In addition to $1.5 billion in funding provided for the Advanced Research Projects Agency – Health (ARPA-H), the final FY 23 omnibus contains statutory language authorizing the agency and its structure. The agreement places ARPA-H under the National Institutes of Health, but the director reports to the Secretary of Health and Human Services. The language also sets forth some parameters for the agency’s location, noting that it cannot be co-located with an existing NIH campus and should have a presence in no less than three locations.

Research, Innovation & Competition

The implementation of the bipartisan CHIPS and Science Act began in earnest after it was signed into law in August. In September, the White House announced its implementation leadership team, which is led by Duke Fuqua Professor Aaron “Ronnie” Chatterji. The CHIPS Research and Development Office released an update on the National Semiconductor Technology Center in November, which provided an overview of its process for defining the NSTC and previewed a white paper expected in 2023 that will also include guidance on when a request for proposal can be expected.

Rounding out the year, Congress also successfully passed the FY23 National Defense Authorization Act (NDAA), which was signed into law by President Joe Biden on December 23rd. The annual legislation authorizes $138.9 billion in research and development investments across the national security enterprise, including a 22.8% increase in basic research and historic funding for research activities at Historically Black Colleges and Universities (HBCUs). Among other provisions, the policy bill also requires DOD to develop a strategy and implementation plan for strengthening defense innovation ecosystems, establishes an industry, academia and government working group on microelectronics and requests the establishment of a new innovation fellowship under the Defense Advanced Research Projects Agency (DARPA).

Foreign Influence and Research Security

Following the midterm elections, newly elected Speaker of the House Kevin McCarthy (R-CA) announced plans to launch a Select Committee on China in the 118th Congress, tapping Rep. Mike Gallagher (R-WI) to chair the panel. In the waning days of 2022, Majority Leader-elect Steve Scalise (R-LA) sent a letter to the Republican caucus outlining a list of legislative priorities in the first two weeks of the new Congress, including a draft resolution to create the new committee focused on China.

Over the last several months progress has been made on the Biden administration’s national security strategy. In October, the White House released its long-awaited National Security Strategy, which encapsulates the administration’s thinking on the state of the world and how it will navigate challenges to the homeland and global order. The report aims to maintain the U.S.’s strategic advantage to attract and retain the world’s best talent.

In late November, Department of Commerce Secretary Gina Raimondo delivered an extensive speech on US competition with China and outlined the administration’s efforts to invest in domestic R&D and manufacturing and protect our technological advantage from foreign influence.

Immigration

In the FY23 year-end funding bill, Senator Tillis attempted to include a bipartisan compromise for Dreamers, which ultimately failed and does not appear to be a realistic prospect for the 118th Congress. Accordingly, legal challenges and regulatory activity involving the Deferred Action for Childhood Arrivals Act (DACA) will continue to be the focus of Duke’s federal immigration advocacy.

In September, the Department of Homeland Security removed regulatory hurdles for anyone deemed “likely” to become dependent on public benefits while obtaining a visa or becoming a permanent U.S. resident, which had been established by the Trump administration. The U.S. Court of Appeals for the District of Columbia also upheld the federal government’s legal authority to allow F-1 international students to work in the U.S. after graduation under the Optional Practical Training (OPT) program, including the STEM OPT extension.

This academic year, the broader higher education community also saw a rebound in international student enrollment after several years of pandemic-related decline. Overall international student and graduate enrollment at U.S. institutions saw a 4% and 17% increase, respectively, during the 2021-2022 school year. Despite these trends, 45% fewer students from China were issued visas from May-August 2022 compared to the same months in 2021, and overall international enrollment is still below pre-pandemic levels.

Student Aid & Other Issues Related to Higher Education

The Supreme Court has two issues on its current agenda involving higher education. In February, the high court will hear arguments about the legality of President Joe Biden’s student debt relief program. Additionally, the court also heard arguments in 2022 on race-based admissions practices from Harvard and UNC and is expected to rule on both cases separately later this June.

The last few months of 2022 were also action-packed for the Department of Education. Beyond President Biden releasing his long-awaited student debt forgiveness plan, 360,000 student loan borrowers received $24 billion in forgiveness through a temporary Public Service Loan Forgiveness (PSLF) waiver. The department also issued several rules, which include allowing Pell funds to be accessed by incarcerated individuals and closing a loophole to protect veterans and service members from predatory lending practices. Furthermore, the Department released Title IX guidance to protect pregnant students and is expected to release a Title IX proposed regulation concerning athletics in the coming year. In the coming months, the Department is also expected to issue rules on the TRIO program, third-party loan servicers, distance education, student loan forbearances, accreditation, state authorization, student withdrawal rules and student aid disbursement.

Federal Appointments and Roles

Throughout these milestones over the past several months, several individuals have been named to serve in key positions within the Biden administration. Among the appointments relevant to the higher education community, Arati Prabhakar was confirmed as the new director of the White House Office of Science and Technology Policy (OSTP) with Asad Ramzanali named Chief of Staff. In December, the Senate confirmed Evelyn Wang, the current head of the Department of Mechanical Engineering at MIT, as the new director of the Department of Energy’s (DOE) Advanced Research Projects Agency-Energy (ARPA-E). In October, President Biden also announced his appointment of Renee Wegrzyn as the first director of the ARPA-H, the agency newly established to drive cutting-edge biomedical and health solutions led after ARPA-E. President Biden also announced his intent to appoint 14 individuals to serve on the National Board for Education Sciences.

From the Duke community (as mentioned above), Ronnie Chatterji was announced as the White House Coordinator for CHIPS Implementation at the National Economic Council (NEC). Previously, Chatterji was serving as the Chief Economist of the Department of Commerce. Director of the Duke Marine Lab, Andrew Read, was confirmed by the Senate to be the Marine Mammal Commission (MMC) Commissioner in December. Read is a widely cited expert on marine vertebrates and has previously served on the MMC committee of scientific advisors on Marine Mammals. President Biden also nominated Duke alum Danny Werfel PPS ’97, to serve as the next head of the IRS. Finally, former principal deputy director of national intelligence and Duke University Rubenstein Fellow, Sue Gordon T’80, joined the reestablished Defense Innovation Board this fall to provide recommendations to the DOD regarding emerging technologies and innovative capabilities.

You can access the Federal Government page on the Duke Government Relations website for a complete list of federal appointments relevant to Duke.

Duke in DC Updates

Duke in DC hosted numerous events throughout 2022, including a return to in-person event programming. Moving into the new year, a brand new series, “NC in DC,” will kick off at Duke in DC in March that will highlight the university’s broad and far-reaching impact across North Carolina. Our office also continued its Direct Impact video series highlighting two faculty researchers, Sunshine Hillygus and Dalia Patino-Echeverri and their National Science Foundation (NSF) and DOE-funded work, respectively.

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