A bill to provide for the rescission of funds made available for fiscal year 2009 for Iraq reconstruction.

Mr. President, we need to take strong steps to promote job creation, innovation and sustainable long term economic development and there is no better way to do this than by stimulating and supporting small business innovation, especially in areas of national priority. As part of this effort, today I am introducing the Strengthening Our Economy Through Small Business Innovation Act of 2008.

Job growth, innovation and economic development are driven by our small businesses. Small businesses also tend to be based in our cities and communities and so they are major contributors to our local economies. Half of our county's payroll jobs and most of our new job opportunities are provided by small businesses. Small businesses are proven innovators and drive commercialization of cutting edge technologies. They also are effective partners with universities to enhance product creation, develop university income and attract university graduates and faculty through increased innovative job opportunities.

Over the last 25 years, through the Small Business Innovation and Research program, SBIR, and, more recently, Small Business Technology Transfer program, STTR, up to 2.5 percent and 0.3 percent, respectively, of Federal R&D funds from 11 Federal agencies have been specifically allocated to our Nation's small businesses to fund innovation.

My bill does three things. First, it extends the SBIR and STTR programs for a further 14 years so that small businesses, as well as universities and non-profit research organizations that collaborate with small businesses, can continue to leverage Federal research and development funding.

Second, it significantly increases the allocation of funds and the awards from large Federal research and development budgets to small businesses through the SBIR and STTR programs. It would increase the SBIR allocation from its current 2.5 percent to 10 percent and the STTR allocation from 0.3 percent to 1.0 percent over a 3 year period. It would increase SBIR phase I awards from $100,000 to $300,000 and phase II awards from $750,000 to $2.2 million. Third, it identifies specific funding priorities for energy innovation; safe and secure water; domestic security; and transportation.

Not only are small businesses our major source of employment, they employ about one third of our country's scientists and engineers and generate more patents on a per capita basis than large businesses and universities. This is simply a good investment in sustained job creation and innovation.

Studies by both the independent Government Accountability Office and The National Research Council have established that these programs are very effective in addressing their stated purposes. The NRC's comprehensive study, which was completed last year, found that the SBIR program ``is sound in concept and effective in practice.'' It also found that the program was ``stimulating technological innovation''; ``linking universities to the public and private markets''; ``increasing private sector commercialization of innovations'' at an ``impressive'' rate; and ``providing widely distributed support for innovation activity.'' The study concluded that:

[T]he program is proving effective in meeting Congressional

objectives. It is increasing innovation, encouraging

participation by small companies in R&D, providing support

for small firms owned by minorities and women, and resolving

research questions for mission agencies in a cost effective

manner. Should the Congress wish to provide additional funds

for the program in support of these objectives, those funds

could be employed effectively by the nation's SBIR.

The NRC's study found that universities and other non-profit research institutions will benefit significantly from the increase in both the SBIR and the STTR programs. The STTR allocation increase will directly benefit universities and efforts to bring university-based research into the commercial marketplace, as a partnership with a non-profit research institution, such as a university, is a requirement of all STTR award recipients.

The NRC study also found that many of the small businesses that receive SBIR funding are rooted in the university infrastructure so there will be synergies as investigators and graduates from universities, will have opportunities to be part of commercial developments. More than \2/3\ of SBIR companies report that at least one founder was previously an academic. About one-third of SBIR company founders were most recently employed as academics before founding the company. Over a third of SBIR projects cite direct university involvement with: 27 percent of projects having university faculty as contractors on the project; 17 percent using universities themselves as subcontractors; and 15 percent employing graduate students.

In its report accompanying reauthorization legislation, the Senate Small Business and Entrepreneurship Committee recently concluded that:

increases in the SBIR allocation will invest money in

research, contracting, internships, and other collaborative

activities done with universities, with the contracting and

patenting activities with SBIR companies being a sizable

source of revenue for universities as well. The university-

industry partnerships that SBIR creates are crucial in that

they provide an applied research and commercialization focus

that otherwise likely would not be present in university

research. More specifically, the partnerships are important

in exposing faculty and the next generation of scientists and

engineers to commercial research and development. SBIR

businesses provide graduate and undergraduate students with

hands-on experience and job opportunities that universities

would be unable to provide alone.

Our country faces some major challenges in which targeted research and development will be critical. Congress, with non-partisan expert guidance, has a role to play in guiding our national research and development priorities and, in this case, stimulating small business innovation in specific areas of critical national need. The National Academies of Science and other independent government research organizations provide us with carefully researched and considered recommendations on how we can address these priorities, so my bill draws on their recommendations to develop innovative energy technologies; enhance water quality and security; strengthen domestic security; and address transportation priorities. I urge my colleagues to support my legislation.

Mr. President, legislation I am introducing today will rescind $1.1 billion in fiscal year 2009 funding for Iraq's reconstruction.

As you know, on the first of this month, U.S. forces handed security control of the Anbar province to the Iraqi government. This was an area that was considered all but lost to al-Qaida just 2 years ago, but as a result of the surge and related policies, today the Iraqis are able to take over the lead role for security in the province. This not only is a shining example of the success of the surge, but also shows the great improvements that the Iraqi government has made since the country's historic elections in 2005.

In fact, I believe these gains are so significant that it's time for the Iraqis to foot the bill for their reconstruction.

From 2005 to 2007, the Iraqi government brought in an estimated $96 billion--94 percent of that coming from oil revenues--and a cumulative budget surplus of $29 billion. An August 5, 2008, report by the Government Accountability Office estimated that in 2008 the Iraqis will generate up to $86 billion, with a surplus of up to $50 billion. This means that, by the end of this year, the Iraqis will have realized a budget surplus of up to $79 billion.

I have long been calling for the Iraqi government to assume more responsibility for its own reconstruction costs. Just as they continue to take the lead in securing their country as the situation on the ground improves, I once again call on the Iraqis to take more responsibility for their country's reconstruction. The Iraqis have made great progress in developing their oil infrastructure, and they are now in a position to assume greater financial responsibility of their economic future.

There is no reason that we can't begin to return American tax dollars to the U.S. Treasury. That is why today I am introducing legislation that would rescind more than $1 billion in funding that has been appropriated for future Iraqi reconstruction.

My legislation will rescind approximately $1.1 billion in Iraqi reconstruction funding appropriated by Congress for fiscal year 2009. It is important to note that this legislation will not affect any of the funding for our soldiers who are putting themselves in harm's way every day. Nor will it affect on-going projects, nor any money that has already been obligated.

I urge my colleagues to join me in congratulating the Iraqis in the improvements they have made by allowing them to take control of their own reconstruction. For the people of Iraq, this is a matter of self- determination and self-reliance. For American taxpayers, it's a matter of fairness.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, legislation I am introducing today will rescind $1.1 billion in fiscal year 2009 funding for Iraq's reconstruction.

As you know, on the first of this month, U.S. forces handed security control of the Anbar province to the Iraqi government. This was an area that was considered all but lost to al-Qaida just 2 years ago, but as a result of the surge and related policies, today the Iraqis are able to take over the lead role for security in the province. This not only is a shining example of the success of the surge, but also shows the great improvements that the Iraqi government has made since the country's historic elections in 2005.

In fact, I believe these gains are so significant that it's time for the Iraqis to foot the bill for their reconstruction.

From 2005 to 2007, the Iraqi government brought in an estimated $96 billion--94 percent of that coming from oil revenues--and a cumulative budget surplus of $29 billion. An August 5, 2008, report by the Government Accountability Office estimated that in 2008 the Iraqis will generate up to $86 billion, with a surplus of up to $50 billion. This means that, by the end of this year, the Iraqis will have realized a budget surplus of up to $79 billion.

I have long been calling for the Iraqi government to assume more responsibility for its own reconstruction costs. Just as they continue to take the lead in securing their country as the situation on the ground improves, I once again call on the Iraqis to take more responsibility for their country's reconstruction. The Iraqis have made great progress in developing their oil infrastructure, and they are now in a position to assume greater financial responsibility of their economic future.

There is no reason that we can't begin to return American tax dollars to the U.S. Treasury. That is why today I am introducing legislation that would rescind more than $1 billion in funding that has been appropriated for future Iraqi reconstruction.

My legislation will rescind approximately $1.1 billion in Iraqi reconstruction funding appropriated by Congress for fiscal year 2009. It is important to note that this legislation will not affect any of the funding for our soldiers who are putting themselves in harm's way every day. Nor will it affect on-going projects, nor any money that has already been obligated.

I urge my colleagues to join me in congratulating the Iraqis in the improvements they have made by allowing them to take control of their own reconstruction. For the people of Iraq, this is a matter of self- determination and self-reliance. For American taxpayers, it's a matter of fairness.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.