Mr. President, I understand Senator Inhofe and Senator Vitter are both on the floor to offer amendments to the SBIR and STIR Program. Are we under a consent agreement? Yes, I yield to Senator Inhofe. Is that Senator Vitter's amendment?…
Mr. President, I understand Senator Inhofe and Senator Vitter are both on the floor to offer amendments to the SBIR and STIR Program. Are we under a consent agreement?
Yes, I yield to Senator Inhofe.
Is that Senator Vitter's amendment? Senator Vitter was here, so I wanted him to have the opportunity to offer his. It doesn't matter to me in what order.
Mr. President, let me just add a word. I see the Senator from Oklahoma. Again, as the managers of this bill, Senator Snowe and I have worked across party lines to bring the SBIR bill to the floor. We want to have as open an amendment process as possible. We think that is fair. We would like to really ask people to focus on amendments specific to this legislation. I know time on the Senate floor is precious, and we don't get as much time as we would like to offer our bills and amendments, but we do ask that of everyone so we can try to get this bill to the House and, hopefully, to the President's desk.
Senator Inhofe is here to offer an amendment. We agreed earlier to allow that to happen, so I will turn the floor over to him.
Mr. President, I sincerely appreciate the remarks of the Senator from Delaware and thank him for his support not only of this program but for his expertise and leadership in the whole area of small business innovation and technological advancements. He was quite a leader in his previous positions in Delaware, and he brings a great deal of expertise to the Senate.
I know the Senator from Alaska is on the floor to speak about an amendment that is pending for debate and consideration. We may have amendments that are called up for votes today--that has not been finally decided--but we can come to the floor, of course, and offer amendments and debate several that are pending.
One thing I want to say before I turn it over to Senator Murkowski is that I think Senator Coons hit the nail on the head when he said a smart budget plan is going to work to meet the challenges of this extraordinary debt we have that has been caused for multiple reasons. It is important we address that correctly and not just one-sided.
This bill addresses a significant aspect of smart budgeting and debt reduction by creating jobs that generate revenues for governments at the local level that are looking for those revenues, at the State level where they are desperate for those revenues, and at the Federal level that could most certainly use some additional tax revenues so we can maintain our leadership in strategic investments.
Now, there were some on the floor this morning and in the Senate who said the only way to get to a balanced budget is by slashing some of the important programs that help create the atmosphere in America for businesses to thrive. Some of that would be strategic investments in infrastructure; some of that would be strategic investments in education. But even the Business Roundtable would say the last programs we should be cutting from the budget are effective job training and education programs. Yet, according to the philosophy of some, those are the first programs that get slashed.
That is not smart budgeting. That is not closing the budget gap. That is not putting your head to the problem. What the Senator from Delaware said is, it is a combination of some strategic cutting and some discretionary budgets. We are going to have to pare down the defense budget appropriately and find some cuts in some savings.
Even Secretary Gates acknowledges there is waste, fraud, and abuse in the Defense bill. But, most importantly, I think Democrats and Republicans are coming together to say we can grow our way out by producing jobs, and this reauthorization bill is one of the bills that can actually do that. So I just wanted to put a little exclamation point on that part.
I see the Senator from Alaska, who is going to be expressing her views on one of the amendments that is pending. Then Senator Boxer is also on the Senate floor, as is Senator Lautenberg from New Jersey. I think Senator Snowe may want to say just one word.
Senator Snowe is here to offer an amendment. So why don't we turn to Senator Murkowski.
Madam President, can I just inquire?
How long does the Senator think the Senator from Washington will proceed and how long will the Senator herself proceed?
OK. Because Senator Snowe has an amendment.
She would like to speak on it.
Do you think Senator Snowe can go after Senator Cantwell?
Let me see what we can do.
I will object. I know the Senator is very interested in offering this amendment, and we are very interested in hearing about it, but we have now six amendments pending. So if the Senator would like to go ahead and speak about the amendment, explain the amendment, and when we can get an agreement about how we should proceed with these amendments, we will move forward.
Will the Senator yield for a clarification?
This most certainly is an open process. What I was trying to explain to the Senator is there have been about a half dozen other Senators who have come to the floor during the day--such as Senator Hutchison, who came down earlier--and we are trying to be accommodating in the order the Senators come. So if the Senator doesn't mind explaining his amendment, I commit to him that Senator Snowe and I will try to get a pending list as soon as we can.
Mr. President, I know Members are following this debate carefully, and their amendments. Let me bring everybody up to date. It is about 5 after 5. We hope to have a vote around 6 o'clock, potentially two
votes. We have about five amendments pending. Senator Cornyn would like his amendment pending, Senator Hutchison is here to speak about I think two amendments she may want to have pending, and Senator Barrasso is on the floor to speak on the underlying McConnell amendment.
I will ask unanimous consent in a few minutes to try to get one or two votes set up for 6 o'clock, potentially get these other amendments pending, and set a time for votes tomorrow so we can move through it. We want to have as open a debate as possible, but we also really want to focus on the bill at hand, which is the Small Business Reauthorization Act and related measures. Many of these are somewhat related to jobs and the economy, so we are trying to be liberal in our views here. But we do want to try to be as orderly and as appropriate, as Members have come down to the floor, in the order they have come.
Why don't we turn now to Senator Hutchison, and Senator Cornyn--we will get back to the Senator as soon as we can about getting his amendment pending, if we can do that before the night ends.
I thank the Senator from Texas. I appreciate the patience of my colleagues who are on the floor. Because we have had two or three colleagues from this side of the aisle speak, I thought it would be appropriate to go to the Senator from Oregon, then recognizing Senator Barrasso to speak on his amendment and Senator Paul to then speak on his amendment.
If no one objects--I do not see anyone on the floor--if we can go in that order, I think everyone can be accommodated before the vote at 6 o'clock.
Is that okay with everyone?
Thank you.
I object to making it pending but not for discussion.
Please let me correct myself. Earlier today I said that Senator Coons is from Connecticut. Clearly he is from Delaware. And Senator Johanns is not on the floor, but Senator Barrasso is. It has been a long day and I apologize to my colleagues. But the Senator from Wyoming is going to speak for a few minutes, and then the Senator from Vermont, Mr. Sanders.
I am still hoping we can have a vote on one or two amendments at 6 o'clock.
Mr. President, I see two Members on the floor. I ask unanimous consent for Senator Johanns to go next and Senator Rockefeller, who wanted to speak, and then we will try to get some sort of consent for one or two votes tonight. We are still hoping to do that around 6. We will try to keep Members posted.
Amendment No. 161
Mr. President, I thank Senator Rockefeller and all of the Members who have come to the floor today debating this important bill and to share their thoughts about other amendments that are--some directly but some indirectly--related to our discussion. It doesn't look as if we are going to vote tonight, but we are going to continue to work throughout the evening as Members want to come to the floor and speak on their amendments, so we can try to work something out for tomorrow.
I thank Senator Snowe and her staff for their good work today. I see Senator Whitehouse on the floor. He may wish to speak about an amendment. But I remind everyone that we are on the SBIR and STTR Reauthorization Act. It is a very important piece of legislation that has been sputtering for a reauthorization now for over 6 years, and there are literally thousands of entities--small businesses, dozens of Federal agencies, many, many organizations from the Chamber of Commerce to the American Small Business Association--that are depending on us to do our work and actually get this program reauthorized. It is important to give consistency and permanency. So we are going to continue to work to do that.
I look forward to speaking in more detail about the bill later tonight and tomorrow. But it looks as though we are not going to have votes tonight;
but, hopefully, we can get some order and some agreement to proceed.
At this time I see Senator Whitehouse on the floor.
Madam President, this has actually been a very invigorating debate on the bill that is pending before the Senate. We have heard a few amendments that have been filed that are directly related to the reauthorization of this important program, and there are others who have an arguably indirect impact on small business jobs and the creation of opportunity for research and technology investments for small business in America. But we are unable to vote tonight and to come to any consensus about the order of votes. Hopefully, we can do that sometime this evening.
Let me take this moment to again thank the 84 Members of the Senate who voted yesterday to give us an opportunity to get to this important bill. As people have watched this debate throughout the day and continue to watch this evening, one of the reasons the leadership likes to sometimes put appropriate limits on the debate is to keep people focused on the underlying issue. But Senator Snowe and I decided to urge our leaders to have a really open debate because we understand there are Members who feel very strongly about the EPA issues and the climate change rules and regulations and about the 1099 provision. Senator Nelson feels strongly about reducing legislative spending. Senator Hutchison and I in particular have strong feelings about the LEASE Act. So we are going to be as inclusive and incorporate as many of these ideas as we can.
But I really want to ask, since we have looked at the amendment list just within the hour and we have 48 amendments pending on this bill-- and some people have half a dozen--if Members and their staffs will please look and see what is absolutely essential for them to offer as an amendment on this bill so that we don't miss this opportunity. That is really what I want to express right now, that this will be a missed opportunity to reauthorize one of the best programs at the Federal level.
We have heard a lot of talk about programs that don't work, about programs that are wasteful, programs that are full of fraud and abuse. This is not one of them. This is the Federal Government's largest investment program in research and development. This gives small businesses in America--businesses we all represent on main streets everywhere, whether North Carolina, Louisiana, California, or Massachusetts, small businesses with cutting-edge technology and new and exciting science, with very bright people who have graduated from some of the finest universities in the world--this gives them an opportunity to put their technology and their know-how in front of Federal agencies for the sole purpose of saving taxpayer money, creating jobs, and increasing the revenues paid to governments at the local, State, and Federal level to solve our deficit problem.
We are not going to solve our debt and deficit problem by cutting, slashing recklessly, domestic discretionary spending alone. No one in America believes that. I don't know why people come to the floor to continue to promote that idea. It is not going to happen. We are going to get to a balanced budget when we bring our revenues and our spending, in appropriate order, in line and when we pass bills such as this that literally help create thousands of jobs in America. That is what is going
to end the recession. That is what is going to close this budget gap. And that is why I will stay on the floor all week with Senator Snowe, who has been wonderfully helpful today, and we will continue until we can get this bill passed.
I don't want us to miss this opportunity because it has been three Congresses--not one, not two, but three Congresses--that have tried and failed. We are not going to fail this week. We are going to pass this bill this week in the Senate. We are going to get a bill out of here and over to the House. It is very likely that the House will take up our bill as it is generally written.
Why do I say that? Because we have already incorporated so many of the House views and thoughts over the last several years. This is not new language to them. We have a new chairman--Chairman Graves--and he understands perfectly that we are working hard in the Senate to get this bill over to him and to his good committee.
We have literally thousands of businesses kind of on hold because they do not know whether this program is going to be here from week to week. We have agencies that don't know if they should put out solicitations for new technologies. Why wouldn't we want to take this opportunity when we clearly know this is one of the most effective programs? Let me give a specific example. We have used it before, but it is worth using again, although we have hundreds.
Qualcomm is a company that is very well known. It developed the software primarily that allows wireless communication. Twenty years ago, nobody ever heard of Qualcomm, and very few people had cell phones that weighed less than 3 pounds each, as I remember. But 25 to 30 people came together with Dr. Jacobs. They sat in his den, as he testified before our committee just last week. He said that through the SBIR Program, their initial idea got a couple hundred dollars. In phase II, they got $1.5 million.
That is what this program does--incentivizes or gives grants or contracts to emerging technologies well before a bank would take a look, well before a venture capital fund would even look in their direction. You have to develop the technology to a point and then have it launched. This is where there is what he described as the valley of death--great ideas, but there is just not a lot of venture capital out there and particularly in this recessionary period. So he says we helped, that without this program, it would have been very difficult to grow their company.
Today, that company employs 17,500 people in about 22 countries in the world, including right here in the United States, and it pays in taxes, in 1 year, $1 billion. That is 50 percent of the cost of this entire program. So one company--Qualcomm--in its 25-year life, has grown so much that it pays enough taxes that it supports 50 percent of the cost of this program annually.
I can give dozens of examples of other companies that have been launched through this program.
Let me say that our Federal departments are getting better at this. It was a little touch-and-go at first. The Federal agencies weren't quite used to it. Senator Rudman helped to create this program. He was very passionate about it, as were others, so we sort of pushed the Federal agencies to do this. They were more comfortable doing research and development with the big companies. They felt more comfortable. They felt they weren't taking as much risk. No one likes to fail. So they thought: Well, I have this project, and I am going to give it to IBM. If it doesn't work, nobody can blame me. The problem was that IBM didn't have all the answers. We have come to find out that sometimes they had very few during parts of their career as a company.
Not to be disrespectful to that company, but right down the road there were 10 small businesses, but nobody ever heard of them; scientists nobody ever heard of. Senator Rudman knew this, so he said: We are going to mandate a certain percentage of your research and development money, you have to push it out to small business. And some of them, yes, failed. But as the folks testified, if they are not failing, this program isn't working. I want to repeat. If they are not failing, this program isn't working because this program is front-end, high-risk, but with great returns for the American taxpayer and great returns for small businesses.
I might say, as I said earlier today, it is the envy of many other countries in the world. The gentleman who has done the most research and looking over at this program testified before our committee that he travels around the world, and he is called by other nations that ask: How is it that the Federal Government sets up programs that allow the small businesses to enter into research and development?
So Senator Snowe and I have taken this on as our first priority for this year and for this Congress. We know there are many important bills pending before our committee, but we believe this is the right bill to present to the Congress in the right order. The Chair is on the committee, so she knows this very well. But we are trying to think of what we could get out of our committee to the floor, to the President's desk, that has the most immediate impact, creates the most jobs, and this is the program.
This program extends the authorization for 8 years. It updates the award sizes for the program from $100,000 to $150,000. It takes the phase II awards from $750,000 to $1 million. It increases investment in small businesses by increasing the percentage from 2.5 to 3.5 percent of the research and development monies at all agencies over 10 years, including NIH and the Department of Defense.
These are very significant numbers for the Department of Defense. It is $1 billion. It is $1 billion this bill will sort of set aside and say: Defense Department, if you are looking for that new radiator for that tank, if you are looking at ways to cool or looking at ways to sort your ammo more efficiently or looking at ways to come up with new software to help that warfighter, here is $1 billion of research money, and we want you to ask not just the big companies in America and around the world but the small companies, the innovators out there. Give them a chance to show you what they have. That is what this program does, and we have reams and reams of data supporting its effectiveness.
It also includes this compromise between the biotech, the venture capital industry, and the small business community. We had a big fight over the last several years, but we have come to a compromise. Neither side is ecstatic, which means it is a good compromise. They are all sort of just understanding that without this compromise, this bill could fall apart, and they know how important it is. So they have come to terms on the basic portion that can be invested by venture capital funds, leaving the integrity of this program as a small business program, which is the way it was created, but allowing an appropriate level of involvement with the venture capital industry.
It also creates Federal, State, and technical partnerships. It improves the SBA's ability to oversee and coordinate this program. It adds some metrics and measurements so we can really get some good data about how it is working and where it is not working. And as we authorize it for 8 years, we will be able to really say that we got down to business and we got serious about reauthorizing this important program, while leaving this debate open and flexible and allowing the Members to have an opportunity to speak about things they feel strongly about.
I am hoping that sometime tomorrow we can vote on some of the amendments we discussed today--the McConnell amendment, the Johanns amendment, potentially, the Vitter amendment, and the Nelson amendment. Senator Cornyn, Senator Hutchison, and others were down here to speak. We hope to get their amendments in the queue. But again, if the Members would just be cooperative and let Senator Snowe and me know whether you could choose one or two and not offer six or seven amendments, that would be extremely helpful to us. Just let us know and our staffs know, and we will work as hard as we can to have the votes that are necessary to move this bill off the floor and get it to the President's desk.
For those who say, why aren't we talking about the budget and debt, my answer is, we are talking about the budget and debt. This is part of closing the budget gap. This is about creating jobs that generate revenue that closes
that gap. It is not just about discretionary domestic spending cuts. We will never get where we need to be going down that road. We are going to get to it by a combination of things, and that is why Senator Snowe and I feel very strongly about bringing this bill to the floor to talk about growing and encouraging job creation, particularly by small businesses, innovators, entrepreneurs, inventors, and risk takers who need and rely on this program to launch new and exciting businesses that benefit us all.
Whether it is in the State of Oregon, the State of Louisiana, or, as I said, Massachusetts, New York, or California, we have literally thousands of companies that have used this program successfully to grow. Our people are employed, and America is continuing to lead in many areas. Unfortunately, we don't lead in every area, but in many areas in new emerging technology, depending on the field, of course, we are very proud of this Federal program, and it is an example of a program that works.
If we could work as well as this program does in doing our work this week and getting this bill actually off the floor intact--with some amendments, of course, that will be voted on--and get it over to the House, let them do their work, and get this bill to the President's desk, we will have done some good work this week.
Mr. President, I am going to suggest the absence of a quorum. I don't see anyone else on the floor. There may be Members who will want to come to talk about amendments. There will be nothing that will be pending for the next few hours, and hopefully we can get an agreement later on tonight.