U.S. Senate Passes the United States Innovation and Competition Act Which Would Allocate Billions Toward Higher Education Institutions

On June 8th, 2021, the U.S. Senate passed the United States Innovation and Competition Act (“USICA”), which is bipartisan legislation that would authorize billions of dollars in funding for technology research in the United States. A significant amount of funding is aimed at institutions of higher education.

The USICA, which would authorize $200 billion in funding for fiscal year FY 2022-FY 2026, is intended, according to its proponents, to counter the political and economic influence of China. The bill would provide for an expanded role for the federal government in certain “strategic sectors,” including semiconductors, drones, wireless broadband, and artificial intelligence, with increased funding and regulation of various industries.

The bill contains several higher-education provisions to facilitate research and development in the “key-technology focus areas,” including robotics, artificial intelligence, advanced energy sources, advanced computing, natural disaster prevention or mitigation, biotechnology and data storage and management.

The bill authorizes approximately $81 billion in appropriations for the National Science Foundation, which will oversee the allocation of funds available for higher education institutions, including:

  • Approximately $9 billion for higher education institutions to create technology centers that conduct research in one of the key technology focus areas.
  • Approximately $5 billion for scholarships and fellowships for community college students, undergraduates, graduate fellowships and postdoctoral awards for those studying in the key technology focus areas.
  • Approximately $4 billion for colleges and universities to conduct research and development with a focus on achieving “revolutionary technological advances” in the bill’s key-technology focus areas.
  • Approximately $4 billion to enable the transition of research results to developed and commercialized technologies within one of the key-technology focus areas.
  • Approximately $3 billion for establishing and operating test beds that advance the development, operation, integration and deployment of innovative technologies in one or more of the key-technology focus areas.

If you have any questions, please contact Ryan Kauffman.


Fraser Trebilcock Attorney Ryan Kauffman

Ryan K. Kauffman is a Shareholder at Fraser Trebilcock with more than a decade of experience handling complex litigation matters. You can contact him at rkauffman@fraserlawfirm.com or 517.377.0881.