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Market Development Cooperator Program
Brief History of MDCP Funding 1993-2016
Thirteen Consecutive Years of Funding 1993-2005
Statutory authority for the Market Development Cooperator Program (MDCP) is in 15 U.S. Code § 4723. The program was included in the Export Enhancement Act of 1988, however, no authorization of appropriations occurred until the Jobs Through Exports Act of 1992. As noted on page 36 [3270] of the Legislative History, House Report No. 102-551, this legislation "directs the Secretary of Commerce to make use of the Market Development Cooperator Program in order to fulfill the Secretary's mandates under this title. This section reflects the committee's interest in this program to encourage joint participation in and funding of the federal export promotion program by the private and public sectors." See also Public Law 102-549--Oct. 28, 1992, 106 STAT. 3662.
The International Trade Administration (ITA) of the U.S. Department of Commerce has made MDCP awards each year since the program began in 1993, when it set aside $2.5 m for MDCP of the $6 m Congress made available in section 401 of the Jobs Through Exports Act of 1992 that also included the establishment of commercial centers. to receive part MDCP is managed by ITA's Industry and Analysis (I&A) program area. (Prior to 2014, this program area was known as Manufacturing and Services (MAS). From ITA's inception in 1980 to the early 2000s, it was known as Trade Development (TD).) After 1993, MDCP funding was no longer called out in subsequent ITA appropriations. Instead, it was considered to be part of ITA’s “base” allocation from the appropriation the Commerce Department received from Congress. Within the ITA base appropriation, funding for MDCP awards has always been under I&A (or its predecessors TD and MAS). Actual amounts that ITA/I&A applied to MDCP awards from 1993 to 2005 range from $1.6 m to $2.5 m with an average of about $2.3 m.
Funding of MDCP Awards 1993-2019
Increase in Earmarks in 2006 Put Squeeze on Non-Earmarked Funding
In its fiscal 2006 appropriation, Congress, using language originating in the Senate, instructed the Commerce Department to increase the level of funding to several organizations, most of them with relation to the textile industry. These “earmarks”, most of which were for programs that had received funding in previous years, totaled about $5 m more than they had in previous years. Congress did not increase ITA’s budget to accommodate the increase in earmarks. In order to fund the $5 m in additional earmark grants, ITA/MAS had to cut funding for several programs normally included in its base budget allocation. As a result, ITA decided it was not able to fund an MDCP competition for 2006. (For more information see a recent history of ITA earmarks and a recent history of ITA's MDCP awards.)
Cause of Cancellation of 2006 Competition Was Budgetary
It is important to note that Congress did not instruct ITA to withhold funding for a 2006 MDCP competition. MDCP is recognized by U.S. industry as one of the most successful programs for helping U.S. industry to become more competitive internationally. (See, for example, pages 7-8 of Congressional testimony by the National Association of Manufactuers from April 2008.) For the amount of money invested, MDCP is the most successful federal program at generating job-creating exports through public-private partnerships. ITA decided not to fund the 2006 competition based on extreme budgetary constraints. Congress did not instruct ITA to cancel the 2006 competition. MDCP funding comes from ITA's base allocation and the ultimate funding decisions are made by ITA. Therefore, Congress would not have known that its 2006 appropriation would place ITA in a position where it would be obliged to curtail its 2006 MDCP competition.
Competiton Resumed in 2007 and Continued Through 2016
House Joint Resolution 20 (HJR 20) passed on February 14, 2007, resulted in funding for the Commerce Department through September 2007 at about the same level as for fiscal 2006. This continuing resolution contained none of the earmarks that had the effect of consuming ITA budget that could have otherwise funded a 2006 MDCP competition. On the other hand, HJR 20 did not cover $10 million in uncontrollable increases such as pay raises, increased space costs, and other inflationary type increases. As a result, ITA/MAS had to reduce the amount of MDCP funding available for a 2007 competition. Four awards were made totaling $576,000. Again, the reduction in the amount available for awards was made by ITA based on limited availability of funds in ITA's "base" funding. Congress gave ITA no instructions with regard to MDCP funding one way or the other.
In late September 2008, ITA selected four (4) new organizations to receive MDCP awards totaling $431,000. ITA was able to make the awards due to some unexpected economies it was able to achieve earlier in the fiscal year.
Funding of MDCP awards at or near the historical $2 m per year average resumed in fiscal year 2009.
Post-1993 Legislation Calling for MDCP Funding
On March 5, 2010, Senator Amy Klobuchar (D-MN) introduced the Export Promotion Act of 2010 that included $15 million in increased funding for MDCP. This bill was incorporated as an amendment (Section 4225) into the Small Business Job Creation and Access to Capital Act of 2010. The MDCP section was not included as a funded line-item in the appropriation ITA received from Congress.
Another bill that included the program is the American Export Promotion Act of 2013. This bill was introduced on April 9, 2013, but was not enacted. Essentially the same bill, the American Export Promotion Act of 2015 was introduced on June 11, 2015, but was not enacted.
Although none of these legislative initiatives resulted in additional funding for MDCP awards, ITA continued to make such awards from its budget base as described above.
Program Funding 2017-2019 and Resumption in 2020
ITA determined it had insufficient funds for a 2017 competition. See additional information on this cancelation. There was no MDCP competition in 2018 nor in 2019. ITA is encouraging eligible entities to plan to submit applications for new MDCP awards by April 13, 2020.
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