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MDCP Funding 2017-2020
From Cancelation of the 2017 Competition to its Resumption in 2020
Due to budget constraints, ITA was obliged to cancel the 2017 MDCP competition. The cancelation did not result from Congress "zeroing out" MDCP as a program. Congress has never voted to eliminate MDCP. Neither has it ever voted to cut MDCP funding. As explained in Brief History of MDCP Funding 1993-2006 (first paragraph), funding for MDCP awards comes from ITA's budget "base". There is no specific reference to MDCP in ITA's appropriation.
Congress and Its Appropriation
While Congress has never voted not to fund MDCP, the appropriation it passes for ITA has great effect. As noted, even though there has been no reference to MDCP in ITA's appropriations for 1994 through 2016, ITA determined there was sufficient funding in its base budget to make new MDCP awards in each of those years except 2006. For 2017, 2018, and 2019, ITA determined that funds appropriated are insufficient to make new MDCP awards. ITA plans a competition for new MDCP awards in 2020.
ITA has never made MDCP awards without first knowing what the appropriation from Congress will be. In that sense, the decision is driven, ultimately, by the Congressional budget process. ITA appreciates the interest that the association and non-profit community has in MDCP competitions. In summary, the key indicators of whether there will be future MDCP award competitions are:
Hopefully, understanding the factors that affect ITA's funding will assist industry groups to manage expectations about whether MDCP support might be available for new projects that help U.S. industries access international markets.
Projects Funded from Awards Made Prior to 2017 Have Continued
An MDCP award results in a long-term cooperative agreement between an MDCP award recipient, or "cooperator", and ITA. Projects generally last five to six years, including allowed extensions. While the projects last many years, the federal share of the MDCP project cost is obligated entirely from the ITA budget during the fiscal year that the MDCP award is made. (The federal share of the MDCP project cost is the amount of the MDCP award and never exceeds one third. The balance comes from the cooperator.) Consequently, the cancelation of the 2017, MDCP competition does not affect cooperators who received their awards prior to 2017. So, for example, the federal share of project cost for cooperators who received their MDCP awards in fiscal 2016, is available to them through the end of fiscal 2021.
Project Activity Continues Through at Least 2022
Prior to 2010, ITA allowed project periods of less than three years. At any given time during the 1990s and 2000s, there were about 18 MDCP projects active. Projects tended to last two to four years. Quite often, project periods proved to be so short that cooperators were unable to gather export results. Since that time, ITA has required a three-year minimum project period. (In practice, most projects now last five to six years.) Export reporting has increased as a result and the number of projects active at any given time is higher as well. In 2017, there were 23 active MDCP projects. In 2018, 20 projects were still active. During fiscal 2019, 14 projects were active. In fiscal 2020, ITA plans to return to making MDCP awards. (See a graphic comparison of the MDCP project workload after the 2006 and 2017 competition cancelations.)
For additional background, see a short history of MDCP funding from 1993, the first year of the program, to 2016.
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