Federal Funding Briefing, January 2025

JAMESON-SELECTED NEWS, STORIES & INSIGHTS

In the January Federal Funding Briefing, the first of 2025, we re-cap some of the news we shared this month. Look for updates on tax legislation, results of DOJ action on FCA cases, IP, and helpful tips and info for SBIR/STTR grantees and contractors.

Good News: The Pass-Through Deduction Could Be Made Permanent

Under the Main Street Tax Certainty Act, co-sponsored by 37 Republicans, the 20% deduction on qualified income from pass-through businesses under Internal Revenue Code section 199A would be made permanent. Democrats would like to preserve the pass-through deduction, as well, but with some changes to tailor the credit to primarily benefit smaller businesses. Details here.

Not As Good: The Future of R&D Deductions Remains Unsure

Although there is a unified Congress going into 2025 (with Republicans having a slim majority in the House) and there previously was a bipartisan desire to reverse Section 174,  the cost to the government of implementing a more favorable R&D expensing rule is uncertain. Learn more about Section 174 and how to plan for uncertainty.

Department of Justice Means Business.

The DOJ released its annual FCA Settlements and Judgements for 2024—with 979 qui tam suites filed in one year, the highest in history. Details here.

In another DOJ story: A company applied for NIH grants, referencing its CEO’s published research papers in its proposals. Then it failed to notify NIH of allegations that the same CEO had committed research misconduct. Get the details on this $4M settlement.

Planned Efficiencies and Surprise Discoveries

Congress initially authorized $10 billion for Commerce to establish the Tech Hubs program under the Economic Development Administration. The goal was to pool resources to maximize advancement. More and more agencies got into the “hub business” resulting in awards being doled out to 48 states.  Read the article on Tech hubs vs. Tech dispersion.

A recent study found that around 70% of biomedical papers include outcomes not expected from what the scientists proposed in their funding applications. The larger the grant, the more chance findings. Read the article.

Get Smart on Intellectual Property.

The new year brought a multitude of insight and new goals for IP and patent protections. Here are a few:

• The USPTO released its 2025 AI strategy on January 14th. The agency strategy breaks down five complementary areas of focus. Read the article.
• Howard Lutnik, Chairman of Cantor Fitzgerald and named inventor on hundreds of patents, has been tapped for Commerce Secretary. Learn how he could impact the USPTO.
• To promote U.S. innovation and leadership, three policy resets need to occur. Read the article.
• The Trump administration could mean greater IP enforcement, new opportunities and challenges. This article explores it all.

January Federal Funding Briefing: Info for SBIR/STTR Grantees and Contractors

Bioenergy Technologies Office or BETO invests in SBIR and STTR RD&D to support future tech innovation. Learn more about it. 

If you’re an NIH grantee, know that beginning January 25, 2025, most grant applications will require new forms and undergo a simplified review and scoring process. Details here. 

On January 17, 2025, the DOD published its final rule to implement the recently amended data rights portions of the SBIR and STTR Program Policy Directives. Here’s what it means.

The Federal Hiring Freeze EO halts federal civilian hiring for 90 days. Here’s what it may mean to you.

Join us, February 12th at 1 PM for a free webinar, Understanding the Financial Strings Attached to Your Government Funding Award.  Learn how to set up your books for FAR Part 31 compliance, project the right indirect cost right, and survive federal audits. Details and registration here. 

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