Foundation for Enabling Biotechnology Innovation Act

Bill Number

S. 2696

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Science, Technology, Communications

Status

Introduced

Latest Action

2025-09-03: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Last Updated

2025-09-23T14:35:58Z

AI-Generated Summary

Purpose

The legislation aims to create a nonprofit organization, the Foundation for Enabling Biotechnology Innovation, to speed up the development and market entry of biotechnology products in the United States. It focuses on building partnerships between government, industry, and other groups to improve innovation, address regulatory hurdles, and promote education and international cooperation in biotechnology.

Key Provisions

• Establishment and Structure: The Director of the National Science Foundation (NSF) must set up the Foundation as a nonprofit entity. It is not part of the federal government and cannot regulate any products.
• Mission and Activities: The Foundation's goal is to boost biotechnology commercialization through:
• Forming public-private partnerships to share expertise and resources.
• Gathering experts to recommend ways to handle emerging technologies and future regulations.
• Encouraging teamwork between federal agencies, businesses, universities, nonprofits, and philanthropies.
• Running public education and outreach programs to inform people about biotechnology, including testing communication strategies.
• Helping U.S. biotech products reach global markets via diplomacy and shared international standards.
• Funding studies, projects, and research on market challenges and regulatory improvements.
• Offering education programs like short courses, agency shadowing, project-based fellowships, and support such as stipends and travel.
• Providing direct aid to federal agencies for specific biotech projects.
• Other activities as needed to meet its goals.
• Funding and Finances: The Foundation can accept donations, grants, and property (but not from "foreign countries of concern" or related entities, defined in existing law to address security risks). It must seek tax-exempt status under U.S. tax code section 501(c)(3). Annual funding includes $4 million authorized for NSF starting in fiscal year 2026, with at least that amount transferred to the Foundation each year.
• Governance:
• A Board of Directors oversees operations, with at least 5 voting members from diverse sectors (e.g., universities, industry, nonprofits—no federal employees) and non-voting ex officio members from agencies like NSF, Defense, Agriculture, Health and Human Services, and Environmental Protection Agency.
• Board terms are up to 5 years, with initial appointments by NSF via recommendations from the National Academies. The Board sets bylaws covering ethics, conflicts of interest, and operations.
• A Chief Executive Officer (CEO), appointed by the Board, handles daily management, hiring, and contracts.
• Reporting and Oversight: The Foundation must submit a strategic plan within one year of the CEO's appointment, covering self-sustainability goals, objectives, transparency, and alignment with federal efforts. Annual reports detail activities and finances, with audits available to NSF and government auditors. Funds can be transferred to relevant federal agencies.
• Integrity and Operations: Rules prevent conflicts of interest (e.g., recusal from decisions affecting personal finances). Board and staff must be U.S. citizens, nationals, refugees, or permanent residents. The Foundation sets intellectual property policies and is not backed by the U.S. government's credit (no federal liability for its debts). NSF can provide administrative support, and certain federal laws on advisory committees do not apply.

Significant Changes to Existing Law

This bill introduces entirely new law by creating the Foundation as a dedicated nonprofit entity outside federal government structure, similar to but distinct from existing NSF-supported organizations. It does not amend prior statutes directly but builds on definitions from the 2022 Research and Development, Competition, and Innovation Act for restricting foreign funding. It exempts the Foundation from federal advisory committee rules (Chapters 5 and 10 of Title 5, U.S. Code), allowing more flexible operations than traditional government bodies.

Potential Impacts

• Government Agencies: Enhances coordination among agencies like NSF, Defense, Agriculture, Health and Human Services, and EPA by providing resources, expert advice, and project support, potentially streamlining biotech regulatory and commercialization processes without adding bureaucracy.
• Citizens: Could lead to faster availability of innovative biotech products (e.g., medicines, agricultural tools) through improved education, public outreach, and market access, benefiting public health, food security, and economic growth. Fellowship programs may train more experts in the field.
• International Relations: Promotes U.S. biotech exports and global standards, potentially strengthening trade ties and diplomatic efforts in science, while restrictions on foreign funding aim to protect against security risks from adversarial nations.

Main Stakeholders Affected

• Federal Agencies: NSF (establishes and funds the Foundation), plus Defense, Agriculture, Health and Human Services, EPA, and others involved in biotech oversight.
• Industry and Businesses: Biotech companies gain from partnerships, market facilitation, and regulatory recommendations.
• Institutions of Higher Education: Universities participate in collaborations, education programs, and research funding.
• Nonprofits and Philanthropies: Involved in board roles, funding, and joint projects.
• General Public: Impacted through education, product access, and economic opportunities in biotech sectors.

Notable Legal, Constitutional, or Political Implications

• Legal: The Foundation's nonprofit, tax-exempt status (under IRS rules) allows independence but requires strict conflict-of-interest and disclosure policies to maintain public trust. Its non-regulatory role avoids overreach into agency duties, while intellectual property standards ensure fair handling of innovations from collaborations.
• Constitutional: Aligns with Congress's powers to promote science and commerce (Article I, Section 8) by fostering private-sector innovation without direct federal control, preserving separation between government and private entities.
• Political: Bipartisan introduction (by Senators Padilla and Young) signals broad support for U.S. biotech leadership amid global competition. Annual reporting to Congress promotes accountability, but self-sustainability goals reduce long-term federal spending reliance, potentially appealing to fiscal conservatives. Foreign funding limits address national security concerns without broadly restricting international engagement.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Padilla, Alex [D-CA]

Cosponsors (1)

Sen. Young, Todd [R-IN]

Recent Actions

• 2025-09-03: Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
• 2025-09-03: Introduced in Senate

Bill Versions

• Foundation for Enabling Biotechnology Innovation Act — issued 2025-09-03 — PDF (20 pages)