Highlights from the Department of Commerce FY 2025 Budget Request

Published: April 23, 2024

Federal Market AnalysisBudgetDOCInformation Technology

The Department of Commerce (DOC) released its fiscal year (FY) 2025 budget request in mid-March requesting $15.8 in base discretionary funding. This represents a 1.2% increase over the FY 2024 Annualized Continuing Resolution (CR) amount and 4% above the FY 2023 enacted amount.

The following budget highlights are also comparisons to the FY 2024 CR levels.

Departmental Management requests $11.6M to establish the Chief Artificial Intelligence Officer (CAIO) position in compliance with Executive Order 14100 and funds the National Security Systems Classified Cloud Infrastructure & Network Resiliency program at $27.9M.

The National Oceanic and Atmospheric Administration (NOAA) has the highest appropriation at $6.6B, a 3% increase above the FY 2024 CR. This includes $2.1B (+25.7%) for weather and climate satellites. It also provides $798M for continued development of the Geostationary Extended Observations (GeoXO) Program, the agency’s next-generation operational geostationary satellite system. NOAA also continues investments for expanding offshore energy and high-priority natural resource protections including $86M to support National Marine Sanctuaries and Marine Protected areas and $53M for offshore wind permitting.

The Bureau’s National Weather Service requests $1.4B to operate and maintain weather forecast offices and centers, and to continue upgrades and modernization. This includes $212M for climate research programs and $11M for the NOAA Advanced Weather Interactive Processing System (AWIPS) transition to the cloud.

The Census Bureau’s (CB) $1.6B request expands 2030 Census efforts. The investment includes $399M to transition from the Design Selection Phase to the Development and Integration phase during FY 2025.

The National Institute of Standards and Technology (NIST) seeks $1.5B in discretionary funding, a 7.9% increase. In addition to a substantial IT investment described below, this provides $311.5M for the Construction of Research Facilities to support enhanced research capabilities for climate changes and their associated impacts.

Focusing on safeguarding national security, the Bureau of Industry and Security (BIS) requests $223.4M,  a 6.7% increase. This prioritizes export enforcement and control capacity and programs, especially those surrounding current geopolitical issues. The investment also supports the design, development, testing, implementation, and ultimate replacement of existing mission applications with cloud-based COTS capabilities.

The U.S. Patent and Trademark Office (USPTO) $749.6M budget supports continued patent and trademark examination and review proceedings to promote and protect intellectual property (IP) rights and to enhance the country’s innovation and global competitiveness. It also includes a hefty investment for cross-cutting information resources and sub-programs for IT programs. 

In addition to these specific bureau investments, the budget designates more than $400M for fundamental research infrastructure at NIST, NOAA, and NTIA facilities with $311.5M targeting maintenance, renovations, and improvements for NIST research campuses. An additional $523M investment promotes American innovation and competitiveness, supports long-term comprehensive economic development, creates jobs, and fosters geographic diversity in underserved and tribal and Indigenous communities.

IT-Specific Investments

The Commerce FY 2025 budget funds the following high-priority IT programs:

  • $975M for Scientific and Technical Research Services (STRS) measurement technologies in quantum sciences, measurements and data on artificial intelligence performance and reliability, and best practices and standards for the Internet of Things.
  • $427.3M for USPTO for operational activities such as data center operations, storage, server and software maintenance, desktop hardware replacement,  telecommunications, and nationwide USPTO IT support; an additional $322.3M for IT development, modernization, and enhancement efforts.
  • $420M for Cybersecurity includes $96M for NIST as the agency's lead on cybersecurity issues, $46M (+109%) for the Census Bureau Geographic Support Program (GSP), and $4M for BIS Cyber Security Support (+121%).
  • $232M for Fundamental Measurement, Quantum Science and Measurement Dissemination, and Quantum Information and Technology programs.
  • $104.6M for the Census Data Ingest and Collection for the Enterprise (DICE) Program (+167%).
  • $65M for Artificial Intelligence (AI) to implement Executive Order 14110, including $3M for continued support to the National Telecommunications and Information Administration’s AI and Emerging Technology Policy Lab and $19.2M for support of the BroadbandUSA program.
  • $46M for the CB Geographic Support Program, a 207% increase, to support and maintain data collection, processing, tabulation, and dissemination programs and provide geospatial data and products.

Although the Department's IT budget has remained flat for the past three fiscal years, funding for the Census Bureau rose by 12% as shown below. This is consistent with increasing activities for the 2030 Census program. The trend will continue as the program progresses. The bureau plans to award development, integration, infrastructure, and communications contracts in FY 2025, setting the initial design framework and preparation for FY 2026 testing.