OSTP Director Nominee Talks Federal Layoffs and R&D Strategy

Michael Kratsios, the nominee to lead the White House Office of Science and Technology Policy, defended the recent layoffs at science agencies at his confirmation hearing Tuesday while saying he does not think the cuts are targeted at science and technology programs.

He also said it is important for the U.S. to maintain leadership in emerging technologies and expressed support for federal funding of basic R&D but declined to weigh in on what the appropriate spending level should be, saying he would defer to President Donald Trump on topline budget numbers.

Democrats on the Senate Commerce, Science, and Transportation Committee pressed Kratsios to explain how firing federal scientists supports U.S. research. The Trump administration has laid off thousands of science agency employees in the last two weeks, including about 10% of the National Science Foundation’s workforce. Meanwhile, the National Institute of Standards and Technology is bracing for layoffs after some probationary employees received verbal notices about upcoming terminations last week, according to Axios and Bloomberg.

Sen. Lisa Blunt Rochester (D-DE) asked Kratsios if he is concerned about mass firings of scientists and engineers and if the U.S. risks losing ground to economic competitors like China as a result.

Kratsios replied, “I think it’s very important when you enter into a new administration to have the opportunity to assess the team that you have on the field and determine what is the best way to be able to drive the priorities of the American people and the president. I think it’s very natural and common sense and logical to do that evaluation.”

“And what I have observed from the outside is that these considerations of employment are ones that are not specifically targeted to science and technology, but are brought across all the agencies. So, I think it’s an important and necessary step to take when you start a new administration,” he continued.

Sen. Gary Peters (D-MI) argued that the layoffs were not done through careful evaluation but rather applied indiscriminately to probationary employees, including those who were recently promoted.

“‘Congratulations, you did a great job. You’re now fired.’ I don’t think that works in any business,” Peters said. “I hope you would step up and say that doesn’t work in the science enterprise as well.”

“If I’m involved in any of this in the future, I certainly will bring to bear the importance of science and technological advice at all these agencies,” Kratsios replied.

Ranking Member Maria Cantwell (D-WA) asked Kratsios to reconcile his supportive comments toward federal science programs with the prospect of the administration slashing the budget of NSF. “I want to make sure I get the characterization. I don’t want you to say this and then I’ll find out, ‘Oh yeah, go ahead, take a meat cleaver to NSF.’”

Regarding reports that the Trump administration may propose to cut NSF’s budget by up to 66%, Kratsios said he would defer to the president and the White House Office of Management and Budget to decide topline budget numbers.

Prioritizing emerging technology

Committee Chair Ted Cruz (R-TX) said Kratsios has “extraordinary experience,” citing his positions during the first Trump administration as chief technology officer at OSTP and later acting head of the Department of Defense’s R&D arm.

Cruz said Kratsios played a pivotal role in advancing national AI strategy during his previous time at OSTP. Cruz also highlighted Trump’s Jan. 23 executive order directing Kratsios and other members of the administration to develop a national AI action plan. OSTP issued a request for information on the plan, which closes on March 15.

Kratsios said he sees U.S. emerging technology strategy as reliant on four pillars: basic science R&D, a regulatory environment that removes barriers to innovation, international engagement with allies and pushing back on adversaries, and workforce programs that take advantage of new technology.

Kratsios mentioned AI, quantum, and nuclear energy as critical technologies that will “shape the future global order.” He expressed interest in reauthorizing the National Quantum Initiative Act, which the committee proposed in a bipartisan bill last Congress. Sens. Dick Durbin (D-IL) and Steve Daines (R-MT) have already reintroduced a related bill focused on the Department of Energy’s role in the initiative.

Kratsios repeatedly pointed to NIST’s role in creating standards to evaluate the performance of AI models and said it is important for the U.S. to be the global standards-setter in emerging technologies.

“One of the most important things that the federal government can do is support the measurement science necessary in order to be able to test and evaluate these models,” Kratsios said.

Kratsios did not respond to Cruz’s criticism of Europe’s “premature regulation” of AI, nor his accusation that NIST’s standards role became “a Trojan horse for progressive social policies” during the Biden administration by focusing on the risks of bias and misinformation in AI.

Expanding commercial spectrum

Cruz said Kratsios played a key role in freeing up federal spectrum for 5G during the first Trump administration and asked whether he would support efforts to free up more spectrum. Kratsios said he thinks it is possible to expand commercial spectrum access in a way that benefits national security interests.

Kratsios also told Cantwell that he supports using testbeds for advanced spectrum technology, pointing to his work on 5G testbeds during his time at DOD. He noted that it was “much easier” to conduct those tests at military facilities because they are not subject to the same regulations. Cantwell and Cruz have both been pushing for changes to spectrum auction authority.

Sen. Deb Fischer (R-NE), a critic of reallocating spectrum used by DOD for commercial uses, pressed Kratsios regarding increased congestion and costs from auctioning off mid-band spectrum held by DOD. Kratsios said some of DOD activities in that band were moved down to lower bands as “a way to be able to still complete the national security mission” while acknowledging that “there’s always transition costs associated with freeing up bands, typically.”