The STC program is not "faltering." Since your article was researched, nine new centers have been established and others are expected to be announced within the next few weeks.
No massive, "high profile" announcement of the second round of centers was planned (as was the case with the first round) for several reasons. The final fiscal year 1991 budget for research and related activities ultimately meant that NSF was able to allocate only $15 million instead of the $25 million originally planned for the second round of STCs. Foundation officials agonized over whether to reduce the number of new STCs from the 14 finalists to a smaller number, but in the end agreed to attempt to establish all of them.
The finalists were asked to revise their proposals, taking into account the new budget reality. They were provided an opportunity to either downsize their proposals or seek additional funding from ...