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Summary:
Federal research and development (R&D) funding priorities change over time, reflecting Presidential policies and national needs. Defense R&D predominated in the 1980s, decreasing to about 50% of federal R&D in the 1990s. In non-defense R&D, space R&D was important in the 1960s as the nation sought to compete with the Soviet Union; energy R&D was a priority during the energy-short 1970s, and, since the 1980s, health R&D has predominated in civilian science. Defense R&D and homeland security R&D funding are also priorities. The FY2006 R&D budget, requested at $132.3 billion of budget authority, proposes to keep both defense and non-defense R&D funding about the same as last year, which would reduce funding in terms of constant dollars, if inflation is considered. About 57% of the request is for defense R&D and about 21% is for biomedical R&D at the National Institutes of Health (NIH). Increases were requested for R&D in the Department of Transportation (DOT), the National Aeronautics and Space Administration (NASA), the Department of Homeland Security (DHS), the National Science Foundation (NSF), and NIH. After seven years of constant dollar growth, the Defense Department's (DOD) R&D budget would be increased by 0.1%, but reduced in terms of constant dollars. FY2005 R&D appropriations totaled $131.8 billion, about 57% of which was for defense R&D. Pressures on the discretionary budget have increased; R&D funding was increased about 5% over FY2004; non-defense R&D increased about 0.3%. Final appropriations action increased R&D in DHS, NIH, DOD, Agriculture, and DOT; smaller increases or flat funding was appropriated for R&D in the Departments of Commerce, Energy and Education and in NASA, NIH, NSF, and the Environmental Protection Agency. Estimated FY2003 expenditures for overall national (public and private) R&D of $283.8 billion continue to grow. Federal R&D expenditures, at $85.2 billion, have grown, but declined to 30% of the total. Debates focus on which fields of federal R&D should be increased, how to set priorities, and how to "balance" health and nonhealth fields. There are proposals to increase incentives for industrial R&D, including S. 14 and S. 387, which would make permanent the R&D tax credit. For the last few years, the Administration has included in its request a "Federal S&T" budget, which may presage a future unified science and technology (S&T) budget. The FY2006 budget requested funding for three interagency R&D initiatives: networking and information technology; climate change science; and nanotechnology. There are proposals to coordinate R&D, including a continuing priority-setting mechanism; a cabinet-level S&T body; functional R&D budgeting; and reestablishment of a technology assessment function. The Administration opposes R&D earmarking, estimated at $2.4 billion in budget authority for FY2005. OMB says such "research performed at congressional direction," distorts agency priorities. The Administration is using performance measures for R&D budgeting, including tools of the Government Performance and Results Act and the Program Assessment Rating Tool. Some critics say better data and concepts are needed to use performance budgeting for basic and applied research.
