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National Institutes of Health (NIH) Funding: FY1996-FY2025

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Brief History of . NIH Funding: Fact SheetFY1994-FY2016 Judith A. Johnson Specialist in Biomedical Policy December 23, 2013March 6, 2015 Congressional Research Service 7-5700 www.crs.gov R43341 Brief History of NIH Funding: Fact Sheet Contents Brief History of NIH Funding ... c11173008 NIH Funding: FY1994-FY2016 . Contents NIH Funding: FY1994-FY2016 ...................................................................................................... 1 Figures Figure 1. National Institutes of Health (NIH) AppropriationsFunding, FY1994-FY2014 request FY2016 ...................................... 3 Tables Table 1. NIH Appropriations, FY1994 – FY2014 RequestFunding, FY1994–FY2016 ........................................................................................ 4 Contacts Author Contact Information............................................................................................................. 5 c11173008 Congressional Research Service Brief History of NIH Funding: Fact Sheet Brief History of NIH FundingNIH Funding: FY1994-FY2016 . NIH Funding: FY1994-FY2016 The National Institutes of Health (NIH) is the primary federal agency charged with conducting and supporting biomedical and behavioral research. Its activities cover a wide range of basic, clinical, and translational research, focused on particular diseases, areas of human health and development, or more fundamental aspects of biomedical research. Its mission also includes research training and health information collection and dissemination.1 About 83% of the NIH budget funds extramural research through grants, contracts, and other awards.2 This funding supports research performed by more than 300,000 non-federal scientists and technical personnel who work at more than 2,500 universities, hospitals, medical schools, and other research institutions around the country and abroad.3 About 11% of the agency’s budget supports intramural intramural research performed by NIH scientists and non-employee trainees in the NIH laboratories and Clinical Center. The; the remaining 6% funds research management, support, and facilities’ needs. Almost all of NIH’s funding is provided in the annual Departments of Labor, Health and Human Services, Education, and Related Agencies appropriations act. In addition to its regular annual appropriations, NIH received a total of $10.4 billion in supplemental FY2009 appropriations in the American Recovery and Reinvestment Act (ARRA) of 2009 (P.L. 111-5). ARRA funds were made available for obligation for two years; $4.95 billion was obligated in FY2009, and $5.45 billion in FY2010.3 Table 1 outlines NIH program level funding over the past 20 facilities’ needs.4 Funding for NIH comes primarily from the annual Labor, Health and Human Services (HHS), Education and Related Agencies appropriations bill, with an additional amount for Superfundrelated activities from the Interior/Environment appropriations bill. Those two bills provide NIH’s discretionary budget authority.5 In addition, NIH receives mandatory funding of $150 million annually that is provided in the Public Health Service (PHS) Act for a special program on type 1 diabetes research and funding from a PHS Act transfer. The total funding available for NIH activities, taking account of add-ons and transfers, is known as the NIH program level. Table 1 outlines NIH program level funding over the past 23 years. Between FY1994 and FY1998, funding for NIH grew modestly from $11.0 billion to $13.7 billion. in nominal terms. Over the next five years, Congress almost doubled the NIH budget to $27.12 billion in FY2003. In each of these these years, the agency received annual funding increases of 14% to 16%. Since FY2003, however, NIH funding has increased more gradually in nominal dollars. Funding peaked in FY2010 before declining in FY2011, and again in FY2013. FY2011 through FY2013 with small increases in subsequent years.6 These funding trends are illustrated in Figure 1 in both current and constant (i.e., inflationadjusted) 20032012 dollars. The top half of Figure 1 illustrates NIH funding in current dollars over the 20-year period of FY1994 through FY2014 (budget request). Increases during the postdoubling period have been between about 1% and 3% each year, with three exceptions(also called nominal dollars) over the period of FY1994 through FY2016. Increases since FY2003 have 1 For further information on NIH, see CRS Report R41705, The National Institutes of Health (NIH): Background and Congressional Issues, by Judith A. Johnson. 2 Department of Health and Human Services, Fiscal Year 2016 Budget in Brief, Washington, DC, February 2, 2015, p. 49, http://www.hhs.gov/budget/fy2016/fy-2016-budget-in-brief.pdf. 3 Ibid. 4 Ibid. 5 NIH received a total of $10.4 billion in supplemental, one-time FY2009 appropriations in the American Recovery and Reinvestment Act (ARRA) of 2009 (P.L. 111-5). ARRA funds were made available for obligation for two years; $4.95 billion was obligated in FY2009, and $5.45 billion in FY2010. CRS Report R43304, Public Health Service Agencies: Overview and Funding, coordinated by C. Stephen Redhead. 6 Amounts shown in Table 1 include appropriations for the Global Fund to Fight AIDS, TB, and Malaria (FY2002FY2011) that were subject to transfer-out. As of FY2012, NIH no longer receives appropriations for the National Institute of Allergy and Infectious Diseases (NIAID) identifying resources for the Global Fund; this responsibility was transferred to another federal agency. For further details on the amounts transferred out by fiscal year, see the “Supplemental Appropriation Data Table” for “History of Congressional Appropriations, Fiscal Years 2000-2012” at http://officeofbudget.od.nih.gov/approp_hist.html. c11173008 Congressional Research Service 1 NIH Funding: FY1994-FY2016 . been more modest (between about 1% and 3% each year), and, in some years, funding for the agency decreased in nominal dollars. For instance: • the FY2006 total was 0.1% lower than the previous year, the first time that the NIH appropriation had decreased since FY1970; • the FY2011 total, provided under a full-year continuing resolution, was 1.0% in the Full-Year Continuing Appropriations Act, 2011 (P.L. 112-10), was 1.0% below the previous year; and • the FY2013 total, provided in the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6), was reduced by the March 2013 sequestration and was 5% lower than the prior year.4 1 For further information on NIH, see CRS Report R43304, Public Health Service Agencies: Overview and Funding, coordinated by Amalia K. Corby-Edwards and C. Stephen Redhead. 2 Ibid. 3 Ibid. 4 Program level funding as shown in Figure 1 excludes transfers among agencies of the Department of Health and Human Services (HHS). In April 2013 such a transfer further reduced NIH funding by $173 million, for a final FY2013 operating level of $29.151 billion. Congressional Research Service 1 Brief History of NIH Funding: Fact Sheet The lower half of Figure 1 portrays NIH funding adjusted for inflation (in constant 2003 dollars) using the Biomedical Research and Development Price Index (BRDPI).5 It shows that the purchasing power of NIH funding (non-ARRA) peaked in FY2003 (the last year of the five-year doubling period) and has steadily declined in the years since. By FY2008, funding had dropped below the FY2002 level. In constant 2003 dollars, FY2013 funding was 22% lower than the FY2003 level. 5 The index is developed each year for NIH by the Bureau of Economic Analysis of the Department of Commerce. It reflects the increase in prices of the resources needed to conduct biomedical research, including personnel services, supplies, and equipment. It indicates how much the NIH budget must change to maintain purchasing power. See “NIH Price Indexes,” at http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. Congressional Research Service 2 Brief History of NIH Funding: Fact Sheet Figure 1. National Institutes of Health (NIH) Appropriations, FY1994-FY2014 request Program Level Funding in Current and Constant (2003) Dollars Sources: Adapted by CRS from NIH Budget Office, Appropriations History by Institute/Center (1938 to Present), at http://officeofbudget.od.nih.gov/approp_hist.html, and budget justification documents. Inflation adjustment reflects the Biomedical Research and Development Price Index (BRDPI), updated Jan. 15, 2013, http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. Notes: Definition of NIH Program Level may differ from that in other CRS reports and congressional appropriations committee reports. Program Level includes all budget authority except appropriations transferred to the Global Fund to Fight AIDS, TB, and Malaria (FY2002-FY2011). Also excludes other transfers to and from HHS accounts in some years. ARRA supplementary funding is from the American Recovery and Reinvestment Act of 2009, P.L. 111-5. Congressional Research Service 3 Brief History of NIH Funding: Fact Sheet Table 1. NIH Appropriations, FY1994 – FY2014 Request Program Level Funding in Current and Constant (2003) Dollars (billions) Program Level Constant ’03 $ Fiscal Year Program Level 1994 $10.956 1995 11.300 3.1% 14.562 -0.3% 1996 11.928 5.6% 14.988 2.9% 1997 12.741 6.8% 15.576 3.9% 1998 13.675 7.3% 16.170 3.8% 1999 15.629 14.3% 17.914 10.8% 2000 17.841 14.1% 19.714 10.0% 2001 20.459 14.7% 21.879 11.0% 2002 23.296 13.9% 24.115 10.2% 2003 27.067 16.2% 27.067 12.2% 2004 27.888 3.0% 26.886 -.07% -0.7% 2005 28.495 2.2% 26.443 -1.6% -2.3% 2006 28.461 -0.1% 25.243 -4.5% -6.7% 2007 29.030 2.0% 24.806 -1.7% -8.4% 2008 29.312 1.0% 23.927 -3.5% -11.6% 2009 30.245 3.2% 23.987 0.2% -11.4% 2010 30.938 2.3% 23.825 -0.7% -12.0% 2011 30.619 -1.0% 22.942 -3.7% -15.2% 2012 30.861 0.8% 22.795 -0.6% -15.8% 2013 29.316 -5.0% 21.136 -7.3% -21.9% 2014 (request) 31.323 6.8% 21.991 4.0% -18.8% % Change % Change % Loss below ‘03 $14.608 NIH Appropriations including ARRA Supplement 2009 35.119 27.915 2010 36.384 28.019 Source: Adapted by CRS from NIH Budget Office, Appropriations History by Institute/Center (1938 to Present), at http://officeofbudget.od.nih.gov/approp_hist.html, and budget justification documents. Inflation adjustment reflects the Biomedical Research and Development Price Index (BRDPI), updated January 15, 2013, http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. Notes: Definition of NIH Program Level may differ from that in other CRS reports and congressional appropriations committee reports. Program Level includes all budget authority, excluding appropriations transfers to the Global Fund to Fight AIDS, TB, and Malaria (FY2002-FY2011). Also excludes other transfers to and from HHS accounts in some years. ARRA supplementary funding is from the American Recovery and Reinvestment Act of 2009, P.L. 111-5. Congressional Research Service 4 Brief History of NIH Funding: Fact Sheet Author Contact Information Judith A. Johnson Specialist in Biomedical Policy jajohnson@crs.loc.gov, 7-7077a transfer of funding under the authority of the HHS Secretary ($1.553 billion and $173 million respectively), resulting in a budget that was 5.5% lower than the prior year.7 The NIH program level in FY2015 is $30.311 billion.8 P.L. 113-235, the Consolidated and Further Continuing Appropriations Act, 2015, provides $30.084 billion for NIH in Division G (the Labor/HHS and Education appropriations act): $29.369 billion for the NIH institutes and centers plus $715 million from a Public Health Service (PHS) Act transfer.9 Congress directed the entire $715 million to one NIH institute, the National Institute of General Medical Sciences (NIGMS), offsetting the more than $700 million reduction in discretionary budget authority for NIGMS in P.L. 113-235 compared with its FY2014 funding level. NIH received about $77 million for Superfund-related research from Division F of P.L. 113-235.10 In addition, NIH receives mandatory funding of $150 million annually that is provided in the PHS Act for a special program on type 1 diabetes research.11 The President’s FY2016 budget requests an NIH program level total of $31.311 billion, an increase of $1 billion (3.3%) over the FY2015 level of $30.311 billion. The FY2016 program level request for NIH includes $150 million in mandatory funding for research on type 1 diabetes, which is proposed for reauthorization in FY2016. The FY2016 program level amount also proposes $847 million in funding transferred to NIH by the PHS Act transfer. The lower half of Figure 1 portrays NIH funding adjusted for inflation (in constant 2012 dollars) using the Biomedical Research and Development Price Index (BRDPI).12 It shows that the 7 The FY2012 amount of $30.861 billion appears to be 0.2% below the FY2011 amount of $30.916 billion. However, the FY2011 amount includes $297.3 million that was subject to transfer-out for the Global Fund to Fight AIDS, TB, and Malaria. 8 This amount does not include $238,000,000 for the National Institute for Allergy and Infectious Diseases (NIAID) for research on Ebola that was provided in P.L. 113-235, Title VI of Division G; for more information, see CRS Report R43807, FY2015 Budget Requests to Counter Ebola and the Islamic State (IS), coordinated by Susan B. Epstein. 9 NIH and other HHS agencies and programs authorized under the PHS Act are subject to a budget assessment called the PHS Program Evaluation Set-Aside, also called the evaluation tap. Section 241 of the PHS Act (42 U.S.C. §238j) authorizes the Secretary of HHS to use a portion of eligible appropriations to study the effectiveness of federal health programs and to identify improvements. 10 Division F of P.L. 113-235 is the Department of the Interior, Environment, and Related Agencies Appropriations Act, 2015. 11 Mandatory funds for type 1 diabetes research under PHS Act §330B, provided most recently by P.L. 112-240 in FY2014 and P.L. 113-93 in FY2015. 12 The index is developed each year for NIH by the Bureau of Economic Analysis of the Department of Commerce. It reflects the increase in prices of the resources needed to conduct biomedical research, including personnel services, supplies, and equipment. It indicates how much the NIH budget must change to maintain purchasing power. See “NIH (continued...) c11173008 Congressional Research Service 2 NIH Funding: FY1994-FY2016 . purchasing power of NIH funding (non-ARRA) peaked in FY2003 (the last year of the five-year doubling period) and has steadily declined in the years since. In constant 2012 dollars, FY2015 funding is 22% lower than the FY2003 level. Figure 1. National Institutes of Health (NIH) Funding, FY1994-FY2016 Program Level Funding in Current and Constant (2012) Dollars Sources: NIH Budget Office, Appropriations History by Institute/Center (1938 to Present), at http://officeofbudget.od.nih.gov/approp_hist.html, and Department of Health and Human Services, Fiscal Year 2016 Budget in Brief, Washington, DC, February 2, 2015, p. 44, http://www.hhs.gov/budget/fy2016/fy-2016- (...continued) Price Indexes,” at http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. c11173008 Congressional Research Service 3 NIH Funding: FY1994-FY2016 . budget-in-brief.pdf. Inflation adjustment reflects the Biomedical Research and Development Price Index (BRDPI), updated February 2, 2015, http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. Notes: Program level includes all budget authority including appropriations for the Global Fund to Fight AIDS, TB, and Malaria (FY2002-FY2011) that were subject to transfer-out. As of FY2012, NIH no longer receives appropriations for the National Institute of Allergy and Infectious Diseases (NIAID) identifying resources for the Global Fund; this responsibility was transferred to another federal agency. Excludes other transferred amounts to and from HHS accounts, such as the PHS Act transfer (evaluation tap). ARRA supplementary funding is from the American Recovery and Reinvestment Act of 2009, P.L. 111-5. FY2015 amount does not include $238,000,000 for the National Institute for Allergy and Infectious Diseases (NIAID) for research on Ebola that was provided in P.L. 113-235, Title VI of Division G. Table 1. NIH Funding, FY1994–FY2016 Program Level Funding in Current and Constant (2012) Dollars (billions) Program Level Constant ’12 $ Fiscal Year Program Level 1994 $10.956 1995 11.300 3.1% 19.699 -0.3% 1996 11.928 5.6% 20.275 2.9% 1997 12.741 6.8% 21.072 3.9% 1998 13.675 7.3% 21.875 3.8% 1999 15.629 14.3% 24.234 10.8% 2000 17.841 14.1% 26.669 10.0% 2001 20.459 14.7% 29.598 11.0% 2002 23.321 14.0% 32.658 10.3% 2003 27.167 16.5% 36.751 12.5% 2004 28.037 3.2% 36.565 -0.5% -0.5% 2005 28.594 2.0% 35.896 -1.8% -2.3% 2006 28.560 -0.1% 34.267 -4.5% -6.8% 2007 29.179 2.2% 33.729 -1.6% -8.2% 2008 29.607 1.5% 32.694 -3.1% -11.0% 2009 30.545 3.2% 32.771 0.2% -10.8% 2010 31.238 2.3% 32.543 -0.7% -11.4% 2011 30.916 -1.0% 31.312 -3.8% -14.8% 2012 30.861 -0.2% 30.861 -1.4% -16.0% 2013 29.151 -5.5% 28.615 -7.3% -22.1% 2014 30.151 3.4% 29.007 1.4% -21.1% 2015 30.311 0.5% 28.532 -1.6% -22.4% 2016 31.311 3.3% 28.779 0.9% -21.7% % Change % Change % Loss below ‘03 $19.762 NIH Funding including ARRA Supplement c11173008 2009 35.499 38.086 2010 36.684 38.217 Congressional Research Service 4 NIH Funding: FY1994-FY2016 . Source: NIH Budget Office, Appropriations History by Institute/Center (1938 to Present), at http://officeofbudget.od.nih.gov/approp_hist.html, and Department of Health and Human Services, Fiscal Year 2016 Budget in Brief, Washington, DC, February 2, 2015, p. 44, http://www.hhs.gov/budget/fy2016/fy-2016budget-in-brief.pdf. Inflation adjustment reflects the Biomedical Research and Development Price Index (BRDPI), updated February 2, 2015, http://officeofbudget.od.nih.gov/gbiPriceIndexes.html. Notes: Amounts in table may differ from actuals in many cases. By convention, budget tables, such as Table 1 do not subtract the amount of transfers from the agencies’ funding. Program Level includes all budget authority, including appropriations for the Global Fund to Fight AIDS, TB, and Malaria (FY2002-FY2011) that were subject to transfer-out. As of FY2012, NIH no longer receives appropriations for the National Institute of Allergy and Infectious Diseases (NIAID) identifying resources for the Global Fund; this responsibility was transferred to another federal agency. Excludes other transferred amounts to and from HHS accounts, such as the PHS Act transfer (evaluation tap). ARRA supplementary funding is from the American Recovery and Reinvestment Act of 2009, P.L. 111-5. FY2015 amount does not include $238,000,000 for the National Institute for Allergy and Infectious Diseases (NIAID) for research on Ebola that was provided in P.L. 113-235, Title VI of Division G. Author Contact Information Judith A. Johnson Specialist in Biomedical Policy jajohnson@crs.loc.gov, 7-7077 c11173008 Congressional Research Service 5