Defense Primer: Research, Development, Test, and Evaluation
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Updated November 19, 2024
Defense Primer: Research, Development, Test, and Evaluation
Defense Appropriations Act Titles That Fund RDT&E Title IV: Research, Development, Test, and Evaluation Title V: Revolving and Management Funds Title VI: Other Defense Programs DOD appropriations are provided annually through the defense appropriations act. RDT&E funding is generally appropriated into high-level accounts in three of the act's titles (see text box). In FY2025, the total obligational authority enacted for RDT&E through regular appropriations was $143.7 billion.Advanced technology playsDefense Primer: Research, Development, Test, and Evaluation
thethe Department of Defense (DOD) —which is "using a secondary Department of War designation" under Executive Order 14347 dated September 5, 2025—relies on scientific and technical knowledge developed in large measure through research, development, test, and evaluation (RDT&E) efforts funded by the department and performed by industry, universities, federal laboratories, and others. DOD is the largest supporter of federally funded research and development (R&D)—accounting for 50% of federal R&D in FY2024. and others. DOD also relies increasingly onon technology developed by the private sector for commercial markets. This In Focus describes DOD's RDT&E appropriations structure, FY2025 enacted funding levels for DOD RDT&E, and congressional considerations.
RDT&E Appropriations Structure
the private sector for commercial markets. This In Focus describes DOD’s RDT&E appropriations structure and funding levels.
DOD appropriations are provided annually through the defense appropriations act, 1 of the 12 regular appropriations acts. DOD RDT&E funding is generally provided in three of this act’s titles (see text box). Congress also sometimes provides DOD RDT&E funding through supplemental appropriations acts. In FY2024, the total obligational authority (enacted) for RDT&E through regular appropriations was $152.3 billion. P.L. 118-50 provided $640.4 million in supplemental appropriations for DOD RDT&E in support of Ukraine.
RDT&E by Organization
RDT&E Appropriations Under Title IV Approximately 97% of DOD’s RDT&E funding is appropriated in Title IV (Research, Development, Test, and Evaluation), which includes appropriations accounts for the Army, Navy, Air Force, Space Force (under the Air Force account), a Defense-wide RDT&E account, and the Director of Operational Test and Evaluation. The Defense- wide account includes the Missile Defense Agency (MDA),, the Defense Advanced Research Projects Agency (DARPA),, the Office of the Secretary of Defense, and 15 other DOD organizations, as well as classified funding. Within these accounts are program elements (PEs) that provide funding for particular activities.
RDT&E Under Other Titles RDT&E funds are also appropriated for programs in other titles
RDT&E funds are also appropriated in Titles V and VI of the defense appropriations act. For example, in Title VI, RDT&E funds are also appropriated in Title VI as part of the Chemical Agents and Munitions Destruction Program, the Defense Health Program, and the Office of the Inspector General. In some years, RDT&E funds have been provided in Title V as part of the National Defense Sealift Fund.
In recent years, RDT&E funds have also been appropriated in Title IX as part of DOD’s funding for Overseas Contingency Operations (OCO). Typically, the RDT&E funds appropriated for OCO activities support specified PEs in Title IV, though they are requested and accounted for separately. Alternatively, they may be provided to a transfer fund. Congress establishes transfer funds for a particular purpose and may authorize DOD to transfer a portion of
these funds to other accounts, such as RDT&E, to help achieve that purpose. President Biden’s budget request does not include OCO funding for FY2025.
Defense Appropriations Act Titles That Fund RDT&E
Title IV: Research, Development, Test, and Evaluation
• Army • Navy • Air Force • Space Force • Defense-wide • Operational Test and Evaluation
Title V: Revolving and Management Funds
• National Defense Sealift Fund
Title VI: Other Defense Programs
• Chemical Agents and Munitions Destruction • Defense Health Program • Inspector General
RDT&E by Character of Work
Congress can also provide RDT&E funding through supplemental appropriations acts. For example, P.L. 118-158, the American Relief Act, 2025, included $110.7 million in supplemental disaster relief funding for two RDT&E accounts—the Army and the Air Force. In addition, P.L. 119-21, the FY2025 reconciliation law, provided $156.2 billion in mandatory defense funding available for expenditure until September 30, 2029. DOD's FY2026 budget request indicates that $37 billion of such reconciliation funding is for RDT&E.While DOD Title IV funds are appropriated only by organization
RDT&E by Character of Work
While DOD Title IV funds are appropriated into organization-related accounts, DOD budget justifications and congressional appropriations reports and explanatory statements also typically describe thisRDT&E funding by the character of the work to be performed. This characterization consists of eight categories, each with a budget activity code (6.1 through -6.8) and a description. (See (Table 1.)
Table 1. DOD RDT&E Budget Activity Codes
Code Description
6.1 Basic Research
6.2 Applied Research
6.3 Advanced Technology Development
6.4 Advanced Component Development and Prototypes
6.5 System Development and Demonstration
6.6 RDT&E Management Support
6.7 Operational Systems Development
6.8 Software and Digital Technology Pilot Programs
|
Code |
Description |
|
6.1 |
Basic Research |
|
6.2 |
Applied Research |
|
6.3 |
Advanced Technology Development |
|
6.4 |
Advanced Component Development and Prototypes |
|
6.5 |
System Development and Demonstration |
|
6.6 |
RDT&E Management Support |
|
6.7 |
Operational System Development |
|
6.8 |
Software and Digital Technology Pilot Programs |
Source: Department of Defense, Financial Management Regulation (DoD 7000.14-R), Volume 2B, September 2022.
Funding in codesCodes 6.1 to 6.3 is referred to by DOD and others as the defense as the science and technology (S&T) budget. This portion of DOD RDT&E is often singled out for attention by analysts, as it is seen as the pool of knowledge necessary for the development of future military systems. In contrast, 6.4, 6.5, and 6.7 funds are focused on the application of existing scientific and technical knowledge to meet current or near- term operational needs. The funds in 6.6 are for RDT&E management and support work in any of the other RDT&E budget accounts. DOD added budget activity 6.8 in its
Defense Primer: Research, Development, Test, and Evaluation
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FY2021 budget request to support software and digital technology pilot programs.
Within the S&T program, basic research (6.1) is singled out for additional attention, partly because of its perceived value in advancing breakthrough technologies. Nearly half of DOD’s funding for basic research in FY2022 went to universities ($1.56 billion of $32.18 billion). In addition, DOD is a substantial source of federal funds for university R&D in certain fields, such as industrial and manufacturing engineering (64%); aerospace, aeronautical, and astronautical engineering (62%); electrical, electronic, and communications engineering (58%); metallurgical and materials engineering (48%); mechanical engineering (47%); and computer and information sciences (46%).
Funding Profile of DOD RDT&E
Total DOD RDT&E funding for FY2024 is $152.3 billion, of which Title IV funding accounts for $148.5 billion (97.5%). (See Figure 1.)
Figure 1. Title IV Share of FY2024 Total DOD RDT&E
Source: CRS analysis of H. Comm. Print 55-008, Legislative Text and Explanatory Statement on P.L. 118-47, Further Consolidated Appropriations Act, 2024.
The composition of FY2024 DOD RDT&E funds provided by Title IV is shown by organization in Figure 2.
Figure 2. FY2024 Title IV RDT&E by Organization
Source: CRS analysis of H. Comm. Print 55-008, Legislative Text and Explanatory Statement on P.L. 118-47, Further Consolidated Appropriations Act, 2024. Notes: Dollar figures do not sum to total because of rounding.
Figure 3 illustrates FY2024 Title IV RDT&E funding by character of work. DOD S&T funding (6.1-6.3) accounted for $21.5 billion (15%) of this funding. RDT&E funds provided in other DOD appropriations titles and supplemental acts are not included in this analysis as they are not parsed by character of work.
Figure 3. Title IV RDT&E by Character of Work, FY2024 Total obligational authority, in billions of current dollars
Source: CRS analysis of H. Comm. Print 55-008, Legislative Text and Explanatory Statement on P.L. 118-47, Further Consolidated Appropriations Act, 2024. Notes: Funding for the Director of Operational Test and Evaluation is included in 6.6; funding for classified research is included in 6.7.
Relevant Statute
10 U.S.C. §4001—Research and development projects
CRS Products
CRS Report R44711, Department of Defense Research, Development, Test, and Evaluation (RDT&E): Appropriations Structure, by Marcy E. Gallo
CRS Report R45403, The Global Research and Development Landscape and Implications for the Department of Defense, by Marcy E. Gallo
Acknowledgments: John F. Sargent Jr., Specialist in Science and Technology Policy (now retired), authored the original version of this product.
Marcy E. Gallo, Analyst in Science and Technology Policy
IF10553
Defense Primer: Research, Development, Test, and Evaluation
https://crsreports.congress.gov | IF10553 · VERSION 28 · UPDATED
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress. Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the United States Government, are not subject to copyright protection in the United States. Any CRS Report may be reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you wish to copy or otherwise use copyrighted material.
Funding Profile of DOD RDT&E
In FY2025, total RDT&E funding was $143.7 billion. The share of RDT&E funds appropriated into Title IV was 98%, or $141.2 billion (Figure 1).Figure 1. Title IV Share of Total DOD RDT&E, FY2025 Source: CRS analysis of Office of the Under Secretary of Defense (Comptroller), Department of Defense Budget, Fiscal Year 2026: RDT&E Programs (R-1), June 2025.
Notes: B = billion.
Figure 2 shows Title IV FY2025 RDT&E funds by organization. The Air Force received the largest share of Title IV RDT&E funding—$46.8 billion, or 33%—followed by the defense-wide account at $35.2 billion, or 25%.Figure 2. Title IV RDT&E Funds by Organization, FY2025
Source: CRS analysis of Office of the Under Secretary of Defense (Comptroller), Department of Defense Budget, Fiscal Year 2026: RDT&E Programs (R-1), June 2025.
Notes: B = billion.
Figure 3. Title IV DOD RDT&E by Character of Work, FY2025
Source: CRS analysis of Office of the Under Secretary of Defense (Comptroller), Department of Defense Budget, Fiscal Year 2026: RDT&E Programs (R-1), June 2025.
Notes: Amounts do not sum to total because of rounding.
Considerations for Congress
A wide range of factors influence congressional decisionmaking in regards to the magnitude, allocation, and strategic direction of defense RDT&E spending. Such factors include current military engagements and international commitments; near-term national security threats; the perceived need for technological capabilities to address emerging threats; RDT&E funding and capabilities of adversaries, potential adversaries, and allies; competing demands for resources to support non-RDT&E activities (e.g., personnel); other federal non-defense activities; prior funding levels, anticipated government revenues; and appropriations constraints (e.g., budget caps).
Defense S&T funding (Codes 6.1-6.3) is a frequent focus of Congress because of its potential impact on future defense technologies. Defense experts and others have recommended the goal of funding defense S&T at 3% of DOD's topline budget. According to a 2023 analysis from the National Defense Industrial Association's Emerging Technologies Institute (ETI), this goal has not been met "any year during the twenty-first century," and Congress has not appropriated DOD S&T funding at the 3% level since FY2005. In FY2025, S&T funding was 2.5% of DOD's overall budget. ETI suggests that consistent levels of RDT&E funding may be more helpful to the development of future defense technologies than the 3% target and that other goals, such as increasing S&T funding at a specified rate or protecting it from inflation, should be considered.