Order Code IB10100
CRS Issue Brief for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2003
Updated March 25, 2002
John Moteff, Coordinator
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

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CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
Overview
Department of Agriculture (USDA)
Department of Energy (DOE)
Department of Defense (DOD)
National Aeronautics and Space Administration (NASA)
National Institutes of Health (NIH)
National Science Foundation (NSF)
Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
National Institute of Standards and Technology (NIST)
Department of Transportation (DOT)
Department of Interior (DOI)
Environmental Protection Agency (EPA)

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Federal Research and Development Funding: FY2003
SUMMARY
The Bush Administration requested
federal R&D portfolio. Some in the science
$111.8 billion in federal research and develo-
and technology community are concerned that
pment (R&D) funding for FY2003. This is
the continued emphasis on defense and health
$8.6 billion above what is available for federal
short-changes R&D in other areas. The Ad-
R&D in FY2002. The growth is concentrated
ministration states that balance must not come
in the areas of defense (Department of De-
at the expense of setting priorities.
fense) and health (National Institutes of
Health). The budget proposed more modest
To help set those priorities the Administ-
growth in other mission areas and proposed
ration plans to apply a set of performance
decreases in some agencies’ R&D budgets
criteria to all federal R&D programs during
when compared to FY2002 budget authority.
the FY2004 budget preparation process. How
The proposed allocation of R&D resources
to design and apply these criteria will also be
continues the debate regarding balance in the
a subject of debate.
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
The Bush Administration released its FY2003 budget February 4. In it, the President
requested $111.8 billion for federal research and development.
BACKGROUND AND ANALYSIS
Overview
The Bush Administration requested a total of $111.8 billion for federal research and
development for FY2003. This is $8.6 billion above what is available for FY2002, an increase
of 8.3%. However, the growth in the proposed research and development budget is not
uniform across agencies or areas of research. The budget proposes relatively large increases
for defense- and health-related R&D, while proposing more modest increases in other mission
areas. The budget proposes cuts in some agencies’ R&D budgets relative to FY2002
appropriations. Defense-related R&D accounts for about 56% of the total federal outlays for
R&D. Health-related R&D has grown to about 56% of the total outlays for non-defense-
related R&D. The continued pressure to increase both defense- and health-related R&D
while holding other areas to modest growth raises, again, the issue of a balanced R&D
portfolio. The Bush Administration states in its budget that balance should not be achieved
at the expense of setting priorities.
The Bush Administration also proposes to hold R&D programs to a more rigorous
performance accountability. Last year, the Department of Energy ran a pilot program to try
to establish a set of criteria by which to judge the performance of its R&D programs. The
Administration intends to apply a similar set of criteria to the rest of the federal R&D
enterprise in deciding its FY2004 budgets. The purpose of the exercise is to guide investment
to those programs that perform the best and best meet the government’s goals and priorities.
According to the Administration, those that perform badly would be transferred to other
agencies, reduced, or eliminated. While few would say that R&D programs should be
immune from accountability or that the benefits from federally funded research should not be
maximized over a given investment, there is little agreement on how to judge program
performance. The science and technology community has expressed willingness to work with
the Administration but is concerned about what and how performance criteria will be applied.
Associated with this initiative is an Administration effort to reduce the amount of R&D
earmarking in the appropriations process.
Department of Agriculture (USDA)
The FY2003 budget request for research and education in the U.S. Department of
Agriculture (USDA) is $2,329 million, a decrease of $87.1million (3.6%) from the FY2002
level of $2,416.1 million (see Table 1). The FY2003 request provides increased funding for
several research priority areas: emerging and exotic diseases of animals ($8 million), emerging
and exotic diseases of plants ($5.4 million), new uses for agricultural products ($9 million),
global climate change ($6.5 million), agricultural genomes ($6.9 million), biosecurity ($5
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million), agricultural information services ($2 million), and homeland security supplemental
($5 million). Research programs on emerging and exotic diseases are part of the
infrastructure to enhance homeland security and protect agriculture and food supply. The
USDA has five biocontainment complexes where research and diagnostic work is done on
organisms that pose serious threats to the crop, poultry, and livestock industries. The
FY2003 request proposes the termination of all projects earmarked by Congress in FY2001
and FY2002 for an estimated savings of $90 million. In addition, the request includes
reductions in several base programs totaling $15 million.
The USDA conducts in-house basic and applied research. The Agricultural Research
Service (ARS) is the lead federal agency for nutrition research, operating five major
laboratories in this area. Other ARS laboratories focus on efficient food and fiber production,
preservation of genetic resources, development of new products and uses for agricultural
commodities, development of effective biocontrols for pest management, and support of
USDA regulatory and technical assistance programs. The FY2003 request provides $1,049
million for ARS, $27 million above the FY2002 level. ARS reports that the majority of its
facilities, constructed prior to 1960, have become functionally obsolete. Many of the facilities
are not in total compliance with current health and safety standards. The FY2003 request
provides an additional $17 million for modernization and construction at four ARS locations -
- Beltsville, Maryland ($4.2 million), Plum Island, New York ($2 million), National
Agricultural Library ($7.4 million), and National Arboretum ($3 million).
The Cooperative State Research, Education, and Extension Service (CSREES)
distributes funds to universities and organizations that conducts agricultural research.
Funding is distributed to the states through competitive awards, formula funding, and other
means. The FY2003 request for CSREES is $1,032 million, a decrease of $10.1 million from
the FY2002 estimate. Funding for earmarked programs and certain lower priority work is
terminated in order to support competitively awarded grants and other high priority programs.
Funding for formula distribution in FY2002 to the state agricultural experiment stations (and
other eligible institutions) through the Smith-Lever Act would be $275.9 million, level with
FY2002. The FY2003 request funds the National Research Initiative (NRI) Competitive
Grants Program at $240 million, an increase of $120 million over the FY2002 level. The NRI
supports investigator-initiated research with the potential to contribute to significant
breakthroughs in agricultural science in areas such as genetic resources, food safety,
biobased products, human nutrition, invasive species, and global change.
The Economic Research Service (ERS) is the principal intramural economic and social
science research agency in USDA. The request for ERS in FY2003 is $82 million, an increase
of $6 million over the previous fiscal year. Included in the increase is funding for two priority
areas: the agricultural resources management survey ($2.7 million), and the initiative on the
effects of invasive pests and diseases on the competitiveness of U.S. agriculture ($2 million).
The National Agricultural Statistics Service (NASS) conducts the Census of Agriculture and
provides current data on agricultural production and indicators of the well-being of the farm
sector. The Administration requests $149 million for NASS in FY2003, $27 million above
the FY2002 level. The increased funding will support several priority areas: agricultural
resources management survey ($4.6 million), the Census of Agriculture ($15.5 million),
locality based agricultural county estimation program ($1 million), and computer security and
e-government ($3.7 million).
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Table 1. U.S. Department of Agriculture
($ millions)
FY2000
FY2001
FY2002
FY2003
Act.
Act.d
Est.
Req.
Agric. Research Service (ARS)
Soil & Water Conservation
88.0
98.0
92.0
109.0
Plant Science
296.0
300.0
333.0
368.0
Animal Science
135.0
169.0
174.1
198.0
Commodity Conversion & Delivery
175.0
177.0
177.0
194.0
Human Nutrition
72.0
79.3
77.0
79.0
Integration of Agricultural Systems
32.0
35.1
39.0
40.0
Information and Library Sciences
18.0
21.5
20.0
23.0
Repair and Maintenance
19.0
18.2
18.2
18.2
Contingencies & Trust Funds
20.0
30.0
35.0
35.0
Subtotal
855.0
942.0
1,022.0e
1,049.0
Buildings & Facilities
53.0
74.0
119.0
17.0
Total, ARSa
908.0
1,046.0c
1,176.0
1,066.0
Coop. St. Res. Ed. & Ext. (CSREES)
Research and Education
Hatch Act Formula
180.5
180.1
180.1
180.1
Cooperative Forestry Research
21.9
21.9
21.9
21.9
1890 Colleges and Tuskegee Univ.
30.7
32.6
32.6
32.6
Special Research Grants
63.2
85.5
2.8
0.0
NRI Competitive Grants
119.3
105.8
120.0
240.0
Animal Health & Disease Res.
5.1
5.1
5.1
5.1
Federal Administration
14.8
41.1
45.0
20.0
Higher Educationb
28.0
35.0
36.0
36.0
Total, Coop. Res. & Educ.c
490.0
518.0
556.0
566.0
Extension Activities
Smith-Lever Sections 3b&c
276.5
275.9
275.9
275.9
Smith-Lever Sections 3d
88.5
89.0
85.5
85.5
Renewable Resources Extension
3.2
3.2
3.2
3.2
1890 Research & Extension
58.0
61.0
66.0
66.0
Federal Admin. & Special Grants
26.0
18.1
5.7
18.6
Total, Extension Activitiesc
424.9
434.0
441.0
421.0
Total, CSREESc
1,074.0
995.4
1,042.1
1,032.0
Economic Research Service
64.0
74.0
76.0
82.0
National Agric. Statistics Service
99.0
109.0
122.0
149.0
TOTAL, Research, Education &
Economics
$2,145.0
$2,224.4
$2,416.1
$2,329.0
a. The total for ARS excludes trust funds and support for Counter-Drug Research and Development and for
Anti-Drug Research and Related Matters.
b. Higher education includes payments to 1994 institutions and 1890 Capacity Building Grants program.
c. Program totals may reflect set-asides (non-add) or contingencies.
d Excludes support for Fund for Rural America, Agricultural Risk Protection Act, and Initiative for Future
Agriculture and Food Systems.
e. Excludes funding for Homeland Security Supplemental.
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Department of Energy (DOE)
For FY2003, DOE requested $8.8 billion for all R&D activities, including activities in
each of DOE’s four business lines: Science, Energy Supply, Environmental Quality, and
National Security. This request is 1.4% below the FY2002 level.
The requested funding for Science is $3.3 billion, essentially the same as in FY2002. The
largest change would be a reduction of 12% in the Biological and Environmental Research
program. The Administration states that this reduction reflects the completion of activities
funded by congressional earmarks in FY2002. The request includes full funding for continued
construction of the Spallation Neutron Source.
The requested funding for R&D in Energy Supply is $1.6 billion, down about 6% from
FY2002. Much of the reduction is in the Fossil Energy R&D program. The Administration
states that this reduction results largely from this year’s pilot application of specific
investment criteria to certain DOE applied R&D programs. The requested budget would also
reduce funding for energy conservation R&D and increase funding for nuclear energy R&D.
The requested funding for R&D in Environmental Quality is $92 million, down 55%
from FY2002. This change results from an internal review of the entire Office of
Environmental Management (whose total budget request was $6.7 billion). Based on the
review, the Administration plans to refocus the Office’s Science and Technology program on
R&D that it feels supports more directly the cleanup and closure of DOE waste sites.
The requested funding for R&D in National Security is $3.8 billion, which is 2.5% more
than in FY2002. The apparent reduction in funding for Nonproliferation and Verification
R&D is an artifact of $78 million in one-time supplemental funding for FY2002 that was
provided after the September 11th terrorist attacks.
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Table 2. Department of Energy
($ millions)
FY2000
FY2001
FY2002
FY2003
Request
Science
2695.4
3235.2
3280.7
3285.0
High Energy Physics
682.5
695.9
713.2
725.0
Nuclear Physics
338.5
351.8
359.0
382.4
Biological & Environmtl.
425.9
514.1
570.3
504.2
Basic Energy Sciences
791.7
973.8
999.6
1019.6
Adv. Scientific
153.5
161.3
157.4
169.6
Computing
Fusion Energy Sciences
220.6
242.0
247.5
257.3
Other
82.7
296.3
233.7
226.9
Energy Supply
1280.1
1585.5
1709.6
1601.8
Fossil Energy R&D
377.2
442.6
587.2
494.2
Clean Coal Technology
(101.0)1
104.4
42.5
40.0
Nuclear Energy R&D
98.3
48.7
53.0
71.5
Renewable Energy
331.3
370.5
386.4
407.7
Energy Conservation
473.3
619.3
640.5
588.4
R&D
Environmental Quality
236.7
203.4
204.7
92.0
Science and Technology 2
236.7
203.4
204.7
92.0
National Security
2988.1
3376.6
3699.1
3791.1
Weapons Activities 3
2113.1
2448.2
2687.6
2799.7
Naval Reactors
670.2
688.8
689.3
708.0
Nonprolif. & Verification
204.8
239.6
322.3
283.4
Total
7200.3
8400.7
8894.1
8769.9
1 Accounts for deferrals of previously appropriated funds. The amounts are not included in the totals.
2 Within Defense Environmental Restoration and Waste Management.
3 Includes Stockpile R&D, Science Campaigns, Engineering Campaigns except Enhance Surety and Enhance
Surveillance, High Energy Density Physics, Advanced Simulation and Computing, and portions of Readiness
in Technical Base and Facilities.
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Department of Defense (DOD)
Most of the money requested for research and development in the Department of
Defense (DOD) is found within its Research, Development, Test and Evaluation (RDT&E)
account (Title IV in its appropriations). However, some additional research and development
funds are requested in other accounts. These include the Defense Health Program (reported
in the Office of the Secretary of Defense’s—OSD’s—Operations and Maintenance account)
and the Chemical Agents and Munitions Destruction Program (found in OSD’s Procurement
account). Also, in FY2003, there are research and development funds associated with the
proposed $20 billion Defense Emergency Response Fund, requested in this year’s DOD
budget. The budget currently includes all of the Fund within the OSD Operations and
Maintenance account.
The Bush Administration is requesting $53.9 billion for the RDT&E account in FY2003.
It is also requesting $67 million in research and development within the Defense Health
Program and $303 million for research and development in the Chemical Agents and
Munitions Destruction Program. Although not yet identified within the budget, the Defense
Emergency Response Fund, according to DOD officials, includes at least $213 million for
research and development. These funds will be transferred to their respective Program
Elements during FY2003, if appropriated.
The Science and Technology (S&T) portion of the RDT&E account remains an issue.
In testimony before the Senate Armed Services Committee (June 5, 2001) the Under
Secretary of Defense for Acquisition, Technology, and Logistics, Pete Aldridge, suggested
that DOD should set S&T funding at 3% of DOD’s topline (i.e. DOD’s total budget). DOD
incorporated the 3% target into its Quadrennial Defense Review (QDR). Some Members
have embraced this goal. The Administration is requesting $9.7 billion for S&T in FY2003.
This is about $200 million below the amount appropriated last year. However, DOD is
counting the $213 million in research and development within the transfer account mentioned
above as S&T funding. This would bring the FY2003 S&T request to $9.9 billion. This
represents 2.7% of DOD’s topline, short of the Administration’s own goals. The
Administration states that it intends to reach the 3% goal over time and that the large increase
in DOD’s topline made it difficult to do this year.
The topline figure for DOD may also be a subject of some debate. It includes the
Administration overall budget proposal to have agencies support their own retirement and
other employee benefit accounts. This year’s topline assumes that Congress will go along
with this proposal. DOD also added these funds to its topline for the last two years,
retroactively. The definition of topline affects whether DOD achieves its 3% goal. Gone in
this debate is the old Congressionally inspired goal of achieving a 2% above inflation growth
rate for S&T, using the FY1999 budget request as the baseline. S&T growth rate over the
last three years has surpassed that goal.
The Administration is requesting $6.7 billion in research and development for missile
defenses, about $300 million below what was appropriated last year. Also, DOD would like
to exempt missile defense programs from some of the planning and reporting requirements
that apply to other acquisition-related programs.
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Table 3. Department of Defense
($ millions)
FY2000
FY2001
FY2002
FY2003
estimate
Requestc
Accounts
Army
5,314
6,263
7,053
6,918
Navy
9,065
9,596
11,389
12,502
Air Force
14,527
14,313
14,548
17,601
Defense Agencies
9,551
11,316
15,285
16,614
(DARPA)
(1,850)
(1,977)
(2,253)
(2,685)
(BMDOa)
(3,457)
(4,208)
(6,969)
(6,691)
Dir. Test & Eval
265
225
230
222
Dir. Op.Test/Eval
31
35
Total Ob. Auth.
$38,753
$41,748
$48,505
$53,857
Budget Activity
Basic Research
1,139
1,287
1,376
1,365
Applied Res.
3,409
3,674
4,086
3,780
Advanced Dev.
3,789
3,972
4,415
4,532
Demonstration/Validation
6,514
8,052
10,361
10,539
Engineering/Manufacturing Dev.
8,879
8,441
11,018
13,550
Mgmt. Supportb
3,076
3,342
2,850
2,890
Op. Systems Dev.
11,947
12,980
14,399
17,200
Total Ob. Auth.
$38,753
$41,748
$48,505
$53,857
Other Defense Programs
Defense Health Program
295
432
464
67
Chemical Agents and Munitions Destruction
292
599
731
303
Source: FY2001 to FY2003 figures based on Department of Defense Budget, Fiscal Year 2003 RDT&E
Programs (R-1), February 2002. FY2001 to FY2003 figures for Defense Health Program and Chemical
Agents and Munitions Destruction Program come from OMB’s FY2003 Budget Appendix. All other figures
come from prior year R-1s and OMB budgets. Totals may not add due to rounding.
a. Includes only BMD RDT&E. Does not include procurement and military construction.
b. Includes funds for Developmental and Operational Test and Evaluation.
c. Does not include RDT&E funds associated with the proposed Defense Emergency Response Fund.
National Aeronautics and Space Administration (NASA)
The National Aeronautics and Space Administration (NASA) is requesting
$10,738.2 million for R&D for FY2003, out of a total NASA budget request of $15,000
million (see Table 4). That is a 3.7% increase over what was appropriated in FY2002 for
R&D.
NASA’s FY2003 request for the International Space Station is $1.839 billion, comprised
of $1.492 billion in the Human Space Flight (HSF) account, and $347 million for research
aboard the station in the Biological and Physical Research section of the Science,
Aeronautics, and Technology (SAT) account. The $1.839 billion request is $254 million less
than the comparable figure for FY2002, reflecting the fact much of the hardware has been
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built and the Bush Administration has decided to terminate construction early, at a stage it
calls “core complete.” The FY2003 request is slightly higher than the $1.818 billion NASA
projected it would need for FY2003 last year. For more information, see CRS Issue Brief
IB93017.
Table 4. National Aeronautics and Space Administration
($ millions)
Funding Category
FY2002 Appropriations
FY2003 Request
Human Space Flight (R&D Only)
2,298.5
1,893.7
International Space Station
1,721.7
1,492.1
Investments and Support*
412.9*
365.2*
Space Comm. and Data Systems*
163.9*
36.4*
Science, Aeronautics, and Technology
8,047.8
8,844.5
Space Science
2,867.1
3,414.3
Biological & Physical Research
820.0
842.3
Earth Science
1,625.7
1,628.4
Aero-Space Technology
2,507.7
2,815.8
Academic Programs
227.3
143.7
TOTAL NASA R&D
10,346.3
10,738.2
(TOTAL NASA Budget)
(14,901.7)
(15,000.0**)
Prepared by CRS using data from NASA’s FY2003 Budget Estimate (page MY-1), available at [www.nasa.gov]. NASA’s
budget is evolving towards full cost accounting and NASA is shifting programs between accounts, making annual
comparisons difficult. Hence, only FY2002 and FY2003 are shown here. For more information on NASA’s changing
budget structure, see CRS Report RS21150: The National Aeronautics and Space Administration (NASA): Overview,
FY2003 Budget in Brief, and Issues for Congress.
*Calculated by CRS as a percentage of the funding in this category for the space station program versus other programs
(primarily the space shuttle).
**Excludes federal retiree costs. If they are included, NASA’s FY2003 budget request is 15,117.0 million.
For Space Science, NASA is requesting $3.414 billion in FY2003. NASA has decided
to terminate two planetary programs: one to explore Europa, a moon of Jupiter; and the other
to study Pluto. NASA states that the programs were canceled because they are too
expensive. NASA had proposed terminating the Pluto project in FY2002, but Congress
restored it in the FY2002 appropriation, providing $30 million in FY2002. Congress also
approved the Europa mission in the FY2002 appropriation, capping it at $1.2 billion. NASA
is proposing a new Nuclear Systems Initiative in FY2003 to develop new spacecraft nuclear
power sources, and perform research on nuclear propulsion, to enable planetary spacecraft
to reach their destinations more quickly and operate for longer periods of time.
Funding for NASA’s Earth Science program would remain essentially level in the
FY2003 request. NASA is completing the launches of the first set of spacecraft in its Earth
Observing System to study global climate change. Plans to initiate construction of a second
series are largely on hold awaiting decisions from the Bush Administration on the Climate
Change Research Initiative. In addition to funding research on the space station, the Office
of Biological and Physical Research is requesting funds for two new programs: “Generations”
and the “Space Radiation Initiative.” Generations would use the space station and other free-
flying spacecraft to study how organisms adapt to the space flight environment, and the
capacity of terrestrial life to evolve in space. The radiation initiative would augment existing
research into the hazards to humans of the space radiation environment. In Aero-Space
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Technology, funding for aeronautics research would decline about 10% (from $599 million
to $541 million). NASA states that the decline is attributable to earmarks in the FY2002
budget for which the agency is not requesting funds in FY2003. As directed by Congress,
NASA now identifies aeronautics funding separately from other funding in the Aero-Space
Technology line. NASA is requesting a significant increase in funding for R&D related to
building a second generation reusable launch vehicle. That program, the Space Launch
Initiative (SLI), received $467 million in FY2002, and $759 is requested in FY2003. For
more information on SLI, see CRS Issue Brief IB93062. For Academic programs, NASA is
requesting approximately half of what it received in FY2002. NASA explains that the request
does not include continued funding for congressional earmarks included in the FY2002
appropriations.
National Institutes of Health (NIH)
The President has requested a total of $27.3 billion for NIH for FY2003, enough to
complete the planned doubling of the NIH budget over the 5-year period since the FY1998
appropriation of $13.6 billion. The requested amount is an increase of $3.7 billion or 15.7%
over the comparable FY2002 appropriation of $23.6 billion (see Table 5). The total includes
$27.259 billion requested in the appropriation for the Departments of Labor, Health and
Human Services, Education and Related Agencies (L-HHS), and $76.1 million requested in
the appropriation for the Departments of Veterans Affairs, Housing and Urban Development,
and Related Agencies (VA-HUD). The VA-HUD funding is targeted for NIH’s research
responsibilities under the Superfund act. Included in the L-HHS amount is $91.1 million for
retirement and health benefits under the Administration’s proposed Managerial Flexibility Act.
This amount is not counted toward the doubling target. The total request under current law
is $27.244 billion.
The 5-year doubling plan had its genesis in the mid-1990s, when a coalition of advocates
for biomedical research began telling Congress that the time was ripe for exploiting new
discoveries in the life sciences. They urged Congress to devote substantial new resources to
support of research on genetic medicine, drug discovery, mechanisms of disease, and
numerous other areas in which the “biological revolution” had opened up scientific
opportunities. Broad bipartisan support for the 5-year doubling plan has allowed Congress
to increase the NIH appropriation at a fairly steady pace of 14%-15% per year since FY1998.
The appropriations and increases during those years have been as follows (not including the
comparability adjustments used in Table 5): FY1998 base, $13.6 billion; FY1999, $15.6
billion (up 14.5%); FY2000, $17.8 billion (up 14.2%); FY2001, $20.4 billion (up 14.3%); and
FY2002, $23.4 billion (up 15.1%).
NIH’s plans for its FY2003 budget had to be adjusted after the terrorist attacks of
September 2001. Of the $3.7 billion increase in the request, $1.5 billion or 40% is devoted
to bioterrorism-related activities, which would total $1.75 billion, up from $275 million in
FY2002. Most of this new funding would go to the National Institute of Allergy and
Infectious Diseases (NIAID), whose budget would increase by 57% overall, to support
research on potential bioterrorism agents and on new drugs and vaccines, together with
laboratory upgrades. Another large increase from the bioterrorism funding is in the Buildings
and Facilities account, to ensure the security and capabilities of the NIH intramural labs and
research facilities. Some of these efforts are already underway with FY2002 funding (NIH
received $180 million in the anti-terrorism supplemental appropriations act). A second major
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emphasis in the President’s request is support of cancer research. Total cancer funding across
many of NIH’s institutes would reach $5.5 billion, an increase of
Table 5. National Institutes of Health (NIH)
($ millions)
Institutes and Centers (ICs)
FY2000
FY2001
FY2002
FY2003
comp a,b
comp a,c
comp a,d
request a,e
Cancer (NCI)
$3,299.6
$3,740.1
$4,209.7
$4,724.5
Heart/Lung/Blood (NHLBI)
2,024.9
2,292.9
2,581.6
2,798.2
Dental/Craniofacial Research (NIDCR)
268.9
306.6
345.3
374.3
Diabetes/Digestive/Kidney Dis. (NIDDK)
1,141.3
1,306.9
1,470.8
1,609.3
Neurological Disorders/Stroke (NINDS)
1,029.8
1,175.7
1,331.6
1,443.4
Allergy/Infectious Diseases (NIAID)
1,812.4
2,069.4
2,542.4
3,999.4
General Medical Sciences (NIGMS)
1,371.1
1,532.2
1,726.5
1,881.4
Child Health/Human Developmt (NICHD)
861.4
982.0
1,117.2
1,218.1
Eye (NEI)
449.9
509.4
582.9
631.8
Environmental Health Sciences (NIEHS)
443.3
508.0
571.5
619.8
Aging (NIA)
688.0
788.8
896.1
971.7
Arthritis/Musculoskeletal/Skin (NIAMS)
349.2
396.4
450.2
488.2
Deafness/Communication Dis. (NIDCD)
264.1
302.1
343.1
372.0
Nursing Research (NINR)
90.3
105.5
120.8
130.8
Alcohol Abuse/Alcoholism (NIAAA)
293.1
342.3
385.9
418.5
Drug Abuse (NIDA)
686.8
782.5
890.9
967.9
Mental Health (NIMH)
974.1
1,108.2
1,253.6
1,359.0
Human Genome Research (NIHGR)
335.5
382.4
430.7
466.7
Biomedical Imaging/Bioenginrg (NIBIB)
0.2
68.9
112.0
121.4
Research Resources (NCRR)
674.6
812.2
1,012.5
1,091.4
Complementary/Alt. Medicine (NCCAM)
78.4
89.5
105.0
113.8
Minority Health/Disparities (NCMHD)
97.6
132.2
157.9
187.2
Fogarty International Center (FIC)
43.3
50.9
57.4
63.8
Library of Medicine (NLM)
215.0
242.4
281.8
315.2
Office of Director (OD)
162.2
191.5
238.8
258.5
Buildings & Facilities (B&F)
165.4
160.9
326.1
632.8
Subtotal, NIH Progs (L-HHS Approp)
$17,820.2
$20,379.6
$23,542.4
$27,259.0
Superfund (VA-HUD Approp to NIEHS) f
60.0
62.9
80.7
76.1
Total, NIH Budg. Auth. (proposed law)
$17,880.2
$20,442.4
$23,623.1
$27,335.1
Total, NIH Budg. Auth. (current law)
$20,363.0
$23,536.6
$27,244.0
Source: NIH FY2003 Justification of Estimates for Appropriations Committees, and FY2002 Justification.
Note: Columns may not add due to rounding.
a. Does not include transfers of funds for diabetes research (NIDDK) and drug control (NIDA).
b. FY2000 (not comparable) reflects rescission ($99.883m) and transfers ($3.516m to DHHS under
Secretary’s 1% transfer authority; $20m from NIAID to Centers for Disease Control; and $19.883m to
NIAID for NIH Challenge Grants). Includes $40 million advance appropriation for Buildings and
Facilities from FY1999 appropriation.
c. FY2001 reflects rescission ($8.666m and $0.139m reduction in Superfund activities), transfers ($5.8m to
DHHS for Office for Human Research Protection and $3.009m to Secretary), net funding available from
sale of breast cancer stamps ($4.846m), and comparable adjustments for the AREA Awards (OD to ICs)
and transfers from ICs to NIBIB.
d. FY2002 reflects rescission ($9.273m), supplemental funding for bioterrorism appropriated to the PHS
Emergency Fund by P.L. 107-117 ($180m), and transfer to the Global Fund for HIV/AIDS, Malaria,
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and Tuberculosis ($100m from NIAID and B&F). FY2002 is also comparable for the requested
appropriation for the Global Fund in FY2003 ($100m, NIAID).
e. FY2003 assumes enactment of the Managerial Flexibility Act of 2001 and includes $91.1m for accrued
retirement and health benefits of current employees. FY2001 and FY2002, but not FY2000, are
comparable for accrual costs ($79.5m in FY2001 and $86.5m in FY2002). The “current law” line
shows budget authority without the accrual costs.
f. Separate account starting in FY2001. In FY2000, the appropriation was made to the Environmental
Protection Agency, which reimbursed NIEHS for Superfund activities. In FY2002, includes
supplemental of $10.5 million from P.L. 107-117.
nearly 13% over the FY2002 level of $4.9 billion. The budget of the National Cancer
Institute would increase by over 12%, whereas the increases requested for most of the other
institutes and centers is 8%-9%. Some areas with increases higher than 9% include minority
health and health disparities (19%), the National Library of Medicine (12%), and the Fogarty
International Center (11%).
The request would support a record number of research project grants (38,038, up from
36,630 in FY2002), including 9,854 (up 477) in the new and competing renewal category.
To process and review the large increase in grant applications, the President is requesting a
17% increase in the overall “research management and support” mechanism, with NIAID
receiving an increase of 85% for management. Looking ahead to the post-doubling years,
NIH has been analyzing strategies for maintaining a balance between current commitments
and future flexibility so that new initiatives can still be supported even when appropriations
are less generous. Possible strategies under consideration are giving full funding for all years
of some grants and contracts, and devoting additional funding to one-time projects such as
construction and renovation activities that do not carry future-year commitments.
Issues facing Congress include the need to weigh its previous commitment to completing
the 5-year doubling of NIH against the many new needs for discretionary resources across the
federal government. The $3.7 billion increase requested for NIH is larger than the increase
($2.4 billion) requested for total HHS discretionary programs; several other public health and
human services agencies are proposed for decreased funding. In addition, there is a
continuing disparity between funding for health research and support of other fields of
science, including many whose advances are critical for progress in biomedical research.
Finally, contentious issues in several areas of research oversight continue to draw attention:
research on human stem cells, human embryo research, cloning, human subjects protection,
gene therapy, and conflicts of interest on the part of researchers.
National Science Foundation (NSF)
The FY2003 request for the National Science Foundation (NSF) is $5,035.8 million, a
5% ($239.9 million) increase over the FY2002 estimate of $4,795.9 million (see Table 6).
The FY2003 request provides support for several interdependent priority areas: biocomplexity
in the environment ($79.2 million, 36.3% above FY2002), information technology research
($285.8 million, 3% above FY2002), learning for the 21st century ($184.7 million, 27.5%
above FY2002), nanoscale science and engineering ($221.3 million, 11.3% above FY2002),
mathematical sciences ($60.1 million, 100.3% above FY2002), and social, behavioral and
economic sciences ($10 million, new in the FY2003 request). The request provides a second
installment of $200 million for the President’s Math and Science Partnerships program
(MSP). Additional FY2003 highlights include increased funding for graduate students ($26.2
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million), continued support of plant genome research ($75 million), increased investment in
NSF’s administration and management portfolio ($268.1 million), and funding for the
Partnerships for Innovation program ($5 million). As part of the Administration’s new multi-
agency Climate Change Research Initiative, the NSF will provide $15 million for research to
advance understanding in the highly focused areas of climate science and to facilitate policy
decision making in climate research. In FY2003, the Administration proposes the transfer of
three programs from other agencies to the NSF. The proposed transfers include the National
Sea Grant program, currently at the National Oceanic and Atmospheric Administration ($57
million), Environmental Education, currently at the Environmental Protection Agency ($9
million), and Hydrology of Toxic Substances, currently at the United States Geological
Survey ($10 million).
Included in the FY2003 request is $3,783.2 million for Research and Related Activities
(R&RA), a 5.1% increase ($184.6 million) over the FY2002 estimate of $3,598.6 million.
R&RA funds research projects, research facilities, and education and training activities. In
the FY2003 request, the NSF has placed an emphasis on funding rates for new investigators
and on increasing grant size and duration. The R&RA includes Integrative Activities (IA),
created in FY1999. IA funds major research instrumentation, Science and Technology
Centers, Science of Learning Centers, Partnerships for Innovation, disaster response research
teams, and the Science and Technology Policy Institute. The FY2003 request for IA is
$110.6 million, an increase of $4.1 million over FY2002.
Research project support in the FY2003 request totals $2,560 million, an increase of
5.3% over FY2002. Support is provided individuals and small groups conducting disciplinary
and cross-disciplinary research. Included in the total for research projects is support for
centers, proposed at $380 million. NSF supports a variety of individual centers and center
programs. The request provides $45 million for Science and Technology Centers, $53 million
for Materials Centers, $62 million for Engineering Research Centers, and $13 million for
Physics Frontiers Centers. Research facility support in FY2003 is $1,122 million, a 2%
decrease from the FY2002 estimate.
The Major Research Equipment and Facilities Construction (MREFC) account is funded
at $96.3 million in FY2003, a 20.6% decrease ($25 million) from the FY2002 level. The
MREFC, established in FY1995, supports the acquisition and construction of major research
facilities and equipment that extend the boundaries of science, engineering, and technology.
Seven projects are supported in this account for FY2003, five ongoing projects and two new
projects—construction of the Atacama Large Millimeter Array ($30 million), the Large
Hadron Collider ($9.7 million), the Network for Earthquake Engineering Simulation ($13.6
million), the South Pole Modernization Project ($6 million), Terascale Computing Systems
($20 million), Earthscope ($35 million), and the National Ecological Observatory Network,
Phase I ($12 million). No funds are requested in FY2003 for the High-Performance
Instrumented Airborne Platform for Environmental Research (HIAPER) or the IceCube R&D
project because they have been determined to be of lower priority.
The FY2003 request for the Education and Human Resources Directorate (EHR) is
$908.1 million, a 3.8% increase ($33.1 million) over FY2002. Support at the various
educational levels in the FY2003 request is as follows: precollege, $359.6 million;
undergraduate, $157.4 million; and graduate, $136.9 million. Support at the precollege level
includes $200 million for the MSPI, a cornerstone of the President’s education reform
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agenda. The MSP will provide funding for states and local school districts to join with
colleges and universities to strengthen K-12 science and mathematics education. Funding
increases to $27 million for Centers for Learning and Teaching (CLT). The focus of the
CLTs will be on developing the next generation of professionals to manage and direct the
development of instructional materials, large scale assessments, and education research and
evaluation. Support will continue for Systemic Reform Initiatives and Instructional Materials
Development. Selected programs at the undergraduate level are Advanced Technological
Education, Louis Stokes Alliances for Minority Participation, Scholarship for Service,
Historically Black Colleges and Universities-Undergraduate Program, and Tribal Colleges and
Universities Program. An increase of 21.7% in FY2003 for graduate level programs will
allow NSF to raise the stipend of graduate fellows and to increase the number of offers to
new fellowships. Support at this level is directed at the Graduate Research Fellowship,
Graduate Teaching Fellows in K-12 Education, Integrative Graduate Education and Research
Traineeships, and Alliances for Graduate Education and the Professoriate. Funding for the
Experimental Program to Stimulate Competitive Research (EPSCoR) is $75 million. (An
additional $30 million from R&RA will support EPSCoR activities.) It is anticipated that the
H-1B nonimmigrant petitioner fees collected in FY2003 will approximate $92.5 million, $2.5
million above the FY2002 estimate. P.L. 106-313, The American Competitiveness in the 21st
Century Act, stipulates that H-1B receipts be used for computer science, engineering, and
mathematics scholarships for disadvantaged students and precollege private and public sector
partnerships.
Table 6. National Science Foundation
($ millions)
FY2000
FY2001
FY2002
FY2003
Act.
Act.
Est.
Req.
Res. & Related Act.
Biological Sciences
$418.3
$486.0
$508.4
$525.6
Computer & Inform. Sci. & Eng.
388.6
478.2
514.9
526.9
Engineering
379.8
433.4
472.3
488.0
Geosciences
487.6
563.6
609.5
691.1
Math & Physical Sci.
755.9
854.1
920.5
941.6
Social, Behav. & Econ. Sci.
162.1
177.2
168.8
195.6
U. S. Res. Prog.
190.0
214.1
229.7
235.7
U.S. Antarctic Log. Act.
68.4
68.2
68.1
68.1
Integrative Activities
129.2
97.6
106.5
110.6
Subtotal Res. & Rel. Act
2,979.9
3,372.3
3,598.6
3,783.2a
Ed. & Hum. Resr.
683.6
795.4
875.0
908.1
Major Res. Equip. & Facil. Constr.
105.0
119.2
138.8
126.3
Salaries & Expenses
149.3
166.3
176.4
210.2
Office of Inspec. Gen.
5.6
6.6
7.0
8.1b
Total NSF
$3,923.4
$4,459.9
$4,795.9
$5,035.8
a. Excludes $78.5 million in FY2001, an estimated $90 million in FY2002, and $92.5 million in FY20003
from H-1B Nonimmigrant Petitioner Receipts.
b. The totals do not include carryovers or retirement accruals.
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Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
The President’s annual request for research and development (R&D) funding for the
National Oceanic and Atmospheric Administration (NOAA) does not appear as a line item
in either the annual budget submission, NOAA budget justification documents, or
congressional appropriations documents for any given fiscal year. In the FY2003 NOAA
Budget in Brief, however, the agency for the first time, included a table of total R&D funding
requested for each of its line offices. For FY2003, President Bush requested $575 million for
R&D at NOAA, which is about 18% of the total budget requested for the agency ($3.206
billion). NOAA’s Office of Financial Administration claims these figures are only initial
estimates and will be updated later after the Office of Management and Budget passes back
budget instructions to the agency.
The FY2003 R&D request is $217 million, or 27%, less than the $792 million
appropriated by Congress for FY2002; $109 million, or l6%, less than the $684 million
appropriated by Congress for FY2001; and $35 million, or 5.7%, less than that appropriated
by Congress for FY2000. The decline in funding results primarily from: 1) NOAA’s request
for a decrease of $34 million (in R&D) for Ocean, Coastal, and Great Lakes Research
because of a proposed transfer of the National Sea Grant College Program to the National
Science Foundation (NSF); and 2) the National Marine and Fisheries Service (NMFS) R&D
request now reflects an actual data call for proposed spending for this line office. Previously,
the NMFS R&D request was based on a formula. R&D funding is about 25% of the total
request for NOAA Operations, Research, and Facilities (ORF) of $2,281 million.
R&D funding would be distributed among all ORF budget line offices, with $284 million
going to NOAA Research (OAR), and $122 million going to NMFS. Remaining funds of $55
million would go to the National Ocean Service (NOS), $28 million to the National Weather
Service (NWS), and $11.5 million to the National Environmental Satellite Data and
Information Service (NESDIS). NOAA’s Office of Marine and Aviation Operations
(OMAO) under Program Support (PS) provides R&D funding of $75 million for Aircraft
Services, Marine Services, Data Acquisition, and Fleet Maintenance and Planning. Another
$4 million in R&D funding is requested for NOAA’s Other Accounts for the Promote and
Develop American Fisheries Products Fund (PDAF), which would be spent on commercial
development of fisheries and marine resources. Maintenance of R&D facilities, including
OAR and non-OAR laboratories, is funded under Program Support (PS-Facilities) in the ORF
account, but these are not scored as R&D expenditures. NOAA’s Procurement Acquisition
and Construction (PAC) account would provide $21.5 million for systems acquisition (major
research equipment) and new construction of research facilities, both of which may be used
to conduct R&D; however, in the FY2003 request, PAC funding is no longer counted as an
R&D expenditure.
Notable proposed R&D funding increases include $17 million, or 70%, for Climate and
Observation Services under OAR. NOS would fund all NOAA marine R&D-related data
acquisition at $51.4 million. An increase of $13 million is requested for Coastal Ocean
Science activities, but NOS’ total R&D budget would actually decrease by $5 million. New
for FY2003, the President requested $6.1 million of the Climate Research R&D budget to
fund “Energy Security,” which would study impacts of weather and climate on the U.S.
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economy. NESDIS would receive an increase of $2 million for security-related research
under Environmental Satellite Observing Systems. The PS (OMAO) R&D budget is slated
for a $12 million increase to be divided among Aircraft Services and Data Acquisition
(marine) and research vessel Fleet Maintenance and Planning.
National Institute of Standards and Technology (NIST)
In the Administration’s FY2003 budget proposal, the National Institute of Standards and
Technology (NIST) would receive $577.5 million, 15% below the amount appropriated for
FY2002 by P.L. 107-77. This decrease is due primarily to a decline in support for the
Advanced Technology Program (ATP) and the Manufacturing Extension Partnership (MEP).
ATP would receive $107.9 million, 35% below the current fiscal year, and MEP would be
funded at $12.9 million. The 89% decrease in financing for MEP is due to the President’s
recommendation that manufacturing extension centers operating for more than 6 years do so
without federal funding. In-house R&D under the Scientific and Technical Research and
Services (STRS) account would increase 25% to $402.2 million. (It should be noted that the
FY2002 Defense Appropriations Act added $5 million to the STRS account for cybersecurity
activities.) Construction would be funded a $54.5 million. (For more information see CRS
Report 95-30, The National Institute of Standards and Technology: An Overview.)
For FY2002, President Bush requested $487.5 million in funding for NIST, 19% less
than the FY2001 appropriation (see Table 7). Support for the STRS account would have
been $347.3 million, 11% over the previous fiscal year. The Manufacturing Extension
Partnership was to be financed at $106.3 million. New grants under the Advanced
Technology Program would have been suspended pending evaluation of the activity; however,
$13 million was to be provided for ongoing project commitments. Construction efforts would
be funded at $20.9 million.
The final legislation, P.L. 107-77, funded NIST at $674.5 million, an increase of 13%
over FY2001. Included in this was $321.1 million for the STRS account (3% above the
previous fiscal year). The FY2002 Defense Appropriations Act added $5 million to this
account for cybersecurity activities. The Manufacturing Extension Partnership was financed
at $106.5 million and the Advanced Technology Program received $184.5 million, a 27%
increase. Construction was funded at $62.4 million, triple the figure in the budget request and
the House bill and almost twice that of FY2001.
Department of Transportation (DOT)
According to the Bush Administration’s Budget, the Department of Transportation is
requesting $725 million for research and development in FY2003. This is $142 million below
what was available in FY2002. The Budget identified three primary Administrations within
DOT where research and development is supported—the Federal Highway Administration
(FHWA), the National Highway Traffic Safety Administration (NHTSA), and the Federal
Aviation Administration (FAA). The R&D request in the FHWA is $421 million and supports
research to improve the quality and safety of the Nation’s transportation system. The R&D
request in NHTSA is $58 million. This supports research in crash worthiness, crash
avoidance, and data analysis to help reduce highway fatalities and injuries. The R&D request
for FAA is $95 million and supports R&D in areas such as aviation security and life-extension
of aircraft. Another $151 million in R&D is spent in other DOT agencies such as the Coast
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Guard, the Federal Transit Administration, and the Federal Railroad Administration. The
proposed reductions in R&D funding are concentrated in FAA and FHA, and some of the
funds within those agencies are redirected toward the anti-terrorism mission. However, the
budget does not yet reflect the allocation of funds going toward the newly created
Transportation Security Agency.
Department of Interior (DOI)
According to the President’s budget, the Administration requested $628 million for R&D
in the Department of Interior. This is $32 million below what was available in FY2002. The
U.S. Geological Survey (USGS) is the primary supporter of R&D within DOI. Areas of
research include mapping, and research in geological, water, and biological resources. The
FY2003 budget for R&D within the USGS would decline even more than DOI’s overall
R&D budget. Reductions are proposed in a couple of Water Resource programs, one of
which (the Toxic Substances Hydrology Program) would be transferred to NSF.
Environmental Protection Agency (EPA)
The Administration requested $670 million for EPA’s R&D activities for FY2003. This
compares with $735 million enacted in FY2002 (an 8.8% reduction), which was
supplemented by $90.3 million in FY2002 for Homeland Security (for an S&T total of $825.3
million in FY2002; the FY2003 request is a reduction of 18.8%). According to Administrator
Whitman and the Office of Management and Budget, the reduction is due to increased levels
of partnerships with private and public sources, and to the Administration’s elimination of
various congressionally designated research projects. Major continuing congressional
concerns are the quality of science upon which EPA bases its regulations, criteria, and
programs, and the degree to which environmental data and information will be available
(balancing the need for security and confidentiality). R&D in EPA is also referred to as the
“S&T Account,” which would incorporate elements of the former research and development
account (also called extramural research) as well as EPA’s in-house R&D and technology
efforts.
Table 7. R&D Budgets of Preceding Agencies
($ millions)
FY2000
FY2001
FY2002
FY2003
Actual
Actual
Estimate
Request
National Oceanic & Atmospheric
610
684
792
575
Administration
National Institute of Standards &
636
598
675
578
Technology
Department of Interior
645
622
660
628
Department of Transportation
603
792
867
725
Environmental Protection Agency
559
709
825a
670
a. Includes $90.3 million in supplemental funding for Homeland Security.
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