Order Code IB10100
Issue Brief for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2003
Updated September 3, 2002
Michael E. Davey
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

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CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
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
Department of Transportation (DOT)
Department of Interior (DOI)
Environmental Protection Agency (EPA)

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R&D Funding FY2003
SUMMARY
The Bush Administration requested
research budget of $3. 783 billion for FY2003.
$111.8 billion in federal research and develo-
This is far below efforts to double the
pment (R&D) funding for FY2003. This is
agency’s research budget over the next five
$8.6 billion above what is available for federal
years.
R&D in FY2002. The growth is concentrated
in the areas of defense (Department of De-
The Administration’s R&D budget con-
fense) and health (National Institutes of
tains increases for three interagency initiatives
Health). The budget proposed more modest
which includes $710 million, for the National
growth in other mission areas and proposed
Nanotechnology Initiative, a proposed 17%
decreases in some agencies’ R&D budgets
increase. The Networking and Information
when compared to FY2002 budget authority.
Technology R&D program, and the U.S.
The proposed allocation of R&D resources
Global Change Research Program would
continues the debate regarding balance in the
receive 2.5% and 2.6% increases respectively.
federal R&D portfolio.
Some in the science and technology
Under the President’s proposal non-
community are concerned that the continued
defense R&D would increase 7.2% to $53.2
emphasis on defense and health short-changes
billion. NIH would receive a 16% increase in
R&D in other areas. The Administration
funding reaching $27.3 billion, comprising
states that balance must not come at the ex-
nearly 50% of non-defense R&D spending. If
pense of setting priorities.
approved, this would complete Congress’s
goal of doubling NIH funding between
Congress has not completed work on any
FY1999 and FY2003. Funding for defense
of its appropriations bills. However the Senate
R&D (the sum of DOD and DOE’s defense
Appropriations Committee has completed
R&D) would increase 9.9% to $58.8 billion.
work on all 13 of its bills, while the House
While funding for DOD’s R&D program is
Appropriations Committee has completed
schedule to increase over 10%, its basic and
work on six of its bills. Based on Senate
applied research programs are scheduled to
actions, CRS estimates that total Federal R&D
decline 5.8%.
spending would exceed $115 billion, of which
$56 billion is for DOD R&D, and $27 billion
Federal support for basic research would
is for NIH. Further, based on Senate actions,
increase $1.9 billion, reaching a record $25.5
for the first time in history, funding for NIH
billion This is primarily due of a record in-
R&D will exceed total funding for all remain-
crease of $1.185 billion in NIH’s basic re-
ing federal civilian R&D programs in
search program. Total federal research funding
FY2003. However, given that House appropria-
(basic + applied research) is proposed to
tors’ have approved $10 billion less in discre-
increase 6.5%, to $51.9 billion.
tionary spending than the Senate, it may be
Funding for NSF’s research budget
difficult to sustain some of the Senate’s pro-
would increase 3.5%, with a proposed
posed increases for civilian R&D.
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
On June 27, the House passed its DOD appropriations bill (H.R. 5010), approving
$57.8 billion for RDT&E, $3.9 billion more than requested by the President. On July 18th,
the Senate Appropriations Committee passed its FY2003 DOD spending bill that proposes
to fund RDT&E at $ 56.6 billion. On July 18th, the Senate Appropriations Committee also
passed its FY2003 Labor/HHS appropriations bill (S. Rpt. 107-216) that funds NIH at the
President’s requested amount of $27.3 billion. Both the House (H.R. 5093) and Senate (S.
2708) have passed their respective Interior appropriations bills that restores proposed
Administrations R&D funding cuts and rejects the Administration’s proposal to move
Interior’s Toxic Hydrology Program to NSF. Congress has approved and the President has
signed a $30 billion FY2002 Supplemental Appropriations bill, that includes $425 million
for R&D, of which 70 %, or $337 million is for DOD.
BACKGROUND AND ANALYSIS
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 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).
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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 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.
Both the House and Senate Appropriations Committees have reported their respective
versions of the FY2003 appropriations bill for USDA. HR. 5263 (H. Rept. 107-623),
reported on July 26, 2002, provides a total of $2,323.1 million for research and education
activities in FY2003, $5.9 million less than the Administration’s request. The Senate
reported S. 2801 (S. Rept. 107-223) on July 25, funding research and education activities at
$2,433.8 million in FY2003, $110.7 million above the request. Floor action is expected in
September.
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Table 1. U.S. Department of Agriculture
(millions $)
FY2002
FY2003
FY2003
FY2003
Est.
Req.
House
Senate
Agric. Research Service (ARS)
Soil & Water Conservation
92.0
109.0
Plant Science
333.0
368.0
Animal Science
174.1
198.0
Commodity Conversion & Delivery
177.0
194.0
Human Nutrition
77.0
79.0
Integration of Agricultural Systems
39.0
40.0
Information and Library Sciences
20.0
23.0
Repair and Maintenance
18.2
18.2
Contingencies & Trust Funds
35.0
35.0
Subtotal
1,022.0e
1,049.0
1,002.2
1,060.8
Buildings & Facilities
119.0
17.0
95.3
101.0
Total, ARSa
1,176.0
1,066.0
1,097.5
1,161.8
Coop. St. Res. Ed. & Ext. (CSREES)
Research and Education
Hatch Act Formula
180.1
180.1
182.0
185.6
Cooperative Forestry Research
21.9
21.9
23.0
22.5
1890 Colleges and Tuskegee Univ.
32.6
32.6
36.0
35.6
Special Research Grants
2.8
0.0
102.8
104.2
NRI Competitive Grants
120.0
240.0
130.0
164.0
Animal Health & Disease Res.
5.1
5.1
5.1
5.3
Federal Administration
45.0
20.0
27.1
26.5
Higher Educationb
36.0
36.0
27.5
36.3
Total, Coop. Res. & Educ.c
556.0
566.0
572.6
611.7
Extension Activities
Smith-Lever Sections 3b&c
275.9
275.9
277.0
284.2
Smith-Lever Sections 3d
85.5
85.5
84.2
83.7
Renewable Resources Extension
3.2
3.2
5.0
4.1
1890 Research & Extension
66.0
66.0
14.0
32.1
Federal Admin. & Special Grants
5.7
18.6
17.1
20.8
Total, Extension Activitiesc
441.0
421.0
441.8
452.9
Total, CSREESc
1,042.1
1,032.0
1,014.4
1,064.6
Economic Research Service
76.0
82.0
73.3
65.7
National Agric. Statistics Service
122.0
149.0
137.9
141.7
TOTAL, Research, Education &
Economics
$2,416.1
$2,329.0
$2,323.1
$2,433.8
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.
The Senate Appropriations Committee recommended increases above the requested
levels of $50 million for Science, $112 million for Fossil Energy R&D, $11 million for
Nuclear Energy R&D, and $41 million for Renewable Energy, and a reduction of $15 million
for R&D in Environmental Quality (S. 2784 Energy, and S. 2708 Interior). The House of
Representatives (H. R. 5093) provided an increase of $175 million for Fossil Energy R&D.
Information on House and Senate action in other areas and further details of funding for
specific programs will be available in the next update of this report.
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Table 2. Department of Energy
($ 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)
The Bush Administration requested $53.9 billion for the RDT&E account in FY2003. It also
requested $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 and $213 million for additional research and development within the
$20.1 billion Defense Emergency Response Fund.
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 and it is endorsed in the Senate Budget Resolution (S. Con. Res.
100). The Administration requested $9.7 billion for S&T in FY2003. This is about $200
million below the amount appropriated last year. However, DOD counted 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 stated 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.
Both the House and the Senate have approved their defense authorization bills (House:
H.R. 4546, H.Rept. 107-436; Senate: S. 2514, S.Rept. 107-151). Both voted to increase total
RDT&E spending above the Budget request. However, some of the increase is a result of
transferring the RDT&E projects requested as part of the Defense Emergency Response Fund
directly to the Title IV accounts. Because the proposal to fund personnel expenses
(retirement, etc.) directly through departmental budgets is not within their jurisdiction and
must be acted on separately, both bills reduced the RDT&E account proportionately. Also,
the Senate bill reduced RDT&E to account for savings in contract services and financial
management. Both the House and Senate bills increased S&T spending (the House $10.0
billion, the Senate $10.1 billion). The House voted to increase ballistic missile defense
RDT&E $300 million, the Senate voted to reduce BMD RDT&E by $1 billion, and add it to
a fund that the President may spend either on BMD or counter-terrorism activity.
The House approved its defense appropriations bill (H.R. 5010) June 27. It voted to
increase RDT&E $3.9 billion above the President’s request (to $57.8 billion). It also voted
to increase S&T funding $1.7 billion above the President’s request (to$11.4 billion). Given
the House also voted a total of $354.7 billion for all of DOD, the S&T appropriation is 3.2%
of DOD’s topline. It voted a large increase in the Defense Health Program, as has become
standard for the appropriators; adding $150 million and $85 million, respectively, for the
Army’s Peer Reviewed Breast Cancer and Prostrate Cancer Programs.
The Senate approved its bill (H.R. 5010, amended in the nature of a substitute, S. Rpt.
107-213) on August 1. The Senate approved a 9% increase for DOD’s S&T programs,
recommending $10.8 billion, $700 million below the House level. The Senate also added
$150 million and $85 million for Breast Cancer and Prostate research, as well as $10 million
for ovarian cancer, and $50 million for peer-reviewed research on other medical topics.
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Table 3. Department of Defense
($ millions)
FY2002
FY2003
House
Senate
House
Senate
estimate
Requestc
Auth.
Auth.
Apprn.
Apprn.
(HR45
(S2514)
(HR501
(HR5010)
46)
0)
Accounts
Army
7,053
6,918
6,933 7,301 7,447
7,410
Navy
11,389
12,502
13,275 12,929 13,562
13,276
Air Force
14,548
17,601
18,803
18,604
18,639
18,538
Defense Agencies
15,285
16,614
17,191
16,491
17,863
16,611
(DARPA)
(2,253)
(2,685)
(2,578)
(2,245)
(2,851)
(2,698)
(BMDOa)
(6,969)
(6,691)
(6,991)
(5,924)
(6,821)
(6,145)
Dir. Test & Eval
230
222
222
362
242
303
Dir. Op.Test/Eval
–
–
–
–
–
Total Ob. Auth.
$48,505
$53,857
$56,42
$55,686
$57,753 $56,138
4
Budget Activity
Basic Research
1,376
1,365
1,354
1,413
1,418
1,491
Applied Res.
4,086
3,780
3,832
3,971
4,451
4,479
Advanced Dev.
4,415
4,532
4,837
4,780
5,483
4,822
Demonstration/Validati
10,361
10,539
10,973
10,155
10,905
9,832
on
Engineering/Manufactu
11,018
13,550
13,950
13,677
13,449
14,106
ring Dev.
Mgmt. Supportb
2,850
2,890
2,959
3,274
3,053
3,200
Op. Systems Dev.
14,399
17,200
18,674
18,767
19,150
18,362
Adjustments
personnel cost accural
–
–
-155
-155
-155 -155
financial mgmt. svgs.
-107
contract services svgs.
-91
Total Ob. Auth.
$48,505
$53,857
$56,42
$55,684
$57,754 $56,137
4
Other Defense Programs
Defense Health Program
464
67
67
67
400
394
Chemical Agents and
202
303
Munitions Destruction
303
303
303
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.
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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. The Senate Appropriations Committee would increase NASA’s total FY2003 budget
request by $200 million in the FY2003 VA-HUD-IA appropriations bill (S. 2797, S. Rept.
107-222). By the definitions used in this report, all of that would be for R&D programs.
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
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 $1.818 billion NASA
projected it would need for FY2003 last year. For more information, see CRS Issue Brief
IB93017. The Senate Appropriations Committee approved the requested funding.
Table 4. National Aeronautics and Space Administration
($ millions)
Funding Category
FY2002
FY2003 Request
Senate App.
Appropriations
Cmte.
Human Space Flight (R&D
2,298.5
1,893.7
1,893.7
only)
1,721.7
1,492.1
1,492.1
International Space Station
412.9
365.2
365.2
Investments and Support*
163.9
36.4
36.4
Space Comm. & Data Systems*
Science, Aeronautics, and
8,047.8
8,844.5
9,044.5
Technology
2,867.1
3,414.3
3,492.3
Space Science
820.0
842.3
852.9
Biological. & Physical
1,625.7
1,628.4
1,682.3
Research
2,507.7
2,815.8
2,814.6
Earth Science
227.3
143.7
202.4
Aero-Space Technology
Academic Programs
TOTAL NASA R&D
10,346.3
10,738.2
10,938.2
(TOTAL NASA Budget)
(14,901.7)
**(15,000.0)
(15,200.0)
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, see CRS Report RL31347: The National Aeronautics and
Space Administration’s FY2003 Budget Request: Description, Analysis, and Issues for Congress.
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*Calculated by CRS as a percentage of the funding in this category for the space station program,
which is counted as R&D, versus other programs (primarily the space shuttle), which are not..
**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 wants to
terminate two planetary programs—one to explore Europa, a moon of Jupiter, and the other
to study Pluto and the Kuiper Belt (thought to be the source of some comets)—because they
are too expensive. NASA proposed terminating the Pluto project in FY2002, but Congress
restored it in the FY2002 VA-HUD-IA appropriations act. Congress also approved the
Europa mission in the FY2002 appropriation, capping its total cost at $1.0 billion. For
FY2003, the Senate Appropriations Committee added $105 million for the Pluto/Kuiper Belt
mission; none was added for Europa. NASA is requesting $124 million for 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. The Senate Appropriations Committee
cut that request by $13 million. Combined with other decisions, the committee made a net
addition of $78 million to NASA’s space science account.
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. The Senate Appropriations Committee made a net addition of
about $54 million to this account, comprising approximately $57 million in additions and $3
million in reductions. 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. The Senate
Appropriations Committee added $10.6 million to this account. In Aero-Space Technology,
funding for aeronautics research in the NASA request 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. 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. The Senate Appropriations Committee made a net decrease of
$1.25 million in the Aero-Space Technology account, comprising $28.75 million in additions
for various activities, and a $30 million reduction for the SLI program. For Academic
Programs, NASA is requesting $144 million, 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. The Senate Appropriations
Committee added $58.65 million in congressionally directed funding.
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National Institutes of Health (NIH)
On July 22, the Senate Appropriations Committee reported S. 2766, the FY2003
appropriations bill for the Departments of Labor, Health and Human Services, Education and
Related Agencies (L-HHS) (S. Rpt. 107-216). The bill includes a total of $27.19 billion for
NIH, $25 million above the adjusted President’s request (see Table 5). On July 25, the
committee reported S. 2797, the appropriation for the Departments of Veterans Affairs,
Housing and Urban Development, and Related Agencies (VA-HUD). The VA-HUD funding
provides $76 million for NIH, the same as the President’s request, to carry out research
programs under the Superfund act. Together, the two appropriations total $27.27 billion, an
increase of $3.73 billion or 15.9% over the comparable FY2002 appropriation of $23.54
billion. (The President’s request, for a total of $27.34 billion, counted additional funding not
approved by the Senate committee. The request assumed enactment of the Administration’s
proposed Managerial Flexibility Act and included $91 million in the L-HHS amount for
accrued retirement and health benefits of employees.)
The $27.27 billion is enough to complete the planned doubling of the NIH budget over
the 5-year period since the FY1998 appropriation of $13.6 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 (L-HHS amounts only): FY1998 base, $13.6 billion;
FY1999, $15.6 billion (up 14.5%); FY2000, $17.8 billion (up 14.2%); FY2001, $20.3 billion
(up 14.1%); and FY2002, $23.5 billion (up 15.5%).
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. The Senate committee allowance for NIAID is $263 million less than
the request, giving the institute an increase of 47% over FY2002 and the prospect of funding
fewer of its planned biodefense activities. 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). The Senate committee provided the requested amount for this account.
A second major 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
nearly 13% over the FY2002 level of $4.9 billion. The budget of the National Cancer
Institute (NCI) would increase by over 12%, whereas the increases requested for most of the
other institutes and centers is 8%-9%. Some areas with increases higher than 9% include
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minority health and health disparities (19%) and the National Library of Medicine (12%).
The Senate committee provided the requested amount for NCI, the Library, and the minority
health center, and increases above the request for many of the other institutes. The request
would support a record number of research project grants (38,038, up from 36,630 in
FY2002), including 9,854 (up 477) in the new and competing renewal category. To process
and review the large increase in grant applications, the President is requesting a 17% increase
in the overall “research management and support” mechanism, with NIAID receiving an
increase of 85% for management.
Table 5. National Institutes of Health (NIH)
($ millions)
Institutes and Centers (ICs)
FY2001
FY2002
FY2003
FY2003
comp a
comp b
request c
S Comm c
Cancer (NCI)
$3,720.9
$4,128.4
$4,642.4
$4,642.4
Heart/Lung/Blood (NHLBI)
2,287.0
2,560.2
2,776.4
2,820.0
Dental/Craniofacial Research (NIDCR)
304.6
343.1
372.2
374.1
Diabetes/Digestive/Kidney (NIDDK)
1,302.8
1,466.4
1,604.6
1,637.3
Neurological Disorders/Stroke (NINDS)
1,172.1
1,312.8
1,424.4
1,466.0
Allergy/Infectious Diseases (NIAID)
2,062.1
2,534.5
3,990.5
3,727.5
General Medical Sciences (NIGMS)
1,531.0
1700.1
1,855.0
1,853.6
Child Health/Human Develmt (NICHD)
978.1
1113.1
1,213.8
1,213.8
Eye (NEI)
507.8
581.2
630.0
634.3
Environmental Health Sciences (NIEHS)
503.0
566.1
614.3
617.3
Aging (NIA)
786.1
893.1
968.7
1,000.1
Arthritis/Musculoskeletal/Skin (NIAMS)
395.0
448.7
486.6
489.3
Deafness/Communication Dis. (NIDCD)
301.1
342.0
370.8
372.8
Nursing Research (NINR)
105.2
120.4
130.4
131.4
Alcohol Abuse/Alcoholism (NIAAA)
340.5
384.1
416.8
418.8
Drug Abuse (NIDA)
779.5
887.7
964.6
968.0
Mental Health (NIMH)
1,103.1
1238.1
1,343.1
1,350.8
Human Genome Research (NIHGR)
381.1
429.3
465.1
468.0
Biomedical Imaging/Bioenginrg (NIBIB)
68.8
262.0
271.2
283.1
Research Resources (NCRR)
811.2
986.5
1,065.3
1,161.3
Complementary/Alt. Medicine (NCCAM)
89.1
104.6
113.2
114.1
Minority Health/Disparities (NCMHD)
132.0
157.7
186.9
186.9
Fogarty International Center (FIC)
50.5
56.9
63.4
60.9
Library of Medicine (NLM)
238.2
227.3
310.3
310.3
Office of Director (OD)
188.3
235.4
255.1
258.0
Buildings & Facilities (B&F)
160.9
326.1
632.8
632.8
Subtotal, NIH (L-HHS Approp)
$20,300.1
$23,455.8
$27,167.9
$27,192.9
Superfund (VA-HUD Approp, NIEHS) d
62.9
80.7
76.1
76.1
Total, NIH Budget Authority
$20,363.0
$23,536.6
$27,244.0
$27,269.0
Sources: S. Rept. 107-216 on S. 2766 (FY2003 L-HHS), and NIH FY2003 Appropriations Justification.
Note: Columns may not add due to rounding.
All columns reflect transfers from ICs to NIBIB ($150m in FY2002 and FY2003), and do not include
transfers of funds for diabetes research (NIDDK) and drug control (NIDA).
a. FY2001 comparable reflects rescission ($8.666m and $0.139m reduction in Superfund activities) and net
funding from breast cancer stamps.
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b. FY2002 comparable reflects rescission ($9.273m) and supplemental funding for bioterrorism appropriated
to the PHS Emergency Fund by P.L. 107-117 ($180m). Includes $100m that was later transferred to the
Global Fund for HIV/AIDS, Malaria, and Tuberculosis (NIAID, $25m and B&F, $75m).
c. FY2003 request is adjusted to omit Administration’s proposal for accrued retirement and health benefits of
current employees. Request and Senate Committee allowance include $100m in NIAID for transfer to
the Global Fund.
d. Separate account in the VA-HUD appropriation starting in FY2001, for NIEHS activities mandated in
Superfund legislation. In FY2002, includes supplemental of $10.5 million from P.L. 107-117.
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 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). I n c l u d e d i n t h e
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 $13 million
for Physics Frontiers Centers.
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Table 6. National Science Foundation
($ millions)
FY2001
FY2002
FY2003
FY2003
Act.
Est.
Req.
Senate
Res. & Related Act.
Biological Sciences
$486.0
$508.4
$525.6
525.6
Computer & Inform. Sci. & Eng.
478.2
514.9
526.9
616.9
Engineering
433.4
472.3
488.0
568.0
Geosciences
563.6
609.5
691.1
684.5
Math & Physical Sci.
854.1
920.5
941.6
1,056.6
Social, Behav. & Econ. Sci.
177.2
168.8
195.6
195.6
U. S. Res. Prog.
214.1
229.7
235.7
245.7
U.S. Antarctic Log. Act.
68.2
68.1
68.1
68.1
Integrative Activities
97.6
106.5
110.6
170.6
Subtotal Res. & Rel. Act
3,372.3
3,598.6
3,783.2
4,131.6
a
Ed. & Hum. Resr.
795.4
875.0
908.1
947.8
Major Res. Equip. & Facil. Constr.
119.2
138.8
126.3
79.3
Salaries & Expenses
166.3
176.4
210.2
182.2
Office of Inspec. Gen.
6.6
7.0
8.1
9.1
b
Total NSF
$4,459.9
$4,795.9
$5,035.8
$5,353.4
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.
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 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 directed at funding for states and local school districts
to join with colleges and universities to strengthen K-12 science and mathematics education.
On June 5, 2002, the House passed H.R. 4664 (H. Rept. 107-488), the National Science
Foundation Authorization Act of 2002. The bill authorizes appropriations for NSF in
FY2003, FY2004, and FY2005. Congressional action attempts to double the NSF’s budget
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over the next 5 years, proposing a total of $5,515.3 million in FY2003, $6,342.6 million in
FY2004, and $7,293.9 million in FY2005. For the R&RA, H.R. 4664 provides $4,138.4
million in FY2003, $4,735.6 million in FY2004, and $5,445.9 million in FY2005. The bill
was referred to the Senate Committee on Health, Education, Labor, and Pensions.
On July 25, the Senate Appropriations Committee reported S. 2797 (S. Rept. 107-222),
VA/HUD and Independent Agencies Appropriations Bill, FY2003. The bill provides a total
of $5,353.4 million for NSF in FY2003, a 6.3% increase ($317.6 million) above the request
and an 11.8% increase ($ 564.2 million) above the FY2002 estimate. S.2797 funds R&RA
at $4,131.6 million, $348.4 million above the request and $533 million above the FY2002
estimate. The EHR is provided $947.8 million in FY2003, $39.7 million above the
Administration’s request and $72.8 million above the FY2002 estimate.
Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
The President’s request for R&D funding for NOAA has never appeared as a line item
in the annual budget submission; however, for the first time, the agency presented a table of
total R&D funding requested for each of its line offices in its FY2003 Budget in Brief. Those
line offices include: National Ocean Service (NOS), National Marine Fisheries Service
(NMFS), NOAA Research (OAR), National Weather Service (NWS), National
Environmental Satellite Data and Information Service (NESDIS), and Program Support (PS).
For FY2003, President Bush requested a total of $575 million for NOAA R&D, which is
18.5% of the agency’s $3.1 billion request. NOAA’s Office of Financial Administration
(OFA) reported that this amount could change when OMB passes back FY2003 budget
instructions to the agency. The R&D request is 25% of NOAA’s Operations, Research and
Facilities (ORF) account, for which $2,281 million was requested. Further, it is $217
million, or 27.4%, less than that appropriated by Congress for FY2002; $109 million, or
l5.9%, less than that appropriated by Congress for FY2001; and $35 million, or 5.7%, less
than that appropriated by Congress for FY2000. In FY2003 extramural grants would account
for 15% of R&D funding. The reduction in the FY2003 R&D request can be attributed to
two factors: 1) The President proposed to transfer the Sea Grant Program to NSF, which
would decrease R&D funds for Ocean, Coastal, and Great Lakes programs (OAR) by $34
million, and; 2) For FY2003 OFA required an actual accounting of R&D requested for
NMFS; in prior years that request was estimated by use of a formula. (For more information
see CRS Report 95-30, The National Institute of Standards and Technology: An Overview.)
National Institute of Standards and Technology
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
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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.
S. 2778, as reported from the Senate Committee on Appropriations, would provide NIST
with $692.2 million. Of this amount, $336.4 million is for the STRS account (3% above the
previous fiscal year), $185.4 million is to fund ATP, and $106.6 million is to finance MEP.
Funding for ATP and MEP remains virtually the same as in FY2002. The construction
budget would receive $63.8 million. (For more information see CRS Report 95-30, The
National Institute of Standards and Technology: An Overview.)
Department of Transportation (DOT)
According to the Bush Administration’s Budget, the Department of Transportation
(DOT) requested $725 million for research and development in FY2003. This is $142 million
below what was available in FY2002. In a DOT document made available after the Budget
was released, the agency’s R&D budget request was stated as $736 million. There are four
Administrations within DOT that are the primary supporters of research and
development—the Federal Highway Administration (FHWA), the National Highway Traffic
Safety Administration (NHTSA), and the Federal Aviation Administration (FAA), and the
Federal Railroad Administration (FRA). A fifth, the newly formed Transportation Security
Administration (TSA) has yet to allocate its budget, but will also support R&D. According
to the DOT document, the R&D budget requests for these Administrations were as follows:
FHWA ($266 million), FAA ($225 million), NHTSA ($59 million), and FRA ($31 million).
On July 25th, the Senate Appropriations committee approves S. 2808, that includes $697
million for DOT R&D in FY2003. This represents a $94 million, or a 11.9% decrease from
FY2002.
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 ( about two-thirds of the
total) 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. The Senate appropriations bill (S. 2708) would increase R&D funding to
$684 million, an increase of 3.7%, or $24 million over the Presidents request. The House bill
(H.R. 5093) would provide $681 million for R&D. Both bills reject the Administration’s
proposal to move the Toxic Substances Hydrology Program to NSF. While the President
propose cutting USGS’s R&D programs by 7% to $542 million, the Senate bill would provide
$598 million, and the House bill $595 million for R&D, a 2.6% and 2.1% increase
respectively over FY2002 funding levels.
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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. The Senate Appropriations Committee
on July 25, 2002 recommended $710 million for S&T in FY2003, and recommended
transferring $86 million from the Superfund account, for a total of $796 million for S&T.
Major continuing congressional concerns are the quality of science upon which EPA bases
its regulations, criteria, and programs, and the degree to which environmental data and
information will be available (balancing the need for security and confidentiality). R&D in
EPA is also referred to as the “S&T Account,” which would incorporate elements of the
former research and development account (also called extramural research) as well as EPA’s
in-house R&D and technology efforts.
Table 8. R&D Budgets of Preceding Agencies
($ millions)
FY2000
FY2001
FY2002
FY2003
Actual
Actual
Estimate
Request
National Oceanic and 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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