Order Code IB10117
Issue Brief for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2004
Updated March 14, 2003
Michael E. Davey
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

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)
Department of Homeland Security (DHLS)


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R&D Funding FY2004
SUMMARY
The Bush Administration requested
for the entire increase in its budget.
$122.7 billion in federal research and
development (R&D) funding for FY2004.
With the completion of doubling NIH’s
This is $5.3 billion above the estimated
budget between FY1999 and FY2003, funding
$117.4 billion that is available for federal
for basic research would increase a modest
R&D in FY2003. This proposed 4.2%
3.7%, to $27.070 billion, while applied re-
increase for R&D is based on new Office of
search funding would be flat at $26.784
Management and Budget (OMB) FY2003
billion. For FY2004 NIH’s research budget
estimates for civilian R&D, approved by the
would increase 1.8%. Despite signing an NSF
108th Congress, on February 13, 2003 (as part
reauthorization bill (P.L.107-368) that calls
of the FY2003 Omnibus appropriation bill
for doubling NSF’s budget over the next 5
P.L. 108-7) that were not available when the
years, the President requested a 3.2% increase
President unveiled his FY2004 federal budget
for NSF ($5.5 billion) in FY2004, far below
on February 3, 2003. Consequently, FY2004
the average annual 14% increase needed to
R&D funding comparisons with FY2003
double the budget in five years.
R&D estimates contained in this issue brief
(except for DOD R&D numbers which were
Within the Department of Commerce, the
approved in the 107th Congress) are different
Administration has proposed a 30% reduction
than those discussed in the President’s
for the National Institute of Standards and
FY2004 budget documents. Civilian agencies’
Technology R&D programs by phasing out
R&D estimates will not reflect a .0065%
funding for the Advanced Technology Pro-
across-the-board reduction, called for in P.L.
gram (ATP), as well as federal support for the
108-7, until March 21, when the Office of
Manufacturing Extension Partnership Program
Management and Budget releases its esti-
(MEP).
mates.
The President’s FY2004 R&D budget
The President’s proposed $4.8 billion
proposal highlights four “Multi-agency R&D
increase for DOD R&D ($61.827 billion),
Priorities” including:1) Counterterrorism
along with a $332 million increase for R&D in
R&D, which includes an estimated $1.001
the Department of Homeland Security, ac-
billion for the Department of Homeland Secu-
counts for almost the entire increase for fed-
rity, a 30% increase over FY2003, (as well as
eral R&D in FY2004. In fact, based on
an estimated $2 billion outside DHS); 2) a 6%
estimated FY2003 spending levels, civilian
increase to $2.2 billion for Network Informa-
R&D would decline from $56 billion to $55.8
tion and Technology R&D; 3) the new Cli-
billion in FY2004. Defense R&D (the sum of
mate Change Science Program, combining the
DOD’s R&D programs and DOE’s defense
existing Global Change Research Program
related programs) would increase 8.2%, to
with the new Climate Change Research Initia-
$66.9 billion. DOD’s basic and applied re-
tive (CCRI), would remain at $1.7 billion; and
search programs are proposed to decline 7%
4) the National Nanotechnology Initiative,
and 14% respectively, below FY2003 funding
estimated to receive a 9.7% increase with a
levels. DOD’s development activities account
proposed $849 million budget for FY2004.
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MOST RECENT DEVELOPMENTS
President Bush has proposed to increase R&D spending 4.2% in FY2004, requesting
a record level of $122.7 billion. DOD would receive the largest proposed increase, climbing
to a proposed record high of $61.8 billion. The Department of Homeland Security’s research
budget would increase 30% to $1 billion. As President Bush continues to restrain the growth
of discretionary spending, civilian R& D will have to compete with other priorities such as
health, education, transportation, and homeland security. Nevertheless, Congress is likely to
try and place funding for NSF back on the doubling track, restrain the growth of earmarking
(which reached $1.8 billion in FY2000), increase funding for DOD’s basic and applied
research budgets, and restore funding for NIST’s ATP and MEP programs.
BACKGROUND AND ANALYSIS
Department of Agriculture (USDA)
The FY2004 budget request for research and education in the U.S. Department of
Agriculture (USDA) is $2,266 million, a slight decrease of $4.1 million from the FY2003
level of $2,270.1 million (see Table 1). The FY2004 request provides increased funding
for several continuing research priority areas: new uses for agricultural products, global
climate change, agricultural genomes, biosecurity, agricultural information services, and
homeland security supplemental. Other priority areas include protecting agriculture and U.S.
trade from terrorism, and emerging and exotic diseases of both plants and animals. Research
programs on emerging and exotic diseases are part of the infrastructure to enhance homeland
security. 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.
Also, USDA is concerned with training and educating the next generation of agricultural
scientists and supporting core university-based research. The request provides increased
funding to address these areas.
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, including the world’s large multi-disciplinary agricultural research
center located at Beltsville, Maryland. There are approximately 100 research facilities
throughout the U.S. and abroad. 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 FY2004 request
provides $1,034 million for ARS, $11.9 million below the FY2003 level. Reductions are
proposed in all projects earmarked by Congress in FY2003 in order to finance high priority
program increases. The FY2004 request proposes a $3.5 million increase for animal
genomics and $8.3 million for emerging diseases and biosecurity. There is also an increase
proposed for information technology cyber security and animal waste related problems. The
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
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and safety standards. The FY2004 request for ARS includes $24 million for buildings and
facilities.
The Cooperative State Research, Education, and Extension Service (CSREES)
distributes funds to universities and organizations that conduct agricultural research.
Included is funding for research at the 1862 institutions, 1890 historically black colleges and
universities, and 1994 tribal land-grant colleges. Funding is distributed to the states through
competitive awards, formula funding, and other means. The FY2004 request for CSREES
is $1,019 million, almost level funding with FY2003. 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 FY2004 to the state
agricultural experiment stations (and other eligible institutions) would be $276 million, a
slight increase over FY2003. The request proposes increases for the 1890 formula programs
in response to the higher authorization levels enacted in the 2002 Farm Bill. Increases are
proposed also for CSREES graduate fellowships. The FY2004 request funds the National
Research Initiative (NRI) Competitive Grants Program at $200 million, an increase of $34
million over the FY2003 level. The NRI will support research in biosecurity, emerging
diseases and pests, air quality, and food and nutritional improvements.
The Economic Research Service (ERS) is the principal intramural economic and social
science research agency in USDA. The request for ERS in FY2004 is $77 million, an
increase of $8.3 million over the previous fiscal year. Included in the increase is funding for
two priority areas: the security analysis system for USDA ($1 million), and the genomics
initiative ($1.1 million). The security analysis system will improve USDA’s ability to
mitigate security threats to the Nation’s food supply. The genomics initiative will provide
for the collection on foreign market requirements for genetically-engineered products. 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 $136 million for NASS in FY2004, a decrease of $2.4
million from FY2003. There are two priority areas in the request – improved agricultural
estimates ($4.8 million), and the locality based agricultural county estimation program ($1.6
million).
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Table 1. U.S. Department of Agriculture
(millions $)
FY2002
FY2003
FY2004
Act.
Est.
Req.
Agric. Research Service (ARS)
Soil & Water Conservation
92.0
102.0
Plant Sciences
333.0
355.0
Animal Sciences
174.1
191.0
Commodity Conversion & Delivery
177.0
180.0
Human Nutrition
77.0
77.0
Integration of Agricultural Systems
39.0
41.0
Information and Library Sciences
20.0
23.0
Repair and Maintenance
18.2
18.0
Contingencies & Trust Funds
35.0
23.0
Subtotal
1,022.0
1,010.0
Buildings & Facilities
119.0
118.7
24.0
Total, ARS a
1,176.0
1,045.9
1,034.0
Coop. St. Res. Ed. & Ext. (CSREES)
Research and Education
Hatch Act Formula
180.1
179.0
180.0
Cooperative Forestry Research
21.9
21.7
22.0
1890 Colleges and Tuskegee Univ.
32.6
35.4
68.0
Special Research Grants
2.8
147.3
0.0
NRI Competitive Grants
120.0
166.0
200.0
Animal Health & Disease Res.
5.1
5.1
5.0
Federal Administration
45.0
48.2
15.0
Higher Education b
36.0
36.9
30.0
Total, Coop. Res. & Educ.c
556.0
587.3
514.0
Extension Activities
Smith-Lever Sections 3b&c
275.9
279.4
276.0
Smith-Lever Sections 3d
85.5
90.1
89.0
Renewable Resources Extension
3.2
4.5
4.0
1890 Research & Extension
66.0
46.8
14.0
Other & Extension Programs
5.7
8.6
36.0
Total, Extension Activities c
441.0
429.8
422.0
Total, CSREES c
1,042.1
1,017.1
1,019.0d
Economic Research Service
76.0
68.7
77.0
National Agric. Statistics Service
122.0
138.4
136.0
TOTAL, Research, Education & Economics
$2,416.1
$2,270.10
$2,266.0
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. Includes $63 million for Integrated Activities and $11 million for the Native American Endowment Fund and
Interest.
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Department of Energy (DOE)
For FY2004, DOE requested $8.6 billion for R&D, including activities in each of the
department’s four business lines: National Security, Science, Energy Supply, and
Environmental Quality. This request is 1.0% below the FY2003 level (see Table 2).
The requested funding for R&D in National Security is $3.6 billion, which is 2.2%
above the FY2003 level after adjusting for programs transferred to the Department of
Homeland Security on March 1, 2003. The bulk of the increase is in the Naval Reactors
program, which is beginning development of a new nuclear reactor design for future navy
ships. The request includes full funding for continued construction of the National Ignition
Facility, scheduled for completion in 2008.
The requested funding for Science is $3.3 billion, an increase of 1.3% over FY2003
after adjusting for programs transferred to the Department of Homeland Security. Within this
overall small increase, there would be no major funding shifts between programs. The
request includes full funding for continued construction of the Spallation Neutron Source,
scheduled for completion in 2006.
The requested funding for R&D in Energy Supply is $1.6 billion, down 8.7% from
FY2003. The largest reduction is a 16.3% cut in the Fossil Energy R&D program, which has
begun to apply specific investment criteria for applied R&D as part of the President’s
Management Agenda. The requested budget would also reduce funding for Energy
Conservation R&D by 12.0%. The requested 5.9% increase for Renewable Energy is largely
the result of the Hydrogen Fuel Initiative; most other Renewable Energy subprograms would
be reduced.
The requested funding for R&D in Environmental Quality is $64 million, down 46%
from FY2003. This change, which follows a 41% reduction in FY2003, reflects the
continued reorientation of the program following an internal review of the entire Office of
Environmental Management (whose total FY2004 budget request is $7.2 billion).
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Table 2. Department of Energy
($ millions)
FY2002
FY2003
FY2004
Comparable a
Appropriated a
Request
National Security
3397.7
3548.2
3626.7
Weapons Activities b
2450.7
2643.5
2654.4
Naval Reactors
687.6
702.2
768.4
Nonproliferation & Verification R&D
259.4
202.5
203.9
Science
3309.5
3268.9
3310.9
Basic Energy Sciences
979.6
1022.2
1008.6
High Energy Physics
697.4
722.0
738.0
Biological & Environmental Research
554.1
507.2
499.5
Nuclear Physics
350.6
382.0
389.4
Fusion Energy Sciences
241.1
248.3
257.3
Advanced Scientific Computing
150.2
168.6
173.5
Other
336.5 c
218.6 d
244.6
Energy Supply
1750.5
1796.2
1639.3
Energy Conservation R&D
621.5
623.5
548.8
Fossil Energy R&D
577.8
620.8
519.3
Renewable Energy
382.7
419.6
444.2
Nuclear Energy R&D
126.5
132.3
127.0
Clean Coal Technology e
42.0
0.0
0.0
Environmental Quality
200.2
117.4
63.9
Technology Development & Deployment f
200.2
117.4
63.9
Total
8657.9
8730.7
8640.8
a. Figures for FY2002 and FY2003 are adjusted to reflect program transfers, including the transfer of former
DOE R&D programs that became part of the Department of Homeland Security on March 1, 2003. FY2003
figures have also been reduced to reflect the 0.65% across-the-board rescission.
b. Includes Stockpile R&D, Science Campaigns, Engineering Campaigns except Enhanced Surety and
Enhanced Surveillance, Inertial Confinement Fusion (called High Energy Density Physics in the FY2003 budget
request), Advanced Simulation and Computing, and a prorated share of Readiness in Technical Base and
Facilities.
c. For FY2002, “Other” Science funding includes $99.7 million for Small Business Innovation Research
(SBIR). SBIR expenditures for FY2003 and FY2004 are not included in “Other” as they will be funded by
transfers from the individual Science programs. This is why “Other” funding appears larger in FY2002 than in
subsequent years.
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d. For FY2003, funding for Science is subject to a general reduction of $20 million. Since DOE’s allocation
of this reduction to particular programs is not yet known, the full $20 million has been taken out of the “Other”
category for the purposes of this table.
e. Funds for Clean Coal Technology in FY2002 were allocated from previously appropriated funds. The balance
of funds for this program was transferred to Fossil Energy R&D in FY2003.
f. Within Defense Site Acceleration Completion in the FY2004 request. Formerly known as Science and
Technology within Defense Environmental Restoration and Waste Management.
Department of Defense (DOD)
Nearly all of what the Department of Defense spends on Research, Development, Test
and Evaluation (RDT&E) is appropriated in Title IV of the defense appropriation bill (see
Table 3). For FY2004, the Bush Administration is requesting $61.8 billion for Title IV
RDT&E. This is approximately $5 billion above the amount made available in Title IV
dollars for FY2003. The request would also represent the largest ever single-year RDT&E
budget (beginning in 1962), when measured in FY2004 dollars. The 6-year budget plan
estimates $394 billion for RDT&E. In addition to RDT&E funding in Title IV, RDT&E is
funded in two other program areas, the Defense Health Program and the Chemical Agents
and Munitions Destruction Program. The RDT&E budget request for these two programs
are $66 million and $252 million, respectively.
While the FY2004 RDT&E request would boost RDT&E funding overall, the proposed
increases are focused on development activities. Basic research and applied research are
proposed at levels below FY2003 funding, declining 7% and 14% respectively. Over half of
DOD’s basic research budget is spent at universities and represents the major contributor of
funds in some areas of science and technology. Much of the support of research at DOD
laboratories comes from applied research accounts.
S&T funding, which consists of basic and applied research and advanced development
(6.1, 6.2 and 6.3 activities in the RDT&E account) is 2.5% of the overall Department of
Defense topline of $379.9 billion. 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. DOD incorporated the 3% target into its latest Quadrennial Defense Review (QDR).
The large increases in DOD’s topline make it difficult for S&T to keep up. For FY2003,
Congress increased S&T funding above the Administration’s request to make the 3% goal.
DOD’s budget request for ballistic missile defense RDT&E is $7.7 billion, about $1
billion more than the FY2003 appropriation. In addition, the Administration is requesting the
deployment of an operationally capable test system in Alaska, and is asking that operational
test and evaluation requirements be waived. Other issues include another request to transfer
some S&T programs out of the Office of the Secretary of Defense and to the Services. Last
year Congress did not allow some of these transfers to take place. Also, the Defense
Advanced Research Projects Agency’s (DARPA) Total Information Awareness RDT&E
program came under scrutiny. The FY2002 Omnibus Appropriations bill (H.J. Res. 2, P.L.
108-007) approved in February contained a provisions that requires a report of the program
by May 2003, and that Congress must approve any deployment of a system that uses data on
people living in the United States.
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Table 3. Department of Defense
($ millions)
FY2002
FY2003
FY2004
Actual
Estimate
Request
Accounts
Army
7,018 7,535
9,123
Navy
11,379 13,631
14,107
Air Force
14,479
18,560
20,336
Defense Agencies
15,517
17,061
17,974
(DARPA)
(2,260)
(2,690)
(2,954)
(MDAa)
(6,910)
(6,719)
(7,729)
Dir. Test & Eval
229
238
287
Total Ob. Auth.
$48,622
$57,025
$61,827
Budget Activity
Basic Research
1,350
1,417
1,309
Applied Res.
4,094
4,289
3,670
Advanced Dev.
4,430
5,067
5,253
Demonstration/Validation
10,125
10,754
13,197
Engineering/Manufacturing Dev.
10,676
13,737
15,913
Mgmt. Supportb
3,646
3,106
3,028
Op. Systems Dev.
14,303
18,656
19,458
Total Ob. Auth.c
$48,624
$57,026
$61,828
Other Defense Programs
Defense Health Program
432
456
66
Chemical Agents and Munitions Destruction
202
294
252
Source: FY2002 to FY2004 figures based on Department of Defense Budget, Fiscal Year 2004 RDT&E
Programs (R-1), February 2002. FY2002 to FY2004 figures for Defense Health Program and Chemical Agents
and Munitions Destruction Program come from OMB’s FY2004 Budget Appendix. 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.
National Aeronautics and Space Administration (NASA)
The National Aeronautics and Space Administration (NASA) is requesting $11.041
billion for R&D for FY2004, out of a total NASA budget request of $15.469 billion (see
Table 4). That R&D figure is almost exactly the same as NASA received for R&D in
FY2003—$11.029 billion. Comparing NASA’s FY2003 appropriations and its FY2004
request on a program by program basis is virtually impossible this year, even though
comparisons can be made at the aggregate level, such as for total R&D. Budget comparisons
at a greater level of refinement are not meaningful for two reasons. First, NASA transitioned
to full cost accounting in its FY2004 budget, where personnel and facilities costs are
included in program costs, instead of being accounted for separately (as done in the past).
Hence, it can appear as though the budget estimate for a particular program in FY2004 is
much higher than FY2003, when, in fact, the difference is due primarily to the inclusion of
those costs, not programmatic changes. Therefore care must be taken when using NASA’s
FY2004 budget materials. NASA released data that allows the FY2003 request to be
compared to the FY2004 request in full cost accounting, but FY2003 appropriations figures
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are not in full cost accounting and thus are not comparable to the FY2004 request. Second,
NASA has completely restructured its budget. Last year, the two accounts were Human
Space Flight (HSF), and Science, Aeronautics, and Technology (SAT). This year, NASA
has created two new budget categories that seek to demonstrate that the agency’s mission is
“Science, Aeronautics, and Exploration,” and that mission is supported by “Space Flight
Capabilities” such as a space station, a space shuttle, other systems, and investing in new
technologies.
NASA’s FY2004 request for the International Space Station is $2.285 billion,
comprising $1,707 million in the Space Flight Capabilities account, and $578 million in the
Biological and Physical Sciences account. The space station has been controversial for
many years because of schedule slippage and cost overruns, but this year the impact on the
program of the space shuttle Columbia tragedy will probably be the focus on attention. For
further details, see CRS Report RS21408 and CRS Issue Brief IB93062.
For Space Science, NASA is requesting $4.007 billion in FY2004. Last year NASA
wanted to terminate a proposed mission to Europa, one of the moons of Jupiter, because, at
$1 billion, it was too expensive. This year, NASA is proposing a more expensive mission
to Europa and two other Jovian moons, Callisto and Ganymede. Called the Jupiter Icy Moon
Orbiter (JIMO), it would utilize nuclear power and propulsion which NASA is developing
under its Nuclear Systems Initiative (NSI). JIMO and NSI are grouped together in NASA’s
FY2004 budget under the name Project Prometheus. The request for Project Prometheus is
$279 million; the 5-year (FY2004-2008) projected cost is $3 billion, and the total program
cost is estimated at $4 billion, though NASA cautions that it will not have a reliable estimate
for 2-3 more years because the program is early in its formulation stage. Last year NASA
also had wanted to terminate a mission to Pluto and the Kuiper Belt, but Congress directed
NASA to continue the program, and NASA includes it in its FY2004 budget request.
The request for the Earth Science program is $1.552 billion. NASA is completing the
launches of the first set of spacecraft in its Earth Observing System (EOS) to study global
climate change. Plans to initiate construction of a second series have been terminated in
favor of using instruments on a new generation of weather satellites (the National Polar-
orbiting Operational Environmental Satellite System—NPOESS) being built by the National
Oceanic and Atmospheric Administration (NOAA) and DOD. NASA is building a
spacecraft, called the NPOESS Preparatory Project (NPP), that will be a “bridge” between
the EOS satellites and NPOESS. NPP will test instruments that could later be included on
NPOESS. NASA also will launch other spacecraft to make environmental measurements.
The request for the Office of Biological and Physical Research is $973 million, including
$578 million for research on the space station. The extent to which the grounding of the
shuttle fleet will impact OBPR’s budget is unknown at this time.
Funding for NASA’s Office of AeroSpace Technologies is split in the FY2004 budget
request. Aeronautics is in the “Science, Aeronautics, and Exploration” account, and the rest
of OAT’s activities are in “Crosscutting Technologies” in the “Space Flight Capabilities”
account. The request for aeronautics is $959 million, and $1.673 billion is requested for the
rest of OAT’s activities. OAT includes the Space Launch Initiative (SLI), which is included
in “Crosscutting Technologies.” The FY2004 request for SLI reflects changes NASA
proposed in November 2002 to its Integrated Space Transportation Plan. Under that plan,
NASA will rely on the space shuttle longer than planned. Some of the funding that was
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Table 4. National Aeronautics and Space Administration
($ millions)
Category
FY2003
FY2003
FY2004
Request
Request in
Request in Full
(Nov. 2002,
Full Cost
Cost
(not in full cost
Accounting
Accounting
accounting)
Science, Aeronautics & Exploration
7,015
7,101
7,661
Space Science
3,414
3,468
4,007
Earth Science
1,628
1,610
1,552
Biological & Physical Research
842
913
973
Aeronautics
986
949
959
Education
144
160
170
Space Flight Capabilities (R&D only)
3,321
3,619
3,380
Space Flight
Space Station*
(1,492)
(1,851)
(1,707)

Crosscutting Technologies
1,829
1,768
1,673
Space Launch Initiative
(879)
(1,150)
(1,065)
Other
(950)
(617)
(607)
Total NASA R&D
10,336
10,720
11,041
Total NASA
15,000
15,000
15,469
Source: NASA FY2004 budget documents. Totals may not add due to rounding. NASA submitted an amended
FY2003 budget request in November 2002, which NASA used in developing the numbers in this table. NASA
completely changed its budget structure in the FY2004 request, and transitioned to “full cost accounting” where
personnel and facilities costs are included in program budgets, instead of separately, as had been done
historically. The NASA-provided figures in the center column adjust the FY2003 numbers as though they
had been prepared in full cost accounting. They are for comparison purposes only and do not reflect
actual funding increases or decreases.

*Does not include funding for space station research, which is embedded in the Biological and Physical
Research line. For FY2004, that amount is $578 million, making the total FY2004 space station request $2,285
million. Some also would include funding for the Orbital Space Plane in the space station request, but NASA
includes it in the Space Launch Initiative line.
expected to be spent on building a successor to the shuttle instead will be spent on improving
it, funding the space station, and for building an Orbital Space Plane (OSP) to take crews to
and from the space station. NASA would continue technology development for new space
launch vehicles, but delay until 2009 a decision on what to build. OSP is discussed in CRS
Issue Brief IB93017; the technology development effort, called NGLT, is discussed in CRS
Issue Brief IB93062. NASA is requesting $1.065 billion for the Space Launch Initiative
(comprising OSP and NGLT) in FY2004.
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National Institutes of Health (NIH)
The FY2003 appropriation completed the 5-year doubling of the NIH budget, an effort
which had meant increases of 14%-15% per year since FY1999. The FY2004 President’s
request provides for a much smaller increase, one considerably lower than the “soft landing”
approach of 8%-10% increases for the post-doubling years which has been urged by research
advocates. The Administration budget includes a total of $27.89 billion for NIH, an increase
of $549 million or 2.0% over the FY2003 program level of $27.34 billion (see Table 5). Of
that amount, $150 million has already been appropriated (in separate funding for diabetes
research), so the amounts requested for congressional consideration are $27.66 billion under
the request for the Labor-Health and Human Services-Education (L-HHS) appropriation, and
$79 million under the request for the VA-HUD appropriation, for a total of $27.74 billion,
an increase of $499 million or 1.8% over the FY2003 budget authority.
The FY2003 appropriation was provided by P.L. 108-7, Consolidated Appropriations
Resolution (H.J.Res. 2). The amounts in the conference report (H.Rept. 108-10) have not
been adjusted to reflect the 0.65% reduction mandated by the law. Before that reduction, the
FY2003 total for NIH, at $27.244 billion in budget authority, represents a doubling of the
FY1998 level of $13.622 billion, and is a $3.78 billion or 16.1% increase over FY2002. If
the rescission reduces the FY2003 total by $177 million, the final level for FY2003 would
be $27.067 billion, somewhat short of the doubling, and a $3.60 billion or 15.4% increase
over FY2002.
The FY2004 Administration budget documents explain that, although the overall
increase is 2%, the increase for specific research programs is larger. This is because about
$1.4 billion of the FY2003 appropriation was for facilities construction, much of it related
to bioterrorism, and other one-time expenses (such as anthrax vaccine procurement) that are
not repeated in the FY2004 budget. By devoting those funds to research in FY2004, the
request would increase spending on research programs by about $1.8 billion or 7%, while
spending on NIH’s intramural buildings and facilities would drop 87% and the extramural
facilities construction program would be zeroed out entirely. The request would support a
record number of research project grants (37,467), including 10,509 in the new and
competing renewal category. Other funding mechanisms, such as research centers, research
training, contracts, and intramural research, are all requested for increases. The size of
increases (or in some cases, decreases) for individual institutes and centers varies
considerably according to their involvement in key research areas and programs.
Research areas of particular emphasis include biodefense (requested for $1.625 billion),
HIV/AIDS ($2.87 billion), diabetes and obesity ($946 million), and broad initiatives in
genetics, regenerative medicine, structural biology, bioinformatics, nanotechnology, and
molecular imaging. In addition, NIH wants to encourage a culture of scientists from many
disciplines working together in large teams, and also wants to improve the national clinical
research infrastructure with better information exchange and more effective partnerships
among federal agencies, academic centers, health professionals, industry, and patient groups.
A new effort, termed the “NIH Roadmap,” has been made to identify critical roadblocks and
knowledge gaps that may be constraining rapid progress in biomedical research. The NIH
Director’s Discretionary Fund is requested for a $35 million increase that would be allocated
to NIH institutes and centers for programs addressing such roadblocks. Later this year the
Institute of Medicine will complete a congressionally-mandated study on the organizational
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structure of NIH and will make recommendations for any changes that it thinks would
enhance research effectiveness and interdisciplinary cooperation.
Table 5. National Institutes of Health (NIH)
($ millions)
Institutes and Centers (ICs)
FY2002
FY2003
FY2004
comp a
conference b
request c
Cancer (NCI)
$4,113.7
$4,622.4
$4,770.5
Heart/Lung/Blood (NHLBI)
2,553.7
2,812.0
2,868.0
Dental/Craniofacial Research (NIDCR)
341.8
374.1
382.4
Diabetes/Digestive/Kidney (NIDDK)
1,559.6
1,733.3
1,820.0
Neurological Disorders/Stroke (NINDS)
1,309.4
1,466.0
1,468.9
Allergy/Infectious Diseases (NIAID)
2,525.8
3,731.0
4,335.3
General Medical Sciences (NIGMS)
1,697.8
1,859.1
1,923.1
Child Health/Human Develmt (NICHD)
1,109.4
1,213.8
1,245.4
Eye (NEI)
579.5
637.3
648.2
Environmental Health Sciences (NIEHS)
563.3
618.3
630.8
Aging (NIA)
890.8
1,000.1
994.4
Arthritis/Musculoskeletal/Skin (NIAMS)
447.4
489.3
502.8
Deafness/Communication Dis. (NIDCD)
341.1
372.8
380.4
Nursing Research (NINR)
120.2
131.4
134.6
Alcohol Abuse/Alcoholism (NIAAA)
382.8
418.8
430.1
Drug Abuse (NIDA)
892.1
968.0
995.6
Mental Health (NIMH)
1,234.2
1,349.8
1,382.1
Human Genome Research (NIHGR)
427.9
468.0
478.1
Biomedical Imaging/Bioenginrg (NIBIB)
261.7
280.1
282.1
Research Resources (NCRR)
985.0
1,146.3
1,053.9
Complementary/Alt. Medicine (NCCAM)
104.2
114.1
116.2
Minority Health/Disparities (NCMHD)
157.4
186.9
192.7
Fogarty International Center (FIC)
55.5
63.9
64.3
Library of Medicine (NLM)
274.3
302.1
316.0
Office of Director (OD)
253.5
268.0
318.0
Buildings & Facilities (B&F)
295.9
632.8
80.0
Subtotal, (L-HHS Approp + diabetes)
$23,478.1
$27,259.7
$27,814.0
Superfund (VA-HUD Approp to NIEHS) d
80.7
84.1
78.8
Total, NIH Program Level e
$23,558.8
$27,343.8
$27,892.8
Pre-appropriated Type 1 diabetes funds f
-97.0
-100.0
-150.0
Total, NIH Budget Authority
$23,461.8
$27,243.8
$27,742.8
Sources: NIH FY2004 Justification of Estimates for Appropriations Committees, and conference report
(H.Rept. 108-10) on H.J.Res. 2, Consolidated Appropriations Resolution for FY2003 (P.L. 108-7).
Note: Columns may not add due to rounding.
a. FY2002 comparable reflects all rescissions and transfers, supplemental funding of $180 million for
bioterrorism appropriated to the PHS Emergency Fund (P.L. 107-117), and $1,129,000 NCI breast cancer
stamp funds.
b. FY2003 does not reflect the across-the-board rescission of 0.65% mandated in the consolidated
appropriation.
c. FY2004 OD total includes $35million in Roadmap funds for later distribution to ICs.
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.
e. Does not reflect $8.2 million for NLM in FY2003 funds provided by the conference report from the
evaluation set-aside (authorized by sec. 241 of the Public Health Service Act).
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f. Funds available for diabetes research in accordance with the Balanced Budget Act of 1997 (FY1998-FY2002)
and P.L. 106-554 and P.L. 107-360.
National Science Foundation (NSF)
The FY2004 request for the National Science Foundation (NSF) is $5,481.2 million, a
3.2% ($171.2 million) increase over the FY2003 level of $5,310 million (see Table 6). This
requested increase would not sustain the goal of doubling NSF’s budget over five years as
called for in P.L.107-368, signed by the President on December 19, 2002. The proposed
3.2% budget increase is much lower than initial 14% increase NSF received in FY2003,
which was aimed at initiating the 5 year doubling objective. The FY2004 request provides
support for several interdependent priority areas: biocomplexity in the environment ($99.8
million), information technology research ($302.6 million), workforce for the 21st century
($8.5 million), nanoscale science and engineering ($249 million), mathematical sciences
($89.1 million), and human and social dynamics ($24.3 million). The request provides the
third installment of $200 million for the President’s Math and Science Partnerships program
(MSP). The MSP is a five-year investment to improve the performance of U.S. students in
science and mathematics at the precollege level. Additional FY2004 highlights include
funding for graduate fellowships and traineeships ($215 million), leading-edge research in
cyber infrastructure ($20 million), continued support of plant genome research ($75 million),
investments in Climate Change Research Initiative ($25 million), added support for the
administration and management portfolio ($291.4 million), and funding for three to five new
multi-disciplinary, multi-institutional Science of Learning Centers ($20 million).
Included in the FY2004 request is $4,106.4 million for Research and Related Activities
(R&RA), a 1.2% increase ($50 million) over the FY2003 level of $4,056.5 million. R&RA
funds research projects, research facilities, and education and training activities. In the
FY2004 request, the NSF has placed an emphasis on funding rates for new investigators and
on increasing grant size and duration. Partly in response to concerns in the scientific
community about the imbalance between support for the life sciences and the physical
sciences, the FY2004 request provides increased funding for the physical sciences. Research
in the physical sciences often leads to advances in other disciplines. 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
FY2004 request for IA is $132.5 million, a decrease of 9.7% from the FY2003 appropriation.
Research project support in the FY2004 request totals $2,696 million. 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$411
million. NSF supports a variety of individual centers and center programs. The request
provides $45 million for Science and Technology Centers, $57 million for Materials Centers,
$60 million for Engineering Research Centers, $13 million for Physics Frontiers Centers, $32
million for the Plant Genome Virtual Centers, and $74 million for Information Technology
Centers.
The Major Research Equipment and Facilities Construction (MREFC) account is funded
at $202.3 million in FY2004, a 36.2% increase ($53.8 million) over the FY2003 level. The
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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 FY2004, all ongoing projects—construction of the Atacama
Large Millimeter Array ($50.8 million), the Network for Earthquake Engineering Simulation
($8 million), the South Pole Station Modernization Project ($960,000), Terascale Computing
Systems ($20 million), Earthscope ($45 million), the High-Performance Instrumented
Airborne Platform for Environmental Research, HIAPER, $25.5 million), IceCube R&D
project ($60 million), and the National Ecological Observatory Network, Phase I ($12
million).
Table 6. National Science Foundation
($ millions)a
FY2002
FY2003
FY2004
Act.
Appr.
Req.
Res. & Related Act.
Biological Sciences
$508.4
$571.1
$562.2
Computer & Inform. Sci. & Eng.
514.9
578.5
584.3
Engineering
472.3
530.6
536.6
Geosciences
609.5
684.7
687.9
Math & Physical Sci.
920.5
1,034.4
1,061.3
Social, Behav. & Econ. Sci.
168.8
191.1
211.7
U. S. Res. Prog.
229.7
251.7
261.9
U.S. Antarctic Log. Act.
68.1
68.6
68.1
Integrative Activities
106.5
146.8
132.5
Subtotal Res. & Rel. Act
3,598.6
4,056.5
4,106.4
Ed. & Hum. Resr.
894.3b
903.2
938.0
Major Res. Equip. & Facil. Constr.
138.8
148.5
202.3
Salaries & Expenses
170.0
189.1
225.7
Office of Inspector General
6.8
9.2
8.8
National Science Board
0.0
3.5
0.0
Total NSF
$4,808.5
$5,310.0
$5,481.2
a. The totals do not include carry overs or retirement accruals.
b. Includes $57.3 million in FY2002 and an estimated $65.7 million in FY2003 from H-1B Nonimmigrant
Petitioner Receipts. There are no projections for FY2004 due to expiration of H-1B legislation in FY2003.
The FY2004 request for the Education and Human Resources Directorate (EHR) is
$938 million, a 3.9% increase ($34.8 million) over FY2003. Support at the various
educational levels in the FY2004 request is as follows: precollege, $346.9 million;
undergraduate, $180.7 million; and graduate, $164.9 million. Support at the precollege level
includes $200 million for the MSP directed at funding for states and local school districts to
join with colleges and universities to strengthen K-12 science and mathematics education.
Support will continue for Systemic Reform Initiatives, Instructional Materials Development,
Centers for Learning and Teaching, and Teacher Professional Continuum. Efforts at the
undergraduate level include the STEM Talent Expansion Program, the Robert Noyce
Scholarship Program, and the National STEM Education Digital Library. Workforce for the
21st Century priority area is supported at the undergraduate activity. It will focus on
attracting students to the scientific and technical disciplines. An increase in FY2004 for
graduate level programs will allow NSF to raise the stipend of graduate fellows to $30,000
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and to increase the number of offers to new fellowships. Graduate Teaching Fellowships in
K-12 Education will be increased to $42.5 million. This program links the excellence of
U.S. graduate education with the critical needs of school districts. Support for other graduate
programs includes the Centers of Research Excellence in Science and Technology, Model
Institutions for Excellence, and Alliances for Graduate Education and the Professoriate.
Funding for the Experimental Program to Stimulate Competitive Research (EPSCoR) is $75
million in FY2004. An additional $30 million from R&RA will support the three activities
of EPSCoR; research infrastructure improvement, cost sharing, and outreach. It is
anticipated that the H-1B nonimmigrant petitioner fees collected in FY2003 will approximate
$92.5 million.
Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
For FY2004 President Bush requested a total of $764.7 million in R&D funding for
NOAA’s Operations, Research and Facilities (ORF) account (see Table 7, for the remaining
agencies discussed in this issue brief). This amount is 11% below the estimated amount of
$816 million approved for FY2003. While the Oceanic and Atmospheric Research (OAR)
account increases in FY2004, this is because the FY2003 request included a proposal to
transfer the National Sea Grant program to NSF, which was rejected by Congress and placed
back in OAR in FY2004. As compared with the President’s R&D request for FY2003, the
FY2004 request reflects: 1) a $39 million increase for the National Marine Fisheries Service
(NMFS); 2) a $48.3 million increase for NOAA Research (OAR); 3) a $7.5 million reduction
for the National Weather Service (NWS); 4) a $12.8 million increase for the National
Environmental Satellite Data and Information Service (NESDIS); 5) a $6.9 million increase
for Program Support; and 6) level with the FY2003 request for the National ocean Service
(NOS). For general information on NOAA funding for FY2003, see CRS report RL31567,
The National Oceanic and Atmospheric Administration (NOAA): The President’s Budget
Request and Congressional Appropriations for FY2003
.
National Institute of Standards and Technology
The Bush Administration’s FY2004 budget request includes $496.8 million for the
National Institute of Standards and Technology (NIST), 30% less than the $712.1 million
appropriated for FY2003. The significant decline proposed for NIST’s budget is due to the
Administration’s goal of ending federal support for the Advanced Technology Program
(ATP) and the Manufacturing Extension Partnership (MEP), after the FY2004 budget cycle..
The $27 million requested for ATP is to cover on-going commitments; no new projects
would be funded. The $12.6 million for MEP is to finance the operation of centers that have
not experienced 6 years of federal support. The Scientific and Technical Research and
Services (STRS) account (which involves intramural research and development) would
receive $387.6 million, an increase of 8% over the previous fiscal year. The construction
budget would be $69.6 million.
In FY2003, $712.1 million was appropriated for NIST, an increase of almost 5% above
the previous fiscal year. Included in this figure is $359.4 million for the STRS account, $180
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million for ATP, $106.6 million for MEP, and $66.1 million for construction. (It should also
be noted that the FY2003 Omnibus Appropriations bill contained a 0.65% “across-the-board
rescission” which may, ultimately, affect funding levels for NIST and its component
programs.)
Department of Transportation (DOT)
According to the Bush Administration’s Budget, the Department of Transportation
(DOT) requested $693 million for research and development in FY2004. This is $142
million below the estimated $835 million that was available in FY2003. However, $133
million of the “decrease” can be attributed to the transfer of the Transportation Security
Administration ($ 110 million) and the Coast Guard ($23 million) to the Department of
Homeland Security. There are four Administrations within DOT that are the primary
supporters of research and development—the Federal Highway Administration (FHWA $363
million), the National Highway Traffic Safety Administration (NHTSA $60 million), the
Federal Aviation Administration (FAA $298 million), and the Federal Railroad
Administration (FRA $31) million. For the third consecutive year, R&D within the FAA is
schedule to decline, dropping from $387 million in FY2002 to $298 million FY2004, a 23%
decrease.
Department of Interior (DOI)
According to the President’s budget, the Administration requested $633 million for
R&D in the Department of Interior. This is a slight increase from the $627 million received
in FY2003. 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 FY2004 budget for R&D within the USGS
would decline 4%, from $569 million in FY2003 to $545 million in FY2004. DOI’s overall
R&D budget is increasing because the Administration decided to keep the National Water
Quality Assessment Program and the Toxic Substance Hydrology Program within Interior,
rather than transfer them to other agencies as proposed in the FY2003 budget.
Environmental Protection Agency (EPA)
The Administration requested $731.5 million in the FY2004 budget for Science and
Technology at EPA, including R&D activities under Superfund. The FY2003 appropriation
for S&T, including R&D under the Superfund account, is $720.3 million instead of $714.6
million as proposed by the House and $707.2 million as proposed by the Senate. The
Administration had requested $670 million. This compares with $735 million enacted in
FY2002, which was supplemented by $90.3 million in FY2002 for Homeland Security (for
an S&T total of $825.3 million in FY2002). Major continuing congressional concerns are
the quality of scientific information which EPA disseminates and information 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 incorporates elements of the former
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research and development account (also called extramural research) as well as EPA’s in-
house R&D and technology efforts.
Department of Homeland Security
For FY2004, the Department of Homeland Security requested $1.0 billion for R&D.
About 80% of the total would be in the Directorate of Science and Technology, with the
remainder divided among the Directorate of Border and Transportation Security (including
the Transportation Security Administration), the Coast Guard, and the Directorate of
Information Analysis and Infrastructure Protection. The Department’s R&D activities include
several programs transferred from other agencies when the Department was created, but
about a quarter of the requested FY2004 funding is new, and more than half of the remainder
was new in FY2003.
The requested FY2004 funding for the Directorate of Science and Technology is $803
million. More than 45% of this sum would fund a program of R&D on biological terrorism
countermeasures ($365 million). The remainder would be divided among six other programs:
radiological and nuclear countermeasures ($137 million), threat and vulnerability assessment
($90 million), chemical and high explosives countermeasures ($65 million), university
programs and the Homeland Security Institute ($62 million), conventional missions ($55
million), and equipment standards ($25 million). The Homeland Security Advanced
Research Projects Agency, with a requested FY2004 budget of $350 million, will be part of
the Directorate of Science and Technology but will cut across the above programs rather than
being a separate item. Although the Directorate incorporates a number of programs that
formerly existed in other agencies, the above organization is new, making year-to-year
budget comparisons essentially impossible at the program level.
.
Table 7. R&D Budgets of Preceding Agencies
($ millions)
FY2002
FY2003
FY2004
Actual
Estimate
Request
National Oceanic and Atmospheric
$868
$816
$764
Administration
National Institute of Standards & Technology
678
712
497
Department of Interior
623
627
633
Department of Transportation
892
835
693
Department of Homeland Security a
266
759
1,001
Environmental Protection Agency
825 b
720
732
a. FY2002 figures for the Department of Homeland Security are for programs in other agencies that were
transferred into the Department by the Homeland Security Act of 2002 (P.L. 107-296). FY2003 figures are
Administration estimates based on the FY2003 requested budgets of the same transferred programs. Most of
the program transfers did not actually take place until March 1, 2003, or later, several months into FY2003.
Because of this, the FY2002 and FY2003 figures should be considered approximate and may be estimated
differently by different sources
b. Includes $90.3 million in supplemental funding for Homeland Security.
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