Order Code RS20589
Updated May 5, 2003
CRS Report for Congress
Received through the CRS Web
Manipulating Molecules: The National
Nanotechnology Initiative
Michael E. Davey
Specialist in Science and Technology
Resources, Science, and Industry Division
Summary
The Bush Administration has requested $849 million for nanotechnology research
for FY2004, a 9.7% increase over FY2003. (See Table 1.) Nanotechnology is a newly
emerging field of science where scientists and engineers are beginning to manipulate
matter at the molecular and atomic level in order to obtain materials and systems with
significantly improved properties. Ten nanometers is equal to one-ten thousandths the
diameter of a human hair. Proponents of this technology argue that nanotechnology will
lead to a new industrial revolution in the 21st century. Scientists note that
nanotechnology is still in its infancy, with large scale practical applications10 to 30
years away. Congressional concerns center around coordination and priority setting for
the NNI, challenges associated with interdisciplinary research, and potential
environmental and health concerns associated with the deployment of nanotechnologies.
Both the House (H.R. 766) and Senate (S. 189) have introduced legislation that would
establish the NNI in law. On May 1st, the House Science Committee marked up H.R.
766, and added a provision requiring that interdisciplinary nano centers address the
potential ethical, legal, and social implications related to the development and
deployment of nanotechnologies. This report will be updated as events warrant.
Introduction
For FY2004, the Bush Administration has designated the National Nanotechnology
Initiative (NNI) as a multi-agency research initiative. As indicated in Table 1, the
Administration is requesting $849 million for the NNI, a 9.7% increase over the FY2003
estimated funding level of $774 million. If Congress approves this requested increase,
funding for the NNI will have doubled since FY2001. Nanotechnology is the creation
and utilization of materials, devices, and systems with novel properties and functions
through the control of matter atom by atom, or molecule by molecule. Such control takes
place on a scale of a fraction of a nanometer to tens of nanometers. Ten nanometers is
equal to one-ten thousandths the diameter of a human hair.
Congressional Research Service ˜ The Library of Congress

---

CRS-2
Academic and industry scientists working in this field contend that research in
nanoscience will lead to revolutionary breakthroughs in such areas as medicine,
manufacturing, materials, construction, computing, and telecommunications. For
example, Science magazine designated scientists’ and engineers’ ability to build the first
set of molecular-scale circuits as the scientific breakthrough of 2001. The magazine noted
that when such circuits are wired to computer chip architectures this will result in
incredible computing power in tiny machines.1 Many scientists contend that
breakthroughs in nanotechnology (or nanoscience as some researchers refer to it) will
eventually lead to molecules replacing silicon on computer chips which in turn could
result in computers that are billions of times faster than today’s most sophisticated
computers. Researchers are also studying ways to treat neurological disorders by
developing silicon capsules that include nanopore screening membranes (18-25
nanometers wide) that allow the desired molecules to flow in and out while blocking the
patient’s antibodies from attacking the treated area. While both private sector and
federally sponsored research in nanoscience has led to encouraging breakthroughs in the
last couple of years, nanotechnology is still in its infancy. Most scientists contend that
practical applications of this newly emerging science, such as the ones described above,
could be 10 to 30 years away.
Nanotechnology and the Federal Role
All natural materials and systems establish their fundamental properties at the
atomic and molecular scale. Consequently, the ability to control matter at those levels
provides the means for tailoring the fundamental properties, phenomena, and processes
exactly at the scale where the basic properties are determined. According to the
Administration, in FY2004 the NNI will continue to focus on fundamental research in the
following areas: 1) Research to enable efficient nanoscale manufacturing, and novel
instrument for nanoscale measurements; 2) Nano-biological systems for medical
advancements and new products; 3) Innovative nanotechnology solutions for detection
or and protection from biological-chemical-radiological-explosive agents; 4) the
education and training of a new of a new generation of workers for future industries; and
5) Partnerships and other policies to enhance industrial participation in the
nanotechnology revolution.2
Once the NNI was established in 2000, the Nanoscale Science and Engineering and
Technology (NSET) also was established as a subcommittee of the National Science and
Technology Council’s (NSTC) Committee on Technology. NSET serves as the
coordinating body of the NNI with membership composed of representatives from the
different departments and agencies participating in the initiative, as well as a
representative from the Office of Science and Technology Policy. The NNI is built around
five funding themes distributed among the agencies currently participating in the NNI.
The agencies include the National Science Foundation (NSF), the Departments of
Defense (DOD), Energy (DOE), Homeland Security (HLS), Agriculture (USDA), Justice
(DOJ), the National Institutes of Health (NIH), the National Aeronautics and Space
1 Molecules Get Wired, Science Vol. 294, December 21, 2001. P. 2442-43.
2 Fiscal Year 2004, Analytical Perspectives, Budget of the U.S. Government, p.177-78.

---

CRS-3
Administration (NASA), The National Institute of Standards and Technology (NIST),
within the Department of Commerce, and the Environmental Protection Agency (EPA).
In October of 2000, the NSTC approved NSET’s request to establish the National
Nanotechnology Coordinating Office (NNCO). Besides being responsible for the day-to-
day management of the NNI, the NNCO will assist the NSET committee with identifying
funding priorities, establishing budgets, and evaluating current NNI activities. Below is
a brief summary of the five major cross-cutting NNI themes with estimated funding
levels for FY2003 as well as the proposed increases for each theme in FY2004.3
1. Fundamental Nanoscience and Engineering Research. ( $248 million
+$22 million) Long term basic research is essential to establishing a fundamental
knowledge of nanoscale phenomena. Research activities will focus on fundamental
understanding and synthesis of nanometer-size building blocks with potential
breakthroughs in areas such as materials and manufacturing, nanoelectronics, medicine
and healthcare, environment and energy, chemical and pharmaceuticals industries,
biotechnology and agriculture, computation and information technology, and national
security. One of the fundamental challenges facing researchers is to try to control and
manipulate matter at the ultimate frontier where, for example, as you move from 1 to 100
nanometers, the texture of atomic and molecular matter can suddenly change from soft,
to hard, to brittle, and back to soft again without explanation.
Table 1. Estimated Funding for Nanotechnology FY2004
$ millions
FY2001
FY2002
FY2003
FY2004
Enacted
Enacted
Estimate
Request
NNI Total
422
697
774
849
NSF
150
204
221
249
DOD
110
224
243
222
DOE
88
89
133
197
HHS (NIH)
39
59
65
70
NASA
20
35
33
31
DOC (NIST)
10
77
69
62
EPA
5
6
6
5
Dept. HLS. (TSA) a
0
2
2
2
USDA
0
0
1
10
Dept. of Justice
0
1
1
1
a. Transportation Security Administration
2. Grand Challenges. ($279 million + $24 million) The second theme includes
support for interdisciplinary research and education teams, including centers and
networks, that work on major long-term objectives. In the area of efficient energy
conservation and storage one of the challenges is to understand how deliberate tailoring
of materials at the nanoscale can lead to novel and enhanced functionalities of relevance
3 For more details of the FY2003 NNI themes, see National Nanotechnology Initiative, The
Initiative and Its Implementation Plan, Detailed Technical Report Associated with the
Supplemental Report to the President’s FY2003 Budget, June 2002, p. 46-86.

---

CRS-4
in energy conversion, storage and conservation. Another long term challenge is to
develop tools for modeling and simulating the broad range of manufacturing processes
involving nanostructures thus allowing the processes to be better understood and
optimized. Developing bio-nanosensor devices for biological threat detection is another
nanotechnology opportunity that could foster efficient and rapid biochemical detection
and mitigation in situ for chemical bio-warfare.
3. Centers and Networks of Excellence. ($124 million + $14 million) To date,
15 centers of excellence (6 NSF, 4 DOE, 4 NASA, 1 DOD) have been established
through the NNI. The primary objective of the centers is to enable research activities that
cannot be conducted through the traditional mode of single investigator, small groups, or
with current research infrastructure. Further, each center is expected to establish
partnerships with industry, national laboratories, and other sectors, including state
supported nanoscience activities. The research activities of the centers are expected to
enhance multidisciplinary research activities among government, universities and
industry performers, which in turn, are expected to create a vertical integration
arrangement that includes activities from basic research to the actual development of
specific nanotechnology devices and applications.
4. The Creation of Research Infrastructure. ($108 million + $12 million) The
fourth theme supports the creation of a research infrastructure for metrology,
instrumentation, modeling and simulation, and facilities. Most of the R&D
instrumentation and facilities will be made available to users not only from the institution
that operates the facility but also from other institutions including industry and
government. The ultimate objective is the development of research instrumentation and
facilities so that new innovations can be rapidly commercialized by U.S. industry.
According to NSET, if the need for instrumentation and the ability to transition from
knowledge-driven to product-driven efforts are not addressed satisfactorily, the United
States will not remain internationally competitive in this field.
5. Ethical, Legal, and Social Implications. ($16million,+$3 million) In
concert with the initiative’s university based research activities, this effort is designed to
provide effective education and training of skilled workers in the multidisciplinary
perspective necessary for rapid progress in nanotechnology. Researchers will also
examine the potential social, economic, ethical, legal, and workforce implications of
nanotechnology. In March of 2001, the NSET released a report on the Societal
Implications of Nanoscience and Nanotechnology. Based on the proceedings of a two day
workshop, the report states that support for research on the potential social, economic,
and ethical implications must be a high priority for the NNI. According to the report, such
efforts should help to reduce or dispel some of the unfounded fears that often accompany
dramatic advances in science and engineering.4
Congressional Issues
Coordination and Priority Setting for the NNI. In June of 2002, the National
Research Council (NRC) released a report entitled Small Wonders, Endless Frontier, A
4 For more details on this report, and other Federal nanotechnology related documents see,
[http//www.nano.gov]

---

CRS-5
Review of the National Nanotechnolgy Initiative. As part of its study the NRC was asked
to examine such issues as the balance of the NNI R&D portfolio, the effectiveness of
interagency coordination, and to identify important areas of future investments. As the
first of ten major recommendations contained in the report, the NRC suggested that OSTP
establish the National Nanotechnolgy Advisory Board (NNAB) which among other things
could work with NSET agencies to reach beyond their individual research missions in
order to identify “cross cutting research opportunities with the greatest potential payoff
and the broadest impact.”5 The NRC panel was composed of representatives from
industry, small business, and academia with scientific, engineering and social science
backgrounds. The NRC report indicated that the NNAB could also address other NNI
concerns, such as nano research infrastructure needs, technology transfer efforts, and the
extent to which NSET R&D priorities reflect an awareness of private sector and
international nanotechnology R&D activities. In response to the NRC recommendation,
the President’s Council of Advisors on Science and Technology (PCAST) has initiated
a review of the NNI that will focus on three separate areas of inquiry. They include; 1.)
medical, biological and social implications; 2.) materials and electronics; and 3.) energy
and the environment.
House and Senate NNI Legislation. Both the House (H.R. 766,
Representatives Boehlert and Honda) and Senate (S. 189, Senators Wyden and Allen )
have introduced legislation that would establish the NNI in law, noting that the major
interagency initiative is a top priority for the Administration’s FY2004 non-medical,
civilian scientific and technology R&D. The House bill provides recommended
authorization levels from FY2004-FY2006 for NSF, DOE, EPA, DOE, and NIST. The
Senate bill contains recommended FY2004 authorization levels for all the civilian
agencies participating in the NNI. The House and Senate bills contain provisions that
would maintain multi-agency coordinating mechanisms, such as the NSET, as well the
NNCO which is responsible for coordinating the daily activities of the NNI, and serving
as a point of reference for responding to federal, state, and private sector inquiries related
to the NNI. In response to the NRC report calling for an independent outside review of
the NNI, the House and Senate bills call for the President to establish an independent
advisory committee consisting of non-federal members, including representatives from
academia and industry, as well as individuals who possess expertise regarding the ethical,
legal, and social implications related to the development and deployment of
nanotechnology. Finally, both bills call for the National Academy Sciences (NAS) to
conduct periodic reviews of the NNI. The markup version of H.R. 766 requests that after
three years of the bills enactment, the NAS examine the feasibility of “manufacturing
materials and devices at the molecular scale,... and after six years, the NAS study
strategies for ensuring the development of safe nanotechnology, including self-replication
of nanoscale machines, and or the safe release of such machines into the environment.”
The Challenge of Interdisciplinary Research. In testimony before the Senate
Commerce Subcommittee on Science, Technology and Space, R. Stanley Williams, from
Hewlett-Packard, testified that nanoscience is a field where hundreds of years of
advancements in the fields of biology, physics, and chemistry have come together in just
the past decade. According to Williams, now that all three fields have come together
5 Small Wonders, Endless Frontiers, A Review of the National Nanotechnology Initiative,
National Research Council, National Academy Press, Washington D. C., 2002, p. 20.

---

CRS-6
“each has realized that it can learn much from the others, so that the field of nanoscience
has transcended traditional academic boundaries.”6 Nevertheless, while the NRC report
also recognizes the pivotal role that interdisciplinary scientific discovery will play in the
advancement of nanoscience and nanotechnology, the report notes that most of the
Nation’s education and research enterprise is not producing researchers who are capable
of engaging in research that crosses disciplinary boundaries. In addition, the report notes
that the overall academic value system regarding scientific quality “continues to
discourage interdisciplinary research, with negative consequences for tenure, promotion,
and the awarding of research grants.”7 The 21st Century Nanotechnology Research and
Development Act (S. 189), contains a provision that would establish Interdisciplinary
Research Centers, funded in the range of from $3-5 million per year, for the next 5 years.
According to S. 189, the goal is to establish geographically diverse centers, including at
least one center in a State participating in NSF’s Experimental Program to Stimulate
Competitive Research (EPSCoR). Such centers could play a key role in developing a
cadre of scientist and engineers trained in interdisciplinary studies to push the frontiers
on nanoscience.
Nanotechnology Environmental and Health Concerns. Despite the great
promise surrounding nanotechnology, questions have been raised regarding potential
environmental and health concerns associated with the development and use of nanoscale
materials. While nanotechnology may have the ability to make the environment cleaner,
scientists acknowledge that manufacturing and use of nanomaterials could also present
unique environmental concerns since these materials represent new types of matter. Dr.
Mark Wisner, a researcher at the Center for Biological, and Environmental
Nanotechnology (CBEN) at Rice University, has raised concerns about potential
environmental effects when carbon nanotubes end up in the environment. As part of its
NNI activities, the EPA is sponsoring research that will examine possible environmental
concerns associated with the manufacturing and use of nano materials. Regarding health
concerns, Dr. Vikki Colvin, a colleague of Dr. Wisner at CBEN, has reported that
nanomaterials can insinuate themselves into cells which Colvin claims is unusual for
most inorganic materials. She contends that we do not know what these new materials
will do at the cellular level. While she believes that nanomaterials will interact with
biology in ways that larger materials cannot, Dr. Wisner also noted that accumulation of
materials in the liver of laboratory animals demonstrates that nanoparticles can
accumulate within organisms. Wisner contends if we know nanomaterial can be taken up
by cells, then there is an entry point for nanomaterial into the food chain. He suggested
researchers should examine whether nanoparticles absorbed into bacteria enhance the
ability to “piggyback”their way into the bacteria and cause damage to cellular structures.8
6 Stanley Williams, HP Fellow, Testimony before the Commerce Committee, Subcommittee on
Science, Technology and Space, September 17, 2002., page 2.
7 Op. Cit. Small Wonders, Endless Frontiers, p. 30.
8 Smalltimes, Nano Litterbugs? Expert See Potential Pollution Problems, March/April, 2002

---