Order Code IB10117
CRS Issue Brief for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2004
Updated August 29, 2003
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)
Department of Homeland Security

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Federal Research and Development Funding: FY2004
SUMMARY
The Bush Administration requested
research, a 3.7% increase over FY2003, while
$122.7 billion in federal research and
applied research funding would be flat at
development (R&D) funding for FY2004.
$26.784 billion.
This is $5.3 billion above the estimated
$117.4 billion that was appropriated for fed-
To date, the House has passed 11 of its
eral R&D in FY2003. This proposed 4.2%
appropriations bills while the Senate has
increase for R&D is based on new Office of
passed 4 of its bills. Based on current House
Management and Budget (OMB) FY2003
actions, CRS estimates that the House has
estimates for civilian R&D, approved by the
approved an estimated $125.5 billion for R&D
108th Congress, on February 13, 2003 (as part
in FY2004, about $3.5 billion more than the
of the FY2003 Omnibus appropriation bill
President requested. While the President
P.L. 108-7) that were not available when the
requested $61.8 billion for DOD’s RDT&E
President unveiled his FY2004 federal budget
program, the House approved an estimated
on February 3, 2003. Consequently, FY2004
$64.6 billion for defense R&D, while the
R&D funding comparisons with FY2003
Senate approved $63.3 billion.
R&D estimates contained in this issue brief
(except for DOD R&D numbers which were
Both the House and Senate approved
approved in the 107th Congress) are different
large R&D increases for the Department of
than those discussed in the President’s
Homeland Security (DHS) in FY2004, with
FY2004 budget documents.
the House recommending $1.1 billion, and the
Senate $1 billion. The House has matched the
The President’s proposed $4.8 billion
President’s request for NIH recommending
increase for DOD R&D ($61.827 billion),
$27.6 billion, a 2.7% increase, while the
along with a $332 million increase for R&D in
Senate Appropriations Committee approved
the Department of Homeland Security, ac-
$27.9 billion for NIH, an increase of 3.7%.
count for almost the entire increase for federal
The House has approved a total budget for
R&D in FY2004. In fact, based on estimated
NSF of $5.6 billion, an increase of 6.2 % over
FY2003 spending levels, civilian R&D would
FY2003, while concomitantly increasing
decline from $56 billion to $55.8 billion in
Research and Related Activities by 6.1% to
FY2004. Defense R&D (the sum of DOD’s
$4.3 billion. However, this proposed increase
R&D programs and DOE’s defense related
is below the level of funding necessary to
programs) would increase 8.2%, to $66.9
double NSF’s budget between FY2003 and
billion. DOD’s basic and applied research
FY2007. Finally, while the House approved
programs are proposed to decline 7% and 14%
modest funding increases for DOE and
respectively, below FY2003 funding levels.
NASA, it also approved reductions in other
DOD’s development activities account for the
civilian R&D programs including EPA, Trans-
entire increase in its budget. The Administra-
portation, NIST, and NOAA.
tion has requested $27.070 billion for basic
Congressional Research Service ˜ The Library of Congress

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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. Based on the 11 appropriations bills passed by the
House, CRS estimates that Federal R&D spending for FY2004 could reach a record $125.5
billion. Both the House and Senate have approved large increases for DOD’s and DHS’s
R&D 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 decrease of $113.6 million from the FY2003 level
of $2,379.6 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, $121.1 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
and safety standards. The FY2004 request for ARS includes $24 million for buildings and
facilities.
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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 for CSREES graduate fellowships. The FY2004 request funds the National
Research Initiative (NRI) Competitive Grants Program at $200 million, $34 million above
the FY2003 level.
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.
On July 14, 2003, the House passed H.R. 2673 (H.Rept. 108-193), the Department of
Agriculture and Related Agencies Act of FY2004. The House measure provides $2,284.1
million for research and education in FY2004, $18.1 million above the request and $95.5
million below the FY2003 estimate. The Senate Appropriations Committee reported S.
1427 (S.Rept. 108-107), on July 17. The Committee’s bill provides a total of $2,358 million
in FY2004, $73.9 million above the House, $92 million above the request, and $21.6 million
below the FY2003 estimate.
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Table 1. U.S. Department of Agriculture
(millions $)
FY2003
FY2004
FY2004
FY2004
Est.
Req.
House
Senate
Agric. Research Service (ARS)
Soil & Water Conservation
102.0
Plant Sciences
355.0
Animal Sciences
191.0
Commodity Conversion & Delivery
180.0
Human Nutrition
77.0
Integration of Agricultural Systems
41.0
Information and Library Sciences
23.0
Repair and Maintenance
18.0
Contingencies & Trust Funds
23.0
Subtotal
1,036.7
1,010.0
1,014.0
1,045.5
Buildings & Facilities
118.7
24.0
35.9
46.0
Total, ARS a
1,155.4
1,034.0
1,049.9
1,091.5
Coop. St. Res. Ed. & Ext. (CSREES)
Research and Education
Hatch Act Formula
179.0
180.0
180.1
179.0
Cooperative Forestry Research
21.7
22.0
21.9
21.7
1890 Colleges and Tuskegee Univ.
35.4
68.0
36.0
35.4
Special Research Grants
147.3
0.0
101.2
101.6
NRI Competitive Grants
166.0
200.0
149.2
180.0
Animal Health & Disease Res.
5.1
5.0
5.1
5.1
Federal Administration
48.2
15.0
36.8
26.7
Higher Education b
36.9
30.0
38.4
39.9
Total, Coop. Res. & Educ.c
587.3
514.0
594.8
617.6
Extension Activities
Smith-Lever Sections 3b&c
279.4
276.0
275.9
279.4
Smith-Lever Sections 3d
90.1
89.0
90.0
90.1
Renewable Resources Extension
4.5
4.0
4.1
4.5
1890 Research & Extension
46.8
14.0
13.5
14.9
Other Extension Prog. & Admin.
8.6
36.0
54.7
61.2
Total, Extension Activities c
429.8
422.0
438.2
450.1
Total, CSREES c
1,017.1
1,019.0d
1,033.0
1,067.7
Economic Research Service
68.7
77.0
71.4
69.9
National Agric. Statistics Service
138.4
136.0
129.8
128.9
TOTAL, Research, Education & Economics
$2,379.6
$2,266.0
$2,284.1
$2,358.0
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
House and Senate bills (H.R. 2754 and S. 1424 Energy and Water, H.R. 2691 and S. 1391
Interior) would increase funding to $9.1 billion and $8.7 billion respectively.
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 House and Senate would provide $3.8 billion and
$3.6 billion respectively. The bulk of the requested increase is in the Naval Reactors
program, which is beginning development of a new nuclear reactor design for future navy
ships. The House and Senate changes from the request are largely within the Weapons
Activities account. The request and the House and Senate bills all include 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. The House
and Senate would provide $3.5 billion and $3.4 billion respectively. Within these overall
increases, there would be no major funding shifts between programs. The request and the
House and Senate bills would all include 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 House and Senate each increased funding for Energy Supply R&D to $1.7
billion, shrinking the proposed reductions in Fossil Energy R&D and reducing rather than
increasing funds for Renewable Energy.
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). The House
provided the requested amount; the Senate provided $85 million.
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Table 2. Department of Energy
($ millions)
FY2003
FY2004
FY2004
FY2004
Appropriated a
Request
House
Senate
National Security
3548.2
3626.7
3803.2
3569.0
Weapons Activities b
2643.5
2654.4
2830.9
2565.7
Naval Reactors
702.2
768.4
768.4
768.4
Nonproliferation & Verification R&D
202.5
203.9
203.9
234.9
Science
3268.9
3310.9
3480.2
3360.4
Basic Energy Sciences
1022.2
1008.6
1016.6
1008.6
High Energy Physics
722.0
738.0
748.0
738.0
Biological & Environmental Research
507.2
499.5
562.0
534.0
Nuclear Physics
382.0
389.4
399.4
389.4
Fusion Energy Sciences
248.3
257.3
268.1
257.3
Advanced Scientific Computing
168.6
173.5
213.5
183.5
Other c
218.6
244.6
272.6
249.6
Energy Supply
1796.2
1639.3
1743.7
1691.3
Energy Conservation R&D
623.5
548.8
609.5
587.6
Fossil Energy R&D
620.8
519.3
609.3
593.5
Renewable Energy
419.6
444.2
407.2 d
358.5
Nuclear Energy R&D
132.3
127.0
117.7
151.7
Environmental Quality
117.4
63.9
63.9
85.1
Technology Development & Deployment e
117.4
63.9
63.9
85.1
Total
8730.7
8640.8
9091.0
8705.8
a. Figures for 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. They do not include transfers made by DOE
subsequent to congressional action or additional funds provided in the Emergency Wartime Supplemental
Appropriations Act of 2003 (P.L. 108-11).
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 FY2003, funding for Science is subject to a general reduction of $20 million. Since DOE’s allocation
of this reduction to particular programs was not specified by Congress, the full $20 million has been taken out
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of the “Other” category for the purposes of this table. The same is true for a $1 million general reduction in the
FY2004 House report.
d. For comparability, this figure includes $77.0 million in the new Electricity Transmission and Distribution
account.
e. 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. The House-passed (H.R. 2658) defense appropriations
bill would boost RDT&E programs 12.3%, while the Senate passed version of H.R. 2658
recommends $64.8 billion for RDT&E in FY2004, a 10.4% increase over FY2003.
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. While the President recommended a reduction for S&T spending, the House
appropriations approved $11.9 billion for S&T, a 10.5% increase, while the Senate version
of H.R. 2658 recommends $11.4 billion, a 5.4% increase over FY2003.
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.
Only July 8, the House passed its defense appropriations bill (H.R. 2658). The House
voted to appropriate $64.6 billion for Title IV RDT&E, including $11.9 billion for S&T.
The Senate approved its defense appropriations bill (S. 1382) on July 17. The Senate voted
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to appropriate $63.6 billion for Title IV RDT&E, including $11.4 billion for S&T. Both
chambers increased RDT&E funding for the Defense Health Program to $410 million. The
House slightly reduced funding for missile defense, below the Administration’s request. The
Senate approved slightly more funding than what was requested for missile defense.
Table 3. Department of Defense
($ millions)
FY2003
FY2004
House
Senate
Estimate
Request
Apprn.
Apprn.
Accounts
Army
7,535 9,123
10,186
9,513
Navy
13,631 14,107
14,666
14,886
Air Force
18,560
20,336
20,704
20,086
Defense Agencies
17,061
17,974
18,774
18,774
(DARPA)
(2,690)
(2,954)
(3,039)
(3,101)
(MDAa)
(6,719)
(7,729)
(7,478)
(7,804)
Dir. Test & Eval
238
287
294
305
Total Ob. Auth.
$57,025
$61,827
$64,613
$63,564
Budget Activity
Basic Research
1,417
1,309
1,431
1,358
Applied Res.
4,289
3,670
4,383
4,048
Advanced Dev.
5,067
5,253
6,092
5,927
Demonstration/Validation
10,754
13,197
13,176
13,070
Engineering/Manufacturing Dev.
13,737
15,913
15,950
16,330
Mgmt. Supportb
3,106
3,028
3,315
3,127
Op. Systems Dev.
18,656
19,458
20,267
19,668
Total Ob. Auth.c
$57,026
$61,828
$64,614 $63,564
Other Defense Programs
Defense Health Program
456
66
410
410
Chemical Agents and Munitions
Destruction
294
252
255
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. House and Senate appropriations for FY2004 were taken from H.Rept. 108-187 and S.Rept. 108-87,
respectively.
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 because NASA transitioned to full cost
accounting and restructured its budget categories in the FY2004 budget request (see CRS
Report RL31821 for further explanation). NASA’s R&D budget is essentially the entire
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NASA budget minus the space shuttle program and procurement of other launch services.
The shuttle program is excluded because it has been considered an operational program.
However, in the wake of the space shuttle Columbia tragedy, some are questioning whether
the shuttle is operational or still an R&D program. In this report, the shuttle will continue
to be excluded unless it is recategorized as R&D as a result of that debate.
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 Columbia tragedy are the focus of attention. 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
Moons Orbiter (JIMO), it would utilize nuclear power and propulsion that 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 cost estimate is $8-9 billion, though NASA cautions that those are very preliminary.
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 the FY2004
budget request as the first in its “New Frontiers” series of planetary probes.
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. 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 (OAT) 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 part of “Crosscutting Technologies.” The FY2004 request for SLI reflects changes
NASA proposed in November 2002 to its Integrated Space Transportation Plan under which
NASA expected to rely on the space shuttle longer than planned. Some of the funding
expected to be spent on building a successor to the shuttle instead was to be spent on
improving it, funding the space station, and to build an Orbital Space Plane (OSP) to take
crews to and from the space station. NASA would continue technology development for new
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space launch vehicles, but delay a decision on what to build. OSP is discussed in CRS Issue
Brief IB93017; the technology development effort, NGLT, in CRS Issue Brief IB93062.
NASA is requesting $1.065 billion for the Space Launch Initiative (comprising OSP and
NGLT) in FY2004. Those plans may change because of the Columbia accident.
Table 4. National Aeronautics and Space Administration
($ millions)
Category
FY2003
FY2003
FY2004
House-
Request
Request in
Request in
passed
(Nov. 2002,
Full Cost
Full Cost
approps.
(not in full cost
Accounting
Accounting
(H.R 2861)
accounting)
Science, Aeronautics & Exploration
7,015
7,101
7,661
**7,708
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
3,403
Space Flight
Space Station*
(1,492)
(1,851)
(1,707)
(1,707)

Crosscutting Technologies
1,829
1,768
1,673
1,696
Space Launch Initiative
(879)
(1,150)
(1,065)
(1,065)
Other
(950)
(617)
(607)
(631)
Total NASA R&D
10,336
10,720
11,041
11,111
Total NASA
15,000
15,000
15,469
15,540
Sources: NASA FY2004 budget estimate, and H.Rept. 108-235 (H.R. 2861, FY2004 VA-HUD-IA
appropriations bill). Column totals may not add due to rounding. The NASA-provided figures in the third
(shaded) 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 ($578 million in FY2004).
**H.Rept. 108-235 makes changes to funding within the Science, Exploration and Aeronautics account, but
does not specify in all cases which subaccount (Space Science, Earth Science, etc.) is affected. Thus, this table
shows only the change to the account as whole.
The House passed the FY2004 VA-HUD-IA appropriations act (H.R. 2861) on July 25,
with a net increase of $71 million for NASA, comprising $96 million in cuts and $167
million in additions. The House took no action on the space station, space shuttle, OSP, or
NGLT programs pending release of the report on the Columbia accident. The major R&D
changes were an addition of $24 million for technology transfer, and cuts of $55 million from
New Frontiers, $20 million from the James Webb Space Telescope, $8.15 million from the
Space Interferometry Mission, and $13 million from Earth Science Applications. See CRS
Report RL31821 for details.
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National Institutes of Health (NIH)
The FY2003 appropriation essentially completed a 5-year doubling of the NIH
budget, an effort which had meant increases of 14%-15% per year since FY1999. For
FY2004, the President requested 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 $27.893 billion
for NIH, an increase of $727 million or 2.7% over the FY2003 program level of $27.166
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 $27.664 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. The total request for new appropriations of $27.743 billion is an
increase of $677 million or 2.5% over the FY2003 budget authority of $27.066 billion. The
FY2003 appropriation, provided by the Consolidated Appropriations Resolution (P.L. 108-7,
H.J.Res. 2), was a $3.6 billion or 15.4% increase over FY2002.
The House passed its FY2004 Labor-HHS bill (H.R. 2660, H.Rept. 108-188) on July
10, 2003, matching the President’s funding request of $27.66 billion for NIH. The Senate
Appropriations Committee reported S. 1356 (S.Rept. 108-81) on June 26, giving NIH $27.98
billion, a $1 billion or 3.7% increase over FY2003. The House has also passed the VA-HUD
appropriation (H.R. 2861, H.Rept. 108-235), which provides NIH an additional $80 million.
The FY2004 Administration budget documents portray the increase for NIH’s research
programs as larger than the overall 2.7% increase, because about $1.4 billion of the FY2003
appropriation was for facilities costs (much of it related to bioterrorism) and other one-time
expenses. By devoting those funds to research in FY2004, the request would increase
spending on research programs by about $2 billion or nearly 8%, while spending on NIH’s
intramural buildings and facilities would drop 87% and the extramural facilities construction
program would be zeroed out entirely. The Senate committee restored the extramural
facilities program to the FY2003 level ($119 million) and added $9.5 million to the request
for intramural facilities. The request would support a record number of research project
grants (37,467), including 10,509 in the new and competing renewal category.
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 $35 million increase that would be allocated
to NIH institutes and centers for programs addressing such roadblocks. On July 29, 2003,
the National Research Council and the Institute of Medicine released a congressionally-
mandated study on the organizational structure of NIH. It recommended that there be more
trans-NIH strategic initiatives, with a stronger role for the NIH director, more support of
“risky” research, and that some existing institutes be merged and a process developed for
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considering further increases or decreases in the number of NIH units. (For more
information, see the “Biomedicine Issues” section of CRS Report RL31846, Science and
Technology Policy: Issues for the 108th Congress, 1st Session.)
Table 5. National Institutes of Health (NIH)
($ millions)
FY2003
FY2004
FY2004
FY2004
Institutes and Centers (ICs)
enacted a
request
House
S Comm
Cancer (NCI)
$4,592.3
$4,770.5
$4,770.5
$4,770.5
Heart/Lung/Blood (NHLBI)
2,793.7
2,868.0
2,868.0
2,897.6
Dental/Craniofacial Research (NIDCR)
371.6
382.4
382.4
386.4
Diabetes/Digestive/Kidney (NIDDK)
1,722.7
1,820.0
1,820.0
1,833.0
Neurological Disorders/Stroke (NINDS)
1,456.5
1,468.9
1,468.9
1,510.9
Allergy/Infectious Diseases (NIAID) b
3,706.1
4,335.3
4,335.3
4,335.3
General Medical Sciences (NIGMS)
1,847.0
1,923.1
1,923.1
1,917.0
Child Health/Human Develmt (NICHD)
1,205.9
1,245.4
1,245.4
1,251.2
Eye (NEI)
633.1
648.3
648.3
657.2
Environmental Health Sciences (NIEHS)
614.2
630.8
630.8
637.1
Aging (NIA)
993.6
994.4
994.4
1,031.4
Arthritis/Musculoskeletal/Skin (NIAMS)
486.1
502.8
502.8
505.0
Deafness/Communication Dis. (NIDCD)
370.4
380.4
380.4
384.6
Nursing Research (NINR)
130.6
134.6
134.6
135.6
Alcohol Abuse/Alcoholism (NIAAA)
416.1
430.1
430.1
431.5
Drug Abuse (NIDA)
961.7
995.6
995.6
997.6
Mental Health (NIMH)
1,341.0
1,382.1
1,382.1
1,391.1
Human Genome Research (NIHGR)
465.0
478.1
478.1
482.4
Biomedical Imaging/Bioenginrg (NIBIB)
278.3
282.1
282.1
289.3
Research Resources (NCRR)
1,138.8
1,053.9
1,053.9
1,186.5
Complementary/Alt. Medicine (NCCAM)
113.4
116.2
116.2
117.9
Minority Health/Disparities (NCMHD)
185.7
192.7
192.7
192.8
Fogarty International Center (FIC)
63.5
64.3
64.3
65.9
Library of Medicine (NLM)
300.1
316.0
316.0
311.8
Office of Director (OD) c
266.2
318.0
318.0
323.5
Buildings & Facilities (B&F)
628.7
80.0
80.0
89.5
Subtotal, (L-HHS Approp + diabetes)
$27,082.6
$27,814.0
$27,814.0
$28,132.6
Superfund (VA-HUD Approp to NIEHS) d
83.5
78.7
80.0
Total, NIH Program Level e
$27,166.1
$27,892.7
$27,894.0
Pre-appropriated Type 1 diabetes funds f
-100.0
-150.0
-150.0
-150.0
Total, NIH Budget Authority
$27,066.1
$27,742.7
$27,744.0

Sources: H.Rept. 108-188 on H.R. 2660, S.Rept. 108-81 on S. 1356, and H.Rept. 108-235 on H.R. 2861.
Note: Columns may not add due to rounding.
a. FY2003 reflects the across-the-board rescission of 0.65% mandated in the consolidated appropriation (P.L.
108-7), and a transfer of $583,000 from NIAID to Department of Homeland Security.
b. NIAID totals include funds for transfer to the Global Fund to Fight HIV/AIDS, Malaria, and Tuberculosis
($100 million in FY2003, FY2004 request, and FY2004 House, and $150 million in FY2004 Senate).
c. FY2004 request for OD includes $35 million in Roadmap funds for later distribution to ICs.
d. Separate account in the VA-HUD appropriation for NIEHS activities mandated in Superfund legislation.
e. Does not reflect $8.2 million for NLM in FY2003 and in the FY2004 Senate committee allowance to be
provided from the evaluation set-aside (authorized by sec. 241 of the Public Health Service Act).
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 (included in NIDDK above).
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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 the 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 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
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).
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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. An increase in
FY2004 for graduate level programs will allow NSF to raise the stipend of graduate fellows
to $30,000 and to increase the number of offers to new fellowships. Graduate Teaching
Fellowships in K-12 Education will be increased to $42.5 million. 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.

Table 6. National Science Foundation
($ millions)a
FY2003
FY2004
FY2004
Appr.
Req.
House
Res. & Related Act.

Biological Sciences
$570.7
$562.2
$586.8
Computer & Inform. Sci. & Eng.
581.9
584.3
609.9
Engineering
540.5
536.6
560.1
Geosciences
692.2
687.9
718.1
Math & Physical Sci.
1,041.0
1,061.3
1,107.8
Social, Behav. & Econ. Sci.
194.3
211.7
221.0
U.S. Polar Programs.
319.1
329.9
355.0
Integrative Activities
116.8
132.5
147.8
Subtotal Res. & Rel. Act
4,056.5
4,106.4
4,306.4
Ed. & Hum. Resr.
903.2
938.0
904.7
Major Res. Equip. & Facil. Constr.
148.5
202.3
192.3
Salaries & Expenses
189.1
225.7
221.9
Office of Inspector General
9.2
8.8
10.0
National Science Board
3.5
0.0
3.8
Total NSF
$5,310.0
$5,481.2
$5,639.1
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.
On July 25, 2003, the House passed H.R. 2861, H.Rept. 108-235, VA, HUD, and
Independent Agencies Appropriations FY2004. The bill provides a total of $5,639.1 million
for NSF in FY2004, $157.9 million (2.8%) above the FY2004 request and $329.1 million
(6.2%) more than the FY2003 estimate. Within the House measure is $4,306.1 million in
support of R&RA, $904.7 million for EHR, and $192.3 million for MREFC.
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Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
For FY2004 President Bush requested a total of $765 million in R&D funding for
NOAA conduct of R&D, facilities, and major equipment. (See Table 7) This amount is 6%
below the estimated $816 million in appropriations for NOAA R&D for FY2003.* In his
FY2003 R&D request for NOAA, the President's proposed to transfer the “National Sea
Grant Program,” a large research and development component of NOAA, to NSF, but that
was rejected by Congress. That reversal, however, was not reflected in OMB's estimated
appropriations for FY2003, although it was accounted for in the President's FY2004 R&D
request. Increases in the FY2004 budget include $39 million for the by National Marine
Fisheries Service (NMFS), $48.3 million for NOAA Research (OAR), $12.8 million for
NOAA Satellite Programs (NESDIS), and $6.9 million for Program Support (PS). The
National Weather Service (NWS) R&D budget would decrease $7.2 million; and the
National Ocean Service (NOS) would be level funded. Also, NESDIS received an additional
$65 million in the FY2003 Emergency Supplemental Appropriations Act (P.L. 108-11) for
the National Polar Orbiting Environmental Satellite System (NPOESS) for meteorological
and environmental monitoring. On July 21, 2003, the House passed H.R. 2799,
appropriating $3.05 billion for NOAA for FY2004. OAR was funded $60.1 million less than
the FY2004 request. The House provided $16 million in new funding for an ocean and
coastal observing program. Most NOS coastal and ocean science research programs would
be funded at FY2003 levels. About $314 million was appropriated for NMFS science and
technology programs. The House directed the Secretary of Commerce to review NOAA
research lab operations for possible consolidation. Additional funding information for
FY2003, and the President's request for FY2004, may be found in CRS report RS21460, The
National Oceanic and Atmospheric Administration (NOAA): A Brief Review of FY2003
Appropriations and the FY2004 Budget. (*This figure reflects a 0.65 percent across the
board reduction required by P.L. 108-7.)
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, $707.5 million was appropriated for NIST (after
the 0.65% rescission mandated by the FY2003 Omnibus Appropriations Act), an increase
of almost 5% above the previous fiscal year. Included in this figure is $357.1 million for the
STRS account, $178.8 million for ATP, $105.9 million for MEP, and $65.7 million for
construction.
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H.R. 2799, as passed by the House on July 23, 2003, provides $460.1 million in
FY2004 funding for NIST. This figure is 35% below the FY2003 appropriation due
primarily to a major reduction in support for MEP and no funding for ATP. Included in the
total is $357.9 million for the core programs in the STRS account (a small increase over
FY2003, but 7% below the President’s FY2004 request) and $39.6 million for the
Manufacturing Extension Partnership (a 63% reduction from FY2003, although 68% above
the Administration’s FY2004 budget request). The construction budget would total $62.6
million.
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 $830 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. The House Appropriations Committee (H.R. 2989) recommended $597
million for DOT R&D, a 15% reduction from FY2003 estimated levels. The proposed cuts
would primarily affect the R&D programs of the Federal Highway Administration (FHWA
$363 million requested), and the Federal Aviation Administration (FAA $298 million
requested), If enacted by Congress, this would reduce FAA’s R&D budget for the third year
in-a-row.
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 $545 million in FY2004. The full House
(H.R. 2691) and the Senate Appropriations Committee (S. 1391) rejected the Administration
proposal to cut USGS R&D funding approving 6% ($ 577 million) and 5% ($573 million)
increases respectively over FY2003 estimated levels.
Environmental Protection Agency (EPA)
The House approved on July 25, 2003 an appropriation for FY2004 of $767.1 million (H.R.
2861) for Science and Technology at EPA (including R&D activities under Superfund),
$51.5 million above last year’s level of $715.6 million, and $35.6 million above the
Administration’s FY2004 request of $731.5 million. This sum does not include the transfer
of $44.7 million from the Hazardous Substance Superfund to the S&T account. The House
also instructed EPA to work with the Department of Health and Human Services to request
that the National Academy of Sciences conduct a study that would develop a research agenda
for interpreting human biomonitoring data. Among other things, the study should include
the development of different approaches to improve the collection of biomonitoring data that
are more usable for human health risk evaluation.
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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 (S&T), with
the remainder divided among other units of the Department, such as the Transportation
Security Administration (TSA). The House (H.R. 2555) provided an increase of $97 million
for the S&T Directorate and an increase of $50.5 million for R&D in TSA. The Senate (H.R.
2555) provided an increase of $62.6 million for the S&T Directorate and an increase of $55
million for R&D in TSA. The total increase in R&D funding for the Department as a whole
is difficult to identify in either bill because several Department components conduct R&D
activities below the level of a distinct appropriations account. Addressing this issue, the
House directed the Department to report on R&D activities outside the S&T Directorate,
including the cost of each activity and why it is not being funded in the S&T Directorate. For
more information on R&D in DHS, see CRS Report RL31914.
The requested FY2004 funding for the S&T Directorate is $803 million. More than 45%
of this sum ($365 million) would fund R&D on biological terrorism countermeasures. The
remainder would be divided among six other programs. The net increases noted above
include major changes to individual programs. The House reduced the requested funding for
biological countermeasures by $71.5 million, bringing it to only 32% of the Directorate,
provided $60 million for development of antimissile defences for commercial aircraft,
increased funding for rapid prototyping (conducted via the Technical Support Working
Group) from $30 million to $80 million, and provided $35 million (versus the $10 million
requested) for university programs. The Senate reduced the requested funding for biological
countermeasures by $120.7 million (to 28% of the Directorate), provided up to $60 million
for development of antimissile defences for commercial aircraft, increased funding for rapid
prototyping to $70 million, and provided $55 million for university programs.
Table 7. R&D Budgets of Preceding Agencies
($ millions)
FY2002
FY2003
FY2004
Actual
Estimate
Request
National Oceanic and Atmospheric
$868
$816
$765
Administration
National Institute of Standards & Technology
678
712
497
Department of Interior
623
627
633
Department of Transportation
892
705
693
Department of Homeland Security a
266
759
1,001
Environmental Protection Agency
825 b
716
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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