Order Code RS20589
Updated March 29, 2006
CRS Report for Congress
Received through the CRS Web
Manipulating Molecules: Federal Support for
Nanotechnology Research
Michael E. Davey
Specialist in Science and Technology
Resources, Science, and Industry Division
Summary
The Bush Administration has requested $1.277 billion for nanotechnology research
for FY2007, $24 million less than the estimated $1.301billion appropriated level for
FY2006. (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
levels 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 applications 10 to 30 years away. Congressional concerns
include funding for the National Nanotechnology Initiative (NNI), the potential
environmental and health concerns associated with the development and deployment of
nanotechnology, and the need to adopt international measurement standards for
nanotechnology.
Introduction
As indicated in Table 1, the Administration is requesting $1.277 billion for
nanotechnology research in FY2007, $24 million less than the estimated $1.301 billion
appropriated level for FY2006. Nanotechnology1 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.
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. Within a
1 For purposes of this report, the term “nano” can be applied to technology, measurement,
science, or other research fields. The size of an average virus is equal to one nanometer (nm).
Congressional Research Service ˜ The Library of Congress

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short period of time, nanotechnology has expanded from an obscure research obsession
to a worldwide scientific and industrial enterprise. According to the National Science
Foundation, by 2015 nantechnology will have grown to a $1 trillion enterprise, with over
500 products sold made at the nanoscale or with engineered nanomaterials. The marriage
of nano and biotechnology will likely create a whole new generation of drugs, biomedical
devices, and other solutions to some of our most challenging medical problems.2
However, according to F. Mark Modzelewski, founder of the Nano Business Alliance,
what researchers can do to control and manipulate atoms and molecules is still limited.
Nevertheless, despite being at the early stages of nano development, more than 1200
companies conduct nanotechnology Research and Development (R&D). They vary from
startups such as Nano-Tex, a company that developed anti- wrinkle chemicals for textiles,
to large corporations like General Electric and Hewlett-Packard. Recent developments in
nano have helped IBM develop computer hard drives that store one hundred times more
data than older models. Another company has discovered a process to develop cheaper
and easier-to-use solar cells, while still another firm is utilizing nanoparticles to improve
screens for phones. Medical researchers are exploring alternative methods for delivering
anti-cancer drugs to specific sites, allowing doctors to kill only diseased cells while
concomitantly enhancing the growth of healthy cells.3
In May of 2005, the President’s Council of Advisors on Science and Technology
(PCAST) released a report entitled, The National Nanotechnology Initiative at Five:
Assessment and Recommendations of the National Nanotechnology Advisory Panel.
Overall the advisory panel indicated that the management of the federal multi-agency
initiative was well coordinated and effective. However, PCAST struck a cautionary tone
by noting that increased investments by other countries had eroded the U.S. position as
the global leader in nanotechnology.4
Nanotechnology and the Federal Role
In FY2004, the Bush Administration designated the National Nanotechnology
Initiative (NNI) as a multi-agency research initiative aimed at maximizing the return on
the federal investment in nanoscale R&D through coordination of funding, research, and
infrastructure development activities at individual agencies. Since President Bush took
office in 2001, funding for the federal NNI has increased from $454 million in FY2001
constant dollars, to an estimated $1.111 billion in FY2006, a 144% increase in real
dollars. However, as indicated in Table 1, the Administration is requesting $1.277 billion
for nanotechnology research in FY2007, a 4% decline in real dollars.
The coordination of the NNI occurs at two different levels within the federal
government. With the enactment of P.L. 108-153 (The 21st Century Nanotechnology
2 Jane Macoubrie, Informed Public Perceptions of Nanotechnology and Trust in the Government,
Woodrow Wilson International Center for Scholars, September 8, 2005, p. 1.
3 David Masci, Nanotechnology, The CQ Researcher, June 11, 2004, vol. 14, no. 22, pp. 517-540.
4 Candace Stuart, “President’s Advisors Recommend NNI Branch Out,” Small Times, May 19,
2005, p. 1.

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Research and Development Act), the National Science and Technology Council (NSTC)5
Committee on Technology (CT) is now responsible for setting priorities and coordinating
joint research activities among the agencies participating in the NNI. The NSTC
requested PCAST to conduct a review of the NNI as called for in P.L. 108-153. The
NSTC Committee on Technology also directed the Nanoscale Science, Engineering and
Technology (NSET) committee (consisting of the agencies involved in the NNI) to assist
PCAST with its review of the NNI. Further, with the passage of the Bob Stump, National
Defense Authorization Act for Fiscal Year 2003 (P.L. 107-314, Sec. 246), the NSTC is
responsible for the coordination of DOD’s nanotechnology activities.
At the second level the NSTC established the National Nanotechnology Coordinating
Office (NNCO) in October 2000. In addition to being responsible for the day-to-day
management of the NNI, the NNCO assists the Committee on Technology with
identifying funding priorities, establishing budgets, and evaluating current NNI activities.
The five agencies included in P. L. 108-153 are the National Science Foundation (NSF),
the Department of Energy (DOE), the National Aeronautics and Space Administration
(NASA), the National Institute of Standards and Technology (NIST) within the
Department of Commerce (DOC), and the Environmental Protection Agency (EPA).
Further, reflecting committee jurisdiction, the NNI authorization legislation does not
include nanotechnology research activities in six other agencies which also fund
nanotechnology research. These include the Departments of Defense (DOD), Homeland
Security (DHS), Agriculture (USDA), Justice (DOJ), the National Institutes of Health
(NIH), and the National Institute for Occupational Safety and Health (NIOSH).
Table 1. Estimated Funding for Nanotechnology FY2007
($ millions)
FY2004
FY2005
FY2006
FY2007
Enacted
Enacted
Estimate
Request
NNI Total
961
1,200
1,301
1,277
NSF
254
335
344
373
DOE
203
208
207
258
NASA
37
45
50
25
DOC (NIST)
63
79
76
86
EPA
5
7
5
9
DOD
315
352
436c
345
DHS (TSA)a
1
1
2
2
USDA
1
3
2
5
NIOSHb
0
3
3
3
Department of Justice
2
2
1
1
HHS (NIH)
80
165
175
170
5 The NSTC is a Cabinet-level Council, chaired by the President, which coordinates science,
space, and technology and the diverse parts of the federal research and development enterprise.
Membership consists of the Vice President, Assistant to the President for Science and
Technology, Cabinet Secretaries, and Agency Heads with significant science and technology
responsibilities, and other White House officials.

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Note: Agencies in italics are included in P.L. 108-153, the National Nanotechnology
Program.
a. Department of Homeland Security.
b. National Institute of Occupational Safety and Health.
c. Includes $148 million in earmarks, according to DOD.
The FY2006 Strategic Plan
After the enactment of P.L.108-153, the NSTC, Committee on Technology (CT)
became responsible for developing a strategic plan for the NNI. The NSTC is required
to update the plan every three years. According to the Administration, the FY2006
strategic plan articulates a vision for the NNI in which the ability to understand and
control matter on the nano scale will lead to a revolution in technology and industry. The
revised strategic plan focuses on four cross-cutting goals. They are:
1. Maintain a world class research and development program aimed at
realizing the full potential of nanotechnology. Long-term basic research is considered
essential to establishing a fundamental knowledge of nanoscale phenomena. Research
activities performed by individual researchers, as well as interdisciplinary research teams,
are to focus on fundamental understanding and synthesis of nanometer-size building
blocks with potential breakthroughs in a number of scientific and engineering disciplines.
2. Facilitate the transfer of new technology into products for economic growth,
jobs, and other public benefits. The second goal focuses on ensuring that breakthroughs
in federally sponsored nanotechnology research are quickly transferred to the private
sector. The strategic plan highlights a number of current mechanisms utilized by the NNI
to transfer research outcomes to the private sector. They include the establishment of the
NSET industry liaison group with various commercial sectors to promote the exchange
of information on NNI research programs and industry needs that relate to
nanotechnology
3. Develop educational resources, a skilled workforce, and supporting
infrastructure and tools to advance nanotechnology. Within this goal, the NNI’s
primary objective is to ensure the education of the next generation of researchers and
innovators. In addition, it also requires the development of a workforce with technical
skills needed to work in a nano environment. Further, in addition to human resources, the
government maintains a number of research user facilities outside the NNI that support
nano research.
4. Support responsible development of nanotechnology. According to the
strategic plan, responsible development of nanotechnology means that the federal
government supports the previous three goals of the initiative, but concomitantly endorses
concerns about the potential societal concerns associated with the development and
deployment of nanotechnology. Nanotechnology societal dimensions include a range of
issues such as equitable access to benefits arising from nanotechnology, possible health
or environmental effects, and privacy concerns associated with distributed
nanotechnology-based sensors.

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Program Component Areas
The 21st Century Nanotechnology Research and Development Act directed the NSTC
to establish Program Component Areas (PCAs), with specific priorities and technical
goals, which reflect the priority goals established for the entire nanotechnology program.
While the NNI goals embody the vision of the initiatives, the PCAs relate to areas of
investment that are critical to accomplish the goals.6 These areas cut across the interests
and needs of the participating agencies and indicate where advancements may be
enhanced through the coordination of multiple agencies. According to NSET, PCAs
provides a structure by which the agencies funding R&D can better direct and coordinate
their research activities.7 The seven PCAs are: 1) Fundamental nanoscale processes,
2) Nanomaterials, 3) Nanoscale devices and systems, 4) Instrumentation research,
metrology8 and standards, 5) Manufacturing, 6) Major research facilities, and
instrumentation acquisition, and 7) Social dimensions.
Congressional Issues
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. A
study by the Royal Society of England noted that there is no information available
regarding the effects of nanoparticles on species other than humans. Consequently the
Society recommended that release of nanoparticles into the atmosphere be avoided.
Specifically it recommended that factories and research laboratories treat manufactured
nanoparticles and nanotubes as if they were hazardous and reduce them from waste
streams, as well as environmental applications such as remediation of ground water.9
In an initial study to examine potential health effects nanoparticles may have on
aquatic animals, Dr. Eva Oberdoester, from Southern Methodist University, reported that
within 48 hours, a small concentration of nanomaterials (C60, fullerenes) in an aquarium
cause severe brain damage in baby fish. This result surprised many scientists because,
according to John Bucher from NIH’s National Institute of Environmental Health
Sciences (NIEHS), the researchers thought the nanomaterial would just become part of
the “muck” in the fish tank. Dr. Bucher asserted that the outcome of this experiment
6 The National Nanotechnology Initiative, Research and Development Leading to a Revolution
in Technology and Industry, Supplement to the President’s FY2006 Budget, p. 5.
7 The PCAs are Fundamental nanoscale phenomena, Nano-materials, Nanodevices and systems,
Instrumentation, Nano-manufacturing, Research facilities and instrumentation, and Societal
dimensions.
8 Metrology is the study of measurement.
9 Nanoscience and Nanotechnologies: Opportunities and Uncertainties, The Royal Society, and
Royal Academy of Engineering, July 2004, Summary and Recommendations, p. 5.

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means that scientists need to pay more attention to this area.10 As part of its NNI
activities, the EPA is sponsoring research that will examine possible environmental
concerns associated with the manufacturing and use of nanomaterials.
Nanotechnology and International Measurement Standards. While
scientists around the world share research findings and attend international meetings,
there are currently no internationally accepted measurement standards regarding the
regulation and sale of nanotechnology products. The lack of such standards has
contributed to a number of complaints related to the sale and distribution of
nanomaterials. For example, a semiconductor company found that one-third of a sample
of carbon nanotubes it had purchased consisted of iron left over from the production
process, rendering the batch useless.11
To address these concerns, the American National Standards Institute (ANSI) and
the British Standards Institute (BSI) met with the International Standards Organization
(ISO) to prepare for an international meeting held in November of 2005. At the
November meeting representatives from thirty three nations agreed to focus their initial
activities in three broad topical areas for standardization consideration proposed by the
BSI.12 The three areas are: 1) General terminology for nanoscience and technology,
including a definition of the terms “nano and Nomenclature”;13 2) Metrology and
Characterization; and 3) Health, Safety, and the Environment (HS&E) including
impacts/risk assessment, reference standards for testing, controls, and testing methods for
toxicity. Canada was selected as the convener of the Terminology and Nomenclature
working group, Japan the convener the of Metrology group, and the United States the
convener of the HS&E group. The countries selected as the conveners are responsible for
preparing their working members for the next nanotechnology standards meeting
scheduled for June of 2006. The ISO hopes to complete this first round of standards
development activities by the end of this year.
10 “Nanoparticles Toxic in Aquatic Habitat, Study Finds,” The Washington Post, Rick Weiss,
March 29, 2004, p. A3.
11 “Growing Nanotech Trade Hit by Questions over Quality,” Nature, VOL 432, 16 December,
2004, p.791.
12 The global response included countries in Europe, the Middle East, Africa, the Americas, and
the Pacific-Rim.
13 Nomenclature is a system of naming and categorizing objects in a given category.

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