Order Code RL33345
CRS Report for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2007
Updated October 26, 2006
Michael E. Davey (Coordinator)
Christine M. Matthews, John D. Moteff, Daniel Morgan,
and Wendy H. Schacht
Resources, Science, and Industry Division
Pamela W. Smith
Domestic Social Policy Division
Wayne A. Morrissey
Knowledge Services Group
Congressional Research Service ˜ The Library of Congress

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Federal Research and Development
Funding: FY2007
Summary
The Bush Administration requested $137.2 billion in federal research and
development (R&D) funding for FY2007. This sum represents a 2.6% increase over
the estimated $133.7 billion that was approved in FY2006. As in the recent past, the
FY2007 increase over the FY2006 estimated funding levels is due to significant
funding increases in the Department of Defense (DOD) and the National Aeronautics
and Space Administration’s (NASA’s) space vehicles development program.
The centerpiece of the President’s proposed FY2007 R&D budget is the
American Competitiveness Initiative (ACI). The President proposed this initiative
in response to growing concerns about America’s ability to compete in the
technological global market place. Over the next 10 years, the $136 billion initiative
would commit $50 billion for research, science education, and the modernization of
research infrastructure. The remaining $86 billion would finance a revised permanent
R&D tax incentive over the next 10 years. The most recent federal research tax credit
expired on December 31, 2005. In his budget request, the President asked Congress
to pass a permanent Research and Experimental Federal tax credit.
As part of the $50 billion for research, the President has called for doubling
federal R&D funding over10 years. This increase would include the physical sciences
and engineering research in three agencies: the National Science Foundation (NSF),
the Department of Energy’s (DOE’s) Office of Science, and the National Institute of
Standards and Technology (NIST). According to the Administration, in FY2007, the
ACI overall funding increases for NSF, DOE, and NIST would be $910 million, or
9.3% above FY2006 estimated funding levels for th three agencies.
Despite the ACI proposal, total federal basic research funding for FY2007
would be flat at $28.2 billion (in real dollars). Five agencies account for 90% of all
federal basic research expenditures. Total federal research funding (the sum of basic
and applied research) is projected to decline 2.6%, to $54.4 billion. This decline is
due to a 6.6% drop in applied research funding. Some contend that the $1.8 billion
decline in funding for applied research helped to pay for the ACI.
Support for three federal, multiagency research initiatives would vary, with the
National Nanotechnology Initiative proposed to decline 1.8% to $1.3 billion,
primarily because DOD has not included FY2006 nanotechnology earmarks in its
FY2007 nanotechnology request. Funding for the Networking and Information
Technology R&D Initiative would increase 2.4% to $3.1 billion. ( The ACI contains
increasing support for computer sciences and other information technology research.)
Finally, support for the Climate Change Science Program would increase in FY2007
by 0.2% to $1.7 billion, after steep cuts in FY2006 due to declining NASA funding
for space-based observations of the environment.

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Contents
Recent Developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Department of Agriculture (USDA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Department of Energy (DOE) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Department of Defense (DOD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
National Aeronautics and Space Administration (NASA) . . . . . . . . . . . . . . . . . 12
National Institutes of Health (NIH) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
National Science Foundation (NSF) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Department of Homeland Security (DHS) R&D . . . . . . . . . . . . . . . . . . . . . . . . . 22
Department of Commerce (DOC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
National Oceanic and Atmospheric Administration (NOAA) . . . . . . . . . . . 26
National Institute of Standards and Technology (NIST) . . . . . . . . . . . . . . . 27
Department of Transportation (DOT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Department of the Interior (DOI) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Environmental Protection Agency (EPA) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
List of Tables
Table 1. U.S. Department of Agriculture R&D . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2. Department of Energy R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Table 3. Department of Defense RDT&E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Table 4. NASA R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Table 5. National Institutes of Health (NIH) . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Table 6. National Science Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Table 7. Department of Homeland Security R&D . . . . . . . . . . . . . . . . . . . . . . . 25
Table 8. NOAA R&D Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Table 9. NIST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Table 10. Department of Transportation R&D . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Table 11. Department of Interior R&D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
Table 12. Environmental Protection Agency . . . . . . . . . . . . . . . . . . . . . . . . . . 33

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Federal Research and Development
Funding: FY2007
Recent Developments
On September 29, 2006, President Bush signed a continuing resolution, or CR
(P.L. 109-289, H.Rept. 109-676) which essentially maintains spending at FY2006
funding levels for those agencies lacking enacted FY2007 appropriations bills,
through November 17, 2006. The House has passed 10 of its 11 appropriations bills,
and the Senate has passed 2 of its 12 appropriations bills. The Senate Appropriations
Committee has passed its remaining 10 appropriation bills. Based on these current
House and Senate actions, total federal R&D could reach an estimated $139 billion
for FY2007. Congress has passed two appropriations bills, the Department of
Defense (P.L.109-289) and the Department of Homeland Security ( P.L. 109 295,
H.Rept. 109-699).
The Bush Administration requested $137.2 billion in federal research and
development (R&D) funding for FY2007. This sum represents a 2.6% increase over
the estimated $133.7 billion that was approved in FY2006. As in the recent past, the
FY2007 increase over the FY2006 estimated funding levels is due to significant
funding increases for the Department of Defense (DOD) and the National
Aeronautics and Space Administration’s (NASA’s) space vehicles development
program.
The centerpiece of the President’s proposed FY2007 R&D budget is the
American Competitiveness Initiative (ACI). The President proposed this initiative
in response to growing concerns about America’s ability to compete technological
global market place.1 Over the next 10 years, the $136 billion initiative would
commit $50 billion for research, science education, and the modernization of
research infrastructure. The remaining $86 billion would finance a revised permanent
research and experimentation (R&E) tax incentive over the next 10 years. The most
recent federal research tax credit expired on December 31, 2005 (see P.L. 108-311).
In his budget request, the President has asked Congress to pass a permanent Research
and Experimental Federal tax credit. A number of bills have been introduced to
extend the R&E tax credit. (See CRS Report RL31181, Research Tax Credit:
Current Status, Legislative Proposals in the 109th Congress, and Policy Issues, by
Gary Guenther.)
1 See Rising Above The Gathering Storm and Energizing and Employing America for a
Brighter Economic Future, The National Academy of Sciences, the National Academy of
Engineering, and the Institute of Medicine, The National Academies, 500 Fifth Street, NW
Washington, DC 20001, 2005.

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CRS-2
As part of the $50 billion for research, the President has called for doubling the
federal R&D funding over 10 years. This increase would include the physical
sciences and engineering research in three agencies: the National Science Foundation
(NSF), the Department of Energy’s (DOE’s) Office of Science, and the National
Institute of Standards and Technology (NIST). Both the House and Senate FY2007
appropriations actions would fully fund the President’s ACI request. Consequently,
funding for NSF would increase 7.9% to $4.6 billion; DOE’s Office of Science
budget would receive an 18% budget increase to 3.9 billion; and NIST’s laboratory
funding would increase 21% to an estimated $382 million.
CRS estimates that total federal basic research funding for FY2007 is estimated
to increase 2%, to $28.2 billion. Five agencies account for 90% of all federal basic
research expenditures. Total federal research funding (the sum of basic and applied
research) is projected to decline 2.6%, to $54.4 billion. This decline is due to a 6.6%
drop in applied research funding. Some contend the $1.8 billion decline in funding
for applied research helped to pay for the ACI.
Based on current legislative actions, CRS estimates that funding for nondefense
R&D expenditures would increase 2 %, to $59.2 billion. Spending for defense R&D
(the sum of DOD’s and DOE’s defense programs) would increase 1.5%, to $ 79.2
billion. Most of the defense increase is due to significant increases in DOD
development funding.
In addition to the President’s ACI proposal, a number of congressional bills that
focus on various aspects of innovation and competitiveness issues have been
introduced in the 109th Congress. Two such bills are the National Innovation Act
(NIA), S. 2109, and the Protecting of America’s Competitive Edge (PACE), which
consists of three separate bills: S. 2197, S. 2198, and S. 2199. The NIA (S. 2109)
would double NSF’s research budget in five years (by 2011) and increase private
sector interaction with NIST by authorizing $100 million over five years to support
small business innovation. The NIA bill also proposes allocating 3% of DOD’s total
budget to science and technology research, of which 20% must be devoted to basic
research. The PACE legislation would almost double funding for NSF over seven
years (by 2013); double DOE’s budget for basic research, development,
demonstration, and commercial activities; and double DOD’s and NASA’s basic
research budgets over seven years as well. S. 197 (S.Rept. 109-249) was passed by
the Energy and Natural Resources Committee on March 8th. S. 2802, the American
Innovation and Competitiveness Act was adopted by the Senate Commerce
Committee (S.Rept. 109-285).
Some of these legislative proposals also contain a variety of financial incentives
to encourage students to major in science, technology, engineering, or mathematics
(STEM). Incentives could include the federal government paying up to $20,000 a
year to qualified students who are studying to teach math or science at the K-12
levels. The legislation also provides a variety of incentives to encourage up to 10,000
STEM students, over the next 10 years, to pursue careers as university faculty and
researchers. Both bills call for the passage of a permanent extension of the research
and experimental tax credit.

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CRS-3
Several members of the House Science Committee have introduced three bills
aimed at increasing the number of students majoring in STEM careers. The Science
and Mathematics Education for Competitiveness Act (H.R. 5358) provides
scholarships to STEM undergraduates who commit to teaching after graduating from
college. The bill also narrows the focus of NSF’s current Math and Science
Partnership Program, renames it the Science and Mathematics Training Partnership,
and authorizes $50 million for FY2007 through FY2011. The legislation also ensures
that at least 1.5% of the funds appropriated for NSF Research and Related Activities
be allocated to the Integrative Graduate Education and Research Trainee Ship
program. Finally, the bill directs the Department of Energy to establish education
programs in fields of science relevant to DOE’s mission. Passed by the House
Science Committee on June 6, 2006. (See H.Rept. 109-524)
The Early Career Research Act (H.R. 5356) would authorize programs at NSF
and DOE to award merit-reviewed, competitive awards to tenure track science and
engineering faculty in early stages of their careers. The award amount would be at
least $80,000 per year for the duration of up to five years. The bill requires that at
least 3.5% of NSF’s Research and Related Activities Account be allocated to this
grant program. Passed by the House Science Committee on June 6, 2006. (See
H.Rept. 109-525)

The third bill, The Research for Competitiveness Act (H.R. 5357), would
authorize additional programs to award grants to early-career scientists and engineers
for high-risk, high return research in areas relevant to industry. This bill also
authorizes DOE awards in areas relevant to energy production, storage, and use. The
award amount would be $50,000 a year for up to five years, with the potential of
raising matching funds of up to $50,000 per year from industry.
Department of Agriculture (USDA)
The FY2007 request for research and education in the U.S. Department of
Agriculture (USDA) is $2,259.9 million, a 12.7% decrease ($329.7 million) from the
FY2006 estimate. (See Table 1). 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
largest multidisciplinary agricultural research center, located at Beltsville, Maryland.
There are approximately 100 research facilities throughout the United States and
abroad. The 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. Included in the
total support for USDA in FY2007 is $1,027.8 million for ARS, an 18.8% decrease
($238.4 million) from the FY2006 level. The Administration proposes reductions of
$146 million in all projects earmarked by Congress — $50 million in project
terminations and approximately $49 million in formally unrequested projects. These
amounts will be redirected to high-priority Administration initiatives that include
livestock production, food safety, crop protection, human nutrition, and new
products/value-added. Included in the FY2007 request for ARS is $8.4 million for

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CRS-4
buildings and facilities, a significant reduction from the FY2006 level of $129.9
million. The $8.4 million request by the Administration is to fund the design and site
preparation of the Classical Chinese Garden of the U.S. National Arboretum. The
Garden is a joint project between the governments of the United States and China.
The FY2007 request supports several research priority areas and strategic goals.
The USDA has given priority to the mapping and sequencing projects funded by
USDA, such as sequencing genomes of agriculturally important species. The
sequencing projects will be coordinated with ongoing genomics initiatives supported
by other federal agencies and facilitated by interagency working groups. Increases
are provided for research involving animal and plant genomes. Also, the FY2007
request provides support for research on emerging and exotic diseases as part of the
infrastructure to enhance homeland security. USDA states that this research is
significant in protecting the nation from the deliberate or unintentional introduction
of an agricultural health threat. The USDA has biocontainment complexes, where
research and diagnostic work is done on organisms that pose serious threats to the
crop, poultry, and livestock industries. Other research areas receiving support in the
FY2007 request include bovine spongiform encephalopathy, air and water quality,
food safety, obesity/nutrition, biobased products/bioenergy research, and agricultural
information.
The Cooperative State Research, Education, and Extension Service (CSREES)
distributes funds to State Agricultural Experiment Stations, State Cooperative
Extension Systems, land-grant universities, and other institutions and organizations
that conduct agricultural research. Included in these partnerships is funding for
research at 1862 institutions, 1890 historically black colleges and universities, and
1994 tribal land-grant colleges. Funding is distributed to the states through
competitive awards, statutory formula funding, and special grants. The FY2007
request for CSREES is $997.0 million, a decrease of $124.5 million from the
FY2006 level. Funding for formula distribution in FY2007 to the state Agricultural
Experiment Stations (and other eligible institutions) is $273.2 million, almost level
with FY2006. The FY2007 request provides $37.9 million for the 1,890 formula
programs, again almost level with FY2006. The FY2007 request will modify the
Hatch formula program by expanding the multistate research programs from 25% to
55.6%. A portion of the funds will be redirected to nationally, competitively awarded
grants. Such an approach should continue the matching requirement and leverage
nonfederal resources.
The FY2007 request funds the National Research Initiative (NRI) Competitive
Grants Program at $247.5 million, $66.3 million above the FY2006 level. The
increase will support initiatives in agricultural genomics, emerging issues in food and
agricultural security, the ecology and economics of biological invasions, plant
biotechnology, and water security. In addition to supporting fundamental and applied
science in agriculture, USDA contends that the NRI makes a significant contribution
to developing the next generation of agricultural scientists. The FY2007 request
includes approximately $7 million for grants to educational institutions and
community-based organizations to benefit socially disadvantaged farmers and
ranchers. These grants are intended to encourage greater participation of black
farmers, tribal groups, and Hispanic and other minority groups in the USDA portfolio
of commodity, loan, education, and grant offerings.

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CRS-5
The Economic Research Service (ERS) is the principal intramural economic and
social science research agency in USDA. The FY2007 request for ERS is $82.5
million, a $7.3 million increase over FY2006. The increase will continue the
development of a consumer data and information system that will provide USDA
with, among other things, current food prices, food purchases, sales volumes, and
information on consumer characteristics and purchasing behavior. In addition, the
increase will support a comprehensive data collection and research program to
examine the changing economic health of farm and nonfarm households in rural
areas. The multiyear, longitudinal data generated by this initiative will support the
programs administered by the Rural Development mission area. The National
Agricultural Statistics Service (NASS) conducts the Census of Agriculture and
provides current data on agricultural production and economic indicators of the well-
being of the farm sector. The FY2007 request for the NASS is $152.6 million, $13.3
million above the FY2006 level. Funding would help improve the quality of the
principal economic indicators used by the Council of Economic Advisors and would
support the analysis required to develop the upcoming 2007 Farm Bill. NASS will
continue to develop the USDA Enterprise Architecture and the USDA Enablers
initiatives.
On May 23, 2006, the House passed H.R. 5384, the Agriculture, Rural
Development, Food and Drug Administration and Related Appropriations Act, 2007
(H.Rept. 109-463). The bill provides a total of $2535.9 million for research and
education activities in FY2007, $276 million above that which was requested by the
Administration, and $53.7 million below the FY2006 estimate. H.R. 5384 provides
$1,197.6 million for ARS in FY2007. Included in the funding for ARS is $140
million for buildings and facilities. The Administration had requested $8.4 million.
The bill supports CSREES at $1,108.6 million, $111.6 million above the request,
$12.9 million below the FY2006 estimate. Included in the total for CSREES is
$183.3 million for payments under the Hatch Act. The Committee recommended
funding level is 3% above FY2006, and is the first time that this program has
increased since 1999. The Senate reported its version on June 22, 2006, providing a
total of $2,580.9 million for research and education in FY2007(S.Rept. 109-266).
Included in the Senate version is $1,211 million for ARS, $1,145.2 million for
CSREES, $76 million for ERS, and $148.7 million for NASS. (CRS Contact:
Christine M. Matthews.)
Table 1. U.S. Department of Agriculture R&D
($ in millions)
FY2007
FY2005
FY2006
FY2007
FY2007
Senate
Act.
Act.
Req.
Housef
Comm.
Agric. Research Service (ARS)
Product Quality/Value Added
$104.6
105.4
$93.8
Livestock Production
84.1
85.1
69.8
Crop Production
196.8
201.4
150.8
Food Safety
102.7
104.6
108.1
Livestock Protection
78.5
89.7
98.0
Crop Protection
193.0
197.2
181.6
Human Nutrition
83.7
84.8
84.4
Environmental Stewardship
219.4
223.3
172.3
National Agricultural Library
21.5
21.8
25.0

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CRS-6
FY2007
FY2005
FY2006
FY2007
FY2007
Senate
Act.
Act.
Req.
Housef
Comm.
Repair & Maintenance
17.8
17.7
17.7
Subtotal
1,102.0d
1,123.7
1,001.4
1,057.6g
1,127.6
Buildings & Facilities
186.3
129.9
8.4
140.0
83.4
Trust Funds
18.0
0.0
18.0
0.0
0.0
Total, ARS
1,306.3
1,253.6
1,027.8
1,197.6
1,211.0
Coop. St. Res. Ed. & Ext. (CSREES) Research and Education
Hatch Act Formula
178.7
177.0
176.9
183.3
185.8
Cooperative Forestry Research
22.2
22.0
22.0
22.7
23.3
1890 Colleges and Tuskegee Univ.
12.3
37.2
37.9
38.3
39.1
Special Research Grants
135.5
126.9
18.1
103.5
119.3
NRI Competitive Grants
179.6
181.2
247.5
190.0
190.2
Animal Health & Disease Res.
5.1
5.0
0.0
5.0
5.0
Federal Administration
42.5
50.0
9.2
39.5
41.3
Higher Educationb
50.7
55.0
69.7
79.3
73.1
Total, Coop. Res. & Educ.c
655.5d
670.1
566.3
651.6
678.1
Extension Activities
Smith-Lever Sections 3b&c
275.5
273.0
273.2
281.4
286.6
Smith-Lever Sections 3d
86.7
92.0
91.5
64.0
65.8
Renewable Resources Extension
4.1
4.0
4.1
4.1
4.2
Integrated Activities
54.7
55.2
19.1
55.2
58.7
1890 Research & Extension
16.8
16.6
16.6
34.1
35.2
Other Extension Prog. & Admin.
7.8
14.7
26.2
18.2
16.6
Total, Extension Activitiesc
445.6
451.4
430.7
457.0
467.1
Total, CSREESc
1,101.1
1,121.5
997.0
1,108.6
1,145.2
Economic Research Service
74.2
75.2
82.5
81.0
76.0
National Agricultural Statistics
128.4
139.3
152.6
148.2
148.7
Service
Total, Research, Education &
$2,610.0
$2,589.6
$2,259.9
$2,535.9
$2,580.9
Economics
a. Funding levels are contained in U.S. Department of Agriculture FY2007 Budget Summary and
other documents internal to the agency.
b. Higher education includes payments to 1994 institutions and 1890 Capacity Building Grants
program, the Native American Institutions Endowment Fund, and the Alaska Native and Native
Hawaiian-Serving Institutions Education Grants.
c. Program totals may reflect set-asides (non-add) or contingencies. The CSREES total includes
support for Integrated Activities, Community Food Projects, and the Organic Agriculture
Research and Education Initiative.
d. Totals may not add due to rounding. Research activities carried out in support of Homeland
Security are include in Food Safety, Livestock Protection, and Crop Protection portfolios.
e. Aggregate support for Homeland Security — FY2005, $30.2 million, FY2006, $35.6 million, and
FY2007, $81.5 million.
f. H.R. 5384, Agriculture, Rural Development, Food and Drug Administration and Related Agencies
Appropriations bill, 2007 (H Rept. 109-463).
g. Funding levels for specific programs are not yet available.
h. H.R. 5384, S.Rept. 109-266.
Department of Energy (DOE)
The Department of Energy has requested $9.154 billion for R&D in FY2007,
including activities in three major categories: Science, National Security, and Energy.
(For details, see Table 2.) This request is 3.5% above the FY2006 level of $8.848

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CRS-7
billion. The House provided a net increase of $241 million (H.R. 5427). The Senate
committee recommended a net increase of $738 million. (S.Rept. 109-274).
The requested funding for Science is $4.102 billion, a 14% increase from
FY2006. This unusually large increase reflects the American Competitiveness
Initiative (ACI), which the President announced in February 2006 in his State of the
Union address. Over the next 10 years, the ACI would double R&D funding for the
DOE Office of Science and two other agencies. About $200 million of the requested
increase in FY2007 would support increased operating time for facilities managed
by the Basic Energy Sciences program; the House and Senate appropriations reports
for FY2006 both called for increased funding for this purpose. In the Fusion Energy
Sciences program, the request includes $60 million for the International
Thermonuclear Experimental Reactor (ITER), whose estimated U.S. total cost
remains at $1.12 billion through FY2014. The House provided the requested amount
for Science, plus $30 million additional to fund earmarks in the Biological and
Environmental Research program. The Senate committee recommended increases
of $49 million to fund earmarks, $25 million for water technology R&D, and $24
million for national laboratory support for primary and secondary math and science
education, and a transfer of $39 million from a National Security program (along
with internal Science transfers) to create a program in High Energy Density Science.
The requested funding for R&D in National Security is $3.188 billion, a 7.4%
decrease. Most of the reduction results from the completion of construction projects
and the elimination of items funded at congressional direction in FY2006. The
House provided increases totaling $143 million, including additional funds for
Inertial Confinement Fusion and for the Reliable Replacement Warhead program.
The Senate committee recommended a net increase of $152 million, with additional
funds for most weapons programs including the Reliable Replacement Warhead but
a transfer of $39 million out of Inertial Confinement Fusion as noted above.
The requested funding for R&D in Energy is $1.864 billion, up 3.0% from
FY2006. Within this total, R&D on nuclear, biomass, and solar energy would
increase, while natural gas and oil technology programs would be terminated.
Termination of the gas and oil technology programs was also proposed in FY2006,
but was rejected by Congress. For FY2007, the House provided no funding for gas
technology and just $3 million for oil technology, but it rejected the request for
additional nuclear energy R&D funding, and it increased funding for R&D on fossil
energy, energy efficiency, and renewable energy. The net House increase for R&D
in Energy was $68 million. The Senate committee recommended a total of $27
million for the gas and oil technology programs and recommended other increases
including $65 million for biomass, $100 million for nuclear energy, and $100 million
for coal. The Senate increase for nuclear energy R&D would nearly double the
program relative to FY2006. The net Senate committee recommendation for R&D
in Energy was an increase of $447 million. (CRS Contact: Daniel Morgan.)

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CRS-8
Table 2. Department of Energy R&D
($ in millions)
FY2005
FY2007
Comprb
FY2006
FY2007
FY2007
Sen.
l.
Comprbl.
Request
House
Cmte.
Science
3635.6
3596.4
4101.7
4131.7
4241.1
Basic Energy Sciences
1083.6
1134.6
1421.0
1421.0
1445.9
High Energy Physics
722.9
716.7
775.1
775.1
766.8
Biological and Environmental
566.6
579.8
510.3
540.3
560.0
Research
Nuclear Physics
394.5
367.0
454.1
454.1
434.1
Fusion Energy Sciences
266.9
287.6
319.0
319.0
307.0
Advanced Scientific Computing
226.2
234.7
318.7
318.7
318.7
Rsrch.
High Energy Density Science
—
—
—
—
79.9
Other
374.9
276.0
303.5
303.5
328.7
National Security
3406.9
3442.2
3188.0
3331.1
3339.6
Weapons Activitiesa
2327.5
2311.7
2102.6
2196.5
2240.2
Naval Reactors
801.4
781.6
795.1
795.1
795.1
Nonproliferation and
219.8
318.8
268.9
308.1
282.9
Verification R&D
Defense Environmental Cleanup
58.2
30.1
21.4
31.4
21.4
TD&D
Energy
1727.4
1809.0
1863.8
1931.5
2310.8
Fossil Energy R&D
560.9
592.0
469.7
558.2
644.3
Energy Efficiency and Renewable
Energyb
908.9
857.0
951.4
1051.6
1119.1
Nuclear Energy R&D
168.4
223.7
347.1
224.1
446.7
Electric Transmn. and Distribn.
89.2
136.3
95.6
97.6
100.7
R&D
Total
8769.9
8847.6
9153.5
9394.3
9891.5
a. Includes Stockpile Services R&D Support, Stockpile Services R&D Certification and Safety,
Reliable Replacement Warhead, Science Campaigns, Engineering Campaigns except Enhanced
Surety and Enhanced Surveillance, Inertial Confinement Fusion, Advanced Simulation and
Computing, and a prorated share of Readiness in Technical Base and Facilities. Additional
R&D activities may take place in the subprograms of Directed Stockpile Work that are devoted
to specific weapon systems, but these funds are not included in the table because detailed
funding schedules for those subprograms are classified.
b. Excluding Weatherization and Intergovernmental Activities.
Department of Defense (DOD)
Nearly all of what the Department of Defense (DOD) spends on Research,
Development, Test and Evaluation (RDT&E) is appropriated in Title IV of the
defense appropriation bill (see Table 3). For FY2007, the Bush Administration is
requesting $73.2 billion for DOD’s baseline Title IV RDT&E. The baseline Title IV
RDT&E request is $2.0 billion more than the total obligational authority available
for Title IV in FY2006. RDT&E funds are also requested as part of the Defense

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CRS-9
Health Program ($131 million) and the Chemical Agents and Munitions Destruction
Program ($231 million). The five-year budget plan projects spending $366.5 billion
for RDT&E through FY2011. The Administration’s FY2007 budget projection for
RDT&E through FY2011 is nearly $22 billion more than its projection last year.
While the FY2007 RDT&E request represents an increase in RDT&E funding
over last year, Science and Technology (S&T) funding would decrease. S&T consists
of basic and applied research and advanced development (6.1, 6.2, and 6.3 activities
in the RDT&E account). Although the FY2007 S&T budget request ($11.1 billion)
is approximately $600 million more than the amount requested by the Administration
for FY2006, the FY2007 S&T request is $2.2 billion less than the amount Congress
appropriated for S&T in FY2006. The difference between the FY2007 S&T request
and the amount appropriated by Congress for FY2006 roughly equals the amount the
Administration claims was earmarked by Congress in the FY2006 S&T
appropriation. The FY2006 request for basic research ($1.4 billion) is $70 million
less than what Congress appropriated in FY2006 for basic research, but is over $100
million more than what the Administration requested for basic research in FY2006.
Over half of DOD’s basic research budget is spent at universities and represents the
major contribution of funds in some areas of science and technology. The FY2007
S&T request is approximately 2.6% of the overall baseline DOD budget request.
This amount is below the 3% target that the Bush Administration and Congress have
set. The FY2007 budget request for Missile Defense RDT&E is $9.3 billion (an
increase of $1.7 billion from the amount available for Missile Defense in FY2006).
The House approved its defense appropriation bill (H.R. 5631) on June 20. The
House voted to appropriate $75.3 billion for Title IV RDT&E, about $2.2 billion
above what was requested. The increase went primarily to the S&T portion of the
program, which was funded at $13.3 billion. The S&T amount roughly equals 3.2%
of the total appropriation for DOD (this includes the $50 in additional war-related
appropriations allocated in Title IX—no RDT&E funds were included in Title IX).
The House also approved $231 million for the Chemical Agents and Munitions
Destruction Program. In a separate appropriation bill (H.R. 5385, the Military
Quality of Life and Veterans Affairs and Related Agencies Appropriations Bill,
2007), the House approved $444 million for RDT&E within the Defense Health
Program. This includes $115 million for the peer reviewed breast cancer research
program and $80 million for the prostrate cancer program.
The Senate approved its defense appropriation bill on September 7. The Senate
voted to appropriate $73.0 billion for Title IV RDT&E, about $200 million less than
the Administration’s request and about $2.4 billion less than what the House
approved. The Senate did approve more S&T funding than was requested, but was
not as generous as the House. At just under $12.0 billion, the Senate’s S&T
appropriation represents a little less than 3% of the total amount they appropriated
for DOD (this does not consider the additional appropriations of $50 billion allocated
for continuing operations in the global war on terror). Of the $50 billion allocated
by the Senate for the Global War on Terror, $298 was allocated to RDT&E. In
addition, the Senate approved $468 million in RDT&E funds for the Defense Health
Program (including $150 million for the peer reviewed breast cancer program and
$80 million for the peer reviewed prostrate cancer program). The Senate also
approved $231 for RDT&E in the Chemical Agents and Munitions Destruction

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CRS-10
Program. The Senate appropriated about $400 million less for DARPA than was
requested, making cuts in nearly all of DARPA’s line items. The Senate approved
$9.4 billion for missile defense RDT&E, about $62 million more than was requested.
The conference committee approved $75.4 billion for Title IV RDT&E. (See
P.L. 109-289.) This includes a general reduction of $287 million due to improved
economic assumptions (see Section 8106 of the conference report). The conference
committee also approved $13.3 billion for S&T. This does not include S&T’s share
of the general reduction. In Title IX of the conference bill, providing for additional
funds for the war on terrorism, another $408 million was added for RDT&E. In
addition, Title IX provided $1.9 billion for the Joint Improvised Explosive Device
Defeat Fund. The Secretary may transfer funds to those budget activities, including
RDT&E, as necessary to accomplish the purposes of defending troops against such
devices. The conference committee also approved $231 million in RDT&E for the
Chemical Agents and Munitions Destruction program. However, it also, as part of
the general reduction cited above reduced Title VI funding by $9.5 million. The
$231 million figure mentioned above does not include the program’s share of this
general reduction. (CRS Contact: John Moteff.)
Table 3. Department of Defense RDT&E
FY2006
FY2007
FY2007
FY2007
FY2007
Estimatee
Requestg
House
Senate
Conf.
Apprn.
Apprn.
Apprn.
Accounts
Billions $
Army
11,026
10,856 11,835 11,245
11,055
Navy
18,734
16,912 17,655 17,048
18,674
Air Force
21,671
24,397
24,457
23,974
24,516
Defense Agencies
19,555
20,810
21,208
20,543
21,291
(DARPA)
(2,979)
(3,294)
(3,327)
(2,893)
(3,135)
(MDAa)
(7,682) (9,310)
(8,955)
(9,372)
(9,421)
Dir. Test & Eval
166
182
182
188
185
Adjustments
improved economic assumptions
-317 -286
Total Obligational Authority
71,152
73,157
75,337
72,998
75,435
Budget Activity
Basic Research
1,470
1,422
1,571
1,479
1,552
Applied Research
5,168
4,478
5,276
4,805
5,282
Advanced Dev.
6,603
5,183
6,461
5,702
6,494
Advanced Component
13,913
15,387 15,163 15,246
15,785
Dev. and Prototypes
Systems Dev. and Demo
19,343
19,277
19,255
19,072
19,190

---

CRS-11
FY2006
FY2007
FY2007
FY2007
FY2007
Estimatee
Requestg
House
Senate
Conf.
Apprn.
Apprn.
Apprn.
Mgmt. Supportb
4,025
3,938 4,171 4,131
4,197
Op. Systems Dev
20,630
23,471
23,440
22,563
23,221
Adjustments
improved economic assumptions
-317
-286
Total Obligational Authority c
71,152
73,156
75,337
72,998
75,435
Other Defense Programs
Defense Health Program
536
131
444
468
n/ah
Chemical Agents and Munitions
67
231
231
231
231
Destruction
Adjustments
-94 -9
improved economic adjustments
Title IX Additional
51f 0
298
408
Appropriations for the Global
War on Terror
Sources: Figures based on Department of Defense Budget, FY2007 RDT&E Programs (R-1), February 2006. Figures
for the Defense Health Program are taken from the Department of Defense Budget, FY2007 Operations and Maintenance
Programs (O-1) document and the Chemical Agents, and Munitions Destruction Program figures are taken from the
Department of Defense Budget, FY2007 Procurement Programs (P-1) document. Both released in February 2006.
Totals may not add due to rounding. FY2007 House appropriation figures taken from H.Rept. 109-504, and for the
Defense Health Program totals, from H.Rept. 109-464. Senate appropriation figures taken from S.Rept. 109-292.
Conference figures taken from H.Rept. 109-676.
a. Includes only BMD RDT&E. Does not include procurement and military construction.
b. Includes funds for Developmental and Operational Test and Evaluation.
c. Numbers may not agree with Account Total Obligational Authority due to rounding.
d. The FY2005 figures in the R-1 reflect the FY2005 Supplemental (P.L.109-13) which included $587 million for
RDT&E. They do not include any rescissions passed as part of the FY2007 appropriation bills.
e. The FY2006 figures reflect the 1% across the board cut called for in the FY2006 DOD Appropriations bill (P.L. 109-
148). The FY2006 figures do not include the $782 million requested for RDT&E in the $72.4 billion FY2006
emergency supplemental request of February 16, 2006, nor the approximately $19.0 million for RDT&E included
in another Katrina-related supplemental, also requested February 16, 2006. Nor do the FY2006 figures include
any rescissions passed as part of the FY2007 appropriation bills.
f. It is not clear if the FY2006 figures in the R-1 reflect the $91.9 million in additional RDT&E funding included in Title
IX (Division A) and Title IX (Division B) of the FY2006 DOD Appropriations. Division A appropriated
contingency funds for the Global War on Terror that included $50.6 million for specified RDT&E programs.
Division B provided emergency funds for hurricane relief that included $41.6 million for specified RDT&E
activities. The $51 million listed here represents the Division A funds, and, therefore may lead to double counting.
g. It is not clear if the FY2007 R-1 figures include any RDT&E funds associated with another request by the
Administration for contingency funds for the Global War on Terror to be included as part of the FY2007 DOD
appropriations bill.
h. This is funded as part of the Military Quality-Veteran’s Affairs Appropriation (H.R. 5385)

---

CRS-12
National Aeronautics and Space Administration
(NASA)
NASA has requested $12.336 billion for R&D in FY2007. (For details, see
Table 4.) This request is a 7.5% increase over FY2006, in a total NASA budget that
would increase by just 1.0%. Within the increase for NASA R&D overall, however,
a large increase for Constellation Systems (primarily the new Crew Exploration
Vehicle and its launch vehicle) would be offset by decreases for Human Systems and
Aeronautics and an increase for Science that is substantially less than previously
projected. The House provided $12.260 billion (H.R. 5672). The Senate committee
recommended $12.300 billion (S.Rept. 109-280). Both provided less than the request
for Exploration Systems and more for Aeronautics and Science.
Budget priorities throughout NASA are being driven by the Vision for Space
Exploration. Announced by President Bush in January 2004 and endorsed by
Congress in the NASA Authorization Act of 2005 (P.L. 109-155), the Vision
includes returning the space shuttle to flight status, then retiring it by 2010;
completing the space station, but discontinuing its use by the United States by 2017;
returning humans to the moon by 2020; and then sending humans to Mars and
“worlds beyond.” Constellation Systems, the only R&D program to receive a large
increase in the FY2007 request, is responsible for developing vehicles to return
humans to the moon. The reduced rate of growth in requested funding for the
Science Mission Directorate, a total reduction of $3.1 billion through FY2010
relative to projections in the FY2006 request, is mostly to offset higher than expected
costs for returning the space shuttle to flight status.
The request for Science has been particularly controversial. It includes full
funding for a Hubble Space Telescope servicing mission in early FY2008 (pending
approval by the Administrator), but several robotic missions to Mars are cancelled
or deferred. In addition, no funding is requested for the SOFIA airborne infrared
telescope or the Europa mission to one of Jupiter’s moons. The request for Research
and Analysis, which provides grant funding to individual researchers, is down 15%
from FY2006 in most programs. The House provided an increase of $75 million for
Science, including $50 million for Research and Analysis. The Senate committee
recommended an increase of $31.5 million and directed NASA to fund SOFIA
through a reprogramming request.
The request for Aeronautics Research is also of congressional interest.
Although the requested budget for aeronautics is about the same as was projected a
year earlier, the proposed activities have changed significantly. The largest program,
Vehicle Systems, has been renamed Fundamental Aeronautics and will now focus on
“core competencies” in subsonic, supersonic, and hypersonic flight regimes,
including work on rotorcraft. An amendment to the Senate FY2007 budget
resolution (S.Amdt. 3033 to S.Con.Res. 83) increased the recommended funding for
NASA aeronautics by $179 million. The House provided an increase of $100
million. The Senate committee recommended an increase of $35 million. (CRS
Contact: Daniel Morgan.)

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CRS-13
Table 4. NASA R&D
($ in millions)
FY2006
FY2007
FY2007
FY2007
Estimated
a
Request
House
Sen. Cmte.
Science
5,253.7
5,330.0
5,404.8
5,361.5 d
Solar System Exploration
1,582.3
1,610.2
— c
1,610.2 d
The Universe
1,507.9
1,509.2
— c
1,509.2 d
Earth-Sun Systems
2,163.5
2,210.6
— c
2,242.1 d
Exploration Systems
3,050.1
3,978.3
3,827.6
3,921.5 d
Constellation Systems
1,733.5
3,057.6
3,041.6
2,960.8 d
Exploration Systems Research and
692.5
646.1
511.4
686.1 d
Technology
Human Systems Research and
624.1
274.6
274.6
274.6 d
Technology
Aeronautics Research
884.1
724.4
824.4
759.4 d
Cross-Agency Support Programs
533.5
491.7
425.2
491.7 d
International Space Station
1,753.4
1,811.3
1,777.9
1,811.3
Reductions not Allocated
—
—
—
– 45.3 d
Subtotal R&D
11,474.8
12,335.7
12,259.9
12,300.1
Space Shuttle
4,777.5 b
4,056.7
4,056.7
4,056.7
Return to Flight e
—
—
—
1,000.0
Space and Flight Support
338.8
366.5
358.9
366.9
Hurricane Katrina e
—
—
—
40.0
Inspector General
32.0
33.5
33.5
33.5
Total NASA
16,623.0 b
16,792.2
16,709.0
17,797.2 e
a. Figures for FY2006 are from NASA’s January 2006 operating plan and are not final. Figures for
FY2005 are not shown because changes in budget structure and program shifts between
accounts make comparisons between FY2005 and FY2007 difficult.
b. Includes $349.8 million in emergency supplemental funding for Hurricane Katrina response and
recovery.
c. The House did not specify amounts at the “theme” level within Science.
d. The Senate committee did not specify amounts within the Science, Aeronautics, and Exploration
appropriations account. These amounts in the table are estimated by CRS based on the
requested amounts and the program increases and decreases specified in the committee report
(S.Rept. 109-280). The amount shown as “Reductions not Allocated” is calculated by CRS as
the difference between the recommended overall decrease for the account and the sum of the
specified program increases and decreases.
e. The Senate committee recommended two new appropriations accounts, Return to Flight and
Hurricane Katrina, both of which would be emergency funding. Excluding emergency funding,
the Senate committee total for NASA is $16,757.2 million. Neither new account would fund
R&D.

---

CRS-14
National Institutes of Health (NIH)
The President requested a program level budget of $28.487 billion for NIH for
FY2007, essentially equal to the FY2006 final budget and $66.8 million (0.2%) lower
than the FY2005 level of $28.553 billion (see Table 5). The FY2006 amount was
the first decrease in NIH’s appropriation since 1970. (NIH lost an additional $19.5
million in FY2006 funds in June 2006 when the HHS Secretary exercised his transfer
authority to give the Centers for Medicare and Medicaid a total of $40 million from
other HHS discretionary accounts, dropping the NIH program level to $28.468
billion.) The House and Senate Appropriations Committees have reported separate
FY2007 Labor-HHS-Education Appropriations bills (H.R. 5647, H.Rept. 109-515
and S. 3708, S.Rept. 109-287), but neither chamber has scheduled floor action. The
House committee recommended funding most of the NIH accounts at the same level
as the request. The Senate bill would provide a program level of $28.688 billion, an
increase of about $220 million (0.8%) over the revised FY2006 amount and $200
million above the request and the House amount. The Senate committee gave every
NIH account a modest increase over FY2006, reversing the cuts to institute and
center budgets proposed in the request.
The bulk of NIH’s budget comes through the Labor-HHS-Education
appropriation ($28.350 billion in the request). An additional small amount for
environmental work related to Superfund comes from the Interior, Environment, and
Related Agencies appropriation (H.R. 5386, H.Rept. 109-465 and S.Rept. 109-275).
Those two sources constitute NIH’s discretionary budget authority. In addition, NIH
receives $150 million preappropriated in separate funding for diabetes research and
$8.2 million from a transfer within the Public Health Service (PHS). As in past
years, the budget request proposes that $100 million of the NIH appropriation be
transferred to the Global Fund to Fight HIV/AIDS, Tuberculosis, and Malaria. (The
“NIH program level” cited in the Administration’s budget documents, however, does
not reflect that transfer.) The House Appropriations Committee did not include the
requested bill language for the transfer, which would come from the appropriation
for the National Institute of Allergy and Infectious Diseases (NIAID). Instead, the
committee report notes that it provided increased funding for HIV/AIDS activities
in the Centers for Disease Control and Prevention (CDC) and the Health Resources
and Services Administration (HRSA). The Senate committee included the $100
million transfer as in the request.
FY2003 was the final year of the five-year effort to double the NIH budget from
its FY1998 base of $13.7 billion to the FY2003 level of $27.1 billion. The annual
increases for FY1999 through FY2003 were in the 14%-15% range each year. For
FY2004 and FY2005, faced with competing priorities and a changed economic
climate, Congress and the President gave increases of between 2% and 3%, levels
that were below the then-estimated 3.5% and 3.3% biomedical inflation index for
those two years. (The index has since been updated to show inflation of 3.7% for
FY2004 and 3.8% for FY2005.) The research advocacy community had originally
urged that the NIH budget grow by about 10% per year in the post-doubling years.
They modified their recommendation to 6% for FY2006 and 5% for FY2007,
maintaining that such increases would be needed to continue the momentum of
scientific discovery made possible by the increased resources of the doubling years.

---

CRS-15
With the projected biomedical inflation index at 3.5% for FY2006 and 3.4% for
FY2007, the NIH budget has been losing ground in real terms each year since the end
of the doubling in FY2003. In constant 2006 dollars, the FY2003 NIH budget was
$30.2 billion, the FY2004 level was $30.0 billion, FY2005 was $29.6 billion,
FY2006 is $28.5 billion, and the FY2007 request level is $27.5 billion. In inflation-
adjusted terms, the FY2006 budget was 5.7% below the FY2003 level, and the
FY2007 request is 8.7% below the FY2003 level.
The agency’s organization consists of the Office of the NIH Director and 27
institutes and centers. The Office of the Director (OD) sets overall policy for NIH
and coordinates the programs and activities of all NIH components. The individual
institutes and centers (ICs) — each with a focus on particular diseases, areas of
human health and development, or aspects of research support — plan and manage
their own research programs in coordination with the OD. As shown in Table 5,
Congress provides a separate appropriation to 24 of the 27 ICs, to OD, and to a
buildings and facilities account. (The other three centers, not included in the table,
are funded through the NIH Management Fund, financed by taps on other NIH
appropriations.)
Although the FY2007 budget requests the same overall level of funding for NIH
as in FY2006 (not taking into account the later reduction in FY2006), there are
variable increases and decreases among the ICs and among the different funding
mechanisms. Most of the IC budgets would decrease by 0.5%-0.8%, with several of
the larger institutes losing between $10 million and $40 million. In the request, two
accounts gained funds over FY2006: NIAID, up $12 million (0.3%), largely due to
pandemic influenza funding, and the Office of the Director (OD), up $140 million
(26.6%). The OD increase includes a program formerly in NIAID for advanced
development of biodefense countermeasures (up $110 million) and the OD
contribution to the NIH Roadmap (up $29 million). Both programs are discussed
below. In the House committee recommendation, funding for NIAID drops 2.6%
below FY2006 because the $100 million Global Fund money is removed, as is $25
million for construction and renovation of biosafety laboratories. The biodefense
facilities construction money is moved to the more general extramural construction
program in the National Center for Research Resources (NCRR), giving that account
a 2.2% increase. The Senate committee bill does not move the laboratory
construction funds.
Specific priorities highlighted in the budget request include several trans-NIH
initiatives involving multiple institutes with coordination by OD. Biodefense
activities would receive a total of $1.9 billion, a net increase of $110 million (6.2%)
over FY2006. Within OD would be a $160 million fund (up $110 million) for the
advanced product development of vaccines and drugs that are priority targets for
acquisition by Project BioShield. The activity would involve NIH more extensively
than usual in working with academia and industry to bridge the research gap between
investigational testing of a new drug and full product development. Also in OD is
$96 million for research on countermeasures against nuclear/radiological threats and
chemical threats, the same as in FY2006.
The NIH Roadmap for Medical Research Program, launched in September
2003, has identified critical scientific gaps that may be constraining rapid progress

---

CRS-16
in biomedical research. Consequently, the agency has developed a list of 28 NIH-
wide initiatives to address them. Roadmap initiatives are funded at $443 million for
FY2007 ($332 million from the institutes and centers and $111 million from the
Director’s Discretionary Fund), up $113 million (34%) from FY2006. Three core
themes focus on new paths to biological discoveries ($181 million), building
multidisciplinary research teams ($81 million), and improving the clinical research
enterprise ($181 million).
The Genes, Environment, and Health initiative would receive a total of $68
million (up $49 million) for its second year of funding. It will look for genetic and
environmental interactions that might increase the risk of common chronic diseases
and will work on new technologies for assessing the role of diet, physical activity,
and environmental exposures in disease. On the other hand, a long-term (25+ year)
environmental health study called the National Children’s Study, now in its fifth year
of planning, is proposed for cancellation in the request. The multi-agency study,
mandated by the Children’s Health Act of 2000 (P.L. 106-310), plans to examine the
effects of environmental influences on the health and development of more than
100,000 children across the United States, following them from before birth until age
21. Its planned cost for FY2007 was $69 million (up from $10 million in FY2006),
and the overall projected cost for the whole study is about $2.7 billion. The House
committee rejected the termination and included bill language directing NIH to spend
$69 million on the study. The Senate committee report directed NIH to continue with
the study, noting that extra funding had been included in OD (the OD total is $20
million higher than the request).
The new Pathway to Independence Award program ($15 million in the request)
addresses NIH concerns about the support of new investigators, particularly younger
scientists making the transition from training to independent research. The average
age at which they receive their first independent grant has been increasing. In
January 2006, NIH announced the new program to support promising postdoctoral
scientists. The five-year awards will have a two-year mentored phase and a three-
year independent phase. NIH expects to support 150-200 awards beginning in Fall
2006, and a similar number in each of the following five years, for a total
commitment of almost $400 million. The new Clinical and Translational Science
Award (CTSA) program, administered by the National Center for Research
Resources (NCRR), has been developed to foster transdisciplinary clinical research
and training, with the goal of speeding the translation of the findings of “discovery”
research into clinical practice. Begun in FY2006, the program will transition
elements of existing clinical research programs into CTSAs. Funding is estimated at
$361 million for FY2007, including an additional $3 million requested in NCRR,
sponsor of the current General Clinical Research Centers program.
In addition to showing the appropriation by institute, the other common way to
describe the NIH budget is by “funding mechanism.” On average, the ICs devote
more than 80% of their budgets to supporting peer-reviewed extramural research by
awarding research project grants, research center grants, contracts, training grants,
construction grants, and many other types of funding to researchers in universities
and other institutions around the country. The remaining 15%-20% of the IC budgets
supports their intramural research programs and research management costs. Budget
data displayed by funding mechanism reveals the balance between extramural and

---

CRS-17
intramural funding, as well as the relative emphasis on support of individual
investigator-initiated research versus funding of larger projects, comprehensive
research centers, agency-directed research contracts, research career training,
facilities construction, and so forth.
The largest category, “research project grants” (RPGs), represents 53% of the
total NIH request, or $15.1 billion. NIH estimates it would support a total of 37,671
RPGs in FY2007, which is 656 fewer grants than the estimate for FY2006. The main
reason for the drop is that a large number of grants that were started toward the end
of the doubling years are completing their funding cycles. (The average length of an
RPG award is just under four years, but each year’s funds are awarded separately
from that year’s appropriation.) Within the RPG total, about one quarter (9,337, for
$3.3 billion) would be “competing” (new or competing renewal) grants, and the
remaining three-quarters would be noncompeting (continuation) grants. The
estimated number of competing RPGs would be an increase of 275 over the FY2006
number. The request proposes that the average cost of a competing RPG would not
increase over the FY2006 level, and that noncompeting grants would receive no
inflationary increases. NIH expects that the “success rate” of applicants receiving
funding for competing RPGs will be about 19%, the same as FY2006, compared with
22% in FY2005. During the doubling years, the success rate averaged 30%-32%.
Support for research centers would grow by 2.3% to $2.8 billion; research
training grants would remain at the FY2006 level ($760 million); research and
development contracts would increase by $44 million (1.6%) to $2.7 billion because
of the Genes, Health, and Environment initiative; the intramural research program
($2.8 billion) would decrease by $9 million (0.3%); research management and
support would increase by $14 million (1.3%) to $1.1 billion; extramural research
facilities construction would support only the $25 million for biosafety labs, with no
funds (same as FY2006) for non-biodefense extramural construction; and funding for
NIH’s own buildings and facilities remains at $89 million. As noted above, by
moving the $25 million in facilities construction money from NIAID to NCRR, the
House bill made the funds available for open competition instead of being limited to
biodefense facilities.
The NIH and other Public Health Service agencies within HHS are subject to
a budget “tap” called the PHS Program Evaluation Transfer (section 241 of the PHS
Act), which has the effect of redistributing appropriated funds among PHS agencies.
The FY2005 and FY2006 Labor-HHS appropriations set the tap at 2.4%, as does the
FY2007 Senate bill. The House bill returns the maximum tap to 1.0%, its original
level in the PHS Act. NIH, with the largest budget among the PHS agencies,
becomes the largest “donor” of program evaluation funds and is a relatively minor
recipient.
Reauthorization legislation for NIH, last enacted in 1993, has received recent
congressional action in the House. After holding a number of hearings over the past
several years, the Energy and Commerce Committee marked up a draft bill, the NIH
Reform Act of 2006. It proposes managerial and organizational changes for NIH,
focusing on enhancing the authority of the central NIH Director’s Office for strategic
planning, especially to facilitate and fund cross-institute research initiatives. It
requires detailed tracking of the research portfolio and periodic review of NIH’s

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CRS-18
organizational structure. The measure authorizes, for the first time, overall funding
levels for NIH, although not for the individual ICs, and establishes a “common fund”
for trans-NIH research. For further information on NIH, see CRS Report RL33695,
The National Institutes of Health: Organization, Funding, and Congressional Issues,
by Pamela W. Smith. (CRS Contact: Pamela Smith.)
Table 5. National Institutes of Health (NIH)
($ in millions)
FY2005
FY2006
FY2007
FY2007
FY2007
Institutes and Centers (ICs)
actual a
rev appr b
request
H.Comm.
S.Comm.
Cancer (NCI)
$4,828.2
$4,790.1
$4,753.6
$4,753.6
$4,799.1
Heart/Lung/Blood (NHLBI)
2,941.2
2,919.8
2,901.0
2,901.0
2,924.3
Dental/Craniofacial Res (NIDCR)
391.8
389.1
386.1
386.1
389.7
Diabetes/Diges/Kidney (NIDDK)
1,713.6
1,703.8
1,694.3
1,694.3
1,707.8
Neuro. Disorders/Stroke (NINDS)
1,539.4
1,533.7
1,524.8
1,524.8
1,537.7
Allergy/Infectious Dis (NIAID) c
4,402.8
4,380.3
4,395.5
4,270.5
4,395.5
General Medical Sci (NIGMS)
1,944.1
1,934.3
1,923.5
1,923.5
1,934.9
Child Health (NICHD)
1,270.3
1,263.9
1,257.4
1,257.4
1,264.5
Eye (NEI)
669.1
666.3
661.4
661.4
666.9
Environ Health Sci (NIEHS)
644.5
640.7
637.3
637.3
641.3
Aging (NIA)
1,052.0
1,045.9
1,039.8
1,039.8
1,048.9
Arthritis/Musculo/Skin (NIAMS)
511.2
507.6
504.5
504.5
508.6
Deafness/Comm’n Dis (NIDCD)
394.3
393.2
391.6
391.6
395.2
Nursing Research (NINR)
138.1
137.2
136.6
136.6
137.8
Alcohol Abuse (NIAAA)
438.3
435.6
433.3
433.3
436.6
Drug Abuse (NIDA)
1,006.4
999.3
994.8
994.8
1,000.3
Mental Health (NIMH)
1,411.9
1,402.6
1,394.8
1,394.8
1,403.6
Human Genome Res (NHGRI)
488.6
485.7
482.9
482.9
486.3
Bio Imaging/Bioengrg (NIBIB)
298.2
296.6
294.9
294.9
297.6
Research Resources (NCRR)
1,115.1
1,098.3
1,098.2
1,123.2
1,104.3
Complemnt/Alt Med (NCCAM)
122.1
121.4
120.6
120.6
122.0
Minority Hlth/Disparity (NCMHD)
196.2
195.3
194.3
194.3
196.8
Fogarty International Center (FIC)
66.6
66.3
66.7
66.7
66.8
Library of Medicine (NLM)
315.1
314.7
313.3
313.3
315.3
Office of Director (OD) d
405.1
527.2
667.8
667.8
687.8
Buildings & Facilities (B&F)
110.3
81.0
81.1
81.1
81.1
Subtotal, Labor/HHS Approp
$28,414.5
$28,329.8
$28,350.0
$28,250.0
$28,550.7
Superfund (Interior) e
79.8
79.1
78.4
79.4
79.4
Total, NIH discr budget auth
$28,494.4
$28,409.0
$28,428.4
$28,329.4
$28,630.1
Pre-approp Type 1 diabetes f
150.0
150.0
150.0
150.0
150.0
NLM program evaluation g
8.2
8.2
8.2
8.2
8.2
Total, NIH program level
$28,652.6
$28,567.2
$28,586.6
$28,487.6
$28,788.3
Global HIV/AIDS Fund transfer c
-99.2
-99.0
-100.0
0.0
-100.0
Total, NIH prog level w/ transfer
$28,553.4
$28,468.2
$28,486.6
$28,487.6
$28,688.3
Sources: FY2007 NIH budget justification, H.Rept. 109-515, and S.Rept. 109-287.
a. Reflects across-the-board reduction (0.8%) totaling -$229.390m, Labor/HHS/Ed reduction of
-$6.787m for salaries and expenses, and +$2.987m NCI breast cancer stamp funds.
b. Reflects across-the-board rescission (1%) of -$285.974m, Interior reduction of -$0.382m, and HHS
transfer of -$19.462m to Centers for Medicare and Medicaid Services (mid-June 2006).
c. NIAID totals include funds for transfer to Global Fund to Fight HIV/AIDS, TB, and Malaria (not
in FY2007 House bill). FY2006 includes $18.0m supplemental funding from Public Health and
Social Services Emergency Fund (PHSSEF) for pandemic flu (P.L. 109-148), and a comparable
transfer of $49.5m from NIAID to OD for Advanced Development of countermeasures.

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CRS-19
d. OD has Roadmap funds for distribution to ICs (FY2005, $59.520m; FY2006, $82.170m; FY2007,
$110.700m). FY2005 is comparable for $47.021m from PHSSEF for nuclear/radiological
countermeasures. FY2006 is comparable for $49.5m from NIAID for Advanced Development.
e. Separate account in the Interior/Environment/Related Agencies appropriation for NIEHS research
activities mandated in Superfund legislation (formerly in VA/HUD appropriation).
f. Funds available to NIDDK for diabetes research (P.L. 106-554 and P.L. 107-360).
g. Funds from PHS program evaluation set-aside (§ 241 of the PHS Act), $8.2m for NLM each year.
National Science Foundation (NSF)
The FY2007 request for the National Science Foundation (NSF) is $6,020.0
million, a 7.9% increase ($438.8 million) over the FY2006 level of $5,581.2 million.
(See Table 6). President Bush’s ACI proposes to double the NSF budget over the
next 10 years. The FY2007 request is to be the first installment toward that doubling
effort. The FY2007 request for NSF provides support for several interdependent
priority areas: broadening participation in the science and engineering enterprise,
providing world-class facilities and infrastructure, advancing research at the frontier,
and bolstering K-12 education. NSF will invest approximately $640 million in
programs targeted at those groups underrepresented in the science and engineering
workforce. Total support for providing world-class facilities will approach $1.7
billion. Across the agency, activities for advancing research at the frontiers of science
would be $4.7 billion.
The NSF asserts that international research partnerships are critical to the nation
in maintaining a competitive edge, addressing global issues, and capitalizing on
global economic opportunities. To address these particular needs, the FY2007 request
proposes $40.6 million for the Office of International Science and Engineering. Also,
in FY2007, NSF will continue in its leadership role in planning U.S. participation in
observance of the International Polar Year, which spans 2007 and 2008. A first-year
investment of $62 million is provided to address major challenges in polar research.
Other FY2007 highlights include funding for the National Nanotechnology Initiative
($373.2 million), investments in Climate Change Science Program ($205.3 million),
continued support for homeland security ($384.2 million), and funding for
Networking and Information Technology Research and Development ($903.7
million). Also, a new effort in the FY2007 request will be a $20 million program of
fundamental research on new technologies for sensor systems that detect explosives.
Included in the FY2007 request is $4,666 million for Research and Related
Activities (R&RA), a 7.7% increase ($334.5million) over the FY2006 level of
$4,331.5 million. R&RA funds research projects, research facilities, and education
and training activities. Partly in response to concerns in the scientific community
about the imbalance between support for the life sciences and the physical sciences,
the FY2007 request provides increased funding for the physical sciences — $248.5
million, a 6.6% increase ($15.4 million) over the FY2006 estimate. Research in the
physical sciences often leads to advances in other disciplines. R&RA includes
Integrative Activities (IA) and is a source of funding for the acquisition and
development of research instrumentation at U.S. colleges and universities. It also
funds Partnerships for Innovation, disaster research teams, and the Science and
Technology Policy Institute. The FY2007 request for IA is $131.4 million, a 4.2%
decrease ($5.8 million) from the FY2006 estimate. The Office of Polar Programs

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CRS-20
(OPP) is funded in the R&RA. In FY2006, responsibility for funding the costs of
icebreakers that support scientific research in polar regions was transferred from the
U.S. Coast Guard to NSF. The NSF will continue to operate and maintain the three
icebreakers. The OPP is funded at $438.1 million in the FY2007 request, 12.5%
above the FY2006 level. Significant increases in OPP for FY2007 have been directed
at the programs for arctic and antarctic sciences.
Research project support in the FY2007 request totals $2,413.7 million. This
support is provided to individuals and small groups conducting disciplinary and
cross-disciplinary research. Included in the total for research projects is support for
centers, proposed at $259.8 million. The NSF supports a variety of individual centers
and center programs. The FY2007 request provides $67.5 million for Science and
Technology Centers, $55.7 million for Materials Centers, $62.8 million for
Engineering Research Centers, $37.4 million for Nanoscale Science and Engineering
Centers, and $6.5 million for Centers for Analysis and Synthesis.
The Major Research Equipment and Facilities Construction (MREFC) account
is funded at $240.5 million in the FY2007 request, a 26% increase ($49.6 million)
over the FY2006 level. The MREFC supports the acquisition and construction of
major research facilities and equipment that extend the boundaries of science,
engineering, and technology. Of all federal agencies, NSF is the primary supporter
of “forefront instrumentation and facilities for the academic research and education
communities.” First priority for funding is directed to ongoing projects. Second
priority is directed at projects that have been approved by the National Science Board
for new starts. NSF requires that in order for a project to receive support, it must have
“the potential to shift the paradigm in scientific understanding and/or infrastructure
technology.” NSF states that the projects receiving support in the FY2007 request
meet that qualification. Five ongoing projects and two new starts are funded in the
FY2007 request: Atacama Large Millimeter Array Construction ($47.9 million),
EarthScope ($27.4 million), Ice Cube Neutrino Observatory ($28.7 million), National
Ecological Observatory Network ($12 million), Scientific Ocean Drilling Vessel
($42.9 million), Alaskan Region Research Vessel ($56 million), and Ocean
Observatories Initiative ($13.5 million).
The FY2007 request provides support for several NSF-wide investments:
biocomplexity in the environment ($42.6 million), human and social dynamics ($41.5
million), and mathematical sciences ($78.5 million). Additional priority areas include
those of strengthening core disciplinary research, continuing as lead federal agency
in networking and information technology R&D, and sustaining organizational
excellence in NSF management practices. The NSF maintains that researchers need
not only access to cutting-edge tools to pursue the increasing complexity of research,
but funding to develop and design the tools critical to 21st century research and
education. An investment of $596.8 million in cyber infrastructure will allow for
funding of modeling, simulation, visualization, and data storage and other
communications breakthroughs. NSF anticipates that this level of funding will make
cyberinfrastructure more powerful, stable, and accessible to researchers and educators
through widely shared research facilities. Increasing grant size and duration has been
a long-term priority for NSF. The funding rate for research grants applications has
declined from approximately 30% in the late 1990s to an estimated 23% in FY2006.

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CRS-21
The FY2007 request for the Education and Human Resources Directorate (EHR)
is $816.2 million, a 2.5% increase ($19.5 million) over FY2006. The EHR portfolio
is focused on, among other things, increasing the technological literacy of all citizens,
preparing the next generation of science, engineering, and mathematics professionals,
and closing the achievement gap in all scientific fields. Support at the various
educational levels in the FY2006 request is as follows: precollege, $215 million;
undergraduate, $196.8 million; and graduate, $160.6 million. Priorities at the
precollege level include research and evaluation on education in science and
engineering ($41.2 million), informal science education ($65.6 million), and a new
program, Discovery Research K-12 ($104.1 million). Discovery Research will
combine the strengths of three existing programs and encourage innovative thinking
in K-12 science, technology, engineering, and mathematics education.
At the undergraduate level, approximately 72% of the funding is in support of
new awards and activities. Priorities at the undergraduate level include the Robert
Noyce Scholarship Program ($9.8 million), Course, Curriculum and Laboratory
Improvement ($86.5 million), STEM Talent Expansion Program ($26.1 million), the
National STEM Education Digital Library ($16 million), the Federal Cyber Service
($11 million), and Advanced Technological Education ($45.9 million). The Math
and Science Partnership Program (MSP) has been transferred to the undergraduate
level in FY2007.
MSP is supported at $46 million, a 27.2% decrease from the FY2006 estimate.
Funding in the FY2007 request will provide support for ongoing awards, in addition
to data collection, evaluation, knowledge management, and dissemination. No new
partnership awards are proposed in this budget request. The MSP has made
approximately 80 awards, with an overall funding rate of about 9%. At the graduate
level, priorities are those of Integrative Graduate Education and Research Traineeship
($24.6 million), Graduate Research Fellowships ($88 million), and the Graduate
Teaching Fellows in K-12 Education ($46.8 million). Added support is given to
several programs directed at increasing the number of underrepresented minorities
in science, mathematics, and engineering. Among these targeted programs in the
FY2007 request are the Historically Black Colleges and Universities Programs ($29.7
million), Tribal Colleges and Universities Program ($12.4 million), Louis Stokes
Alliances for Minority Participation ($39.7 million), and Centers of Research
Excellence in Science and Technology ($24.9 million). Funding for the Experimental
Program to Stimulate Competitive Research (EPSCoR) is $100 million in the
FY2007 request, a slight increase of $1.3 million over the FY2006 estimate.
Approximately 55% of the FY2007 request for EPSCoR would be available for new
awards and activities, with the balance supporting awards made in previous years.
On June 29, 2006, the House passed H.R. 5672, Science-State-Justice-
Commence Appropriation Bill, FY2007 (H.Rept. 109-520). The bill provides $6.02
billion for the NSF in FY2007, the amount requested by the Administration.
Included in the funding is $4.67 billion for R&RA, again, the same as the request.
The MREFC is funded at $237.3 million, $3 million below the Administration’s
request. The House bill does not include the $3 million reimbursement to Judgement
Fund of the U.S. Treasury for a settlement related to the Polar Aircraft Upgrades
project. The EHR is funded at $832.4 million, approximately $16.2 million above the
request. Included in the amount for the EHR is $105 for EPSCoR, $5 million above

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CRS-22
the amount requested. The Senate Committee on Appropriations reported its version
of H.R. 5672 on July 13, 2006 (S.Rept. 109-280). The Senate provides a total of $5,
991.7 million for the NSF in FY2007, $28.3 million below the request and the House
bill. R&RA is funded at $4,646.4 million, $19.6 million below the Administration’s
request and the House version. Other funding levels included in the Senate version
are $237.3 million for MREFC, $835.8 million for EHR, and $110 million for
EPSCoR. (CRS Contact: Christine Matthews.)
Table 6. National Science Foundation
($ in millions)
FY2007
FY2005
FY2006
FY2007
FY2007
Senate
Act.
Est.
Req.
House
Comm.
Res. & Related Act.
Biological Sciences
$576.8
$576.7
$607.9
Computer & Inform. Sci. & Eng.
490.2
496.4
526.7
Engineering
557.1
580.9
628.6
Geosciences
697.2
702.8
744.9
Math & Physical Sci.
1,069.4
1,085.5
1,150.3
Social, Behav. & Econ. Sci.
196.8
199.9
213.8
Office of Cyberinfrastructure
123.4
127.1
182.4
Office of International Sci. & Eng.
43.4
34.5
40.6
U.S. Polar Programs
349.7
390.5
439.6
Integrative Activities
130.9
137.2
131.4
Subtotal Res. & Rel. Act
$4,234.8
$4,331.5
$4,666.0
$4,666.0c
$4,646.4c
Ed. & Hum. Resr.
843.5
796.7
816.2
832.4
835.8
Major Res. Equip. & Facil. Constr.
165.1
190.9
240.5
237.3
237.3
Salaries & Expenses
223.5
246.8
281.8
268.6
256.5
National Science Board
3.7
4.0
3.9
3.9
3.9
Office of Inspector General
10.2
11.4
11.9
11.9
11.9
Total NSFa
$5,480.8
$5,581.2
$6,020.0
$6,020.0
$5,991.7
a. The totals do not include carry overs or retirement accruals. Totals may not add due to rounding.
b. Additional funding resulting from H-1B Nonimmigrant Petitioner Receipts is $26 million in
FY2005, an estimated $100 million in FY2006, and a projected $100 million in FY2007.
c. Specific funding allocations for each directorate or for individual programs and activities have not
been determined as yet.
Department of Homeland Security (DHS) R&D
The Department of Homeland Security (DHS) requested $1.552 billion for R&D
in FY2007, an increase of 4.5% from FY2006. This total included $1.002 billion for
the Directorate of Science and Technology, $536 million for the Domestic Nuclear
Detection Office (DNDO), and $14 million for Research, Development, Test, and
Evaluation (RDT&E) in the U.S. Coast Guard. (For details, see Table 7.) The
request for DNDO was a 70% increase. The request for the S&T Directorate was a
13% decrease. The House provided $956 million for the S&T Directorate; $500
million for DNDO; and $14 million for Coast Guard RDT&E. The Senate provided
$818 million for the S&T Directorate (less a rescission of $200 million in
unobligated prior-year funds); $442 million for DNDO; $18 million for Coast Guard
RDT&E; and $92 million for R&D in TSA (transferred from S&T). The final bill
provided $973 million for S&T (less $125 million in rescinded prior-year funds);
$481 million for DNDO, and $17 million for Coast Guard RDT&E. The final total
of $1.371 billion (excluding the rescission of unobligated funds) was an overall 9%

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CRS-23
reduction from FY2006, made up of a 16% decrease for S&T, a 53% increase for
DNDO, and a 6% decrease for Coast Guard RDT&E.2
For individual portfolios within the S&T Directorate, comparing FY2007 with
previous years is difficult because of several accounting factors. Certain expenses
previously funded by each R&D portfolio were requested in the Management and
Administration account in FY2007. Funds for DNDO were requested separately
rather than as part of S&T. The former Transportation Security Administration R&D
program, which was merged into S&T and funded in the R&D Consolidation line in
FY2006, constituted part of the Explosives Countermeasures and Support of
Components portfolios in the FY2007 request. The request indicated that some
activities, most notably the Counter MANPADS program to protect commercial
aircraft against portable ground-to-air missiles, would continue at their current level
of effort in FY2007 but required little additional budget authority because prior-year
funds remained unspent. After accounting for these factors, it appeared that the
FY2007 request would reduce net funding for the Standards, Rapid Prototyping,
SAFETY Act, and Critical Infrastructure Protection portfolios, and increase net
funding for Cyber Security and the Office for Interoperability and Compatibility.
Several of the requested net changes would have offset changes that Congress made
in FY2006 relative to the FY2006 request. For congressional changes relative to the
FY2007 request, see Table 7.
Both committee reports (H.Rept. 109-476 and S.Rept. 109-273) were highly
critical of the S&T Directorate. The House committee reduced the Management and
Administration account by $5 million “for lack of responsiveness” to its information
requests. It made $98 million of that account unavailable for obligation until S&T
provided budgetary information “with sufficient detail.” The Senate bill made $60
million of the Management and Administration account unavailable for obligation
pending the submission and approval of an expenditure plan. In the S&T
Directorate’s main RDA&O account, the House committee made $400 million
unavailable for obligation until the Under Secretary reported on progress in
addressing financial management deficiencies. The Senate transfer of S&T activities
back to TSA was because “the Committee has repeatedly requested a breakout of
funding ... which S&T has failed to provide.” The House committee report objected
that the budget justification contains “no details of how risk assessment was used in
its formulation or even which DHS agency was tasked with prioritizing risks and
assigning them resources.” The Senate committee report described the S&T
Directorate as “a rudderless ship without a clear way to get back on course.” The
conference report (H.Rept. 109-699) did not include such critical language, but
language in the final bill did make $60 million from Management and Administration
and $50 million from RDA&O unavailable for obligation pending congressional
approval of an expenditure plan and a report on financial management. The
2 DNDO was funded within the S&T Directorate in FY2006. The percentage increases
given here for DNDO are relative to its FY2006 funding within S&T. The percentage
decreases for S&T are relative to its FY2006 funding exclusive of DNDO.

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CRS-24
President’s signing statement construed these provisions on constitutional grounds
as “calling solely for notification.”3
The FY2007 budget request marked the end of a period of consolidation for
DHS R&D programs. In the FY2004 appropriations conference report
(H.Rept.108-280), Congress directed the department to consolidate its R&D activities
into the S&T Directorate. This process began with several small programs in
FY2005, but a proposed move of the Coast Guard RDT&E program was rejected by
the Senate. In FY2006, the much larger R&D program of the Transportation Security
Administration was moved into S&T, but again the Senate rejected moving the Coast
Guard program. The FY2007 request proposed no further consolidations; conversely,
it proposed dividing out DNDO funding into a separate account, which would
comprise more than one-third of the department’s R&D budget. The House
committee report expressed puzzlement and dissatisfaction with the transfer but
approved it anyway, because of the “critical importance of the DNDO mission” and
“the liability [DNDO] would face” if left in S&T. The committee directed S&T to
work with DNDO and support its R&D-related needs. The Senate committee made
no comment on the separation of DNDO, but proposed transferring some S&T
activities back to TSA. This Senate proposal was rejected in conference. (CRS
Contact: Daniel Morgan.)
3 “President’s Statement on H.R. 5441”, White House press release October 4, 2006, online
at [http://www.whitehouse.gov/news/releases/2006/10/print/20061004-10.html].

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CRS-25
Table 7. Department of Homeland Security R&D
($ in millions)
FY2006
FY2007 FY2007 FY2007 FY2007
Enacted a
Rqst.
House
Senate
Final
Science and Technology Directorate
1467.1
1002.3
956.3
618.4
848.1
Management and Administration
80.3
195.9
180.9
106.4
135.0
R&D, Acquisition, and Operations
1386.8
806.4
775.4
512.0
713.1
Biological Countermeasures
376.2
337.2
337.2
327.2
350.2
Chemical Countermeasures
94.0
83.1
45.1
75.0
60.0
Explosives Countermeasures
43.6
86.6
76.6
5.0
86.6
Radiological/Nuclear Countermeasures b
18.9
-
-
-
-
Domestic Nuclear Detection Office b
314.8
-
-
-
-
Threat Awareness c
42.6
39.9
39.9
35.0
35.0
Standards
34.6
22.1
22.1
27.1
22.1
Support of DHS Components d
79.2
88.6
85.6
80.0
85.6
University and Fellowship Programs
62.4
52.0
52.0
50.0
50.0
Emergent and Prototypical Technology e
42.6
19.5
19.5
12.5
19.5
Counter MANPADS
108.9
4.9
4.9
40.0
40.0
SAFETY Act
6.9
4.7
4.7
4.7
4.7
Office of Interop. and Compatibility
26.2
29.7
29.7
25.0
27.0
Critical Infrastructure Protection
40.4
15.4
35.4
12.5
35.4
Cyber Security
16.5
22.7
22.7
18.0
20.0
Pacific Northwest National Laboratory
-
-
-
-
2.0
R&D Consolidation f
98.9
-
-
-
-
Rescis. of Unobd. Funds from Prior Yrs.
-20.0
-
-
-200.0
-125.0
Transportation Security Administrn. R&D f
-
-
-
91.6
-
Domestic Nuclear Detection Office c
-
535.8
500.0
442.5
481.0
Management and Administration
-
30.5
30.5
30.5
30.5
Research, Development, and Operations
-
327.3
291.5
234.0
272.5
Systems Acquisition
-
178.0
178.0
178.0
178.0
U.S. Coast Guard RDT&E
18.1
13.9
13.9
17.6
17.0
Total DHS R&D
1485.2
1552.0
1470.2
1370.1
1246.1
Total (Excluding Prior-Year Rescissions)
1505.2
1552.0
1470.2
1570.1
1371.1
a. The FY2006 enacted figures have been reduced by the 1% general rescission (P.L. 109-148) and
include a supplemental appropriation of $525,000 for Coast Guard RDT&E.
b. Funding for the Domestic Nuclear Detection Office (DNDO) was included in the budget for the
Science and Technology Directorate in FY2006. It incorporated most of what had been in
Radiological/Nuclear Countermeasures in FY2005. In FY2007, DNDO had a separate budget
request.
c. Threat Awareness is also known as Threat and Vulnerability Testing and Assessment.
d. Support of DHS Components is also known as Conventional Missions.
e. Emergent and Prototypical Technology combines two previous portfolios, Emerging Threats and
Rapid Prototyping, whose funding in FY2006 has been summed for this table.
f. The Transportation Security Administration R&D program was transferred into the Science and
Technology Directorate in FY2006, and funding for it was requested in that year in the R&D
Consolidation line. In FY2007, this activity is in the Explosives Countermeasures and Support
of DHS Components portfolios, except in the Senate bill, which would have returned the former
TSA activities to TSA.

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CRS-26
Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
NOAA's Operations, Research, and Facilities (ORF) account and $11.4 million
for the Procurement, Acquisitions, and Construction (PAC) account. For FY2007,
the R&D request is 14.5% of NOAA's proposed $3.68 billion budget. It is $13.5
million, or 2.5%, less than the estimated $546.1 million appropriated for FY2006 and
$41.9 million, or 7.3%, less than actual FY2005 funding. The Office of Oceanic and
Atmospheric Research (OAR), NOAA's primary line office for research, conducts
most of the R&D programs and manages R&D facilities, but not all OAR funding is
for R&D. For example, of the $383.2 million OAR request for FY2007, the portion
that is R&D is $304 million. OAR's FY2007 request is $22.5 million, or 6.9%, less
than an estimated $326.5 million for FY2006. Other R&D funding requested for
FY2007 includes, $73.1 million for the National Ocean Service (NOS), $46.7 million
for the National Marine Fisheries Service (NMFS), $31.7 for the National Weather
Service (NWS), $25.2 million for the National Environmental Satellite Data and
Information Service (NESDIS), and $52 million for the Office of Marine and
Aviation Operations (OMAO). PAC funding of $11.4 million was requested for
R&D systems acquisition, including $9.4 million for OAR and $2.0 million for
NWS, to enhance NOAA supercomputing capabilities.
Congressional Funding. The House passed H.R. 5672, the House Science,
State, Justice, and Commerce (CJS) Appropriations bill for FY2007 which would
fund NOAA R&D $509 million, $ 108 million below FY2006 estimated level.
(H.Rept. 109-520.) A budget line for R&D is not found in the President's budget, the
agency's annual budget justification, or congressional appropriations. Further,
NOAA does not analyze R&D funding for distribution until after final congressional
appropriations are known. Indications are that the House-passed H.R. 5672 cuts
funding for research and development activities, especially those deemed not to be
directly serving the agency's mission. The R&D programs that stand to be the most
affected are federal/university/private sector scientific research partnerships, i.e.,
greater funding responsibility would be shifted to NOAA's partners. Applied R&D
faces less reductions and in the case of NOAA satellites systems is increased. R&D
programs in ocean and coastal science research and ocean exploration do not track
for a JOCI-recommended doubling of funding by FY2009. H.R. 5672 cut OAR
funding by $10 million, or 3%, below the request. However, supercomputer funding
for research related to climate and meteorology doubled to $13 million. NMFS
fishery science is funded at $62.8 million. NOS ocean and coastal R&D funding is
$92.3 million. NOAA (science) education and outreach programs are level funded
at $26.5 million. OMAO marine services' data collection for NOS, NMFS, and OAR
is funded at $90.3 million (scored as R&D funding). The estimated House R&D
appropriations for FY2007 is $510 million.
On July 13, 2006 The Senate Appropriations Committee reported H.R. 5672
(amended) in the nature of a substitute bill, which included funding recommendations
for NOAA for FY2007 (S.Rept. 109-280). The committee proposed increases for
ocean exploration, the National Centers for Coastal Science, programs in ocean and
human health, and the National Underwater Research Program as was recommended

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CRS-27
by the JOCI. The committee recommended $467.2 million for OAR. R&D
partnership programs in climate, weather, and ocean and coastal research activities
across the agency would be funded at traditional levels and not cut as proposed in
House appropriations and the President's request. The National Sea Grant College
Program, which sponsors marine research and applied science in cooperation with
states, would receive $80 million, 25% more than in FY2006. PAC funding for
systems acquisition and construction supporting OAR is $18.4 million. The NOAA
Fisheries recommendation included $209.6 million for fishery science and habitat
restoration activities, cooperative research, and R&D-related construction. The
committee also recommended $132.4 million for ocean science-related activities in
the National Ocean Service. The committee would provide $7.5 million for the NWS
U.S. Weather Research Program. NOAA's satellites program would receive $21.6
million for applied research and $11.9 million for R&D-related system acquisition.
Also, $37.9 million was recommended for (science) education programs, which is
more than the House and the request. The Office of Marine and Aviation Operations
(OMAO) would be provided $92.7 million for marine data acquisition (scored as
R&D) and $41.9 to replace or procure new marine research vessels. The Senate
Committee approved an estimated $779 million for NOAA R&D, $269 million more
than the House recommended.
For information on the agency’s full budget request for FY2007, see CRS
Report RS22410, National Oceanic and Atmospheric Administration (NOAA) Budget
for FY2007: President’s Request, Congressional Appropriations, and Related
Issues, by Wayne A. Morrissey. (CRS Contact: Wayne A. Morrissey.)
Table 8. NOAA R&D Estimates
($ in millions)
FY2006
FY2007
Senate
NOAA
House
Estimate
Request
Comm.
R&D Total
546
533
510
779
Office of Oceanic & Atmospheric
372
349
302
467
Research (OAR) Line Office Total
Source: U.S. Department of Commerce, National Oceanic and Atmospheric Administration, Office
of Financial Administration, NOAA Budget Office, Research and Development Budgets FY2005-
FY2007, February 21, 2006. U.S. Congress, House, Science, State, Justice, and Commerce
Appropriations, FY2007 (H.Rept. 109-520), June 22, 2006, “House Recommendations,” July 5, 2006.
National Institute of Standards and Technology (NIST)
The National Institute of Standards and Technology (NIST) is a laboratory of
the Department of Commerce. It is mandated to increase the competitiveness of U.S.
companies through appropriate support for industrial development of precompetitive
generic technologies and the diffusion of government-developed technological
advances to users in all segments of the American economy. NIST research also
provides the measurement, calibration, and quality assurance techniques that
underpin U.S. commerce, technological progress, improved product reliability,
manufacturing processes, and public safety.

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CRS-28
The Administration’s FY2007 budget includes $581.3 million for NIST, almost
22.7% below the current fiscal year. Support for internal R&D activities under the
Scientific and Technology Research and Services (STRS) account would increase
18.3% to $467 million (including $8 million for the Baldrige National Quality
Program). There is no funding for the Advanced Technology Program (ATP), and
support for the Manufacturing Extension Partnership (MEP) would decline 55.7%
to $46.3 million. Construction funding would total $68 million, a 60.8% decrease
from FY2006. (See Table 9.)
The House-passed FY2007 appropriations bill, H.R. 5672, provides NIST with
$627 million, a decrease of almost 16.6% from the current fiscal year due primarily
to the absence of support for ATP. Financing for laboratory R&D in the STRS
account increases 18.3% to $467 million. MEP funding totals $92 million, 12%
below FY2006. Funding for the construction budget is $68 million.
The version of H.R. 5672 reported from the Senate Committee on
Appropriations would fund NIST at $764 million, 1.6% above the current fiscal year.
While there is no financing for ATP, there is increased support for internal laboratory
R&D, the Manufacturing Extension Partnership program, and construction activities.
The STRS account is to receive $467 million, the same amount included in both the
Administration’s request and the House-passed bill. Funding for MEP increases
1.3% from FY2006 to $106 million. Construction is to be financed at $191 million,
10% above the current level and almost three times the amount provided by both the
Administration’s budget proposal and H.R. 5672 as passed by the House.
As part of the American Competitiveness Initiative, the Administration will
attempt to double over 10 years funding for “innovation-enabling research” done at
NIST through its “core” programs (defined as internal research in the STRS account
and the construction budget). To this end, the President’s FY2007 budget requests
an increase of 18.3% for intramural R&D at NIST. H.R. 5672, as passed by the
House, provides this increased funding. It remains to be seen how support for this
effort will evolve and how this might affect financing of extramural efforts such as
ATP and MEP.
For FY2006, the President’s budget requested $532 million in NIST funding,
a 23% decrease from FY2005 due primarily to an absence of support for ATP and a
significant cut in financing for MEP. Included in the total figure was $426.3 million
for the STRS account, which primarily finances the internal R&D activities of the
laboratory. This amount was 12.5% above the previous fiscal year and included $5.7
million for the Quality Program. MEP was to be funded at $46.8 million, 56% below
FY2005 support. The construction budget was $58.9 million.
H.R. 2862, as originally passed by the House, would have provided $548.7
million for NIST, 21% below FY2005 funding. The STRS account was to receive
$397.7 million, 5% more than FY2005 but 6.7% below the President’s request.
Financing for MEP totaled $106 million, a decrease of 1.4% from the earlier fiscal
year and more than twice the Administration’s budget request. There was no funding
for ATP. Construction activities would have received $45 million.

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CRS-29
The version of H.R. 2862 initially passed by the Senate would have funded
NIST at $844.5 million, for FY2006, almost 21% above the FY2005 budget.
Included in this amount was $399.9 million for the STRS account (incorporating $7.2
million for the Quality Program), an increase of 5.6% over previous funding. MEP
was to receive $106 million. Support for ATP, absent from both the President’s
budget request and the original House-passed bill, would total $140 million, 2.6%
more than the financing provided in FY2005. The construction budget was to be
funded at $198.6 million, more than double the earlier figure. This construction
funding was more than three times that proposed by the Administration and more
than four times that included in the original House version of the bill.
Subsequently, the final FY2006 appropriations legislation, P.L. 109-108,
provides $752 million for NIST (after the mandated rescissions but not including a
$7 million rescission from unobligated balances in the MEP account). This was
increase of 8.2% over FY2005 funding. Support for the STRS account totaled
$394.8 million, including $7.3 million for the Quality Program. This amount was an
increase of 4.2% over the previous fiscal year. MEP received $104.6 million and
ATP was financed at $79 million. The funding for MEP is a small decrease from
FY2005, whereas support for ATP declines 42% from the earlier figure. The
construction budget more than doubled to $173.6 million.
For FY2005, the Omnibus Appropriations Act, P.L. 108-447, provided NIST
with $695.3 million (after a mandated 0.8% across-the-board rescission and a 0.54%
rescission from Commerce, Justice, and State discretionary accounts). This amount
was 14% above FY2004 funding. Internal research and development under the STRS
account was $378.8 million (including funding for the Quality Program), almost 12%
over the previous fiscal year. The Manufacturing Extension Partnership was funded
at $107.5 million, an increase of 178% that brought support for the program up to
pre-FY2004 levels. The Advanced Technology Program was financed at $136.5
million (20% below FY2004), and the construction budget received $72.5 million.
The legislation also rescinded $3.9 million of unobligated balances from prior year
funds in the ATP account.
Continued support for the Advanced Technology Program has been a major
funding issue. ATP provides “seed financing,” matched by private sector investment,
to businesses or consortia (including universities and government laboratories) for
development of generic technologies that have broad applications across industries.
Opponents of the program cite it as a prime example of “corporate welfare,” whereby
the federal government invests in applied research activities that, they argue, should
be conducted by the private sector. Others defend ATP, arguing that it helps
businesses (and small manufacturers) develop technologies that, while crucial to
industrial competitiveness, would not or could not be developed by the private sector
alone. While Congress has maintained support for the Advanced Technology
Program, the initial appropriation bills passed by the House since FY2002 provided
no funding for ATP. Although support was provided again in the FY2006
appropriations legislation, it was 41% below the earlier fiscal year. Both the House-
passed FY2007 appropriations bill and the version reported from the Senate
Committee on Appropriations contain no funding for the program.

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CRS-30
For additional information, see CRS Report 95-30, The National Institute of
Standards and Technology: An Overview; CRS Report 95-36, The Advanced
Technology Program; and CRS Report 97-104, The Manufacturing Extension
Partnership Program: An Overview, all by Wendy H. Schacht. (CRS Contact:
Wendy H. Schacht.)
Table 9. NIST
($ in millions)
Senate
NIST Program
FY2005a
FY2006b
FY2007
House
Request
Comm.
NIST Total
695.3
752
581.3
627
764
STRSc
378.8
394.8
467
467
467
ATP
136.5
79
0
0
0
MEP
107.5
104.6
46.3
92
106
Construction
72.5
173.6
68
68
191
a. After mandated rescissions (but not including those to unobligated balances).
b. Includes mandated rescissions (but not a $7 million rescission from unobligated balances in the
MEP account).
c. Includes funding for the Baldrige National Quality Program.
Department of Transportation (DOT)
The Bush Administration requested $767 million for the Department of
Transportation’s (DOT’s) research and development budget in FY2007. This request
represents a decrease of almost 8.5% below the estimated $838 million approved for
R&D in FY2006. (See Table 10.) Funding for the Federal Highway Administration
(FHWA) would increase to $397, an increase of 4% for FY2007. R&D funding for
the Federal Aviation Administration (FAA) would decline from $310 million to $235
million in FY2007, a 24% decrease from FY2006 estimated funding levels. Some of
this decline can be attributed to continued cuts in FFA’s development activities.
Finally, funding for DOT’s other R&D programs are proposed to decline 9% below
FY2006 funding levels to $135 million.
The House appropriations bill (H.R. 5576) would restore almost all of the
President’s proposed funding cuts for the FAA. Consequently, this would result in
a funding decrease of only $5 million rather than the $75 million proposed by the
President. The House bill matches the President’s $397 million request for the
FHWA. While the Senate would fund the FHWA at the same level as the House, it
proposes to fund the FAA at $48 million below the House approved level. (CRS
Contact: Mike Davey.)

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CRS-31
Table 10. Department of Transportation R&D
($ in millions)
FY2006
FY2007
Senate
Department of Transportation
Estimate
Request
House
Comm.
Federal Highway Administration
380
397
397
397
Federal Aviation Administration
310
235
305
257
Othersa
148
135
105
139
Total
838
767
807
793
a. “Others” includes Office of the Secretary, Federal Motor Carrier Safety Administration, Federal
Railroad Administration, Pipeline and Hazardous Materials Safety Administration, and the
Research and Innovative Technology Administration.
Department of the Interior (DOI)
The Administration requested $598 million for R&D in the Department of the
Interior (DOI), a 5.7% decline from the $634 million the agency estimates it received
in FY2006. (See Table 11.) The U.S. Geological Survey (USGS) is the primary
supporter of R&D (almost 90 % of the total) within DOI. The USGS areas of
research include mapping, geological resources, water quality, and biological
resources. The proposed FY2007 budget for R&D within the USGS would decline
from $558 million in FY2006 to $532 million in FY2007, a 4.7% decline. The USGS
is one of the major sponsors of earth science research, along with NSF, DOE, and
NASA.
As indicated in the table, funding for Geological Mineral Resources research is
proposed to decline 8.5%, whereas Water Resources is scheduled to decline 8.7%.
The geological hazards program conducts basic and applied research, collects long-
term data, operates a variety of monitoring networks, and helps to warn the public of
impending disasters, such as earthquakes. The geologic resources program assesses
the availability and quality of the nation’s energy and mineral resources. The
geologic processes program researches, monitors, and assesses the landscape to
understand geological processes to help distinguish natural change from those
resulting from human activity. Water resources research focuses on activities aimed
at improving the quality of the U.S. ground water. Within the earth sciences, the
USGS plays a major role in important geological hazards research, including research
on earthquakes and volcanoes. Enterprise Information conducts information science
research to enhance the National Map and National Spatial Data infrastructure.
Funding for USGS Biological Research would decline 3.3% below FY2006-
estimated funding levels. This research program develops and distributes information
needed in the conservation and management of the nation’s biological resources. The
program serves as the Department’s research arm, utilizing the capabilities of 17
research centers and 40 Cooperative Research Units that support research on fish,
wildlife, and natural habitats. Major research initiatives are carried out by USGS
scientists who collect scientific information through research, inventory, and
monitoring investigations. These activities develop new methods and techniques to

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CRS-32
identify, observe, and manage fish and wildlife, including invasive species and their
habitats. Nearly 90% of USGS research is performed within Interior labs to address
the science needs of DOI and other agencies, such as the Fish and Wildlife Service
and the Bureau of Land Management.
The House-passed Interior and Environment appropriations bill (H.R. 5386)
includes an estimated $630 million for R&D. This amount is $32 million above the
request, but $4 less than what the agency received in FY2006. The Senate
Department of Interior, Environment, and Related Agencies appropriations bill (S
Rept. 109-275) includes an estimated $643 million for the conduct of R&D in
FY2007. This proposed funding amount is $45 million above the President's request,
and $13 million above the House recommended funding level. (CRS Contact: Mike
Davey.)
Table 11. Department of Interior R&D
($ in millions)
FY2006
FY2007
Senate
U. S. Geological Survey
Estimate
Request
House
Comm.
National Mapping
40
46
47
48
Geological Resources
212
194
218
216
Water Resources
126
115
123
125
Biological Research
179
173
175
177
Enterprise Information
1
4
4
4
USGS totala
558
532
567
570
Other agenciesb
76
66
63
73
Total all agencies
634
598
630
643
a. USGS R&D estimates are from the USGS budget office, and the USGS FY2007 Budget
Justification documents.
b. Other agencies includes, the Bureau of Reclamation, the Bureau of Land Management, the Minerals
Management Service, and the National Park Service.
Environmental Protection Agency (EPA)
The Environmental Protection Agency’s (EPA’s) Science and Technology
(S&T) account incorporates elements of the former research and development
account (also called extramural research) and EPA’s in-house research, development,
and technology work. EPA’s Science and technology account provides funding for
the scientific knowledge and the tools necessary to support decisions preventing,
regulating, and abating environmental pollution and to advance the base of
understanding on environmental sciences.
On May 11, 2006, the House Committee on Appropriations (H.R. 5386)
recommended a total of $808 million for EPA’s FY2007 S&T activities. Of that
amount $557million would be for R&D, $3 million below the FY2006 estimated

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CRS-33
funding level. (See Table 12.) The House Committee notes that the FY2007 request
includes $61.0 million transferred into the S&T account from EPA’s Environmental
Programs and Management (EPM) account. This transfer of funds, which is more
than the total S&T increase of the FY2007 request over the FY2006 enacted level,
is for rent, security, and utilities costs that were handled previously in EPA’s EPM
account. This shift will better reflect actual costs for personnel with S&T funds,
according to EPA’s FY2007 Congressional Justification document.
The Senate-passed Department of The Interior, Environment, and Related
Agencies appropriations bill (S.Rept. 109-275), approved an estimated $793 for
EPA’s S&T activities. Of that amount, $596 million would be for R&D, $12 million
below the House passed bill.
Following are five noteworthy differences between levels in the budget request
and House recommendations: 1) the FY2007 budget request zeroes the funding level
for the category of congressionally mandated research projects, but the House
Committee recommends $30.0 million, which is approximately the amount enacted
in FY2006 for this category; 2) the FY2007 budget requests $12.5 million for its
Climate Protection Program, approximately $6.0 million less than the FY2006 level,
but the House recommends a $6.0 million increase over the FY2007 request level to
restore the program to its FY2006 level; 3) the FY2007 budget request proposes to
discontinue funds for directed Science to Achieve Results Research Fellowships
(which competitively awards stipends and other research support to graduate students
in environmentally related fields), but the House Committee states that “funding
reductions in this program are not acceptable;” 4) the FY2007 budget request
proposes to discontinue EPA’s Environmental Technology Verification centers
(which verify the performance of innovative clean-up and other environmental
technologies) for a savings of nearly $3.0 million, but the House Committee
recommends $2.4 million to partially restore the program; and 5) the FY2007 budget
requests $44.5 million for homeland security preparedness, response, and recovery,
up from the FY2006 enacted level of approximately $36.0 million, but the House
Committee recommends a level of $39.5 million for FY2007. The Senate also
restored funding for these programs as well. (CRS Contact: Michael Davey.)
Table 12. Environmental Protection Agency
($ in millions)
FY2006
FY2007
Senate
EPA
House
Enacted
Request
Comm.
S&T total
730
788
808
793
R&D
600
557
608
596
Transferred from
30.2
28
30
30.0
Superfund

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