Federal Research and Development Funding: FY2003

Federal Research and Development Funding: FY2003

Order Code IB10100
Issue Brief for Congress
Received through the CRS Web
Federal Research and Development
Funding: FY2003
Updated February 10, 2003
Michael E. Davey
Resources, Science, and Industry Division
Congressional Research Service ˜ The Library of Congress

CONTENTS
SUMMARY
MOST RECENT DEVELOPMENTS
BACKGROUND AND ANALYSIS
Department of Agriculture (USDA)
Department of Energy (DOE)
Department of Defense (DOD)
National Aeronautics and Space Administration (NASA)
National Institutes of Health (NIH)
National Science Foundation (NSF)
Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
National Institute of Standards and Technology
Department of Transportation (DOT)
Department of Interior (DOI)
Environmental Protection Agency (EPA)

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Federal R&D Funding: FY2003
SUMMARY
On February 7th, President Bush signed
pment (R&D) funding for FY2003. This is
a continuing resolution, or CR (P.L. 108-5),
$8.6 billion above what is available for federal
which essentially maintains spending at
R&D in FY2002. The growth is concentrated
FY2002 levels for the 11 appropriations bills
in the areas of defense (Department of De-
lacking enacted FY2003 appropriations,
fense) and health (National Institutes of
through February 20, 2003. The
Health). The budget proposed more modest
107thCongress completed work on 2 of its 13
growth in other mission areas and proposed
appropriations bills, Defense and Military
decreases in some agencies’ R&D budgets
Construction.
when compared to FY2002 budget authority.
The proposed allocation of R&D resources
On January 28th, the Senate completed
continues the debate regarding balance in the
work on an FY2003 Omnibus appropriations
federal R&D portfolio.
bill, (H.J.Res. 2) that includes the 11 agencies
currently operating under a CR. CRS esti-
Under the President’s proposal non-
mates that the Senate’s actions would result
defense R&D would increase 7.2% to $53.2
in a total Federal R&D budget of $116 bil-
billion. NIH would receive a 16% increase in
lion. The Senate estimate includes $57.4
funding reaching $27.3 billion, comprising
billion for DOD R&D approved by the 107th
nearly 50% of non-defense R&D spending. If
Congress. The Senate Omnibus resolution
approved, this would complete Congress’s
includes an estimated $27.2 billion for NIH,
goal of doubling NIH funding between
essentially what the President requested for
FY1999 and FY2003. Funding for defense
FY2003. The Senate also recommended a
R&D (the sum of DOD and DOE’s defense
12% increase for NSF’s Research and Related
R&D) would increase 9.9% to $58.8 billion.
Activities Account, and a 5% increase for
While funding for DOD’s R&D program is
NASA’s R&D programs. These totals do not
schedule to increase over 10%, its basic and
reflect potential across-the-board cuts Con-
applied research programs are scheduled to
gress could employ in order to move closer to
decline 5.8%.
the President’s proposed discretionary spend-
ing levels. After the House completes work on
Federal support for basic research would
its version of the Omnibus bill, it will have to
increase $1.9 billion, reaching a record $25.5
resolve any recommended funding differences
billion This is primarily due of a record in-
with the Senate approved bill. To date, in
crease of $1.185 billion in NIH’s basic re-
most instances, (except for NIH) the House
search program. Total federal research funding
and Senate have provided more funding for
(basic + applied research) is proposed to
R&D, than the President’s request.

increase 6.5%, to $51.9 billion.
The Bush Administration requested
$111.8 billion in federal research and develo-
Congressional Research Service ˜ The Library of Congress

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MOST RECENT DEVELOPMENTS
February 7, 2003, President Bush signed P.L. 108-5, that will allow agencies lacking
FY2003 appropriations to operate at FY2002 spending levels until their respective FY2003
spending bills are passed; or, until February 20, 2003, when the continuing resolution
expires. The 108th Congress initiated its legislative session on January 7, 2003, to resume
work on the remaining FY2003 11 appropriations bills. Congress has approved, and the
President has signed, a $30 billion FY2002 Supplemental Appropriations bill, P. L. 107-206,
that includes $425 million for R&D, of which 70 %, or $337 million is for DOD. For an
overview of the current funding status of the FY2003 R&D budget, see CRS Report
RS21735, Federal R&D Under a Continuing Resolution, and Prospects for FY2003
Funding.
BACKGROUND AND ANALYSIS
Department of Agriculture (USDA)
The FY2003 budget request for research and education in the U.S. Department of
Agriculture (USDA) is $2,329 million, a decrease of $87.1million (3.6%) from the FY2002
level of $2,416.1 million (see Table 1). The FY2003 request provides increased funding
for several research priority areas: emerging and exotic diseases of animals ($8 million),
emerging and exotic diseases of plants ($5.4 million), new uses for agricultural products ($9
million), global climate change ($6.5 million), agricultural genomes ($6.9 million),
biosecurity ($5 million), agricultural information services ($2 million), and homeland
security supplemental ($5 million). Research programs on emerging and exotic diseases are
part of the infrastructure to enhance homeland security and protect agriculture and food
supply. The USDA has five biocontainment complexes where research and diagnostic work
is done on organisms that pose serious threats to the crop, poultry, and livestock industries.
The FY2003 request proposes the termination of all projects earmarked by Congress in
FY2001 and FY2002 for an estimated savings of $90 million. In addition, the request
includes reductions in several base programs totaling $15 million.
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. Other ARS laboratories focus on efficient food and fiber production,
preservation of genetic resources, development of new products and uses for agricultural
commodities, development of effective biocontrols for pest management, and support of
USDA regulatory and technical assistance programs. The FY2003 request provides $1,049
million for ARS, $27 million above the FY2002 level. ARS reports that the majority of its
facilities, constructed prior to 1960, have become functionally obsolete. Many of the
facilities are not in total compliance with current health and safety standards. The FY2003
request provides an additional $17 million for modernization and construction at four ARS
locations - - Beltsville, Maryland ($4.2 million), Plum Island, New York ($2 million),
National Agricultural Library ($7.4 million), and National Arboretum ($3 million).
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The Cooperative State Research, Education, and Extension Service (CSREES)
distributes funds to universities and organizations that conducts agricultural research.
Funding is distributed to the states through competitive awards, formula funding, and other
means. The FY2003 request for CSREES is $1,032 million, a decrease of $10.1 million from
the FY2002 estimate. Funding for earmarked programs and certain lower priority work is
terminated in order to support competitively awarded grants and other high priority
programs. Funding for formula distribution in FY2002 to the state agricultural experiment
stations (and other eligible institutions) through the Smith-Lever Act would be $275.9
million, level with FY2002. The FY2003 request funds the National Research Initiative
(NRI) Competitive Grants Program at $240 million, an increase of $120 million over the
FY2002 level.
The Economic Research Service (ERS) is the principal intramural economic and social
science research agency in USDA. The request for ERS in FY2003 is $82 million, an
increase of $6 million over the previous fiscal year. Included in the increase is funding for
two priority areas: the agricultural resources management survey ($2.7 million), and the
initiative on the effects of invasive pests and diseases on the competitiveness of U.S.
agriculture ($2 million). The National Agricultural Statistics Service (NASS) conducts the
Census of Agriculture and provides current data on agricultural production and indicators of
the well-being of the farm sector. The Administration requests $149 million for NASS in
FY2003, $27 million above the FY2002 level.
The Senate Omnibus appropriations bill includes an estimated $2.464 billion for the
Department of Agriculture’s R&D program, about $135 million more than the request.
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Table 1. U.S. Department of Agriculture
(millions $)
FY2003
FY2002
FY2003
FY2003
Senate
Est.
Req.
House
Omnibus
Agric. Research Service (ARS)
Soil & Water Conservation
92.0
109.0
Plant Science
333.0
368.0
Animal Science
174.1
198.0
Commodity Conversion & Delivery
177.0
194.0
Human Nutrition
77.0
79.0
Integration of Agricultural Systems
39.0
40.0
Information and Library Sciences
20.0
23.0
Repair and Maintenance
18.2
18.2
Contingencies & Trust Funds
35.0
35.0
Subtotal
1,022.0e
1,049.0
1,002.2
1,053.6
Buildings & Facilities
119.0
17.0
95.3
101.0
Total, ARSa
1,176.0
1,066.0
1,097.5
1,154.6
Coop. St. Res. Ed. & Ext. (CSREES)
Research and Education
Hatch Act Formula
180.1
180.1
182.0
185.6
Cooperative Forestry Research
21.9
21.9
23.0
22.5
1890 Colleges and Tuskegee Univ.
32.6
32.6
36.0
35.6
Special Research Grants
2.8
0.0
102.8
103.8
NRI Competitive Grants
120.0
240.0
130.0
204.3
Animal Health & Disease Res.
5.1
5.1
5.1
5.3
Federal Administration
45.0
20.0
27.1
29.0
Higher Educationb
36.0
36.0
27.5
32.8
Total, Coop. Res. & Educ.c
556.0
566.0
572.6
651.4
Extension Activities
Smith-Lever Sections 3b&c
275.9
275.9
277.0
281.2
Smith-Lever Sections 3d
85.5
85.5
84.2
93.4
Renewable Resources Extension
3.2
3.2
5.0
4.1
1890 Research & Extension
66.0
66.0
14.0
47.1
Federal Admin. & Special Grants
5.7
18.6
17.1
20.7
Total, Extension Activitiesc
441.0
421.0
441.8
452.8
Total, CSREESc
1,042.1
1,032.0
1,014.4
1,104.2
Economic Research Service
76.0
82.0
73.3
65.1
National Agric. Statistics Service
122.0
149.0
137.9
140.9
TOTAL, Research, Education &
Economics
$2,416.1
$2,329.0
$2,323.1
$2,464.8
a. The total for ARS excludes trust funds and support for Counter-Drug Research and Development and for
Anti-Drug Research and Related Matters.
b. Higher education includes payments to 1994 institutions and 1890 Capacity Building Grants program.
c. Program totals may reflect set-asides (non-add) or contingencies.
d Excludes support for Fund for Rural America, Agricultural Risk Protection Act, and Initiative for Future
Agriculture and Food Systems.
e. Excludes funding for Homeland Security Supplemental.
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Department of Energy (DOE)
For FY2003, DOE requested $8.8 billion for all R&D activities, including activities in
each of DOE’s four business lines: National Security, Science, Energy Supply, and
Environmental Quality. This request is 1.4% below the FY2002 level.
The requested funding for R&D in National Security is $3.8 billion, which is 2.2% more
than in FY2002. The apparent reduction in funding for Nonproliferation and Verification
R&D is an artifact of $78 million in one-time supplemental funding for FY2002 that was
provided after the September 11th terrorist attacks. The House Appropriations Committee
recommended (H.R. 5431) an increase of approximately $90 million above the request. The
Senate Appropriations Committee recommended (S. 2784) an increase of approximately
$140 million above the request. Both committees provided the requested amount for
continued construction of the National Ignition Facility.1
The requested funding for Science is $3.3 billion, an increase of 0.1% over FY2002.
The largest change would be a reduction of 12% in the Biological and Environmental
Research program. The Administration states that this reduction reflects the completion of
activities funded by congressional earmarks in FY2002. The request includes full funding
for continued construction of the Spallation Neutron Source. The House Appropriations
Committee recommended (H.R. 5431) a reduction of $8 million below the request. The
Senate Appropriations Committee recommended (S. 2784) an increase of $50 million above
the request.
The requested funding for R&D in Energy Supply is $1.6 billion, down about 6% from
FY2002. Much of the reduction is in the Fossil Energy R&D program. The Administration
states that this reduction results largely from this year’s pilot application of specific
investment criteria to certain DOE applied R&D programs. The requested budget would also
reduce funding for Energy Conservation R&D and increase funding for Nuclear Energy
R&D. The House provided (H.R. 5093 Interior) and the House Appropriations Committee
recommended (H.R. 5431 Energy) a total increase of $223 million above the request. The
Senate Appropriations Committee recommended (S. 2708 Interior and S. 2784 Energy) a
total increase of $214 million above the request.
The requested funding for R&D in Environmental Quality is $92 million, down 55%
from FY2002. This change results from an internal review of the entire Office of
Environmental Management (whose total budget request is $6.7 billion). Based on the
review, the Administration plans to refocus the Office’s Science and Technology program
on R&D that it feels supports more directly the cleanup and closure of DOE waste sites. The
House Appropriations Committee recommended (H.R. 5341) an increase of $11 million
above the request. The Senate Appropriations Committee recommended (S. 2784) a decrease
of $15 million below the request.
1 The House and Senate Appropriations Committees made their recommendations relative to an
adjusted request that excludes certain federal retiree costs included in the Administration request.
See note, Table 2.
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Table 2. Department of Energy
($ millions)
FY2002
FY2003
FY2003
FY2003
Comparable
Request
House 1
Senate 2
National Security
3721.1
3804.3
3893.9
3943.1
Weapons Activities 3
2709.5
2812.9
2903.7
2942.9
Naval Reactors
689.3
708.0
706.8
706.8
Nonprolif. & Verific. R&D
322.3
283.4
283.4
293.4
Science
3280.7
3285.1
3271.2
3329.5
Basic Energy Sciences
999.6
1019.6
1019.6
1044.6
High Energy Physics
713.2
725.0
725.0
730.0
Biolog. & Envtal. Rsch.
570.3
504.2
504.2
531.2
Nuclear Physics
359.0
382.4
382.4
387.4
Fusion Energy Sciences
247.5
257.3
248.5
259.3
Adv. Scientific Computing
157.4
169.6
174.6
169.6
Other
233.7
227.0
216.9
207.4
Energy Supply
1709.6
1601.8
1816.4
1807.5
Energy Conservation R&D
640.5
588.4
684.7
635.9
Fossil Energy R&D
587.2
494.2 4
664.2
641.0
Renewable Energy
386.4
407.7
396.0
448.1
Nuclear Energy R&D
53.0
71.5
71.5
82.5
Clean Coal Technology 5
42.5
40.0 0.0 0.0
Environmental Quality
204.7
92.0
103.0
77.0
Science and Technology 6
204.7
92.0
103.0
77.0
Total
8916.1
8783.2
9084.5
9157.1
Note: The FY2002 Comparable and FY2003 Request columns include funding for an Administration proposal
that would require agencies to pay the full government share of accruing retirement costs for certain federal
employees. This proposal has not been enacted, and the other two columns generally do not reflect these costs.
Thus these two columns are not exactly comparable to the other two in all cases, although the effect is small
in percentage terms.
1 As reported by the Appropriations Committee, except Energy Conservation R&D, Fossil Energy R&D, and
Clean Coal Technology, which are as passed by the House.
2 As reported by the Appropriations Committee.
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3 Includes Stockpile R&D, Science Campaigns, Engineering Campaigns except Enhanced Surety and Enhanced
Surveillance, Inertial Confinement Fusion (called High Energy Density Physics in the FY2003 budget request),
Advanced Simulation and Computing, and a prorated share of Readiness in Technical Base and Facilities.
4 In addition, the Administration requested a transfer of $40 million from Clean Coal Technology to Fossil
Energy R&D.
5 Amounts shown for Clean Coal Technology are allocations from previously appropriated funds.
6 Within Defense Environmental Restoration and Waste Management.
Department of Defense (DOD)
The Bush Administration requested $53.9 billion for the RDT&E account in FY2003.
It also requested $67 million in research and development within the Defense Health
Program and $303 million for research and development in the Chemical Agents and
Munitions Destruction Program and $213 million for additional research and development
within the $20.1 billion Defense Emergency Response Fund.
The Science and Technology (S&T) portion of the RDT&E account remains an issue.
In testimony before the Senate Armed Services Committee (June 5, 2001) the Under
Secretary of Defense for Acquisition, Technology, and Logistics, Pete Aldridge, suggested
that DOD should set S&T funding at 3% of DOD’s topline (i.e. DOD’s total budget). DOD
incorporated the 3% target into its Quadrennial Defense Review (QDR). Some Members
have embraced this goal and it is endorsed in the Senate Budget Resolution (S.Con.Res.
100). The Administration requested $9.7 billion for S&T in FY2003. This is about $200
million below the amount appropriated last year. However, DOD counted the $213 million
in research and development within the transfer account mentioned above as S&T funding.
This would bring the FY2003 S&T request to $9.9 billion. This represents 2.7% of DOD’s
topline, short of the Administration’s own goals. The Administration stated that it intends
to reach the 3% goal over time and that the large increase in DOD’s topline made it difficult
to do this year.
Both the House and the Senate have approved their defense authorization bills (House:
H.R. 4546, H.Rept. 107-436; Senate: S. 2514, S.Rept. 107-151). Both voted to increase total
RDT&E spending above the Budget request. However, some of the increase is a result of
transferring the RDT&E projects requested as part of the Defense Emergency Response Fund
directly to the Title IV accounts. Because the proposal to fund personnel expenses
(retirement, etc.) directly through departmental budgets is not within their jurisdiction and
must be acted on separately, both bills reduced the RDT&E account proportionately. Also,
the Senate bill reduced RDT&E to account for savings in contract services and financial
management. Both the House and Senate bills increased S&T spending (the House $10.0
billion, the Senate $10.1 billion). The House voted to increase ballistic missile defense
RDT&E $300 million, the Senate voted to reduce BMD RDT&E by $1 billion, and add it to
a fund that the President may spend either on BMD or counter-terrorism activity.
The House approved its defense appropriations bill (H.R. 5010) June 27. It voted to
increase RDT&E $3.9 billion above the President’s request (to $57.8 billion). It also voted
to increase S&T funding $1.7 billion above the President’s request (to$11.4 billion). Given
the House also voted a total of $354.7 billion for all of DOD, the S&T appropriation is 3.2%
of DOD’s topline. It voted a large increase in the Defense Health Program, as has become
standard for the appropriators; adding $150 million and $85 million, respectively, for the
Army’s Peer Reviewed Breast Cancer and Prostrate Cancer Programs.
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Table 3. Department of Defense
($ millions)
FY2002
FY2003
House
Senate
House
Senate
Conf.
Estimate
Req.c
Auth.
Auth.
Apprn.
Apprn.
Apprn.
(H.R.
(S.
(H.R.
(H.R.
(H.R.
4546)
2514)
5010)
5010)
5010)
Accounts
Army
7,053
6,918
6,933 7,301 7,447 7,410 7,628

Navy
11,389
12,502
13,275 12,929 13,562 13,276 13,865

Air Force
14,548
17,601
18,803
18,604
18,639
18,538
18,729
Defense Agencies
15,285
16,614
17,191
16,491
17,863
16,611
17,734
(DARPA)
(2,253)
(2,685)
(2,578)
(2,245)
(2,851)
(2,698)
(2,778)
(BMDOa)
(6,969)
(6,691)
(6,991)
(5,924)
(6,821)
(6,145)
(6,741)
Dir. Test & Eval
230
222
222
362
242
303
246
Dir. Op.Test/Eval
–
–
–
–
–
Total
$48,505
$53,857
$56,424 $55,686
$57,753 $56,138 $58,202

Budget Activity
Basic Research
1,376
1,365
1,354
1,413
1,418
1,491
1,494
Applied Res.
4,086
3,780
3,832
3,971
4,451
4,479
4,598
Advanced Dev.
4,415
4,532
4,837
4,780
5,483
4,822
5,383
Demonstration/Va
10,361
10,539
10,973
10,155
10,905
9,832
11,059
lidation
Engineering/Man
11,018
13,550
13,950
13,677
13,449
14,106
14,034
ufacturing Dev.
Mgmt. Supportb
2,850
2,890
2,959
3,274
3,053
3,200
3,075
Op. Systems Dev.
14,399
17,200
18,674
18,767
19,150 18,362
19,120
Adjustments
personnel cost accural
-155
-155
-155 -155
-155
financial mgmt. svgs.
-107
contract services svgs.
-91
Section 8100 svgs.
Section 8109 svgs.
-299
-107
Total Ob. Auth.
$48,505
$53,857
$56,424 $55,684
$57,754
$56,137
$58,202
Other Defense Programs
Defense Health
464
67
Program
67
67
400
394
459
Chemical Agents
202
303
and Munitions
Destruction
303
303
303
303
303
Source: FY2001 to FY2003 figures based on Department of Defense Budget, Fiscal Year 2003 RDT&E
Programs (R-1), February 2002. FY2001 to FY2003 figures for Defense Health Program and Chemical Agents
and Munitions Destruction Program come from OMB’s FY2003 Budget Appendix. All other figures come
from prior year R-1s and OMB budgets. Totals may not add due to rounding.
a. Includes only BMD RDT&E. Does not include procurement and military construction.
b. Includes funds for Developmental and Operational Test and Evaluation.
c. Does not include RDT&E funds associated with the proposed Defense Emergency Response Fund.
The Senate approved its bill (H.R. 5010, amended in the nature of a substitute, S.Rept.
107-213) on August 1. The Senate approved a 9% increase for DOD’s S&T programs,
recommending $10.8 billion, $700 million below the House level. The Senate also added
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$150 million and $85 million for Breast Cancer and Prostate research, as well as $10 million
for ovarian cancer, and $50 million for peer-reviewed research on other medical topics.
Both the House and Senate approved the conference report accompanying H.R. 5010
(H.Rept. 107-732). The bill as reported appropriated $58.2 billion in the Title IV RDT&E
account, and another $459 million in RDT&E for the Defense Health Program and $306
million for RDT&E in the Chemical Agents and Munitions Demilitarization Program. The
bill also appropriated $11.5 billion for S&T. However, this does not include the adjustments
identified below. The $11.5 billion figure is 3.2 % of the total DOD appropriation of $355
billion.
National Aeronautics and Space Administration (NASA)
The National Aeronautics and Space Administration (NASA) is requesting $10,738.2
million for R&D for FY2003, out of a total NASA budget request of $15,000 million (see
Table 4). That is a 3.7% increase over what was appropriated in FY2002 for R&D. In
November 2002, the White House submitted an amended FY2003 budget request for NASA,
but the total amount of funding for the agency in FY2003 would not change, just how it is
allocated. See CRS Report RL31347 for details on the budget amendment. NASA
appropriations are included in the VA-HUD-IA appropriations bill. Both the Senate and
House Appropriations Committees reported out bills (S. 2797, S.Rept. 107-222; H.R. 5605,
H.Rept. 107-740) in July and October 2002, respectively, but no such bill cleared the 107th
Congress. The Senate committee issued revised recommendations in January 2003 as part
of Senate Amendment 1 to H. J. Res 2, the Omnibus Continuing Appropriations resolution,
which contains FY2003 funding for NASA and other agencies. The following text reflects
the Senate committee recommendations in January 2003, not July 2002.
The Senate Appropriations Committee recommended a total increase of $125.5 million
for NASA. The Senate approved the revised figures on January 23, 2003 as part of H. J. Res.
2, but also included an across-the-board reduction of 2.9% for all agencies, including NASA.
The October 2002 report of the House Appropriations Committee would increase NASA’s
budget request by $300 million By the definitions used in this report, all of the funding
increases are for R&D.
NASA’s FY2003 request for the International Space Station is $1.839 billion, comprised of
$1.492 billion in the Human Space Flight (HSF) account, and $347 million for research
aboard the station in the Biological and Physical Research section of the Science,
Aeronautics, and Technology (SAT) account. For more information, see CRS Issue Brief
IB93017. The Senate Appropriations Committee recommended a $35 million cut. The
House committee approved the requested funding.
For Space Science, NASA is requesting $3.414 billion in FY2003. NASA wants to
terminate two planetary programs—one to explore Europa, a moon of Jupiter, and the other
to study Pluto and the Kuiper Belt (thought to be the source of some comets) — because they
are too expensive.
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Table 4. National Aeronautics and Space Administration
($ millions)
FY2002
FY2003
H. App. Cmte.
S. App. Cmte.
Funding Category
Approp.
Request
Oct. ‘02
Jan. ‘03
Human Space Flight (R&D only)
2,298.5
1,893.7
1,893.7
1,861.7
International Space Station
1,721.7
1,492.1
1,492.1
1,457.1
Investments and Support*
412.9
365.2
365.2
365.2
Space Comm. & Data Systems*
163.9
36.4
36.4
36.4
Science, Aeronautics, and Technology
8,047.8
8,844.5
9,144.5
9,003.0
Space Science
2,867.1
3,414.3
3,556.2
3,515.5
Biological. & Physical Research
820.0
842.3
854.2
1,675.6
Earth Science
1,625.7
1,628.4
1675.0
851.8
Aero-Space Technology
2,507.7
2,815.8
2,883.4
2,762.7
Academic Programs
227.3
143.7
178.9
197.9
TOTAL NASA R&D
10,346.3
10,738.2
11,038.2
10,864.7
(TOTAL NASA Budget)
(14,901.7)
**(15,000.0)
(15,300.0)
(15,125.5)
Prepared by CRS using data from NASA’s FY2003 Budget Estimate (page MY-1), available at [http://www.nasa.gov] and
congressional committee reports. NASA’s budget is evolving towards full cost accounting and NASA is shifting programs
between accounts, making annual comparisons difficult. Hence, only FY2002 and FY2003 are shown here. For more
information, see CRS Report RL31347. Totals may not add due to rounding.
*Calculated by CRS as a percentage of the funding in this category for the space station program, which is counted as R&D,
versus other programs (primarily the space shuttle), which are not.
**Excludes federal retiree costs. If they are included, NASA’s FY2003 budget request is $15,117.0 million.
NASA proposed terminating the Pluto project in FY2002, but Congress restored it in
the FY2002 VA-HUD-IA appropriations act. Congress also approved the Europa mission
in the FY2002 appropriations act, capping its total cost at $1.0 billion. For FY2003, the
Senate Appropriations Committee added $105 million for the Pluto/Kuiper Belt (PKB)
mission, making it the first of the New Frontiers missions, for which $15 million was
approved (making $120 million available for PKB); none was added for Europa. The House
Appropriations Committee added $105 million for a “Kuiper Belt/Pluto” mission, and $40
million for Europa. NASA is requesting $124 million for a new Nuclear Systems Initiative
in FY2003 to develop new spacecraft nuclear power sources, and perform research on
nuclear propulsion. The Senate Appropriations Committee cut that request by $13 million;
the House committee cut it by $17 million. Combined with other decisions, the Senate
committee made a net addition of $101 million for space science; the House committee
added $142 million.
Funding for NASA’s Earth Science program would remain essentially level in the
FY2003 request. NASA is completing the launches of the first set of spacecraft in its Earth
Observing System to study global climate change. Plans to initiate construction of a second
series are largely on hold awaiting decisions from the Bush Administration on the Climate
Change Research Initiative. The Senate Appropriations Committee made a net addition of
about $47 million for earth science; the House committee added $46.6 million. The Office
of Biological and Physical Research funds research on the space station, and also is
requesting funds in FY2003 for two new programs: “Generations” and the “Space Radiation
Initiative.” Generations would use the space station and other free-flying spacecraft to study
how organisms adapt to the space flight environment, and the capacity of terrestrial life to
evolve in space. The radiation initiative would augment existing research into the hazards
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to humans of the space radiation environment. The Senate Appropriations Committee added
a net of $9.5 million to this account. The House committee added a net of $11.9 million,
inter alia disapproving the Generations initiative on the basis that it is unaffordable.
In Aero-Space Technology, funding for aeronautics research in the NASA request would
decline about 10% (from $599 million to $541 million). NASA states that the decline is
attributable to earmarks in the FY2002 budget for which the agency is not requesting funds
in FY2003. The Senate Appropriations Committee approved the full request for aeronautics,
plus an increase of about $6 million in the vehicle systems program. The House
Appropriations Committee approved the full request, plus increases of $19 million in vehicle
systems and $7 million in airspace systems. In its original budget request, NASA proposed
a significant increase (from $467 million in FY2002, to $759 million in FY2003) for R&D
related to building a second generation reusable launch vehicle—the Space Launch Initiative
(SLI). It is this part of the FY2003 budget that was affected by the November 2002 budget
amendment. (Other parts of NASA’s budget were also affected, but in FY2004 and beyond).
NASA proposed combining its programs to develop technologies for “second generation”
and “third generation” launch vehicles (the shuttle is the “first generation”), and then
allocating some of that funding for a new program, the Orbital Space Plane (OSP). OSP is
not a launch vehicle, but a spacecraft for taking crews to and from the space station.
NASA’s decision to include it in the space transportation development part of its budget,
instead of the space station account, may be controversial. For more information on SLI and
changes proposed in the budget amendment, see CRS Issue Brief IB93062 and CRS Report
RL31347. The Senate Appropriations Committee approved combining the second and third
generation technology programs, but cut the revised SLI request of $879 million to $800
million, and allocated less ($115 million instead of $297 million) of the combined amount
to the Orbital Space Plane, and more ($695 million instead of $584 million) to the launch
vehicle technology development program. The House committee issued its report prior to
the budget amendment. It decreased SLI by $31 million.
For Academic Programs, NASA is requesting $144 million, approximately half of what
it received in FY2002. NASA explains that the request does not include continued funding
for congressionally directed funding included in the FY2002 appropriations. The Senate
Appropriations Committee added $54 million. The House committee added $35.2 million.
National Institutes of Health (NIH)
The omnibus FY2003 appropriations bill (H.J.Res. 2), passed by the Senate on January
23, 2003, provided appropriations for NIH totaling $27.24 billion, before any across-the-
board reductions (see Table 5). Most of the amount, $27.16 billion, is included in the
appropriations for the Departments of Labor, Health and Human Services, Education and
Related Agencies (L-HHS). An additional $76 million comes through the appropriation for
the Departments of Veterans Affairs, Housing and Urban Development, and Related
Agencies (VA-HUD). The VA-HUD funding is for NIH research programs under the
Superfund act. The $27.24 billion total, virtually the same as the adjusted President’s request,
is an increase of $3.73 billion or 15.9% over the comparable FY2002 appropriation of $23.51
billion. (The President’s request, totaling $27.34 billion, counted additional funding not
approved by the Senate. The request assumed enactment of the Administration’s proposed
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Managerial Flexibility Act and included $91 million in the L-HHS amount for accrued
retirement and health benefits of employees.)
If enacted, the $27.2 billion would be enough to complete the planned doubling of the
NIH budget over the 5-year period since the FY1998 appropriation of $13.6 billion. The 5-
year doubling plan had its genesis in the mid-1990s, when a coalition of advocates for
biomedical research began telling Congress that the time was ripe for exploiting new
discoveries in the life sciences. They urged Congress to devote substantial new resources
to support of research on genetic medicine, drug discovery, mechanisms of disease, and
numerous other areas in which the “biological revolution” had opened up scientific
opportunities. Broad bipartisan support for the 5-year doubling plan has allowed Congress
to increase the NIH appropriation at a fairly steady pace of 14%-15% per year since FY1998.
In considering final conference action on the omnibus bill, Congress will be deciding
whether it wants to complete the doubling in the face of other priorities.
The plans originally formulated by NIH’s institutes and centers for their FY2003 budget
requests had to be adjusted after the terrorist attacks of September 2001. Of the $3.7 billion
increase in the President’s request, $1.5 billion or 40% was devoted to bioterrorism-related
activities, which totaled $1.75 billion, up from $275 million in FY2002. Most of this new
funding would go to the National Institute of Allergy and Infectious Diseases (NIAID),
whose budget under the request would increase by 57% overall, to support research on
potential bioterrorism agents and on new drugs and vaccines, together with laboratory
upgrades. In the Senate bill, the appropriation for NIAID is $263 million less than the
request, giving the institute an increase of 47% over FY2002 and the prospect of funding
fewer of its planned biodefense activities. Another large increase from the bioterrorism
funding is in the Buildings and Facilities account, to ensure the security and capabilities of
the NIH intramural labs and research facilities. Some of these efforts were started with
FY2002 funding (NIH received $180 million in the anti-terrorism supplemental
appropriations act). The Senate provided $608 million for this account, $25 million below
the request.
The President’s request also emphasized support of cancer research. Total cancer
funding across many of NIH’s institutes would reach $5.5 billion, an increase of nearly 13%
over the FY2002 level of $4.9 billion. The budget of the National Cancer Institute (NCI)
would increase by over 12%, while increases of 8%-9% were requested for most of the other
institutes and centers. The Senate provided the requested amount for NCI, and increases
above the request for many, but not all, of the other institutes. The request would support
a record number of research project grants (38,038, up from 36,630 in FY2002), including
9,854 (up 477) in the new and competing renewal category.
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Table 5. National Institutes of Health (NIH)
($ millions)
Institutes and Centers (ICs)
FY2001
FY2002
FY2003
FY2003
comp a
comp b
request c
Senate c
Cancer (NCI)
$3,720.9
$4,128.4
$4,642.4
$4,642.4
Heart/Lung/Blood (NHLBI)
2,287.0
2,560.2
2,776.4
2,820.0
Dental/Craniofacial Research (NIDCR)
304.6
343.1
372.2
374.1
Diabetes/Digestive/Kidney (NIDDK)
1,302.8
1,466.4
1,604.6
1,637.3
Neurological Disorders/Stroke (NINDS)
1,172.1
1,312.8
1,424.4
1,466.0
Allergy/Infectious Diseases (NIAID)
2,062.1
2,534.5
3,990.5
3,727.5
General Medical Sciences (NIGMS)
1,531.0
1,700.1
1,855.0
1,853.6
Child Health/Human Develmt (NICHD)
978.1
1,113.1
1,213.8
1,213.8
Eye (NEI)
507.8
581.2
630.0
634.3
Environmental Health Sciences (NIEHS)
503.0
566.1
614.3
617.3
Aging (NIA)
786.1
893.1
968.7
1,000.1
Arthritis/Musculoskeletal/Skin (NIAMS)
395.0
448.7
486.6
489.3
Deafness/Communication Dis. (NIDCD)
301.1
342.0
370.8
372.8
Nursing Research (NINR)
105.2
120.4
130.4
131.4
Alcohol Abuse/Alcoholism (NIAAA)
340.5
384.1
416.8
418.8
Drug Abuse (NIDA)
779.5
887.7
964.6
968.0
Mental Health (NIMH)
1,103.1
1,238.1
1,343.1
1,350.8
Human Genome Research (NIHGR)
381.1
429.3
465.1
468.0
Biomedical Imaging/Bioenginrg (NIBIB)
68.8
262.0
271.2
283.1
Research Resources (NCRR)
811.2
986.5
1,065.3
1,161.3
Complementary/Alt. Medicine (NCCAM)
89.1
104.6
113.2
114.1
Minority Health/Disparities (NCMHD)
132.0
157.7
186.9
186.9
Fogarty International Center (FIC)
50.5
56.9
63.4
60.9
Library of Medicine (NLM)
238.2
277.3
310.3
302.1
Office of Director (OD)
188.3
235.4
255.1
258.0
Buildings & Facilities (B&F)
160.9
296.0
632.8
607.8
Subtotal, NIH (L-HHS Approp)
$20,300.1
$23,425.7
$27,167.9
$27,159.7
Superfund (VA-HUD Approp, NIEHS) d
62.9
80.7
76.1
76.1
Total, NIH Budget Authority
$20,363.0
$23,506.5
$27,244.0
$27,235.8
Sources: Congressional Record 1/15/03 on Senate omnibus bill; NIH FY2003 Appropriations Justification.
Note: Columns may not add due to rounding.
All columns reflect transfers from ICs to NIBIB ($150m in FY2002 and FY2003), and do not include
transfers of funds for diabetes research (NIDDK) and drug control (NIDA).
a. FY2001 comparable reflects rescission ($8.666m and $0.139m reduction in Superfund activities) and net
funding from breast cancer stamps.
b. FY2002 comparable reflects rescission ($9.273m) and supplemental funding for bioterrorism appropriated
to the PHS Emergency Fund by P.L. 107-117 ($180m). Includes $100m that was later transferred to the
Global Fund for HIV/AIDS, Malaria, and Tuberculosis (NIAID, $25m and B&F, $75m).
c. FY2003 request is adjusted to omit proposal for accrued retirement and health benefits of current employees.
Request and Senate amount include $100m in NIAID for transfer to the Global Fund. For NLM, Senate
bill provides additional $8.2m in evaluation tap funding for total program level of $310.3.
d. Separate account in the VA-HUD appropriation starting in FY2001, for NIEHS activities mandated in
Superfund legislation. In FY2002, includes supplemental of $10.5 million from P.L. 107-117.
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National Science Foundation (NSF)
The FY2003 request for the National Science Foundation (NSF) is $5,035.8 million, a
4.7% ($227.3 million) increase over the FY2002 level of $4,808.5 million (see Table 6).
The FY2003 request provides support for several interdependent priority areas:
biocomplexity in the environment ($79.2 million, 36.3% above FY2002), information
technology research ($285.8 million, 3% above FY2002), learning for the 21st century
($184.7 million, 27.5% above FY2002), nanoscale science and engineering ($221.3 million,
11.3% above FY2002), mathematical sciences ($60.1 million, 100.3% above FY2002), and
social, behavioral and economic sciences ($10 million, new in the FY2003 request). The
request provides a second installment of $200 million for the President’s Math and Science
Partnerships program (MSP). Additional FY2003 highlights include increased funding for
graduate students ($26.2 million), continued support of plant genome research ($75 million),
increased investment in NSF’s administration and management portfolio ($268.1 million),
and funding for the Partnerships for Innovation program ($5 million). Included in the
FY2003 request is $3,783.2 million for Research and Related Activities (R&RA), a 5.1%
increase ($184.9 million) over the FY2002 level of $3,598.3 million. R&RA funds research
projects, research facilities, and education and training activities. In the FY2003 request, the
NSF has placed an emphasis on funding rates for new investigators and on increasing grant
size and duration. The R&RA includes Integrative Activities (IA), created in FY1999. IA
funds major research instrumentation, Science and Technology Centers, Science of Learning
Centers, Partnerships for Innovation, disaster response research teams, and the Science and
Technology Policy Institute. The FY2003 request for IA is $110.6 million, an increase of
$4.1 million over FY2002.
Research project support in the FY2003 request totals $2,560 million, an increase of
5.3% over FY2002. Support is provided individuals and small groups conducting disciplinary
and cross-disciplinary research. Included in the total for research projects is support for
centers, proposed at$380 million. NSF supports a variety of individual centers and center
programs. The request provides $45 million for Science and Technology Centers, $53
million for Materials Centers, $62 million for Engineering Research Centers, and $13 million
for Physics Frontiers Centers.
The Major Research Equipment and Facilities Construction (MREFC) account is funded
at $96.3 million in FY2003, a 20.6% decrease ($25 million) from the FY2002 level. The
MREFC supports the acquisition and construction of major research facilities and equipment
that extend the boundaries of science, engineering, and technology. Seven projects are
supported in this account for FY2003, five ongoing projects and two new
projects—construction of the Atacama Large Millimeter Array ($30 million), the Large
Hadron Collider ($9.7 million), the Network for Earthquake Engineering Simulation ($13.6
million), the South Pole Modernization Project ($6 million), Terascale Computing Systems
($20 million), Earthscope ($35 million), and the National Ecological Observatory Network,
Phase I ($12 million). No funds are requested in FY2003 for the High-Performance
Instrumented Airborne Platform for Environmental Research (HIAPER) or the IceCube R&D
project because they have been determined to be of lower priority.
The FY2003 request for the Education and Human Resources Directorate (EHR) is
$908.1 million, a 3.8% increase ($33.1 million) over FY2002. Support at the various
educational levels in the FY2003 request is as follows: precollege, $359.6 million;
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undergraduate, $157.4 million; and graduate, $136.9 million. Support at the precollege level
includes $200 million for the MSPI directed at funding for states and local school districts
to join with colleges and universities to strengthen K-12 science and mathematics education.
Support will continue for Systemic Reform Initiatives and Instructional Materials
Development. An increase of 21.7% in FY2003 for graduate level programs will allow NSF
to raise the stipend of graduate fellows and to increase the number of offers to new
fellowships. Funding for the Experimental Program to Stimulate Competitive Research
(EPSCoR) is $75 million. An additional $30 million from R&RA will support EPSCoR
activities. It is anticipated that the H-1B nonimmigrant petitioner fees collected in FY2003
will approximate $92.5 million.
Table 6. National Science Foundation
($ millions)
FY2002
FY2003
FY2003
FY2003
Act.
Req.
House
Senate
(Oct.
Omnibus
2002)
(Jan.2003)
Res. & Related Act.
Biological Sciences
$508.4
$525.6
$584.7
$528.1
Computer & Inform. Sci. & Eng.
514.9
526.9
592.1
596.2
Engineering
472.3
488.0
543.2
559.0
Geosciences
609.5
691.1
700.9
671.2
Math & Physical Sci.
920.5
941.6
1,058.5
1,042.9
Social, Behav. & Econ. Sci.
168.8
195.6
195.6
187.5
U. S. Res. Prog.
229.7
235.7
254.0
242.8
U.S. Antarctic Log. Act.
68.1
68.1
70.4
67.2
Integrative Activities
106.5
110.6
150.6
133.9
Subtotal Res. & Rel. Act
3,598.6
3,783.2
4,150.0
4,028.6
Ed. & Hum. Resr.
894.3a
908.1
910.6
920.6
Major Res. Equip. & Facil. Constr.
138.8
126.3
159.5
58.5
Salaries & Expenses
170.0
210.2
193.9
179.8
Office of Inspec. Gen.
6.8
8.1
9.0
8.9
b
Total NSF
$4,808.5
$5,035.8
$5,422.9
$5,199.9
a. Includes $78.5 million in FY2001, an estimated $90 million in FY2002, and $92.5 million in FY20003 from
H-1B Nonimmigrant Petitioner Receipts.
b. The totals do not include carryovers or retirement accruals.
On October 10, 20002, the House Committee on Appropriations reported H.R. 5605
(H.Rept. 107-740), VA/HUD and Independent Agencies Appropriations Bill, FY2003. The
bill provides a total of $5,422.9 million for NSF in FY2003, a 7.7% increase ($387.1 million)
above the Administration’s request and a 12.8% increase ($614.4 million) over the FY2002
level. Included in the total support is $4,150 million for the R&RA and $910.6 million for
the EHR.
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Department of Commerce (DOC)
National Oceanic and Atmospheric Administration (NOAA)
The President’s request $575 million for NOAA R&D funding, which for the first time
appears as a separate line item in the budget. Those line offices include: National Ocean
Service (NOS), National Marine Fisheries Service (NMFS), NOAA Research (OAR),
National Weather Service (NWS), National Environmental Satellite Data and Information
Service (NESDIS), and Program Support (PS). The R&D request is 25% of NOAA’s
Operations, Research and Facilities (ORF) account, for which $2.281 billion was requested.
The President’s proposed R&D budget, represents a 27% decline in NOOA R&D spending.
The reduction in the FY2003 R&D request can be attributed to two factors: 1) The President
proposed to transfer the Sea Grant Program to NSF, which would decrease R&D funds for
Ocean, Coastal, and Great Lakes programs (OAR) by $34 million, and; 2) for FY2003 OFA
required an actual accounting of R&D requested for NMFS; in prior years that request was
estimated by use of a formula. The Senate Omnibus bill rejects the transfer of the Sea Grant
Program to NSF, and recommends an estimate $670 million for NOAA R&D.
National Institute of Standards and Technology
In the Administration’s FY2003 budget proposal, the National Institute of Standards and
Technology (NIST) would receive $577.5 million, 15% below the amount appropriated for
FY2002 by P.L. 107-77. This decrease is due primarily to a decline in support for the
Advanced Technology Program (ATP) and the Manufacturing Extension Partnership (MEP).
ATP would receive $107.9 million, 35% below the current fiscal year, and MEP would be
funded at $12.9 million. The 89% decrease in financing for MEP is due to the President’s
recommendation that manufacturing extension centers operating for more than 6 years do so
without federal funding. In-house R&D under the Scientific and Technical Research and
Services (STRS) account would increase 25% to $402.2 million. (It should be noted that the
FY2002 Defense Appropriations Act added $5 million to the STRS account for cybersecurity
activities.) Construction would be funded a $54.5 million. The Senate Omnibus bill would
provide NIST with $720.9 million. Of this amount, $363.4 million is for the STRS account
(13% above the previous fiscal year), $185.4 million is to fund ATP, and $106.6 million is
to finance MEP. The construction budget would receive $65.5 million. (For more
information see CRS Report 95-30, The National Institute of Standards and Technology: An
Overview.)
Department of Transportation (DOT)
According to the Bush Administration’s Budget, the Department of Transportation
(DOT) requested $725 million for research and development in FY2003. This is $142 million
below what was available in FY2002. In a DOT document made available after the Budget
was released, the agency’s R&D budget request was stated as $736 million. There are four
Administrations within DOT that are the primary supporters of research and
development—the Federal Highway Administration (FHWA), the National Highway Traffic
Safety Administration (NHTSA), and the Federal Aviation Administration (FAA), and the
Federal Railroad Administration (FRA). A fifth, the newly formed Transportation Security
Administration (TSA) has yet to allocate its budget, but will also support R&D. According
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to the DOT document, the R&D budget requests for these Administrations were as follows:
FHWA ($266 million), FAA ($225 million), NHTSA ($59 million), and FRA ($31 million).
The Senate Omnibus bill includes an estimated $780 million for DOT R&D.
Department of Interior (DOI)
According to the President’s budget, the Administration requested $628 million for R&D
in the Department of Interior. The U.S. Geological Survey (USGS) is the primary supporter
of R&D ( about two-thirds of the total) within DOI. Areas of research include mapping, and
research in geological, water, and biological resources. The FY2003 budget for R&D within
the USGS would decline even more than DOI’s overall R&D budget. Reductions are
proposed in a couple of Water Resource programs, one of which (the Toxic Substances
Hydrology Program) would be transferred to NSF. The Senate Omnibus bill would increase
R&D funding to $660 million, or $32 million over the Presidents request. The House bill
(H.R. 5093) would provide $681 million for R&D. Both bills reject the Administration’s
proposal to move the Toxic Substances Hydrology Program to NSF.
Environmental Protection Agency (EPA)
The Administration requested $731 million in the FY2004 budget for Science and
Technology at EPA, including R&D activities under Superfund. The Senate provided $707
million for EPA’s FY2003 R&D activities, including R&D under the Superfund account, as
reported in the January 28, 2003 Congressional Record. The Administration had requested
$670 million. This compares with $735 million enacted in FY2002, which was supplemented
by $90.3 million in FY2002 for Homeland Security (for an S&T total of $825.3 million in
FY2002). Major continuing congressional concerns are the quality of scientific information
which EPA disseminates and information upon which EPA bases its regulations, criteria, and
programs, and the degree to which environmental data and information will be available
(balancing the need for security and confidentiality).
Table 7. R&D Budgets of Preceding Agencies
($ millions)
FY2000
FY2001
FY2002
FY2003
Actual
Actual
Estimate
Request
National Oceanic and Atmospheric
$610
$684
$792
$575
Administration
National Institute of Standards &
636
598
675
578
Technology
Department of Interior
645
622
660
628
Department of Transportation
603
792
867
725
Environmental Protection Agency
559
709
825a
670
a. Includes $90.3 million in supplemental funding for Homeland Security.
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