Research and Development Funding: Fiscal Year 2002

Order Code IB10083

CRS Issue Brief for Congress

Received through the CRS Web

Research and Development Funding:

Fiscal Year 2002

Updated November 14, 2001

John Dimitri Moteff, Coordinator

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

National Institutes of Health (NIH)

The National Science Foundation (NSF)

Department of Commerce (DOC)

National Oceanic and Atmospheric Administration (NOAA)

National Institute of Standards and Technology

Department of the Interior (DOI)

Department of Transportation (DOT)

Environmental Protection Agency (EPA)

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Research and Development Funding: Fiscal Year 2002

SUMMARY

In the President’s Budget released in

April, President Bush requested $95.253

billion for federal R&D in FY2002, a 5.8%

increase over the estimated $90.010 billion

appropriated for FY2001. The budget included

$48.579 billion for Defense R&D (DOD’s plus

DOE’s weapons R&D activities), an increase

of 8.1%. Federal civilian R&D, for FY2002,

would increase to $46.674 billion, 3.6% above

FY2001 estimated $45.064 billion level. The

President’s FY2002 budget also proposes to

permanently extend the Research and Experimentation (R&E) tax credit.

Funding for basic research in the President’s budget would increase 6.2% to $23.352

billion, while applied research is proposed to

increase 4% to $21.553 billion. Together,

basic and applied research (referred to as the

“research” portion of the R&D budget) would

account for 47% of total federal R&D spending, up from 34% of total R&D in FY1990.

Two agencies, DOD and NIH, account

for the entire growth in the R&D budget. All

of the other civilian agencies (except transportation, which receives R&D funds from a

mandatory trust fund) would see their FY2002

research budgets’ decline from estimated

FY2001 levels. Absent NIH’s proposed 13.5%

increase ($2.7 billion), funding for the remaining civilian R&D programs would decline

around 3%.

On June 27, the President released an

amended budget request for the Department of

Defense, adding another $5.6 billion for re-

Congressional Research Service

search and development for that department,

changing the percentages noted above.

The Administration highlighted three

multi-agency research initiatives in its FY2002

budget submission. Funding for the 12 agency

(up from 6 agencies in FY2001)

Nanotechnology program is scheduled to

increase 15% to $485 million. Support for the

Networking and Information Technology

program would increase $40 million or 2%,

reaching $1.969 billion. Funding for the U.S.

Global Change Research (USGCR) program

would decline 4% below FY2001, to $1.630

billion. A proposed $90 million reduction in

NASA’s portion of USGCR (mostly in earth

sciences) accounts for the entire decrease.

The President’s FY2002 R&D budget has

raised an issue about the composition of the

research portion of the federal R&D budget.

The Administration’s proposed $23 billion

budget for NIH would increase its share of

total civilian R&D to 49%, up from 35% in

1990. Members of Congress and representatives from the scientific community have

voiced concerns about what they believe is a

growing funding “imbalance” between health

related research and other fields such as physical sciences, environmental sciences, and

engineering.

To date, both the House and Senate have

voted to increase the agencies’ research and

development funding above the President’s

request. Even so, in some cases, funding

would still be below last year’s appropriations.

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MOST RECENT DEVELOPMENTS

Appropriation bills for Interior and Energy and Water have been signed into law (P.L.

107-63 and P.L. 107-66, respectively). In addition, both the House and Senate have agreed

to the conference report on VA/HUD appropriations (H.Rept. 107-272). The bill awaits the

President’s signature. The House approved the Agriculture appropriations conference

report (H.Rept. 107-275). The Commerce/Justice/State appropriations bill was reported

(H.Rept. 107-278) out of conference. The Senate approved its version of the Labor/HHS

appropriations bill (S. 1536). The House Appropriations Committee approved its defense

appropriations bill, but has not yet reported it out.

BACKGROUND AND ANALYSIS

Department of Agriculture (USDA)

The FY2002 budget request for research and education in the U.S. Department of

Agriculture (USDA) is $2,144.1 million, a $174.4 million decrease (7.5%) from the FY2001

estimate of $2,318.5 million (see Table 1). The FY2002 budget request proposes increased

funding for several research priority areas: new uses for agricultural products ($15 million),

emerging and exotic diseases and pests ($12 million), and biotechnology ($7.5 million). The

FY2002 request assumes that $120 million will be available for the Initiative for Future

Agriculture and Food Systems. These funds will address critical issues related to agricultural

productivity, food safety, biobased products, and natural resource management. Also, $30

million is proposed for rural development and research, education, and extension projects

supported by the Fund for Rural America. USDA will terminate all new Congressionallyearmarked projects for a savings of $34 million, which will be redirected toward other priority

areas.

The USDA conducts in-house basic and applied research. The Agricultural Research

Service (ARS) is the lead federal agency for nutrition research, operating five major

laboratories in this area. 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 FY2002 request provides $938.6

million for ARS, level funding with FY2001. 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 FY2002 request proposes

an additional $30 million for high priority modernization and construction at seven ARS

laboratories.

The Cooperative State Research, Education, and Extension Service (CSREES)

distributes funds to universities and organizations that conduct agricultural research. Funding

is distributed to the states through competitive awards, formula funding, and other means.

The FY2002 request for CSREES is $994 million, a decrease of $144 million (12.7%) from

the FY2001 estimate. Funding for formula distribution in FY2002 to the state agricultural

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experiment stations (and other eligible institutions) through the Smith-Lever Act would be

$275.9 million, about level with FY2001. Funding for the 1890 institutions through the

Evans-Allen formula also is maintained at its current level of $32.7 million. Several special

grants and construction projects, which target local concerns, are proposed for reductions.

The request proposes $106 million, level funding, for the National Research Initiative (NRI)

Competitive Grants Program.

The budget proposed for the National Agricultural Statistics Service (NASS) is at

$113.8 million in the FY2002 request, $13.1 million above the FY2001 estimate. Programs

that are proposed for increased funding include computer security architecture and the Census

of the Agriculture. The Economic Research Service (ERS) is the principal intramural social

science research agency in USDA. The ERS request for FY2002 is $67.2 million, near the

FY2001 level.

On November 9, 2001, the Committee on Conference filed the conference report for

H.R. 2330, Agricultural, Rural Development, Food and Drug Administration and Related

Agencies, 2002 (H. Rept. 107-275). Conferees provided a total of $2,261.1 million for

research and education activities in USDA in FY2002, $117 million above the

Administration’s request, and $57.4 million below the FY2001 estimate. Included in that

total is $1,098.5 million for the ARS, of which $119 million is for the support of buildings and

facilities. CSREES is funded at $981.6 million, the Economic Research Service at $67.2

million, and the NASS at $113.8 million.

Table 1. U.S. Department of Agriculture

($ millions)

Agric. Research Service (ARS)

Soil & Water Conservation

Plant Science

Animal Science

Commodity Conversion & Delivery

Human Nutrition

Integration of Agricultural Systems

Information and Library Sciences

Repair and Maintenance

Contingencies & Trust Funds

Subtotal

Buildings & Facilities

Total, ARS

Coop. St. Res. Ed. & Ext. (CSREES)

Research and Education

Hatch Act Formula

Cooperative Forestry Research

1890 Colleges and Tuskegee Univ.

Special Research Grants

NRI Competitive Grants

Animal Health & Disease Res.

Federal Administration

FY2000

Act.

FY2001

Est.

FY2002

Req.d

FY2002

Conf.

88.0

296.0

135.0

175.0

72.0

32.0

18.0

19.0

20.0

855.0

53.0

908.0

92.1

336.4

142.8

185.5

75.3

37.1

19.5

18.2

23.0

938.6

74.2

1,012.8

90.0

324.8

147.1

202.3

75.7

37.6

19.8

18.2

23.0

938.6

30.5

969.1

979.5

119.0

1,098.5

180.5

21.9

30.7

63.2

119.3

5.1

14.8

180.5

21.9

32.7

85.7

106.0

5.1

18.1

180.1

21.9

32.7

2.8

106.0

5.1

4.5

180.1

21.9

34.6

97.0

120.5

5.1

21.7

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Higher Educationb

Total, Coop. Res. & Educ.c

Extension Activities

Smith-Lever Sections 3b&c

Smith-Lever Sections 3d

Renewable Resources Extension

1890 Research & Extension

Federal Admin. & Special Grants

Total, Extension Activitiesc

Total, CSREESc

Economic Research Service

National Agric. Statistics Serv.

TOTAL, Research, Education &

Economics

FY2000

Act.

28.0

490.0

FY2001

Est.

34.0

506.2

FY2002

Req.d

35.0

407.3

FY2002

Conf.

39.3

542.1

276.5

88.5

3.2

58.0

26.0

424.9

1,074.0

64.0

99.0

276.5

100.6

3.2

28.2

18.1

432.0

1,138.0

67.0

100.7

275.9

100.5

3.2

28.2

5.7

413.4

994.0

67.2

113.8

275.9

91.5

4.1

44.7

17.6

439.5

981.6

67.2

113.8

$2,145.0

$2,318.5

$2,144.1

$2,261.1

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. The FY2002 budget assumes that $120 million will be available for the Initiative for Future Agriculture

and Food Systems. In addition, $30 million will be available for rural development and research, education,

and extension projects supported by the Fund for Rural America.

Department of Energy (DOE)

For FY2002, DOE requested $8.00 billion (see Table 2), 2.9% below the FY2001 level,

for all R&D activities: Energy Resources, Science, National Security, and Environmental

Quality. DOE stated that its FY2002 request is designed to meet Administration priorities

and to respond to policy reviews currently underway. Congress approved the conference

reports (P.L.107-63/H.Rept.107-234 and H.R.2311/H.Rept.107-258) for the two

appropriations bills responsible for DOE R&D programs, providing $8.77 billion for R&D

for FY2002, 9.6% above the request and 6.3% above the FY2001 level.

For Energy Resources R&D, DOE requested $1.232 billion, 18.2% below the FY2001

level. Conservation and Renewable Energy R&D would be reduced by 26.3% percent from

FY2001. DOE states that some of these programs have been ineffective and the nation’s

current energy situation requires a new focus for energy resource R&D. To that end, DOE

proposed $150 million for a clean coal power initiative. Congress agreed to an increase of

36.8% for Conservation R&D above the request. They also approved the full request for the

clean coal power initiative, although a portion of the funds are to come from funds previously

appropriated for the Clean Coal Technology program.

For Science, DOE requested $3.165 billion for FY2002, 0.1% above FY2001. All

programs except Biological and Environmental Research (BER) would be funded at or

slightly above this year’s levels. In the final appropriations bill, Congress approved $3.251

billion for DOE’s science programs. Most of the programs would receive funding at their

requested levels. Funding for the BER program would be well above the request, primarily

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because of the presence of many congressional specified activities. Congress fully funded the

FY2002 construction request for the Spallation Neutron Source within the Basic Energy

Sciences program.

For National Security R&D, DOE requested $3.399 billion for FY2002, 2.3% above

the FY2001 level. The weapons R&D program would see an increase of $147.6 million. For

the National Ignition Facility (NIF), DOE requested $245 million for construction, $46

million above FY2001. In the final appropriations bill, Congress approved $3.611 billion for

national security R&D including the full request for NIF. The act provides an increase over

the request of 4.9% for weapons R&D and 18.4% for nonproliferation R&D.

Congress appears to be focusing on the role of energy R&D in helping to address the

nation’s energy problems. The House stated that there appears to be a disconnect between

the Administration’s National Energy Policy and the DOE budget request, but that DOE

needed to do a better job setting goals and priorities in its renewable energy program.

Congressional support for the Office of Science is strong, but limited budget resources appear

to be constraining any increases. Congressional support for the stockpile stewardship

program remains strong, with some concern that the program is not receiving adequate

resources.

Table 2. DOE R&D Budget

($ millions)

a

FY2001

Appro.

FY2002

Request

FY2002

Housec

FY2002

Senatec

FY2002

Confc

Energy Resources

Clean Coal Technology a

Fossil Energy

Nuclear Energy

Renewable Energy

Conservation

Science

High Energy Physics

Nuclear Physics

Basic Energy Sciences

Adv Scientific Computing

Biological & Environmental

Fusion Energy Sciences

Other

Defense Programs

Nuclear Weapons

Nonprolif & Verification

Naval Reactors

Adv Accel Apps

Environmental Quality

Science and Technology

1505.7

9.0

450.5

109.1

373.2

572.9

3160.6

712.0

360.5

991.7

165.8

462.5

248.5

199.7

3325.0

2359.0

244.5

687.3

33.9

252.1

252.1

1242.7

82.0

449.0

85.6

276.2

431.4

3164.8

716.1

360.5

1004.7

163.0

443.0

248.5

229.0

3399.8

2505.7

206.1

688.0

0

196.0

196.0

1632.7

14.0

579.0

93.2

376.8

583.7

3173.3

716.1

361.5

1006.7

163.0

445.9

248.5

231.6

3342.4

2438.3

216.1

688.0

0

226.9

226.9

1741.1

33.7b

570.4

128.6

435.6

606.5

3273.7

725.1

373.0

1040.7

163.0

490.0

248.5

233.4

3791.3

2790.1

258.2

688.0

55.0

271.7

271.7

1675.7

(6.3)b

582.8

106.2

396.0

590.7

3250.8

716.1

360.5

1003.7

158.1

527.4

248.5

236.3

3611.3

2629.0

244.3

688.0

50.0

255.8

255.8

TOTAL, DOE

8243.4

8003.3

8375.7

9078.0

8774.3

Accounts for previously appropriated funds. The amounts are not included in the totals.

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b

These include $33.7 million of previously appropriated funds to be applied to the Clean Coal Power

Initiative within Fossil Energy R&D. The Conference agreement defers $40.0 million of such funds to

FY2003.

c

The totals and subtotals do not include general reductions or offsets for charges for reimbursable work

because those adjustments have not yet been applied to the individual programs.

Department of Defense (DOD)

In its amended FY2002 budget for the Department of Defense (DOD), the Bush

Administration requested an additional $5.6 billion for DOD’s Research, Development, Test

and Evaluation (RDT&E) account. The total RDT&E request is now $47.4 billion. This

does not include the $578 million in RDT&E funding for the Defense Health Program ($421

million) and the Army’s Chemical Agents and Munitions Destruction Program ($157 million).

The amended RDT&E request is $6.4 billion above the amount appropriated for RDT&E in

FY2001. Much of this increase is directed at ballistic missile defense. The Ballistic Missile

Defense Organizations RDT&E request has risen to $7.0 billion. BMDO’s RDT&E

appropriation for FY2001 was $4.3 billion. It should be noted, however, that the BMDO

program is changed somewhat, with some more mature BMDO programs transferred to the

Services (e.g. Patriot PAC-3) and other less mature ballistic missile defense- related program

managed by the Services transferred back to BMDO (e.g. the Air Force’s Airborne Laser

program). The amended request also gives greater emphasis to programs the Administration

believes to be more suitable to far term threats, including those to counter unconventional

attacks and attacks with weapons of mass destruction, and systems (including unmanned

systems) that can locate, track, and attack targets with greater speed and at greater distances.

While the amended budget raised the total RDT&E request, the Science and Technology

(S&T) part of the RDT&E program was reduced. In its “Blueprint” budget of last April, the

Administration requested $9.1 billion for S&T programs. The amended budget reduces this

to $8.8 billion. This is still over $1.5 billion more that what the Clinton Administration had

proposed to spend on S&T in FY2002, but less than what Congress appropriated for S&T

for FY2001 ($9.0 billion). The Administration notes that the amended S&T request amounts

to 2.7% of the total DOD budget, within the range Under Secretary Pete Aldridge has set as

a target. The $8.8 billion for S&T is still above the target set by Congress in its FY1999

defense authorization bill. That target was to increase S&T by 2% above inflation through

FY2008, using the FY1999 S&T budget request as a baseline. According to that target, S&T

funding for FY2002 should be approximately $8.0 billion.

The House appropriations committee has recommended appropriating $48.6 billion for

RDT&E. The bill establishes a new appropriations title (Tile IX - Counter-Terrorism and

Defense Against Weapons of Mass Destruction). The new title consolidates the funding of

major Defense-wide programs the committee feels targets the new threats the nation faces.

The pace of transitioning the force structure to meet these new threats (terrorism, weapons

of mass destruction, cyber attacks and other asymmetric threats) has been debated for some

time. The Bush Administration expressed its goal of accelerating that transition. The House

appropriations committee felt it would be easier to track and evaluate that transition by

consolidating relevant defense-wide programs into the new title. The new title includes all

of the Ballistic Missile Defense program, all of the procurement and RDT&E associated with

the Chemical and Biological Defense Program (including DARPA’s biological warfare

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defense program), all of the Defense Threat Reduction Program, and the Cooperative Threat

Reduction program.

In addition, the committee recommended an additional $1.7 billion for a CounterTerrorism and Operational Response Transfer Fund. This fund would allow the Secretary of

Defense and the Director of Central Intelligence the flexibility to allocate these funds were

needed to accelerate efforts in the war on terrorism. Of this $1.7 billion, $155 million is to

be directed toward RDT&E in chem/bio defense and in information assurance programs.

S&T funding under the bill would increase to $9.7 billion. However, there are

adjustments associated with a Joint DOE Research effort and a waiver for BMDO of P.L.

102-564, which allows for increases in contributions to the Small Business Innovative

Research Program.

Table 3. Department of Defense RDT&E

($ millions)

Accounts

Army

Navy

Air Force

Defense Agencies

(DARPA)

(BMDOa)

Dir. Test & Eval

Dir. Op.Test/Eval

Total Ob. Auth.

Budget Activity

Basic Research

Applied Res.

Advanced Dev.

Demonstr./Valid.

Engrg/Mftg. Dev.

Mgmt. Supportb

Op. Systems Dev.

Total Ob. Auth.

FY2000

FY2001

est.

FY2002

amended

request

House

Apprn.

5,314

9,065

14,527

9,551

(1,850)

(3,457)

265

31

$38,753

6,280

9,458

13,993

11,053

(2,010)

(4,204)

6,694

11,123

14,344

15,051

(2,281)

(7,036)

7,115

10,896

14,884

15,438c

(2,206)

(7,054)

225

$41,009

217

$47,429

245

$48,579

1,139

3,409

3,789

6,514

8,879

3,076

11,947

1,317

3,676

4,000

7,830

8,735

2,634

12,816

1,304

3,659

3,815

11,381

10,249

3,003

14,235

1,358

3,948

4,383

11,341

10,031

2,814

14,506

$38,753

$41,008

$47,429

$48,381d

Source: FY2000 to FY2002 figures based on Department of Defense Amended Budget, Fiscal Year 2002 R-1,

June 2001. FY1999 figures come from Department of Defense Budget for Fiscal Year 2000, RDT&E

Programs (R-1), February 2000. 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.This includes funds from both Title IV and the new Title IX, including the additional $155 million for RDT&E in the

Counter-Terrorism and Operational Response Transfer Fund.

d.The total obligational authority broken down by activity does not include the $20 million reduction for the DOE Joint

Research adjustment, does not include the additional $255 million in RDT&E funding for the Chem/Bio and

Information Assurance programs in the Counter-terrorism and Operational Response Transfer Fund in the new Title

IX of the House appropriation bill, and does not include the $39 million reduction associated with waiving P.L. 102564 for BMDO, since it is not known which activities these adjustments will affect.

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National Aeronautics and Space Administration

The National Aeronautics and Space Administration (NASA) requested $9,773.3 million

for R&D for FY2002 (see Table 4), 1.1% above the FY2001 level. According to NASA, the

budget request emphasizes space exploration and science and provides “strong” support of

the space launch initiative, improving aviation safety, and the Space and Earth Sciences

programs. On November 8, 2001, Congress approved $9,964.7 million (H.R.2620,

H.Rept.107-272), 2.0% above the request and 3.1% above the FY2001 level.

For the International Space Station (ISS), NASA requested $1,831.3 million, which

included a transfer of $283.6 million for ISS research to the Biological and Physical Research

program. Earlier this year, NASA announced that a new ISS cost estimates revealed that an

additional $4.8 billion over the next several years might be needed to complete the station as

currently configured. In order to accommodate these findings, NASA proposed scaling back

the ISS to include just those units already constructed and awaiting launch, adding about $1

billion to the ISS budget over the next five years, and cancelling the crew return vehicle

(CRV) project. The changes proposed could have a significant impact on the station’s

ultimate use as a research facility. Congress approved $1,963.6 million for the ISS including

support (civil service) costs. No funding was provided for the CRV. Actual funding for the

ISS would be $75 million below the request. Congress reduced funding in an attempt to get

NASA to do a better job in getting station costs under control.

Table 4. National Aeronautics and Space Administration

($ millions)

FY2001

Appro

FY2002

Request

FY2002

House

FY2002

Senate

FY2002

Conf

Human Space Flight (R&D only)

2,186.2

2,298.0

2,336.0

2,165.5

2,107.6

Space Station

Eng and Tech Base

Mission Support

2,112.9

73.3

409.7

1,831.3

75.2

429.0

1,831.8

75.2

429.0

1,681.3

55.2

429.0

1,756.3

75.2

276.1

Science, Aeronautics, and Technology

7,066.9

7,475.3

7,606.3

7,699.0

7,857.1

Space Science

Biological & Physical Research

Earth Science

Aero-Space Technology.

Academic Programs

2,624.7

378.8

1,716.2

2,214.5

132.7

2,786.4

644.5

1,515.0

2,375.7

153.7

2,759.4

710.9

1,516.7

2,430.8

188.5

2,764.9

694.5

1,557.6

2,469.9

212.1

2,848.9

714.4

1,573.4

2,489.6

230.8

Total NASA R&D

9,662.8

9,773.3

9,942.3

9,864.5

9,964.7

For FY2002, NASA requested $2.786 billion for Space Science, 5.7% above the

FY2001 level. The Mars Exploration Program has been restructured and expanded and now

plans four missions this decade including one launched in April. NASA plans to launch

several space science missions in FY2002 including the last of the great observatories, the

Space InfraRed Telescope Facility. NASA also announced that the Pluto/Kuiper mission will

be placed on indefinite deferral because of cost considerations. Congress provided $2,848.9

million for Space Science, 2.2% above the request and 8.5% above the FY2001 level. The

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amount approved included $30 million for the Pluto/Kuiper mission. Congress directed

NASA to proceed with that mission. Congress also directed NASA to provide it with a plan

for the Mars program beyond the missions proposed for 2007.

For Aero-Space Technology, NASA requested $2,375.7 million for FY2002, 7.1%

above the FY2001 level. Included in the request is a 64% increase for the Space Launch

Initiative (SLI). NASA is also proposing a refocused aeronautics R&D program that is aimed

at a 21st Century aerospace vehicle. The features of this program are not well defined and

some concern has been raised that it may not be what the commercial aviation industry needs

at this point. Congress approved $2,489.6 million for the AST program, 4.8% above the

request and 12.4% above the FY2001 level. The appropriation included a reduction of $10.0

million from the request for the SLI. Congress also directed NASA to provide a separate

accounting of aeronautics research in future budget submissions.

National Institutes of Health (NIH)

The Bush Administration has requested $23.11 billion for NIH for FY2002, an increase

of $2.75 billion or 13.5% over the comparable FY2001 appropriation of $20.36 billion (see

Table 5). Both figures include NIH’s main appropriation from the Labor, Health and Human

Services, Education and Related Agencies (L-HHS) appropriations act ($23.04 billion in the

request), plus an additional increment ($70 million in the request) from the appropriations act

covering the Departments of Veterans Affairs, Housing and Urban Development (VA-HUD)

and several independent agencies, including the Environmental Protection Agency (EPA).

NIH has responsibility for some hazardous waste research and worker training programs

under the Superfund Act that previously have been funded by interagency transfer from EPA,

and not counted in the NIH budget. Starting with the FY2001 VA-HUD appropriation, a

separate account gives the money directly to NIH.

The President has said he is committed to continuing the path to doubling the NIH

budget over the 5-year period ending in FY2003 (the Superfund money did not count in the

original calculation). His request for FY2002 is not quite large enough to be precisely “on

track” for the doubling; the biomedical research advocacy community is calling on Congress

to provide an increase of $3.4 billion or 16.5% to reach a FY2002 total of $23.7 billion. With

the lower amount proposed in the request for FY2002, the Bush budget projects that for

FY2003 an increase of nearly18% would be needed to reach the target total of $27.2 billion.

Three “installments” on the doubling have been provided in L-HHS appropriations since the

FY1998 base year budget level of $13.6 billion: the appropriation was increased by $2.0

billion or 14.6% to $15.6 billion in FY1999; by $2.2 billion or 14.2% to $17.8 billion in

FY2000; and by $2.5 billion or 13.9% to $20.3 billion in FY2001.

NIH’s plans for spending these large sums focus around four broad “research themes”

representing opportunities across all institutes and centers for new scientific knowledge and

applications to strategies for diagnosing, treating, and preventing disease. These areas of

research potential include: (1) genetic medicine/exploiting genomic discoveries (DNA

sequencing, identification of disease genes, development of animal models); (2) reinvigorating

clinical research (strengthening clinical research centers, clinical trials, and clinical training,

including support of four new loan repayment programs); (3) infrastructure and enabling

technologies, including interdisciplinary research (advanced instrumentation, biocomputing

and bioinformatics, engaging other scientific disciplines in medical research on drug design,

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imaging studies, biomaterials); and (4) eliminating health disparities in minorities and other

medically underserved populations. No specific funding levels are mentioned for these

“theme” areas. Two new entities created by Congress last year, the National Institute of

Biomedical Imaging and Bioengineering (NIBIB) and the National Center on Minority Health

and Health Disparities (NCMHD), would be funded at $40 million and $158 million,

respectively.

The request continues NIH’s emphasis on support of extramural research, particularly

basic research, through independent investigator-initiated research project grants. Over

36,100 competing and non-competing projects would be supported, a record number, with

the same number of new and competing awards (9,158) as in FY2001. Other funding

mechanisms, including research training, research centers, contracts, intramural research, and

research management would receive increases ranging from 9% to 20%. Intramural

construction would be nearly doubled, including funding for a new Neurosciences Research

Center and a new animal facility, while extramural construction would increase 28% to $100

million.

The request for the fourth year of substantial new resources for NIH raises several

questions for Congress and the agency. In the face of restraints on the growth of

discretionary spending, Congress must decide how to handle the growing disparity between

funding for health research and support of other fields of science, as well as the impact of

large increases for NIH on the other programs funded in the Labor-HHS appropriations act.

NIH itself is struggling with the increasing strain on its research management and support

system, funding for which has not kept pace with its growing responsibilities from large

budget increases. In addition, NIH is making plans for the expected transition from the years

of plentiful resources during the doubling effort to subsequent years of a maintenance level

of effort. The agency is currently analyzing strategies to “maximize budgetary and

management flexibility,” including whether some grants and contracts might be given full

funding in their first year to lessen the burden of commitments in future years. Another

strategy under study is support of more one-time activities such as high-priority construction

and renovation projects that will not require funding commitments in the future. Finally,

contentious issues in several areas of research oversight continue to draw attention: research

on human stem cells, human embryo research, cloning, human subjects protection, gene

therapy, and conflicts of interest on the part of researchers.

The House voted on its Labor/HHS/Education bill (H.R.3061). The House

Appropriations Committee had recommended $22.9 billion for NIH. The Senate

appropriations committee reported out its Labor/HHS/Education bill (S.1536), recommending

appropriations of $23.7 billion for NIH.

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Table 5. National Institutes of Health (NIH)

($ millions)

FY1999

actual a,b

Cancer (NCI)

$2,918.0

Heart/Lung/Blood (NHLBI)

1,788.0

Dental/Craniofacial Research (NIDCR)

233.6

Diabetes/Digestive/Kidney Dis. (NIDDK)

991.1

Neurological Disorders/Stroke (NINDS)

900.2

Allergy/Infectious Diseases (NIAID)

1,565.2

General Medical Sciences (NIGMS)

1,203.1

Child Health/Human Developmt (NICHD)

748.6

Eye (NEI)

394.6

Environmental Health Sciences (NIEHS)

374.5

Aging (NIA)

594.6

Arthritis/Musculoskeletal/Skin (NIAMS)

307.2

Deafness/Communication Dis. (NIDCD)

229.2

Nursing Research (NINR)

69.6

Alcohol Abuse/Alcoholism (NIAAA)

258.9

Drug Abuse (NIDA)

601.6

Mental Health (NIMH)

858.5

Human Genome Research (NIHGR)

279.0

Biomedical Imaging/Bioenginrg (NIBIB) e

0

Research Resources (NCRR)

562.1

Complementary/Alt. Medicine (NCCAM)

40.5

Minority Health/Disparities (NCMHD) f

0

Fogarty International Center (FIC)

35.3

Library of Medicine (NLM)

181.0

Office of Director (OD)

255.6

Buildings & Facilities (B&F)

216.9

[AIDS/Off of AIDS Research (non-add)] g

[1,792.7]

Subtotal,NIH Progs (L-HHS Approp)

$15,606.8

Superfund (VA-HUD Approp to NIEHS) h

60.0

Total,NIH Budget Authority

$15,666.8

Institutes and Centers (ICs)

FY2000

comp a,c

$3,299.6

2,024.9

268.9

1,141.3

1,029.8

1,812.4

1,371.1

861.4

449.9

443.3

688.0

349.2

264.1

90.3

293.1

686.8

974.1

335.5

0.2

674.6

78.4

97.6

43.3

215.0

162.2

165.4

[2,004.4]

$17,820.2

60.0

$17,880.2

FY2001

comp a,d

$3,737.9

2,299.1

306.2

1,303.8

1,177.0

2,063.0

1,540.2

978.9

510.6

503.1

786.5

396.6

301.1

105.2

340.6

781.0

1,106.7

382.1

2.0

817.3

89.1

132.1

50.5

246.4

187.5

153.8

[2,243.4]

$20,298.3

62.9

$20,361.1

FY2002

request a

$4,177.2

2,567.4

341.9

1,457.9

1,316.4

2,355.3

1,720.2

1,096.6

571.1

561.8

880.0

443.6

336.8

117.7

382.0

907.4

1,238.3

426.7

40.2

974.0

100.1

158.4

56.4

275.7

232.1

306.6

[2,501.4]

$23,041.9

70.2

$23,112.1

Source: NIH FY2002 Justification of Estimates for Appropriations Committees.

Note: Columns may not add due to rounding.

a. Does not include these transfers: funds for diabetes research (NIDDK) that were pre-appropriated in the

Balanced Budget Act of 1997 and the Benefits Improvement and Protection Act of 2000 (FY99 and

FY00=$27 million; FY01 and FY02=$93.2 million); and $9.5 million (FY00-02) to NIDA from Office

of National Drug Control Policy ($9.670 million in FY99).

b. FY1999 (actual obligations, not comparable) reflects transfer of $4.967 million to DHHS under the

Secretary’s 1% transfer authority and rescission of $10.230 million in administrative and travel funds.

c. FY2000 reflects rescission of $99.883 million, transfer of $3.516 million to DHHS under Secretary’s 1%

transfer authority, transfer of $20 million from NIAID to Centers for Disease Control, transfer to NIAID

of $19.883 million for NIH Challenge Grants. Comparable for Central Services formula adjustments

and AREA Awards. Includes $40 million advance appropriation for Buildings and Facilities from

FY1999 appropriation.

d. FY2001 reflects rescission of $8.666 million, $0.139 reduction in Superfund activities, transfer of $5.8

million to DHHS for Office for Human Research Protection, and comparable adjustments for the AREA

Awards from OD to the ICs.

e. National Institute for Biomedical Imaging and Bioengineering was established Dec. 2000. Activities were

previously funded by the OD Office of Bioengineering, Bioimaging, and Bioinformatics.

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f. National Center for Minority Health and Health Disparities was established Nov. 2000. Activities were

previously funded by the OD Office of Research on Minority Health.

g. All AIDS funding is appropriated to the individual institutes and centers. Total AIDS spending, as jointly

determined by the NIH Director and the Director, Office of AIDS Research, is shown in brackets.

h. Separate account starting in FY2001. In FY1999 and FY2000, the appropriation was made to the

Environmental Protection Agency, which reimbursed NIEHS for Superfund activities.

The National Science Foundation (NSF)

The FY2002 request for the National Science Foundation (NSF) is $4,472.5 million,

1.3% ($56.1 million)above the FY2001. (see Table 6). The FY2002 request provides support

for several interdependent priority areas: biocomplexity in the environment ($58.1 million,

5.9% above FY2001), information technology research ($272.5 million, 5% above FY2001),

learning for the 21st century ($125.5 million, 3% above FY2001), and nanoscale science and

engineering ($173.7 million, 16% above FY2001). NSF will continue its lead role in the

multi-agency National Nanotechnology Initiative. The request includes $200 million in

support of the President’s New Math and Science Partnerships Initiative (MSPI). The MSPI

will provide funding for states and local school districts to join with colleges and universities

to strengthen K-12 science and mathematics education. The NSF will provide leadership in

the MSPI. In addition to the math and science partnerships, the request highlights increased

funding for graduate students ($26.2 million) and interdisciplinary mathematics research ($20

million). The FY2002 budget provides funding of approximately $25.6 million to initiate a

new cohort of six to eight science and technology centers. The NSF will continue its

support of plant genome research, proposing $65 million in FY2002.

Table 6. National Science Foundation

($ millions)

Res. & Related Act.

Biological Sciences

Computer & Inform. Sci. & Eng.

Engineering

Geosciences

Math & Physical Sci.

Social, Behav. & Econ. Sci.

U.S. Res. Prog.

U.S. Antarctic Log. Act.

Integrative Activities

Subtotal Res. & Rel. Act

Ed. & Hum. Resr.

Major Res. Equip.

Salaries & Expenses

Office of Inspec. Gen.

Total NSF

FY2001

Est.

FY2002

Req.

$485.4

477.9

430.8

562.2

850.8

164.4

210.8

62.5

97.8

3,342.6

785.6

121.3

160.5

6.3

$4,416.4

483.1

470.4

431.1

558.5

863.6

163.2

214.0

62.6

80.6

3,327.0

872.4

96.3

170.0

6.8

$4,472.5

FY2002

House

–

FY2002

Senate

–

–

–

–

–

–

–

–

–

3,642.3

885.7

135.3

170.0

6.8

$4,840.2

–

–

–

–

–

–

–

–

3,514.5

872.4

108.8

170.0

6.8

$4,672.5

Included in the FY2002 request is $3,327 million for Research and Related Activities

(R&RA), 0.5% ($15.7 million) below FY2001 estimate of $3,342.6 million. R&RA funds

research projects, research facilities, and education and training activities. In the FY2002

request, the NSF has placed an emphasis on funding rates for new investigators and on

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increasing grant size and duration. The R&RA includes Integrative Activities (IA), created

in FY1999, which funds cross-disciplinary research, major research instrumentation,

intellectual infrastructure, and the Science and Technology Policy Institute. The FY2002

request for IA is $80.6 million, a decrease of $17.1 million below FY2001.

Research project support in the FY2002 request totals $2,219.8 million, a decrease of

1.4% below FY2001. 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 $325 million. NSF supports a variety of individual centers

and center programs. The request provides $45 million for Science and Technology Centers

(STC). Continued support is provided for an additional five new centers initiated in FY1999.

Twelve STCs that explore interdisciplinary research activities are being phased down as

planned. Funding resulting from the phasing down of those STCs will allow for the

establishment of a new cohort of centers in FY2002. The support for Information

Technology Centers, initiated in FY2000, is $53 million. Research facility support in FY2002

is $1,024 million, 3.5% below FY2001.

The Major Research Equipment (MRE) account requested $96.3 million in FY2002,

20.6% ($25 million) below the FY2001 level. The MRE, established in FY1995, supports the

construction of major research facilities that are at the “cutting edge of science and

engineering.” Three projects are supported in this account for FY2002: the Terascale

Computing Systems ($55 million), the Large Hadron Collider ($16.9 million), and the

Network for Earthquake Engineering simulation ($24.4 million). The Atacama Large

Millimeter Array (previously referred to as the Millimeter Array) is provided $9 million from

the R&RA. This support is tentative, pending a review of facilities management issues. No

funds are requested in FY2002 for the High-Performance Instrumented Airborne Platform for

Environmental Research (HIAPER). Funding was completed in FY2001 for the South Pole

Station Modernization.

The FY2002 request for the Education and Human Resources Directorate (EHR) is

$872.4 million, 11% ($86.8 million) above the FY2001 estimate. Support at the various

educational levels in the FY2002 request is as follows: precollege, $357.7 million;

undergraduate, $150.6 million; and graduate, $103.6 million. Support at the precollege level

includes an investment of $200 million to initiate the MSPI. The MSPI addresses such issues

as teacher preparation and training, curriculum construction, and science and mathematics

standards. The MSPI is the centerpiece of EHR’s education activities at this level, resulting

in the redirection of $110 million from other EHR programs. Funding remains constant at

$20.7 million in FY2002 for Centers for Learning and Teaching (CLT). Support will continue

for the Systemic Reform Initiatives and Instructional Materials Development.

Major programs at the undergraduate level are Advanced Technological Education,

Louis Stokes Alliances for Minority Participation, Scholarship for Service, Minority-Servicing

Institutions, and Course Curriculum, and Laboratory Improvement. The increased support

at the graduate level allows NSF to raise the stipend of graduate fellows and to increase the

number of offers to new fellowships. Support at this level is directed at the Graduate

Research Fellowship, Graduate Teaching Fellows in K-12 Education, Integrative Graduate

Education and Research Traineeships, and Alliances for Graduate Education and the

Professoriate (formerly the Minority Graduate Education program). Funding for the

Experimental Program to Stimulate Competitive Research (EPSCoR) is $74.8 million (an

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additional $24.6 million from R&RA will support EPSCoR activities). It is anticipated that

the H-1B nonimmigrant petitioner fees collected in FY2002 will approximate $144 million.

On July 25, 2001, the House Appropriations Committee reported H.R. 2620 (H.Rept.

107-159), VA, HUD, and Independent Agencies Bill. The bill provides a total of $4,840.2

million for NSF in FY2002, $367.7 million above the President’s request. Included in the

total is $3,642.3 million for R&RA, an increase of $315.3 million over the request. The

Senate reported its version on July 20 (S. 1216, S.Rept. 107-43). The Senate provides a total

of $4,672.5 million for NSF in FY2002, $200 million more than the request and $167.7

million less than the House version. The Senate provides $3,514.5 million for R&RA, $187.5

million above the request, and $127.8 million below the House version.

Department of Commerce (DOC)

National Oceanic and Atmospheric Administration (NOAA)

For FY2002, The President requests $649 million for NOAA R&D (See Table 7),

approximately 21% of the total budget for the agency ($3.1 billion). This amount includes

funding for R&D equipment and R&D facilities construction and maintenance. The FY2002

request is about 2.2% greater than FY2001 appropriations (Budget officials at NOAA

contend that FY2002 request for R&D is actually $751 million. OMB and NOAA officials

are reviewing FY2002 R&D estimates.) NOAA provides R&D funding to its budget line

offices from Operations, Research, and Facilities (ORF); Procurement, Acquisition, and

Construction (PAC); and Other accounts. R&D funding requested for ORF for FY2002

would be divided as follows: National Ocean Service (NOS)-$64 million; National Marine

Fisheries Service (NMFS)-$302 million; Oceanic and Atmospheric Research (OAR)-$279

million; National Weather Service (NWS)-$17 million; National Environmental Satellite Data

and Information Service (NESDIS)-$11million; Program Support (PS)-$52 million; Fleet

Maintenance & Planning (FM&P)-$8 million. Funding for PAC would be $16 million and

Other Accounts $2.4 million (PDAF).

Some 37% of NOAA’s R&D funding request for FY2002 would go to OAR and would

fund 12 environmental research labs which do research that supports NOAA operational

programs in weather, climate, and atmosphere, and Great Lakes and oceanic research. OAR

funds intramural research and also provides grants to states through the National Sea Grant

College and National Underwater Research Programs (NURP). NMFS would receive 40%

of total R&D funding for fisheries research and research on endangered species. Together

OAR and NMFS lines would account for about 77% of all NOAA R&D Funding for FY2002.

Remaining R&D funding is distributed to other ORF budget lines including NOS, NWS and

NESDIS, and would also fund maintenance of research facilities (including non-OAR

laboratories).

For FY2002, the largest R&D increases were slated for NMFS fisheries information

collection and analysis, and for research grants to States involved in endangered species

conservation and management. The latter included $29 million for Stellar Sea Lion research.

Other notable increases in R&D funding were for Climate and Observation Services; NWS

Operations and Research for Central Forecast Guidance; U.S. Weather Research Program;

2002 Ocean Exploration Initiative; PS Aircraft Services, and PDAF. A decrease was

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proposed for R&D for Satellite Observation Systems under NESDIS. However, this decrease

represented a transition from research to operation for NPOESS and GOES satellite systems

funded in the operational budget. As of October 2001, the American Association for the

Advancement of Science (AAAS) has estimated FY2002 appropriations for R&D at NOAA

to be $744 million, as approved by the House, and $835 million as approved by the Senate

in H.R. 2500, Commerce appropriations for FY2002.

National Institute of Standards and Technology

In his FY2002 budget proposal, President Bush requested $487.5 million in funding for

the National Institute of Standards and Technology (NIST), 19% less than the FY2001

appropriation (see Table 7). Support for the Scientific and Technical Research and Services

(STRS) account that funds in-house R&D would be $347.3 million, 11% over the current

fiscal year. The Manufacturing Extension Program (MEP) would be financed at $106.3

million, while new grants under the Advanced Technology Program (ATP) would be

suspended pending an additional evaluation pf the activity. However, $13 million would be

provided for on-going project commitments. Construction efforts would be funded at $20.9

million.

As passed by the House, H.R. 2500, the FY2002 appropriations bill would provide $490

million for NIST, an 18% decrease in support primarily due to an absence of funding for

ATP. The STRS account would receive $348.6 million (a 12% increase over FY2001) while

financing for ITS would total $119.5 million. Of this amount, $106.5 million is for the MEP

and $13 million is to cover prior funding agreements under ATP although this program would

be eliminated. The construction budget would be $20.9 million.

The Senate-passed version of H.R. 2500 would fund NIST at $696.5 million, 42% above

the figure contained in the House bill and 16% more than FY2001. Internal R&D under the

STRS account would receive $343.3 million (a 10% increase) while ITS would be financed

at $309.3 million including $105.1 million for MEP and $204.2 million for ATP (40% over

the current fiscal year). The Committee report to accompany S. 1215, the original Senate

appropriations bill, states that the ATP activity should be continued contrary to the

President’s budget proposal. Funding for construction at NIST would total $43.9 million,

more than double that contained in the House bill and the Administration request.

In the conference report (H.Rept. 107-278), the conference committee provided $321

million for STRS, $107 million for ITS, $185 million for ATP (including $61 million for new

projects), and $62 million for construction, with the additional resources directed at specific

projects.

The FY2001 appropriation for NIST was $598.3 million, a 6% reduction from the

previous fiscal year. Most of this decrease was due to a significantly smaller construction

budget reflecting completion of the new advanced measurement laboratory. Concurrently,

there was an 11% increase in support for the laboratory’s internal R&D activities under the

STRS account. Included in this FY2001 funding figure was $312.6 million for STRS, $105.1

million for MEP (a 4% increase), $145.7 million for ATP (1.5% above the previous year),

and $34.9 million for construction.

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Department of the Interior (DOI)

The Department of the Interior’s proposed budget for FY2002 includes $593 million

for R&D, a 6.2% decrease from the $632 million estimate for FY2001 (see Table 7). The

U.S. Geological Survey is the primary science and research arm of the DOI. The USGS is the

nation’s primary provider of earth and life science information related to natural hazards; the

environment; and energy, mineral, water, and biological resources. Other DOI agencies that

perform R&D are the Park Service, the Bureau of Land Management, the Bureau of

Reclamation, and, the Minerals Management Service, whose budget would increase 49% in

FY2002 to $47 million.

Funding for USGS would decline 11% to $491 million, $59 million below the $550

million it receives in FY2001. Of its three major research areas, Water Resources

Investigations activity is scheduled to drop 21%, with the elimination of some programs,

including a significant reduction in the National Water Quality Assessment Program. The

Biological Research Program would decline $11.3 million, or 7% to $ $149.2 million. Most

of the cuts come from the Biological Information Management and Delivery program. The

third area of research, Geological Hazards, Resources and Processes, or earth sciences, is

requesting $213.8 million, $11.5 million less than FY2001 estimated level. Geological

Landscape and Coastal assessments would receive $10 million less than FY2001.

The House passed its appropriations for Interior (H.R. 2217) on June 21. The bill adds

to the President’s request in all of the USGS accounts mentioned above. In the case of both

Water Resources and Biological Research, recommended funding levels exceed last year’s

appropriations by a few million dollars. The Senate passed its version of the Interior

appropriations on July 12. It, too, voted similar increases for the above mentioned research

programs. The conference report, signed into law November 5, provides $914 million for

all USGS activities. The biological research activity was funded at $166 million.

Department of Transportation (DOT)

The Department of Transportation requests a total of $795 million for R&D during

FY2002 (see Table 7). The total R&D proposal is a 6.9% increase over the estimated total

$743 million for FY2001. Many of DOT’s R&D activities receive funds from transportation

trust funds, rather than discretionary portion of the budget. The Federal Highway

Administration’s R&D programs are estimated to receive $374 million, $81 million, or 27%

above FY2001. The Federal Aviation Administration will receive $276 million, a decrease of

$26 million below FY2001 funding. The National Highway Transportation Safety

Administration’s R&D activities will increase $1 million to $59 million for FY2002. The

House passed its appropriation bill for Transportation (H.R. 2299) on June 26.

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Environmental Protection Agency (EPA)

The Administration requested $575 million for EPA’s R&D activities in FY2002. This

is a 6% reduction from the FY2001estimated budget of $612 million (see Table 7).

According to the Office of Management and Budget, the majority of the reduction is due to

the Administration’s elimination of numerous congressionally designated research projects,

that will not be continued in FY2002. The House approved VA-HUD spending bill H.R.

2620 on July 30, 2001 with an increase for EPA Research of $39 million over the President’s

request, to a total of $680 million, $16 million below FY2001. The Senate approved S. 1216

on August 3, 2001 with an increase for EPA S&T of $25 million above the budget request,

to $666 million, $30 million below the enacted level. S. 1216 also transfers $37 million from

the Superfund account for a total of $702 million for S&T. A major continuing congressional

concern is the quality of science upon which EPA bases its regulations, criteria, and programs.

R&D in EPA is also referred to as the “S&T Account,” which incorporated elements of the

former research and development account (also called extramural research) as well as EPA’s

in-house R&D and technology efforts.

Table 7. R&D Budgets of Preceding Agencies

($ millions)

FY1999

Act.

FY2000

Act.

FY2001

Est.

FY2002

Request

Nat. Oceanic & Atmos. Admin.

577

596

634

649

Nat. Instit. of Stand. & Tech.

641

636

598

488

Dept. of the Interior

532

618

632

593

Dept. of Transportation

500

603

743

795

Envir. Protection Agency

660

559

612

575

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