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

a continuing resolution, or CR (P.L. 108-5),

which essentially maintains spending at

FY2002 levels for the 11 appropriations bills

lacking enacted FY2003 appropriations,

through February 20, 2003. The

107thCongress completed work on 2 of its 13

appropriations bills, Defense and Military

Construction.

On January 28th, the Senate completed

work on an FY2003 Omnibus appropriations

bill, (H.J.Res. 2) that includes the 11 agencies

currently operating under a CR. CRS estimates that the Senate’s actions would result

in a total Federal R&D budget of $116 billion. The Senate estimate includes $57.4

billion for DOD R&D approved by the 107th

Congress. The Senate Omnibus resolution

includes an estimated $27.2 billion for NIH,

essentially what the President requested for

FY2003. The Senate also recommended a

12% increase for NSF’s Research and Related

Activities Account, and a 5% increase for

NASA’s R&D programs. These totals do not

reflect potential across-the-board cuts Congress could employ in order to move closer to

the President’s proposed discretionary spending levels. After the House completes work on

its version of the Omnibus bill, it will have to

resolve any recommended funding differences

with the Senate approved bill. To date, in

most instances, (except for NIH) the House

and Senate have provided more funding for

R&D, than the President’s request.

pment (R&D) funding for FY2003. This is

$8.6 billion above what is available for federal

R&D in FY2002. The growth is concentrated

in the areas of defense (Department of Defense) and health (National Institutes of

Health). The budget proposed more modest

growth in other mission areas and proposed

decreases in some agencies’ R&D budgets

when compared to FY2002 budget authority.

The proposed allocation of R&D resources

continues the debate regarding balance in the

federal R&D portfolio.

Under the President’s proposal nondefense R&D would increase 7.2% to $53.2

billion. NIH would receive a 16% increase in

funding reaching $27.3 billion, comprising

nearly 50% of non-defense R&D spending. If

approved, this would complete Congress’s

goal of doubling NIH funding between

FY1999 and FY2003. Funding for defense

R&D (the sum of DOD and DOE’s defense

R&D) would increase 9.9% to $58.8 billion.

While funding for DOD’s R&D program is

schedule to increase over 10%, its basic and

applied research programs are scheduled to

decline 5.8%.

Federal support for basic research would

increase $1.9 billion, reaching a record $25.5

billion This is primarily due of a record increase of $1.185 billion in NIH’s basic research program. Total federal research funding

(basic + applied research) is proposed to

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 $)

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, ARSa

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

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 Service

TOTAL, Research, Education &

Economics

FY2002

Est.

FY2003

Req.

FY2003

House

FY2003

Senate

Omnibus

92.0

333.0

174.1

177.0

77.0

39.0

20.0

18.2

35.0

1,022.0e

119.0

1,176.0

109.0

368.0

198.0

194.0

79.0

40.0

23.0

18.2

35.0

1,049.0

17.0

1,066.0

1,002.2

95.3

1,097.5

1,053.6

101.0

1,154.6

180.1

21.9

32.6

2.8

120.0

5.1

45.0

36.0

556.0

180.1

21.9

32.6

0.0

240.0

5.1

20.0

36.0

566.0

182.0

23.0

36.0

102.8

130.0

5.1

27.1

27.5

572.6

185.6

22.5

35.6

103.8

204.3

5.3

29.0

32.8

651.4

275.9

85.5

3.2

66.0

5.7

441.0

1,042.1

76.0

122.0

275.9

85.5

3.2

66.0

18.6

421.0

1,032.0

82.0

149.0

277.0

84.2

5.0

14.0

17.1

441.8

1,014.4

73.3

137.9

281.2

93.4

4.1

47.1

20.7

452.8

1,104.2

65.1

140.9

$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

Comparable

FY2003

Request

FY2003

House 1

FY2003

Senate 2

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

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

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

204.7

92.0

103.0

77.0

204.7

92.0

103.0

77.0

8916.1

8783.2

9084.5

9157.1

National Security

Science

Energy Supply

Environmental Quality

Science and Technology 6

Total

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)

Accounts

Army

Navy

Air Force

Defense Agencies

(DARPA)

(BMDOa)

Dir. Test & Eval

Dir. Op.Test/Eval

Total

Budget Activity

Basic Research

Applied Res.

Advanced Dev.

Demonstration/Va

lidation

Engineering/Man

ufacturing Dev.

Mgmt. Supportb

Op. Systems Dev.

FY2002

Estimate

FY2003

Req.c

House

Auth.

(H.R.

4546)

Senate

Auth.

(S.

2514)

House

Apprn.

(H.R.

5010)

Senate

Apprn.

(H.R.

5010)

Conf.

Apprn.

(H.R.

5010)

7,053

11,389

14,548

15,285

(2,253)

(6,969)

230

–

$48,505

6,918

6,933

7,301

12,502

13,275 12,929

17,601

18,803 18,604

16,614

17,191 16,491

(2,685)

(2,578) (2,245)

(6,691)

(6,991) (5,924)

222

222

362

–

–

–

$53,857 $56,424 $55,686

7,447

13,562

18,639

17,863

(2,851)

(6,821)

242

–

$57,753

7,410

13,276

18,538

16,611

(2,698)

(6,145)

303

7,628

13,865

18,729

17,734

(2,778)

(6,741)

246

$56,138

$58,202

1,376

4,086

4,415

10,361

1,365

3,780

4,532

10,539

1,354

3,832

4,837

10,973

1,413

3,971

4,780

10,155

1,418

4,451

5,483

10,905

1,491

4,479

4,822

9,832

1,494

4,598

5,383

11,059

11,018

13,550

13,950

13,677

13,449

14,106

14,034

2,850

14,399

2,890

17,200

2,959

18,674

3,274

18,767

3,053

3,200

3,075

19,150

18,362

19,120

-155

-155

-107

-91

-155

-155

-155

$57,754

$56,137

-299

-107

$58,202

Adjustments

personnel cost accural

financial mgmt. svgs.

contract services svgs.

Section 8100 svgs.

Section 8109 svgs.

Total Ob. Auth.

$48,505

Other Defense Programs

Defense Health

464

Program

Chemical Agents

202

and Munitions

Destruction

$53,857 $56,424 $55,684

67

67

67

400

394

459

303

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)

Funding Category

FY2002

Approp.

FY2003

Request

H. App. Cmte.

Oct. ‘02

S. App. Cmte.

Jan. ‘03

Human Space Flight (R&D only)

International Space Station

Investments and Support*

Space Comm. & Data Systems*

2,298.5

1,721.7

412.9

163.9

1,893.7

1,492.1

365.2

36.4

1,893.7

1,492.1

365.2

36.4

1,861.7

1,457.1

365.2

36.4

Science, Aeronautics, and Technology

Space Science

Biological. & Physical Research

Earth Science

Aero-Space Technology

Academic Programs

8,047.8

2,867.1

820.0

1,625.7

2,507.7

227.3

8,844.5

3,414.3

842.3

1,628.4

2,815.8

143.7

9,144.5

3,556.2

854.2

1675.0

2,883.4

178.9

9,003.0

3,515.5

1,675.6

851.8

2,762.7

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-theboard 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 5year 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)

FY2001

comp a

Cancer (NCI)

$3,720.9

Heart/Lung/Blood (NHLBI)

2,287.0

Dental/Craniofacial Research (NIDCR)

304.6

Diabetes/Digestive/Kidney (NIDDK)

1,302.8

Neurological Disorders/Stroke (NINDS)

1,172.1

Allergy/Infectious Diseases (NIAID)

2,062.1

General Medical Sciences (NIGMS)

1,531.0

Child Health/Human Develmt (NICHD)

978.1

Eye (NEI)

507.8

Environmental Health Sciences (NIEHS)

503.0

Aging (NIA)

786.1

Arthritis/Musculoskeletal/Skin (NIAMS)

395.0

Deafness/Communication Dis. (NIDCD)

301.1

Nursing Research (NINR)

105.2

Alcohol Abuse/Alcoholism (NIAAA)

340.5

Drug Abuse (NIDA)

779.5

Mental Health (NIMH)

1,103.1

Human Genome Research (NIHGR)

381.1

Biomedical Imaging/Bioenginrg (NIBIB)

68.8

Research Resources (NCRR)

811.2

Complementary/Alt. Medicine (NCCAM)

89.1

Minority Health/Disparities (NCMHD)

132.0

Fogarty International Center (FIC)

50.5

Library of Medicine (NLM)

238.2

Office of Director (OD)

188.3

Buildings & Facilities (B&F)

160.9

Subtotal, NIH (L-HHS Approp)

$20,300.1

Superfund (VA-HUD Approp, NIEHS) d

62.9

Total, NIH Budget Authority

$20,363.0

Institutes and Centers (ICs)

FY2002

comp b

$4,128.4

2,560.2

343.1

1,466.4

1,312.8

2,534.5

1,700.1

1,113.1

581.2

566.1

893.1

448.7

342.0

120.4

384.1

887.7

1,238.1

429.3

262.0

986.5

104.6

157.7

56.9

277.3

235.4

296.0

$23,425.7

80.7

$23,506.5

FY2003

request c

$4,642.4

2,776.4

372.2

1,604.6

1,424.4

3,990.5

1,855.0

1,213.8

630.0

614.3

968.7

486.6

370.8

130.4

416.8

964.6

1,343.1

465.1

271.2

1,065.3

113.2

186.9

63.4

310.3

255.1

632.8

$27,167.9

76.1

$27,244.0

FY2003

Senate c

$4,642.4

2,820.0

374.1

1,637.3

1,466.0

3,727.5

1,853.6

1,213.8

634.3

617.3

1,000.1

489.3

372.8

131.4

418.8

968.0

1,350.8

468.0

283.1

1,161.3

114.1

186.9

60.9

302.1

258.0

607.8

$27,159.7

76.1

$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)

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. & Facil. Constr.

Salaries & Expenses

Office of Inspec. Gen.

Total NSF

FY2002

Act.

FY2003

Req.

FY2003

House

(Oct.

2002)

FY2003

Senate

Omnibus

(Jan.2003)

$508.4

514.9

472.3

609.5

920.5

168.8

229.7

68.1

106.5

3,598.6

894.3a

138.8

170.0

6.8

$4,808.5

$525.6

526.9

488.0

691.1

941.6

195.6

235.7

68.1

110.6

3,783.2

908.1

126.3

210.2

8.1

b

$5,035.8

$584.7

592.1

543.2

700.9

1,058.5

195.6

254.0

70.4

150.6

4,150.0

910.6

159.5

193.9

9.0

$5,422.9

$528.1

596.2

559.0

671.2

1,042.9

187.5

242.8

67.2

133.9

4,028.6

920.6

58.5

179.8

8.9

$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)

National Oceanic and Atmospheric

Administration

National Institute of Standards &

Technology

Department of Interior

Department of Transportation

Environmental Protection Agency

FY2000

Actual

$610

FY2001

Actual

$684

FY2002

Estimate

$792

FY2003

Request

$575

636

598

675

578

645

603

559

622

792

709

660

867

825a

628

725

670

a. Includes $90.3 million in supplemental funding for Homeland Security.

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