Federal Research and Development Funding: FY2018

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Federal Research and Development Funding:

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Federal Research and Development Funding: FY2018

Summary

President Trump’s budget request for FY2018 includes $117.697 billion for research and

development (R&D). This represents a $30.605 billion (20.6%) decrease from the FY2016 actual

level of $148.302 billion (FY2017 enacted levels were not available at the time of publication).

Adjusted for inflation, the President’s FY2018 R&D request represents a constant dollar decrease

of 23.6% from the FY2016 actual level.

However, in 2016 the Office of Management and Budget changed the definition used for

“development” to “experimental development.” This new definition was used in calculating R&D

in the FY2018 budget, but no adjustments were made to data reported for FY2016 or FY2017

data to reflect the new definition. OMB asserts that the definitional change results in the

exclusion of $33.547 billion from FY2018 requested R&D funding (DOD and NASA) that would

have been included in previous years. According to OMB, these funds are being requested in the

FY2018 budget, but no longer classified as R&D. Thus, applying the prior definition for R&D,

aggregate federal R&D in the Trump Administration’s budget for FY2018 would represent a

$2.942 billion (2.0%) increase over FY2016; in constant dollars, federal R&D would be down

$2.837 billion, or 1.9%. The DOD and VA would receive increased R&D funding for FY2018.

The other major federal R&D funding agencies would see their R&D budgets reduced under the

President’s budget.

The request represents the President’s R&D priorities; Congress may opt to agree with none, part,

or all of the request, and it may express different priorities through the appropriations process. In

particular, Congress will play a central role in determining the allocation of the federal R&D

investment in a period of intense pressure on discretionary spending. Budget caps may limit

overall R&D funding and may require movement of resources across disciplines, programs, or

agencies to address priorities.

Funding for R&D is concentrated in a few departments and agencies. Under President Trump’s

FY2018 budget request, eight federal agencies would receive 96.5% of total federal R&D

funding, with the Department of Defense (45.4%) and the Department of Health and Human

Services (22.2%) combined accounting for more than two-thirds of all federal R&D funding.

President’s Trump’s FY2018 budget is largely silent on funding levels for a number of

multiagency R&D initiatives in President Obama’s FY2017 request, including the National

Nanotechnology Initiative, Networking and Information Technology Research and Development

program, U.S. Global Change Research Program, Brain Research through Advancing Innovative

Neurotechnologies (BRAIN) initiative, Precision Medicine Initiative, Cancer Moonshot,

Materials Genome Initiative, National Robotics Initiative, and National Network for

Manufacturing Innovation. However, some activities supporting these initiatives are discussed in

agency budget justifications and reported in the agency analyses in this report.

In recent years, Congress has completed the annual appropriations process after the start of the

fiscal year. Failure to complete the process by the start of the fiscal year and the accompanying

use of continuing resolutions can affect agencies’ execution of their R&D budgets, including the

delay or cancellation of planned R&D activities and the acquisition of R&D-related equipment.

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Federal Research and Development Funding: FY2018

Contents

Introduction ..................................................................................................................................... 1

The President’s FY2018 Budget Request ........................................................................................ 3

Federal R&D Funding Perspectives ................................................................................................ 3

Federal R&D by Agency ........................................................................................................... 4

Federal R&D by Character of Work, Facilities, and Equipment ............................................... 6

Federal Role in U.S. R&D by Character of Work ..................................................................... 7

Federal R&D by Agency and Character of Work Combined .................................................... 7

Multiagency R&D Initiatives .......................................................................................................... 8

Networking and Information Technology Research and Development Program...................... 9

U.S. Global Change Research Program .................................................................................... 9

National Nanotechnology Initiative .......................................................................................... 9

Other Initiatives....................................................................................................................... 10

FY2018 Appropriations Status ...................................................................................................... 10

Department of Defense .................................................................................................................. 12

Department of Health and Human Services .................................................................................. 15

National Institutes of Health ................................................................................................... 16

Department of Energy ................................................................................................................... 23

National Aeronautics and Space Administration ........................................................................... 27

National Science Foundation ......................................................................................................... 30

Department of Agriculture ............................................................................................................. 35

Agricultural Research Service ................................................................................................. 35

National Institute of Food and Agriculture ............................................................................. 36

National Agricultural Statistics Service .................................................................................. 37

Economic Research Service .................................................................................................... 37

Department of Commerce ............................................................................................................. 38

National Institute of Standards and Technology ..................................................................... 39

National Oceanic and Atmospheric Administration ................................................................ 41

Department of Veterans Affairs ..................................................................................................... 44

Department of the Interior ............................................................................................................. 47

U.S. Geological Survey ........................................................................................................... 48

Other DOI Components .......................................................................................................... 49

Department of Transportation........................................................................................................ 50

Federal Aviation Administration ............................................................................................. 51

Federal Highway Administration ............................................................................................ 51

National Highway Traffic Safety Administration ................................................................... 52

Other DOT Components ......................................................................................................... 52

Department of Homeland Security ................................................................................................ 53

Directorate of Science and Technology (S&T) ....................................................................... 53

Domestic Nuclear Detection Office (DNDO) ......................................................................... 54

Environmental Protection Agency ................................................................................................. 55

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Federal Research and Development Funding: FY2018

Tables

Table 1. Federal Research and Development Funding by Agency, FY2016-FY2018 ..................... 5

Table 2. Federal R&D Funding by Character of Work and Facilities and Equipment,

FY2016-FY2018 .......................................................................................................................... 6

Table 3. Top R&D Funding Agencies by Character of Work, Facilities,

and Equipment, FY2016-FY2018 ................................................................................................ 8

Table 4. Alignment of Agency R&D Funding and Regular Appropriations Bills .......................... 11

Table 5. Department of Defense RDT&E ..................................................................................... 14

Table 6. National Institutes of Health Funding.............................................................................. 22

Table 7. Department of Energy R&D and Related Activities ........................................................ 26

Table 8. National Aeronautics and Space Administration R&D.................................................... 29

Table 9. National Science Foundation Funding............................................................................. 34

Table 10. U.S. Department of Agriculture R&D ........................................................................... 38

Table 11. National Institute of Standards and Technology Funding .............................................. 40

Table 12. National Oceanic and Atmospheric Administration R&D ............................................. 44

Table 13. Department of Veterans Affairs R&D ............................................................................ 46

Table 14. Department of Veterans Affairs Amounts by Designated Research Areas .................... 46

Table 15. Department of the Interior R&D.................................................................................... 50

Table 16. Department of Transportation R&D Activities and Facilities........................................ 52

Table 17. Department of Homeland Security R&D Accounts ....................................................... 54

Table 18. U.S. Environmental Protection Agency Science and Technology (S&T)

Account ...................................................................................................................................... 59

Appendixes

Appendix A. Acronyms and Abbreviations ................................................................................... 61

Appendix B. CRS Contacts for Agency R&D ............................................................................... 65

Contacts

Author Contact Information .......................................................................................................... 66

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Federal Research and Development Funding: FY2018

Introduction

The 115th Congress continues its interest in U.S. research and development (R&D) and in

evaluating support for federal R&D activities. The federal government has played an important

role in supporting R&D efforts that have led to scientific breakthroughs and new technologies,

from jet aircraft and the Internet to communications satellites, shale gas extraction, and defenses

against disease. However, widespread concerns about the federal debt and recent and projected

federal budget deficits are driving difficult decisions about the prioritization of R&D, both in the

context of the entire federal budget and among competing needs within the federal R&D

portfolio.

The U.S. government supports a broad range of scientific and engineering R&D. Its purposes

include specific concerns such as addressing national defense, health, safety, the environment,

and energy security; advancing knowledge generally; developing the scientific and engineering

workforce; and strengthening U.S. innovation and competitiveness in the global economy. Most

of the R&D funded by the federal government is performed in support of the unique missions of

individual funding agencies.

The federal R&D budget is an aggregation of the R&D activities of each federal agency. There is

no single, centralized source of R&D funds allocated to individual agencies. Agency R&D

budgets are developed internally as part of each agency’s overall budget development process and

may be included either in accounts that are entirely devoted to R&D or in accounts that include

funding for non-R&D activities. These budgets are subjected to review, revision, and approval by

the Office of Management and Budget (OMB) and become part of the President’s annual budget

submission to Congress. The federal R&D budget is then calculated by aggregating the R&D

activities of each federal agency.

Congress plays a central role in defining the nation’s R&D priorities as it makes decisions about

the level and allocation of R&D funding—overall, within agencies, and for specific programs.

Some Members of Congress have expressed concerns about the level of federal spending (for

R&D and for other purposes) in light of the current federal deficit and debt. Other Members of

Congress have expressed support for increased federal spending for R&D as an investment in the

nation’s future competitiveness. As Congress acts to complete the FY2018 appropriations

process, it faces two overarching issues: the extent to which federal R&D investments can be

made in the face of increased pressure on discretionary spending and the prioritization and

allocation of the available funding. Budget caps may limit overall R&D funding and may require

movement of resources across disciplines, programs, or agencies to address priorities. Moving

funding between programs/accounts/agencies can be complex and difficult because the funding

for different programs/accounts/agencies is often provided through different appropriations bills.

This report begins with a discussion of the overall level of President Trump’s FY2018 R&D

request, followed by analyses of the R&D funding request from a variety of perspectives and for

selected multiagency R&D initiatives. The report concludes with discussion and analysis of the

R&D budget requests of selected federal departments and agencies that, collectively, account for

nearly 99% of total federal R&D funding. Selected terms associated with federal R&D funding

are defined in the text box on the next page. Appendix A provides a list of acronyms and

abbreviations.

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Federal Research and Development Funding: FY2018

Definitions Associated with Federal Research and Development Funding

Two key sources of definitions associated with federal research and development funding are the White House Office

of Management and Budget and the National Science Foundation.

Office of Management and Budget. The Office of Management and Budget provides the following definitions of

R&D-related terms in OMB Circular No. A-11, “Preparation, Submission, and Execution of the Budget” (July 2016).

This document provides guidance to agencies in the preparation of the President’s annual budget and instructions on

budget execution. As reflected in the July 2016 update, OMB has adopted a refinement to the categories of R&D,

replacing “development” with “experimental development,” which more narrowly defines the set of activities to be

included, resulting in lower reported R&D by some agencies, including the Department of Defense and the National

Aeronautics and Space Administration. This definition is used in the President’s FY2018 budget, but the figures for

earlier years have not been adjusted.

Conduct of Research. Research and experimental development (R&D) activities are defined as creative and

systematic work undertaken in order to increase the stock of knowledge—including knowledge of people, culture,

and society—and to devise new applications using available knowledge.

Basic Research. Basic research is defined as experimental or theoretical work undertaken primarily to acquire

new knowledge of the underlying foundations of phenomena and observable facts. Basic research may include

activities with broad or general applications in mind, but should exclude research directed towards a specific

application or requirement.

Applied Research. Applied research is defined as original investigation undertaken in order to acquire new

knowledge. Applied research is, however, directed primarily towards a specific practical aim or objective.

Experimental Development. Experimental development is creative and systematic work, drawing on

knowledge gained from research and practical experience, which is directed at producing new products or

processes or improving existing products or processes. Like research, experimental development will result in

gaining additional knowledge.

R&D Equipment. R&D equipment includes amounts for major equipment for research and development.

Includes acquisition, design, or production of major movable equipment, such as mass spectrometers, research

vessels, DNA sequencers, and other major movable instruments for use in R&D activities. Includes programs of

$1 million or more that are devoted to the purchase or construction of major R&D equipment

R&D Facilities. R&D facilities includes construction of facilities that are necessary for the execution of an R&D

program. This may include land, major fixed equipment, and supporting infrastructure such as a sewer line or

housing at a remote location.

National Science Foundation. The National Science Foundation provides the following definitions of R&D-related

terms in its Science and Engineering Indicators: 2016 report.

Research and Development. Research and development, also called research and experimental development;

comprises creative work undertaken on a systematic basis to increase the stock of knowledge—including

knowledge of man, culture, and society—and its use to devise new applications.

Basic Research. The objective of basic research is to gain more comprehensive knowledge or understanding of

the subject under study without specific applications in mind. Although basic research may not have specific

applications as its goal, it can be directed in fields of present or potential interest. This is often the case with basic

research performed by industry or mission-driven federal agencies.

Applied Research. The objective of applied research is to gain knowledge or understanding to meet a specific,

recognized need. In industry, applied research includes investigations to discover new scientific knowledge that

has specific commercial objectives with respect to products, processes, or services.

Development. Development is the systematic use of the knowledge or understanding gained from research

directed toward the production of useful materials, devices, systems, or methods, including the design and

development of prototypes and processes.

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The President’s FY2018 Budget Request

On May 23, 2017, President Trump released his proposed FY2018 budget. This report provides

government-wide, multiagency, and individual agency analyses of the President’s FY2018 request

as it relates to R&D and related activities. Additional information and analysis will be included as

the House and Senate act on the President’s budget request through appropriations bills that

provide funding for R&D and related activities.

For FY2018, the Trump Administration is using a new definition for development (“experimental

development”), drawn up in 2016 by the Obama Administration (see box entitled “Caveats With

Respect to Analysis of the FY2018 Budget Request” for a more detailed explanation) in its R&D

calculations. The new definition excludes some activities previously characterized as

development in previous budgets. The Trump Administration did not, however, provide

adjustments to its FY2016 R&D data based on this new definition. For purposes of this section of

the report, CRS is providing additional lines in Table 1, Table 2, and Table 3 that adjust the

FY2018 Department of Defense (DOD), National Aeronautics and Space Administration

(NASA), and development and total R&D figures by the amounts the Office of Management and

Budget has stated were excluded under the new definition ($31.036 billion and $2.511 billion

respectively) to allow for a more accurate comparison between years.1

Under the new definition, President Trump is proposing $117.697 billion for R&D. Adjusting this

figure to include an additional $33.547 billion of development funding that is being requested for

DOD and NASA but not counted in the President’s budget under the experimental development

definition, the President’s request is $151.244 billion, an increase of $2.942 billion (2.0%) over

the comparable FY2016 level.2 Adjusted for inflation, the President’s FY2018 adjusted R&D

request represents a constant dollar decrease of 1.9% from the FY2016 actual level.3

The President’s R&D request includes continued funding of existing single agency and

multiagency programs and activities, as well as new initiatives. Single agency initiatives are

discussed in their respective sections of this report. Multiagency initiatives are discussed in the

section “Multiagency R&D Initiatives.”

Federal R&D Funding Perspectives

Federal R&D funding can be analyzed from a variety of perspectives that provide different

insights. The following sections examine the data by agency, by the character of the work

supported, by a combination of these two perspectives, and by whether R&D is defense-related or

not.

1

Email correspondence from OMB to CRS on May 26, 2017.

Funding levels included in this document are in current dollars unless otherwise noted. Inflation diminishes the

purchasing power of federal R&D funds, so an increase that falls short of the inflation rate may reduce real purchasing

power.

3

As calculated by CRS using the Gross Domestic Product (GDP) (chained) price index for FY2017 and FY2018 in

Table 10.1, “Gross Domestic Product and Deflators Used in the Historical Tables: 1940–2022,” Budget of the United

States Government, Fiscal Year 2018, https://www.whitehouse.gov/sites/whitehouse.gov/files/omb/budget/fy2018/

hist10z1.xls.

2

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Federal Research and Development Funding: FY2018

Caveats with Respect to Analysis of the FY2018 Budget Request

A number of factors complicate the analysis of changes in R&D funding for FY2018, both in aggregate and for selected

agencies. For example:

For FY2018, OMB replaced the R&D category “development” with a subset referred to as “experimental

development” in an effort that OMB asserts would better align its data with the data collected by the National

Science Foundation on its multiple R&D surveys, and to be consistent with international standards. According to

OMB, this change reduces reported R&D funding by approximately $33.5 billion in FY2018 (of which $31.036

billion is attributable to DOD, and $2.511 billion is attributable to NASA); while these funds are being requested

as part of the FY2018 budget, they are not characterized as R&D. OMB opted not to apply the category revision

to earlier fiscal years in the FY2018 budget so there is no comparable data for FY2016 or FY2017. Relevant

changes in agency guidance were embodied in a July 2016 update to OMB Circular No. A-11, as discussed earlier

(see box titled, “Definitions Associated with Federal Research and Development Funding”).

Several large NASA Human Exploration and Space Operations programs will transition from the development

phase to operations in FY 2018, and will no longer be counted as part of NASA’s R&D funding.

Due to the late completion of the FY2017 appropriations process, FY2017 enacted budget authority was not

available at the time the FY2018 budget was prepared. Accordingly, OMB included FY2017 annualized continuing

resolution (CR) R&D funding levels in place of FY2017 enacted budget authority. However, enactment of the

Consolidated Appropriations Act, 2017 in May 2017, rendered the FY2017 annualized CR levels obsolete.

Where FY2017 enacted levels were available, this report compares FY2018 request levels to FY2017 enacted

levels. Where FY2017 enacted levels were not available, this report compares FY2018 request levels to FY2016

actual levels; in those cases, as FY2017 enacted levels become available, the agency analyses in this report will be

updated.

In President Obama’s FY2017 budget, a change in the Department of Energy’s reporting of administrative

expenses led to an increase in reporting of R&D investments “on the order of $2 to $3 billion a year.”

In addition, inconsistency among agencies in the reporting of R&D and the inclusion of R&D activities in accounts with

non-R&D activities may result in different figures being reported by OMB and the White House Office of Science and

Technology Policy (OSTP), including those shown in Table 1, and those in agency budget analyses that appear later in

this report.

Federal R&D by Agency

Congress makes decisions about R&D funding through the authorization and appropriations

processes primarily from the perspective of individual agencies and programs. Table 1 provides

data on R&D by agency for FY2016 (actual) and FY2018 (request).4 Data for FY2017 (enacted)

were not included in the president’s FY2018 budget due to the late completion of the FY2017

budget process in May 2017.

Under President Trump’s FY2018 budget request, eight federal agencies would receive more than

96% of total federal R&D funding: the Department of Defense (DOD), 45.4%; Department of

Health and Human Services (HHS) (primarily the National Institutes of Health [NIH]), 22.2%;

Department of Energy (DOE), 11.4%; National Aeronautics and Space Administration (NASA),

8.8%; National Science Foundation (NSF), 4.6%; Department of Agriculture (USDA), 1.7%;

Department of Commerce (DOC), 1.3%; and Veterans Affairs (VA), 1.2%. This report provides

an analysis of the R&D budget requests for these agencies, as well as for the Department of

Homeland Security (DHS), Department of the Interior (DOI), Department of Transportation

(DOT), and Environmental Protection Agency (EPA).

Setting aside the aforementioned caveats, nearly every federal agency would see its R&D funding

decrease under the President’s FY2018 request compared to their FY2016 levels. The only

4

EOP, OMB, Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, May 23, 2017, pp.

203-205, https://www.whitehouse.gov/omb/budget/Analytical_Perspectives.

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agencies with increased R&D funding in FY2018 would be the Department of Veterans Affairs

(up $135 million, 11.0%), the Patient-Centered Outcomes Research Trust Fund (up $64 million,

13.6%), and the Smithsonian Institution (up $53 million, 21.1%). However, applying the previous

definition of R&D to the FY2018 data (to allow for comparability to FY2016 data), DOD R&D

funding would receive the largest dollar increase, rising by $13.011 billion (18.2%).5

The largest declines (as measured in dollars) would occur in the budgets of HHS (down $6.099

billion, 18.9%), DOE (down $1.809 billion, 11.9%), USDA (down $666 million, 25.1%), NSF

(down $639 million, 10.6%), and the EPA (down $239 million, 46.3%). Applying the previous

definition of R&D to the FY2018 data (to allow for comparability to FY2016 data), NASA R&D

would decline by $415 million (3.1%).6

Table 1. Federal Research and Development Funding by Agency, FY2016-FY2018

(Please note definitional difference in FY2016 and FY2018 data as described in the table notes)

(budget authority, dollar amounts in millions)

Change, FY2016-FY2018

Department/Agency

FY2016

Actual

Department of Defense

$71,421

Department of Defense (adjusted)

FY2018

Request

Dollar

Percent

$53,396

n/a

n/a

$84,432

$13,011

18.2

Dept. of Health and Human Services

32,243

26,144

-6,099

-18.9

Department of Energy

15,217

13,408

-1,809

-11.9

NASA

13,253

10,327

n/a

n/a

12,838

-415

-3.1

NASA (adjusted)

National Science Foundation

6,010

5,371

-639

-10.6

Department of Agriculture

2,657

1,991

-666

-25.1

Department of Commerce

1,681

1,567

-114

-6.8

Department of Veterans Affairs

1,222

1,357

135

11.0

Department of Transportation

927

923

-4

-0.4

Department of the Interior

973

818

-155

-15.9

Department of Homeland Security

582

564

-18

-3.1

Environmental Protection Agency

516

277

-239

-46.3

Other

1,600

1,554

-46

-2.9

Total

$148,302

$117,697

n/a

n/a

$148,302

$151,244

$2,942

2.0

Total (adjusted)

Source: CRS analysis of data from Executive Office of the President (EOP), Office of Management and Budget,

Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, May 23, 2017, pp. 203-205,

https://www.whitehouse.gov/omb/budget/Analytical_Perspectives.

5

DOD R&D would be $31.036 billion higher for FY2018 using the FY2016 definition of R&D than reported by OMB

for FY2018 using the new definition. Email correspondence from OMB to CRS on May 26, 2017.

6

NASA R&D would be $2.511 billion higher for FY2018 using the FY2016 definition of R&D than reported by OMB

for FY2018 using the new definition. Email correspondence from OMB to CRS on May 26, 2017.

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Notes: Amounts in this table may differ from amounts reported in the agency chapters of this report due to a

variety of factors.

Figures shown in italics have been adjusted to include certain development work at DOD and NASA that is

being requested in the FY2018 budget, but not counted by the Office of Management and Budget as R&D under

the new definition of development that OMB adopted in 2016 (discussed earlier) and has applied to its reported

FY2018 data; this adjustment provides greater comparability to the FY2016 data.

n/a = not applicable; FY2018 unadjusted DOD and NASA R&D figures are not comparable to FY2016 data.

Federal R&D by Character of Work, Facilities, and Equipment

Federal R&D funding can also be examined by the character of work it supports—basic research,

applied research, or development—and by funding provided for construction of R&D facilities

and acquisition of major R&D equipment. (See Table 2.) President Trump’s FY2018 request

includes $28.936 billion for basic research, down $3.977 billion (12.1%) from FY2016; $33.485

billion for applied research, down $3.562 billion (9.6%); $53.194 billion for (experimental)

development (data not comparable to FY2016); and $2.082 billion for facilities and equipment,

down $500 million (19.4%). Using the FY2016 definition for development, President Trump’s

budget includes $86.741 billion in development funding for FY2018, an increase of $10.981

billion (14.5%) above the FY2016 level. The $33.5 billion difference in funding between the new

and old definitions of development is being requested in the FY2018 budget, but is not being

reported as R&D.

Table 2. Federal R&D Funding by Character of Work and Facilities and Equipment,

FY2016-FY2018

(Please note definitional difference in FY2016 and FY2018 data as described in the table notes)

(budget authority, dollar amounts in millions)

Change, FY2016-FY2018

FY2016

Actual

FY2018

Request

Dollar

Percent

Basic research

$32,913

$28,936

-$3,977

-12.1

Applied research

37,047

33,485

-3,562

-9.6

Development

75,760

53,194

n/a

n/a

86,741

10,981

14.5

2,582

2,082

-500

-19.4

$148,302

$117,697

n/a

n/a

$151,244

$2,942

Development (adjusted)

Facilities and Equipment

Total

Total (adjusted)

2.0%

Source: CRS analysis of data from Executive Office of the President (EOP), Office of Management and Budget,

Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, May 23, 2017, pp. 203-205,

https://www.whitehouse.gov/omb/budget/Analytical_Perspectives.

Notes: Figures shown in italics have been adjusted to include certain development work at DOD and NASA

that is being requested in the FY2018 budget, but not counted by the Office of Management and Budget as R&D

under the new definition of development that OMB adopted in 2016 (discussed earlier) and has applied to its

reported FY2018 data; this adjustment provides greater comparability to the FY2016 data.

n/a = not applicable; FY2018 unadjusted DOD and NASA R&D figures are not comparable to FY2016 data.

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Federal Role in U.S. R&D by Character of Work

A primary policy justification for public investments in basic research and for incentives (e.g., tax

credits) for the private sector to conduct research is the view, widely held by economists, that the

private sector will, left on its own, underinvest in basic research from a societal perspective. The

usual argument for this view is that the social returns (i.e., the benefits to society at large) exceed

the private returns (i.e., the benefits accruing to the private investor, such as increased revenues or

higher stock value). Other factors that may inhibit corporate investment in basic research include

long time horizons for commercial applications (diminishing the potential returns due to the time

value of money), high levels of technical risk/uncertainty, shareholder demands for shorter-term

returns, and asymmetric and imperfect information.

The federal government is the nation’s largest supporter of basic research, funding 45.4% of U.S.

basic research in 2014.7 Business funded 27.4% of U.S. basic research in 2014, with state

governments, universities, and other non-profit organizations funding the remaining 27.2%.8

In contrast to basic research, business is the primary funder of applied research in the United

States, accounting for an estimated 51.7% in 2014, while the federal government accounted for an

estimated 36.0%.9

Business also provides the vast majority of funding for development. Business accounted for

82.4% of development in 2014, while the federal government provided 16.0%.10

Federal R&D by Agency and Character of Work Combined

Combining these perspectives, federal R&D funding can be viewed in terms of each agency’s

contribution to basic research, applied research, development, and facilities and equipment. (See

Table 3.) The overall federal R&D budget reflects a wide range of national priorities, including

supporting advances in spaceflight, developing new and affordable sources of energy, and

understanding and deterring terrorist groups. These priorities and the mission of each individual

agency contribute to the composition of that agency’s R&D spending (i.e., the allocation among

basic research, applied research, development, and facilities and equipment). In the President’s

FY2018 budget request, the Department of Health and Human Services, primarily NIH, would

account for nearly half (44.3%) of all federal funding for basic research. HHS would also be the

largest federal funder of applied research, accounting for about 39.3% of all federally funded

applied research in the President’s FY2018 budget request. DOD would be the primary federal

funder of development, accounting for 86.6% of total federal development funding in the

President’s FY2018 budget request.11

7

CRS analysis of data from the National Science Foundation, National Patterns of R&D Resources: 2014–15 Data

Update, March 14, 2017. More recent data regarding business and other R&D funding are not yet available.

8

Ibid.

9

Ibid.

10

Ibid.

11

EOP, OMB, Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, May 23, 2017, pp.

203-205, https://www.whitehouse.gov/omb/budget/Analytical_Perspectives.

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Table 3. Top R&D Funding Agencies by Character of Work, Facilities,

and Equipment, FY2016-FY2018

(Please note definitional difference in FY2016 and FY2018 data as described in the table notes)

(budget authority, dollar amounts in millions)

FY2016

Actual

FY2018

Request

$15,630

National Science Foundation

Dept. of Energy

Change, FY2016-FY2018

Dollar

Percent

12,816

-2,814

-18.0

4,841

4,280

-561

-11.6

4,609

3,978

-631

-13.7

Dept. of Health and Human Services

16,422

13,158

-3,264

-19.9

Dept. of Energy

6,469

6749

280

4.3

Dept. of Defense

5,058

5,097

39

0.8

64,011

46,047

n/a

77,083

13,072

3,955

n/a

n/a

6,466

-728

-10.1

2,981

1,705

-1,276

-42.8

1,158

976

-182

-15.7

National Science Foundation

409

420

11

2.7

Dept. of Commerce

314

376

62

19.7

Basic Research

Dept. of Health and Human Services

Applied Research

Development

Dept. of Defense

Dept. of Defense (adjusted)

NASA

7,194

NASA (adjusted)

Dept. of Energy

n/a

20.4

Facilities and Equipment

Dept. of Energy

Source: EOP, OMB, Analytical Perspectives, Budget of the United States Government, Fiscal Year 2018, May 23, 2017,

pp. 206-207, https://www.whitehouse.gov/omb/budget/Analytical_Perspectives.

Notes: The top three funding agencies in each category, based on the FY2018 request, are listed.

Figures shown in italics have been adjusted to include certain development work at DOD and NASA that is

being requested in the FY2018 budget, but not counted by the Office of Management and Budget as R&D under

the new definition of development that OMB adopted in 2016 (discussed earlier) and has applied to its reported

FY2018 data; this adjustment provides greater comparability to the FY2016 data.

n/a = not applicable; FY2018 unadjusted DOD and NASA R&D figures are not comparable to FY2016 data.

Multiagency R&D Initiatives

For many years, presidential budgets have reported on multiagency R&D initiatives and often

provided various levels of detail with respect to agency funding. Some of these efforts have a

statutory basis—for example, Networking and Information Technology Research and

Development (NITRD) program, the National Nanotechnology Initiative (NNI), and the U.S.

Global Change Research Program. These programs generally produce annual budget supplements

identifying objectives, activities, funding levels, and other information, usually published shortly

after the presidential budget release. Other multiagency R&D initiatives have operated at the

discretion of the President without such a basis and may be eliminated at the discretion of the

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President. President Trump’s FY2018 budget is largely silent on funding levels for these efforts

and whether some or all of the non-statutory initiatives will continue. Some activities related to

these initiatives are discussed in agency budget justifications and may be included in the

agencies’ analyses in this report. This section provides available information on these initiatives

and will be updated as additional information becomes available.

Networking and Information Technology Research and

Development Program12

Established by the High-Performance Computing Act of 1991 (P.L. 102-194), the Networking and

Information Technology Research and Development (NITRD) program is the primary mechanism

by which the federal government coordinates its unclassified networking and information

technology R&D investments in areas such as supercomputing, high-speed networking,

cybersecurity, software engineering, and information management. In FY2017, 21 agencies were

NITRD members; non-member agencies also participate in NITRD activities. NITRD efforts are

coordinated by the National Science and Technology Council (NSTC) Subcommittee on

Networking and Information Technology Research and Development. Additional NITRD

information can be obtained at https://www.nitrd.gov. This section will be updated when the

NITRD subcommittee publishes its updated budget information.

U.S. Global Change Research Program13

The U.S. Global Change Research Program (USGCRP) coordinates and integrates federal

research and applications to understand, assess, predict, and respond to human-induced and

natural processes of global change. The program seeks to advance global climate change science

and to “build a knowledge base that informs human responses to climate and global change

through coordinated and integrated Federal programs of research, education, communication, and

decision support.”14 In FY2017, 13 departments and agencies participated in the USGCRP.

USGCRP efforts are coordinated by the NSTC Subcommittee on Global Change Research.

Additional USGCRP information can be obtained at http://www.globalchange.gov. This section

will be updated when the USGCRP updates its budget information.

National Nanotechnology Initiative15

Launched by President Clinton in his FY2001 budget request, the National Nanotechnology

Initiative (NNI) is a multiagency R&D initiative to advance understanding and control of matter

at the nanoscale, where the physical, chemical, and biological properties of materials differ in

fundamental and useful ways from the properties of individual atoms or bulk matter.16 In 2003,

12

For additional information on the NITRD program, see CRS Report RL33586, The Federal Networking and

Information Technology Research and Development Program: Background, Funding, and Activities, by (name red

acted)

.

13

For additional information on the USGCRP, see CRS Report R43227, Federal Climate Change Funding from

FY2008 to FY2014, by (name redacted), (name redacted), and (name redacted) .

14

U.S. Global Change Research Program website, http://www.globalchange.gov/about/mission-vision-strategic-plan.

15

For additional information on the NNI, see CRS Report RL34401, The National Nanotechnology Initiative:

Overview, Reauthorization, and Appropriations Issues, by (name redacted)

16

In the context of the NNI and nanotechnology, the nanoscale refers to lengths of 1 to 100 nanometers. A nanometer

is one-billionth of a meter, or about the width of 10 hydrogen atoms arranged side by side in a line.

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Congress enacted the 21st Century Nanotechnology Research and Development Act (P.L. 108153), providing a legislative foundation for some of the activities of the NNI. In FY2017, the NNI

included 11 federal departments and independent agencies and commissions with budgets

dedicated to nanotechnology R&D, as well as nine other federal departments and independent

agencies and commissions with responsibilities for health, safety, and environmental regulation;

trade; education; training; intellectual property; international relations; and other areas that might

affect or be affected by nanotechnology. NNI efforts are coordinated by the NSTC Subcommittee

on Nanoscale Science, Engineering, and Technology (NSET). Additional NNI information can be

obtained at http://www.nano.gov. This section will be updated when the NSET subcommittee

publishes its updated budget information.

Other Initiatives

Presidential initiatives without statutory foundations in operation at the end of the Obama

Administration, but not explicitly addressed in President Trump’s FY2018 budget, include: the

Advanced Manufacturing Partnership (including the National Robotics Initiative [NRI] and the

National Network for Manufacturing Innovation [NNMI]), the Cancer Moonshot, the BRAIN

Initiative, the Precision Medicine Initiative, the Materials Genome Initiative, and an effort to

doubling federal funding for clean energy R&D. Some of the activities of these initiatives are

discussed in agency budget justifications and the agency analyses in this report.

FY2018 Appropriations Status

The remainder of this report provides a more in-depth analysis of R&D in 12 federal departments

and agencies that, in aggregate, receive nearly 99% of total federal R&D funding. Agencies are

presented in order of the size of their R&D budgets, with the largest presented first. Where

FY2017 enacted levels were available, agency analyses in this report compare FY2018 request

levels to FY2017 enacted levels. Where FY2017 enacted levels were not available, agency

analyses compare FY2018 request levels to FY2016 actual levels; in those cases, as FY2017

enacted levels become available, the agency analyses in this report will be updated.

Annual appropriations for these agencies are provided through 9 of the 12 regular appropriations

bills. For each agency covered in this report, Table 4 shows the corresponding regular

appropriations bill that provides primary funding for the agency, including its R&D activities.

Because of the way that agencies report budget data to Congress, it can be difficult to identify the

portion that is R&D. Consequently, R&D data presented in the agency analyses in this report may

differ from R&D data in the president’s budget or otherwise provided by OMB.

Funding for R&D is often included in appropriations line items that also include non-R&D

activities; therefore, in such cases, it may not be possible to identify precisely how much of the

funding provided in appropriations laws is allocated to R&D specifically. In general, R&D

funding levels are known only after departments and agencies allocate their appropriations to

specific activities and report those figures.

As of the start of the 2018 fiscal year on October 1, 2017, the House had completed action on

each of the 12 regular appropriations bills; the Senate had completed action on none. On

September 8, 2017, Congress enacted the Continuing Appropriations Act, 2018 and Supplemental

Appropriations for Disaster Relief Requirements Act, 2017 (P.L. 115-56), providing continuing

appropriations through December 8, 2018, “until the enactment into law of an appropriation for

any project or activity provided for in this Act,” or until “the enactment into law of the applicable

appropriations Act for fiscal year 2018 without any provision for such projector activity,”

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whichever comes first. Subsequently, three additional continuing resolutions (CRs) were passed

providing appropriations through December 22, 2017 (P.L. 115-90), January 19, 2018 (P.L. 11596), and February 8, 2018 (H.R. 195). The fourth CR followed a three-day government shutdown.

This report will be updated as Congress takes additional actions to complete the FY2018

appropriations process.

In addition to this report, CRS produces individual reports on each of the appropriations bills.

These reports can be accessed via the CRS website at http://www.crs.gov/iap/appropriations.

Also, the status of each appropriations bill is available on the CRS web page, Status Table of

Appropriations, available at http://www.crs.gov/AppropriationsStatusTable/Index.

Table 4. Alignment of Agency R&D Funding and Regular Appropriations Bills

Department/Agency

Regular Appropriations Bill

Department of Defense

Department of Defense Appropriations Act

Department of Health and Human Services

- National Institutes of Health

Departments of Labor, Health and Human Services, and

Education, and Related Agencies Appropriations Act

Department of the Interior, Environment, and Related

Agencies Appropriations Act

Department of Energy

Energy and Water Development and Related Agencies

Appropriations Act

National Aeronautics and Space Administration

Commerce, Justice, Science, and Related Agencies

Appropriations Act

National Science Foundation

Commerce, Justice, Science, and Related Agencies

Appropriations Act

Department of Agriculture

Agriculture, Rural Development, Food and Drug

Administration, and Related Agencies Appropriations Act

Department of Commerce

- National Institute of Standards and Technology

Commerce, Justice, Science, and Related Agencies

Appropriations Act

- National Oceanic and Atmospheric Administration

Department of Veterans Affairs

Military Construction and Veterans Affairs, and Related

Agencies Appropriations Act

Department of the Interior

Department of the Interior, Environment, and Related

Agencies Appropriations Act

Department of Transportation

Transportation, Housing and Urban Development, and

Related Agencies Appropriations Act

Department of Homeland Security

Department of Homeland Security Appropriations Act

Environmental Protection Agency

Department of the Interior, Environment, and Related

Agencies Appropriations Act

Source: CRS Report R40858, Locate an Agency or Program Within Appropriations Bills, by (name redacted)

.

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Department of Defense17

The mission of the Department of Defense (DOD) is “to provide the military forces needed to

deter war and to protect the security of our country.”18 Congress supports research and

development activities at DOD primarily through the department’s Research, Development, Test,

and Evaluation (RDT&E) funding. The appropriation supports the development of the nation’s

future military hardware and software and the science and technology base upon which those

products rely.

Nearly all of what DOD spends on RDT&E is appropriated in Title IV of the defense

appropriations bill. (See Table 5.) However, RDT&E funds are also appropriated in other parts of

the bill. For example, RDT&E funds are appropriated as part of the Defense Health Program,

Chemical Agents and Munitions Destruction Program, and the National Defense Sealift Fund.

The Defense Health Program (DHP) supports the delivery of health care to DOD personnel and

their families. DHP funds (including the RDT&E funds) are requested through the Defensewide

Operations and Maintenance appropriations request. The program’s RDT&E funds support

congressionally directed research on breast, prostate, and ovarian cancer; traumatic brain injuries;

orthotics and prosthetics; and other medical conditions. Congress appropriates funds for this

program in Title VI (Other Department of Defense Programs) of the defense appropriations bill.

The Chemical Agents and Munitions Destruction Program supports activities to destroy the U.S.

inventory of lethal chemical agents and munitions to avoid future risks and costs associated with

storage. Funds for this program are requested through the Defensewide Procurement

appropriations request. Congress appropriates funds for this program also in Title VI. The

National Defense Sealift Fund supports the procurement, operation and maintenance, and

research and development associated with the nation’s naval reserve fleet and supports a U.S.

flagged merchant fleet that can serve in time of need. The RDT&E funding for this effort is

requested in the Navy’s Procurement request and appropriated in Title V (Revolving and

Management Funds) of the appropriation bill.

The Joint Improvised-Threat Defeat Fund (JIDF, formerly the Joint Improvised Explosive Device

Defeat Fund) also contains RDT&E monies. However, the fund does not contain an RDT&E line

item as do the programs mentioned above. The Joint Improvised-Threat Defeat Organization

(JIDO), which administers the fund, tracks (but does not report) the amount of funding allocated

to RDT&E. JIDF funding is not included in the table below.

RDT&E funds also have been requested and appropriated as part of DOD’s separate funding to

support efforts in what the George W. Bush Administration termed the Global War on Terror

(GWOT), and what the Obama Administration referred to as Overseas Contingency Operations

(OCO). In appropriations bills, the term Overseas Contingency Operations/Global War on Terror

(OCO/GWOT) has been used; President Trump’s FY2018 budget uses the term Overseas

Contingency Operations. Typically, the RDT&E funds appropriated for OCO/GWOT activities go

to specified Program Elements (PEs) in Title IV.

In addition, OCO/GWOT-related requests/appropriations have included money for a number of

transfer funds. These have included in the past the Iraqi Freedom Fund (IFF), the Iraqi Security

Forces Fund, the Afghanistan Security Forces Fund, and the Pakistan Counterinsurgency

Capability Fund. Congress typically has made a single appropriation into each of these funds and

17

This section was written by (name redacted), Specialist in Science and Technology Policy, CRS Resources,

Science, and Industry Division.

18

Department of Defense, https://www.defense.gov/.

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authorized the Secretary to make transfers to other accounts, including RDT&E, at his discretion.

These transfers are eventually reflected in Title IV prior year funding figures.

For FY2018, the Trump Administration is requesting $83.328 billion for DOD’s Title IV RDT&E

PEs (base and OCO/GWOT), $9.547 billion (12.9%) above the enacted FY2017 level. On July

27, 2017, the House passed a “minibus” bill that included four of the regular appropriations acts

(Defense, Military Construction-Veterans Affairs, Legislative Branch, Energy and Water

Development) reported by the House appropriations committee. Defense appropriations were

included as Division A of the bill, H.R. 3219 (Defense, Military Construction, Veterans Affairs,

Legislative Branch, and Energy and Water Development National Security Appropriations Act,

2018). The bill includes $82.685 billion for Title IV base RDT&E funding and $1.621 billion in

OCO/GWOT base RDT&E funding for a total of $84.306 billion.19 This represents an increase of

$10.525 billion (14.3%) over the FY2017 enacted Title IV RDT&E funding level (base and

OCO/GWOT), and an increase of $978 million (1.2%) above the request level. The House bill

includes $1.000 billion in RDT&E funding in both base and OCO funding ($2.000 billion in

total) under a new account entitled National Defense Restoration Fund. The funds in this account

are allocated by organization, but not by budget activity (see discussion about budget activities

below).

In addition to the Title IV RDT&E request, the Administration’s FY2018 request includes $673

million in RDT&E through the Defense Health Program (DHP; down $1.429 billion, 68.0%, from

FY2017), $839 million in RDT&E through the Chemical Agents and Munitions Destruction

program (up $323 million, 62.6%, from FY2017), and $19 million in RDT&E funding for the

National Defense Sealift Fund, which received no funding in FY2017.

The House level for DHP is $1.340 billion, a decrease of $762 million (36.3%) from the FY2017

enacted level and an increase of $667 million (99.1%) above the FY2018 request; for the

Chemical Agents and Munitions Destruction program is $839 million, up $323 million (62.7%)

from the FY2017 level and equal to the request; for the National Defense Sealift Fund is zero,

equal to the FY2017 enacted level and $19 million below the FY2018 request; and for the

Inspector General for RDT&E is $3 million, equal to the FY2017 enacted level and the FY2018

request.

RDT&E funding can be analyzed in different ways. RDT&E funding can be characterized

organizationally. Each of the military departments request and receive their own RDT&E

funding. So, too, do various DOD agencies (e.g., the Missile Defense Agency and the Defense

Advanced Research Projects Agency), collectively aggregated within the Defensewide account.

RDT&E funding also can be characterized by budget activity (i.e., the type of RDT&E

supported). Those budget activities designated as 6.1, 6.2, and 6.3 (basic research, applied

research, and advanced technology development, respectively) constitute what is called DOD’s

Science and Technology program (S&T) and represent the more research-oriented part of the

RDT&E program. Budget activities 6.4 and 6.5 focus on the development of specific weapon

systems or components (e.g., the Joint Strike Fighter or missile defense systems), for which an

operational need has been determined and an acquisition program established. Budget activity 6.6

provides management support, including support for test and evaluation facilities. Budget activity

6.7 supports the development of system improvements in existing operational systems.20

19

OCO/GWOT is included in Title IX of the Department of Defense Appropriations Act, 2018, but supports the PEs in

Title IV.

20

For additional information on the structure of Defense RDT&E, see CRS Report R44711, Department of Defense

Research, Development, Test, and Evaluation (RDT&E): Appropriations Structure, by (name redacted)

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Many congressional policymakers are particularly interested in DOD S&T program funding since

these funds support the development of new technologies and the underlying science. Some in the

defense community see ensuring adequate support for S&T activities as imperative to maintaining

U.S. military superiority into the future. The knowledge generated at this stage of development

may also contribute to advances in commercial technologies.

The FY2018 request for Title IV S&T funding (base and OCO/GWOT) is $13.224 billion, $804

million (5.7%) below the FY2017 enacted level.21 The House level for Title IV S&T funding

(base and OCO/GWOT) is $13.8 billion, down $203 million (1.4%) from the FY2017 enacted

level and $601 million (4.5%) higher than the request.

Within the S&T program, basic research (6.1) receives special attention, particularly by the

nation’s universities. DOD is not a large supporter of basic research when compared to NIH or

NSF. However, over half of DOD’s basic research budget is spent at universities, and it represents

the major source of funds in some areas of science and technology (such as electrical engineering

and materials science). The Trump Administration is requesting $2.229 billion for DOD basic

research for FY2018. This is $47 million (2.1%) less than the FY2017 enacted level. The House

would provide $2.280 billion in 6.1 funding, up $4 million (0.2%) from the FY2017 enacted level

and $51 million (2.3%) higher than the request.22

Table 5. Department of Defense RDT&E

(obligational authority, in millions of dollars)

FY2017

Enacted

Budget Account

Base +

OCO

FY2018

Request

FY2018

House

Base

OCO

FY2018

Senate

Base

OCO

Army

8,675

9,425

119

9,701

125

Navy

17,541

17,675

130

17,239

125

Air Force

28,154

34,914

135

33,896

145

Defensewide

19,221

20,491

226

20,638

226

190

211

0

211

1,000

1,000

73,781

82,717

611

82,685

1,621

6.1 Basic Research

2,276

2,229

0

2,280

0

6.2 Applied Research

5,296

4,973

0

5,243

0

Dir., Operational Test & Eval.

Nat’l Defense Restoration

Fund

Total Title IV—By Account

Base

OCO

FY2018

Enacted

Base

OCO

Budget Activity

6.3 Advanced Dev.

6,456

5,997

25

6,277

25

6.4 Advanced Component Dev.

And

Prototypes

6.5 Systems

Dev. And Demo

15,376

17,451

59

17,079

53

12,781

14,671

58

14,172

58

6.6 Management Supporta

4,575

6,085

0

6,159

0

6.7 Op. Systems Developmentb

26,987

31,311

469

30,560

479

21

For this calculation, CRS allocated the $50 million undistributed reduction in FY2017 DARPA funding to DOD S&T

since most DARPA funding (more than 94% in FY2016) supports DOD S&T. An amendment to the committeereported bill added $6 million for the U.S. Army Tank Automotive Research, Development and Engineering Center;

these funds have not been distributed by account activity.

22

The budget activity levels discussed in this paragraph do not account for increases and decreases that may result from

undistributed amounts identified in Table 5.

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FY2017

Enacted

Budget Account

Base +

OCO

FY2018

Request

Base

FY2018

House

OCO

Base

FY2018

Senate

OCO

Base

OCO

FY2018

Enacted

Base

OCO

Undistributed

DARPA Reduction

-50

-100

Management Costs

Nat’l Defense Restoration

Fund

OCO Funding

-15

1,000

30

6

82

House Floor Amendments

Total Title IV—by Budget

Activity

1,000

73,781

82,717

611

82,685

1,621

0

19

0

0

0

2,102

673

0

1,340

0

516

839

0

839

0

3

3

0

3

0

76,401

84,251

611

84,867

1,621

Title V—Revolving and

Management Funds

National Defense Sealift Fund

Title VI—Other Defense

Programs

Defense Health Program

Chemical Agents and Munitions

Destruction

Inspector General

Grand Total

Source: CRS analysis of: Department of Defense Budget, Fiscal Year 2018, RDT&E Programs (R‑1), May 2017;

explanatory statement accompanying P.L. 115-31, as published in the Congressional Record, May 3, 2017, Book

II, H3391-H3703; Division B, P.L. 114-254; H.R. 3219; and H.Rept. 115-219.

Notes: Figures for the columns headed “FY2018 Senate” and “FY2018 Enacted” will be added, if available, as

each action is completed. Totals may differ from the sum of the components due to rounding. The House

version of H.R. 3219 does not provide a breakout of RDT&E funding by budget activity; funding by budget

activity shown in the FY2018 House column is based on the House committee-reported version of H.R. 3219

and H.Rept. 115-219, with the net effect of House floor amendments accounted for on a separate line as

undistributed. n/s = not specified

a. Includes funding for Director of Test and Evaluation.

b. Includes funding for Classified Programs.

Department of Health and Human Services

The mission of the Department of Health and Human Services (HHS) is “to enhance and protect

the health and well-being of all Americans ... by providing for effective health and human

services and fostering advances in medicine, public health, and social services.” 23 This section

focuses on HHS R&D funded through the National Institutes of Health, an HHS agency which

accounts for more than 95% of total HHS R&D funding.24 Other HHS agencies that provide

funding for R&D include the Centers for Disease Control and Prevention (CDC), the Centers for

23

HHS, “About,” http://www.hhs.gov/about.

CRS analysis of data presented in the Office of Management and Budget’s Analytical Perspectives, Budget of the

United States Government, Fiscal Year 2018, May 23, 2017, pp. 203-205, https://www.whitehouse.gov/omb/budget/

Analytical_Perspectives.

24

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Medicare and Medicaid Services (CMS), the Food and Drug Administration (FDA), the Agency

for Healthcare Research and Quality (AHRQ), Health Resources and Services Administration

(HRSA), and the Administration for Children and Families (ACF).25

National Institutes of Health26

The National Institutes of Health (NIH) is the primary agency of the federal government charged

with performing and supporting biomedical and behavioral research. It also has major roles in

training biomedical researchers and disseminating health information. The NIH mission is “to

seek fundamental knowledge about the nature and behavior of living systems and the application

of that knowledge to enhance health, lengthen life, and reduce illness and disability.”27 The

agency’s organization consists of the NIH Office of the Director (OD) and 27 institutes and

centers (ICs).

The OD sets overall policy for NIH and coordinates the programs and activities of all NIH

components, particularly in areas of research that involve multiple institutes. The ICs focus on

particular diseases, areas of human health and development, or aspects of research support. Each

IC plans and manages its own research programs in coordination with OD. As shown in Table 6,

separate appropriations are provided to 24 of the 27 ICs, to OD, and to an intramural Buildings

and Facilities account. The other three centers, which perform centralized support services, are

funded through assessments on the IC appropriations.

NIH supports and conducts a wide range of basic and clinical research, research training, and

health information dissemination across all fields of biomedical and behavioral sciences. About

10% of the NIH budget supports intramural research projects conducted by the nearly 6,000 NIH

scientists, most of whom are located on the NIH campus in Bethesda, Maryland. More than 80%

of NIH’s budget goes out to the extramural research community in the form of grants, contracts,

and other awards. This funding supports research performed by more than 300,000 nonfederal

scientists and technical personnel who work at more than 2,500 universities, hospitals, medical

schools, and other research institutions.28

Funding for NIH comes primarily from the annual Labor, HHS, and Education (LHHS)

appropriations bill, with an additional amount for Superfund-related activities from the

Interior/Environment appropriations bill. Those two bills provide NIH’s discretionary budget

authority. In addition, NIH receives mandatory funding of $150 million annually that is provided

in the Public Health Service (PHS) Act for a special program on type 1 diabetes research and

funding from a PHS Act transfer. The total funding available for NIH activities, taking account of

add-ons and transfers, is known as the NIH program level.

President Trump’s FY2018 budget requests an NIH program level total of $26.92 billion, a

decrease of $7.4 billion (-21.5%) compared with the FY2017 enacted amount (see Table 6).

Under President Trump’s FY2018 budget request, each of the ICs would receive a decrease

compared to FY2017. The Trump budget proposes the elimination of the Fogarty International

25

Ibid.

This section was written by (name redacted), Specialist in Biomedical Policy, CRS Domestic Social Policy

Division. For background information on NIH, see CRS Report R41705, The National Institutes of Health (NIH):

Background and Congressional Issues, by (name redacted) .

27

National Institutes of Health, “About NIH, What We Do, Mission and Goals,” at http://www.nih.gov/about-nih/whatwe-do/mission-goals.

28

Department of Health and Human Services, Fiscal Year 2018 Budget in Brief, Washington, DC, May 2017, p. 38,

https://www.hhs.gov/sites/default/files/Consolidated%20BIB_ONLINE_remediated.pdf.

26

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Center but retains in OD $25 million for international research and related activities.29 The Trump

budget also proposes the consolidation of the Agency for Healthcare Research and Quality

(AHRQ) with NIH, forming a new Institute, the National Institute for Research on Safety and

Quality (NIRSQ). The FY2018 budget proposal includes $272 million in budget authority for

NIRSQ “to preserve key research activities previously carried out by AHRQ.”30 For example,

NIRSQ would provide administrative support for the U.S. Preventive Services Task Force

(USPSTF); requested funding for this activity in the FY2018 Trump budget is $7 million.31 “In

addition, NIRSQ is projected to receive $107 million in mandatory resources from the PatientCentered Outcomes Research Trust Fund to continue the targeted dissemination of study results

and workforce development efforts in research designed to help patients and providers make

better informed health care decisions.”32

The FY2018 program level request for NIH includes $60 million for Superfund-related research,

and $150 million in mandatory funding for research on type 1 diabetes.33 The FY2018 program

level request proposes $780 million in funding transferred to NIH by the PHS Program

Evaluation Set-Aside, also called the evaluation tap. NIH and other HHS agencies and programs

authorized under the PHS Act are subject to a budget assessment found in Section 241 of the PHS

Act (42 U.S.C. §238j). This provision authorizes the Secretary to use a portion of eligible

appropriations to study the effectiveness of federal health programs and to identify

improvements. Although the PHS Act limits the tap to no more than 1% of eligible

appropriations, in recent years, the annual LHHS appropriations act has specified a higher amount

(2.5% in FY2017) and has also typically directed specific amounts of funding from the tap for

transfer to a number of HHS programs. The set-aside has the effect of redistributing appropriated

funds for specific purposes among PHS and other HHS agencies. NIH, with the largest budget

among the PHS agencies, has historically been the largest “donor” of program evaluation funds;

until recently, it had been a relatively minor recipient.34

The main funding mechanism NIH uses to support extramural research is research project grants

(RPGs), which are competitive, peer-reviewed, and largely investigator-initiated. The FY2018

Trump budget requests a total of $14.2 billion in funding for RPGs, representing about 53% of

29

The NIH website states that Fogarty “is dedicated to advancing the mission of [NIH] by supporting and facilitating

global health research conducted by U.S. and international investigators, building partnerships between health research

institutions in the U.S. and abroad, and training the next generation of scientists to address global health needs.”

https://www.fic.nih.gov/About/Pages/mission-vision.aspx.

30

Department of Health and Human Services, Fiscal Year 2018 Budget in Brief, Washington, DC, May 2017, p. 37,

https://www.hhs.gov/sites/default/files/Consolidated%20BIB_ONLINE_remediated.pdf.

31

Ibid., p. 41. This is a reduction of $4 million below AHRQ’s FY2017 Continuing Resolution level of administrative

support for the USPSTF.

32

NIH, FY2018 Justification of Estimates for Appropriations Committees, Vol. I, Overview, “Overview of Budget

Request, Introduction” p. 3. The Affordable Care Act (ACA, P.L. 111-148) created the Patient-Centered Outcomes

Research Trust Fund (PCORTF) to help build the national capacity and infrastructure needed to conduct patientcentered outcomes research (PCOR), and to enable PCOR findings to be integrated into clinical practice. See

https://aspe.hhs.gov/patient-centered-outcomes-research-trust-fund.

33

The Superfund amount is provided in the Department of the Interior, Environment, and Related Agencies

Appropriations Acts. Mandatory funds of $150 million per fiscal year for type 1 diabetes research (under PHS Act

§330B) were provided by P.L. 114-10 for FY2016 and FY2017; $37,500,000 were provided for the first two quarters of

FY2018 by Section 3102 of P.L. 115-96.

34

For more information, see the “PHS Evaluation Set-Aside” section of CRS Report R44505, Public Health Service

Agencies: Overview and Funding (FY2015-FY2017), coordinated by (name redacted) and (name redacted)

. By

convention, budget tables such as Table 6 do not subtract the amount of the evaluation tap from the donor agencies’

appropriations.

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NIH’s proposed budget.35 The FY2018 budget request would cap the indirect cost rate for NIH

grants at 10%. Over the last 10 years, NIH data indicates that direct costs (project-specific

expenses) have averaged about 72% of the total grant award, while indirect costs (overhead—

facilities and administrative, or F&A, costs) have averaged about 28%.36 The Trump FY2018

NIH budget request would decrease the average annual cost of an RPG award by about 20%, to

$389,000.37

Except for the mandatory type 1 diabetes funding, Congress has not usually specified amounts for

particular diseases or research areas. Generally, specific amounts are appropriated to each IC;

NIH and its scientific advisory panels allocate funding to different research areas. This allows

maximum flexibility for NIH to pursue scientific opportunities that are important to public

health.38 Some bills may propose authorizations for designated research purposes, but funding

generally has remained subject to the NIH peer review process as well as the overall discretionary

appropriation to the agency. This pattern has changed in recent years, most notably in FY2016

with Alzheimer’s disease research39 and in FY2017 with the NIH Innovation account established

by the 21st Century Cures Act (see text box below).

The FY2018 NIH budget request includes $496 million for the NIH Innovation account. Amounts

specified for FY2018 by the 21st Century Cures Act for the NIH Innovation Projects are as

follows: the Precision Medicine Initiative ($100 million), the BRAIN Initiative ($86 million),

cancer research ($300 million), and regenerative medicine using adult stem cells ($10 million).

The House Appropriations Committee-reported version of the FY2018 LHHS appropriations bill

(H.R. 3358) recommends a total of $35.184 billion for NIH, including $824 million provided by

the evaluation tap and $496 million from the NIH Innovation account. Adding to this total the

amounts for Superfund related activities ($77 million) and the mandatory type 1 diabetes program

($150 million) would bring the NIH program level to $35.411 billion. H.R. 3358 would provide

NIH with a $1.1 billion (3.2%) increase over the FY2017 enacted amount and $8.58 billion

(32.3%) more than the FY2018 Trump budget request for NIH.

The report accompanying H.R. 3358 (H.Rept. 115-244) stated that the Trump Administration’s

proposed cap on indirect (F&A) costs was “misguided and would have a devastating impact on

35

Department of Health and Human Services, Fiscal Year 2018 Budget in Brief, Washington, DC, May 2017, p. 37 and

p. 43, https://www.hhs.gov/sites/default/files/Consolidated%20BIB_ONLINE_remediated.pdf.

36

NIH, FY2018 Justification of Estimates for Appropriations Committees, Vol. I, Overview, “Statistical Data: Direct

and Indirect Cost Awarded,” p. 95.

37

Ibid, p. 96.

38

See NIH website, “Estimates of Funding for Various Research, Condition, and Disease Categories (RCDC),”

http://report.nih.gov/categorical_spending.aspx.

39

For example, in the year before this new pattern developed, the explanatory statement accompanying the FY2015

omnibus stated the following:

In keeping with longstanding practice, the agreement does not recommend a specific amount of

NIH funding for this purpose or for any other individual disease. Doing so would establish a

dangerous precedent that could politicize the NIH peer review system. Nevertheless, in recognition

that Alzheimer’s disease poses a serious threat to the Nation’s long-term health and economic

stability, the agreement expects that a significant portion of the recommended increase for NIA

should be directed to research on Alzheimer's. The exact amount should be determined by scientific

opportunity of additional research on this disease and the quality of grant applications that are

submitted for Alzheimer’s relative to those submitted for other diseases.

See Congressional Record, daily edition, vol. 160, no. 151, Book II (December 11, 2014), p. H9832,

https://www.gpo.gov/fdsys/pkg/CREC-2014-12-11/pdf/CREC-2014-12-11-pt2-PgH9307-2.pdf.

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biomedical research across the country.”40 The House Appropriations Committee directs NIH to

continue reimbursing institutions for indirect costs according to current rules and procedures via a

new general provision in the bill (§228) that “also prohibits funds in this Act from being used to

implement any further caps on F&A cost reimbursements.”41 The House Appropriations

Committee provides an increase in funding for the Fogarty International Center rather than the

elimination proposed by the Trump Administration. The House Appropriations Committee did not

adopt the Trump Administration’s proposed consolidation of NIH and AHRQ. Lastly, H.Rept.

115-244 states that “the Committee recommends an increase of $400 million within NIA

[National Institute on Aging] to support a total of at least $1.791 billion on Alzheimer’s disease

research.”42

40

U.S. Congress, House Committee on Appropriations, Departments of Labor, Health and Human Services, and

Education, and Related Agencies Appropriations Bill, 2018, report to accompany H.R. 3358, 115th Cong., 1st sess., July

24, 2017, H.Rept. 115-244 (Washington: GPO, 2017), p. 50.

41

Ibid.

42

Ibid., pp. 59-60.

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The Senate Appropriations Committeereported version of the FY2018 LHHS

appropriations bill (S. 1771) recommends a

total of $36.084 billion for NIH, including

$1.074 billion provided by the evaluation tap

and $496 million from the NIH Innovation

account. Adding to this total the amounts for

Superfund related activities ($77 million) and

the mandatory type 1 diabetes program ($150

million) would bring the NIH program level to

$36.311 billion. S. 1771 would provide NIH

with a $2 billion (5.92%) increase over the

FY2017 enacted amount and $9.48 billion

(35.6%) more than the FY2018 Trump budget

request for NIH.

The report accompanying S. 1771 (S.Rept.

115-150) states that the Committee “rejects

the administration’s proposals to: cap

Facilities and Administrative costs; eliminate

the John E. Fogarty International Center; and

create the National Institute for Research on

Safety and Quality” by merging AHRQ with

NIH. It also provides an increase in funding

for Alzheimer’s disease research of $414

million for a total of $1.828 billion in

FY2018.

The 21st Century Cures Act and the NIH

Innovation Account

The 21st Century Cures Act (P.L. 114-255) created the

NIH Innovation account and specified that funds in the

account must be appropriated in order to be available

for expenditure. The first round of funding was provided

by Section 194 of the Further Continuing and Security

Assistance Appropriations Act, 2017 (CR, P.L. 114-254).

The CR appropriated $352 million in the NIH Innovation

account for necessary expenses to carry out the four

NIH Innovation Projects as described in Section

1001(b)(4) of the Cures Act. The four projects

authorized by the Cures Act are the Precision Medicine

Initiative (FY2017, $40 million; FY2018, $100 million), the

BRAIN Initiative (FY2017, $10 million; FY2018, $86

million), cancer research (FY2017, $300 million; FY2018,

$300 million), and regenerative medicine using adult stem

cells (FY2017, $2 million; FY2018, $10 million). (The

$352 million that was appropriated for FY2017 is

available until expended.)The NIH Director may transfer

these amounts from the NIH Innovation account to

other NIH accounts but only for the purposes specified

in the Cures Act. If the NIH Director determines that

the funds for any of the four Innovation Projects are not

necessary, the amounts may be transferred back to the

NIH Innovation account. This transfer authority is in

addition to other transfer authorities provided by law.

For further information, see CRS Report R44720, The

21st Century Cures Act (Division A of P.L. 114-255),

coordinated by (name redacted) , and CRS Report

R44723, Overview of Further Continuing Appropriations for

FY2017 (H.R. 2028), coordinated by (name redacted) .

The overview below outlines the four priority

themes highlighted by NIH in the FY2018

budget request; dollar amounts for these research activities were not provided by the agency.

Selected responses from congressional report language are also provided.

1. Fundamental Science Enhanced by Technological Advances. More than half of the proposed

NIH budget is targeted for basic research, which “provides the foundation for translational and

clinical studies that can lead to major medical advances, such as cancer-fighting drugs, vaccines,

and medical devices.”43 One example of basic research is the BRAIN Initiative, a collaborative

effort of ten ICs with the National Science Foundation, Defense Advanced Research Projects

Agency, and Food and Drug Administration. The BRAIN Initiative develops and applies new

tools for the study of complex brain functions. Insights into brain circuitry and activity gained via

the BRAIN Initiative are expected to help reveal the underlying problems in brain disorders and

may help provide new treatments or prevention approaches. The House recommends an increase

for the BRAIN Initiative to the level authorized in the 21st Century Cures Act ($86 million); the

Senate would provide $400 million.

Another example is the NIH Common Fund’s Single Cell Analysis Program (SCAP).44 According

to NIH, “Understanding more about how single cells function could help researchers identify rare

43

NIH FY2018 Justification of Estimates for Appropriations Committees, Vol. I, Overview, p. 4.

The NIH Common Fund is part of OD; it supports large complex research efforts that involve the collaboration of

two or more research ICs.

44

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cells in a group (e.g., ones that could become cancerous), cells infected latently with a virus, or

cells that develop drug resistance.”45 A third example is the National Cancer Institute’s efforts

using cryo-electron microscopy to observe key molecules in cancer cells almost at the atomic

level; this may help in the development of more effective and targeted therapies.

2. Treatments and Cures. NIH-supported scientists are using a novel research method in an effort

to correct the genetic mutations causing sickle cell disease. Although more work would be

necessary before this approach could be used in patients, the lessons learned may pave the way

for new treatments to improve human health. Addressing the opioid epidemic is another high

priority topic. NIH is supporting research efforts to combat opioid addiction and the treatment of

overdoses. NIH is responding to the growing public health threat posed by antimicrobial

resistance bacteria by various mechanisms. These include support for the Antibacterial Resistance

Leadership Group and participation in a multi-agency effort focused on advancing antimicrobial

resistance research. The House would provide an increase of $30 million for combating

antibiotic-resistant bacteria; the Senate would provide an increase of $50 million. Cancer

immunotherapy is yet another high priority area of research and is at the core of work supported

by the “Cancer Moonshot,” funded by the 21st Century Cures Act. The House would direct NIH

to transfer $300 million from the NIH Innovation Account to the National Cancer Institute (NCI)

to support the Cancer Moonshot, the same level as authorized in the 21st Century Cures Act. The

Senate report states that the total amount provided for NCI includes $300 million from the NIH

Innovation Account.

3. Health Promotion and Disease Prevention. As part of the Precision Medicine Initiative (PMI),

NIH would continue to establish a group of 1 million or more volunteers—called the All of Us

Research Program—whose health, genetic, environmental, and other data would be collected and

used in research studies to identify novel therapeutics and prevention strategies. The House would

provide an increase of $80 million for All of Us; the Senate would provide an increase of $60

million.

Vaccination is another important prevention strategy. NIH is engaged in vaccine research to

prevent many different diseases, including emerging diseases such as the Zika virus. NIH is also

involved in developing a “universal” influenza vaccine that produces a strong long-lasting

immune response to elements that are shared among all strains of the flu virus.

4. Enhancing Stewardship. NIH states that it recognizes that to earn and maintain the public’s

trust it is essential to be “an efficient and effective steward of taxpayer funds” and to “allocate its

resources with sufficient transparency to allow taxpayers to see how their money is invested.”46

The agency continues to “streamline administrative processes that can take investigators’ time

away from their research.”47 One key way NIH is focused on strengthening stewardship is

through the release and implementation of a new policy designed to enhance reproducibility of

scientific research through increased rigor and transparency in reporting.48 According to NIH,

another means of investing in the long-term health of the nation is “by strengthening and

sustaining a diverse, world-class research workforce.”49 The agency has crafted funding

opportunities directed at new investigators as well as created procedures to normalize success-ingrant-receipt rates between early and more experienced scientists.

45

NIH, FY2018 Justification of Estimates for Appropriations Committees, Vol. I, Overview, p. 5.

Ibid., p. 10.

47

Ibid.

48

NIH, Rigor and Reproducibility, at https://grants.nih.gov/reproducibility/index.htm.

49

NIH, FY2018 Justification of Estimates for Appropriations Committees, Vol. I, Overview, p. 10.

46

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Table 6. National Institutes of Health Funding

(budget authority, in millions of dollars)

FY2017 Enacted

FY2018 Request

FY2018

House

FY2018

S.Cmte.

Cancer Institute (NCI)

$5,389

$4,174

$5,471

$5,558

Heart, Lung, and Blood Institute (NHLBI)

3,207

2,535

3,257

3,323

Dental/Craniofacial Research (NIDCR)

426

321

432

440

Diabetes/Digestive/Kidney (NIDDK)a

1,871

1,450

1,900

1,936

Neurological Disorders/Stroke (NINDS)

1,784

1,313

1,810

1,862

Allergy/Infectious Diseases (NIAID)

4,907

3,783

5,006

5,128

General Medical Sciences (NIGMS)b

1,826

1,405

1,889

1,813

Child Health/Human Development (NICHD)

1,380

1,032

1,402

1,426

National Eye Institute (NEI)

733

550

744

759

Environmental Health Sciences (NIEHS)c

714

534

725

738

2,049

1,304

2,459

2,536

Arthritis/Musculoskeletal/Skin Diseases (NIAMS)

558

418

567

576

Deafness/Communication Disorders (NIDCD)

437

326

444

452

National Institute of Mental Health (NIMH)

1,602

1,202

1,625

1,682

National Institute on Drug Abuse (NIDA)

1,091

865

1,107

1,113

Alcohol Abuse/Alcoholism (NIAAA)

483

361

491

500

Nursing Research (NINR)

150

114

153

155

Human Genome Research Institute (NHGRI)

529

400

537

547

Biomedical Imaging/Bioengineering (NIBIB)

357

283

363

371

Minority Health/Health Disparities (NIMHD)

289

215

294

298

Complementary/Integrative Health (NCCIH)

135

102

137

140

Advancing Translational Sciences (NCATS)

706

557

719

729

Fogarty International Center (FIC)

72

—

73

74

National Library of Medicine (NLM)

408

373

414

421

Natl Institute for Research on Safety and Quality (NIRSQ)d

—

272

—

—

Office of Director (OD)

1,678

1,342

1,718

1,810

NIH Innovation Account

352

496

496

496

Buildings & Facilities (B&F)

129

99

129

129

PHS Program Evaluation

824

780

824

1,074

34,084

26,604

35,184

36,084

Mandatory type 1 diabetes fundse

150

150

150

150

Superfund (Interior approp. to NIEHS)f

77

60

77

77

Patient-Centered Outcomes Research Trust Fund

—

107

—

—

34,311

26,920

35,411

36,311

National Institute on Aging (NIA)

Subtotal, NIH

Total, NIH Program Level

Source: H.Rept. 115-244, July 24, 2017, pp. 214-216, and S.Rept. 115-150, September 7, 2017, pp. 230-231.

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Notes: Totals may differ from the sum of the components due to rounding. Amounts in table may differ from

actuals in many cases. By convention, budget tables such as Table 2 do not subtract the amount of transfers,

such as the evaluation tap, from the agencies’ appropriation. Figures for the column headed “FY2018 Enacted”

will be added, if available, as action is completed.

a. Amounts for the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK) do not include

mandatory funding for type 1 diabetes research (see note e).

b. Amounts for National Institute of General Medical Sciences (NIGMS) do not include funds from PHS

Evaluation Set-Aside (§241 of PHS Act).

c. Amounts for National Institute of Environmental Health Sciences (NIEHS) do not include Interior

Appropriation for Superfund research (see note f).

d. FY2017 enacted total for the Agency for Healthcare Research and Quality was $324 million; amount

proposed in H.R. 3358 for AHRQ in FY2018 is $300 million and amount proposed in S. 1771 is $324

million.

e. Mandatory funds available to NIDDK for type 1 diabetes research under PHS Act §330B (provided by P.L.

114-10 for FY2017; $37,500,000 was provided for the first two quarters of FY2018 by P.L. 115-96).

f.

This is a separate account in the Interior/Environment appropriations for National Institute of

Environmental Health Sciences (NIEHS) research activities related to Superfund.

Department of Energy50

The Department of Energy (DOE) was established in 1977 by the Department of Energy

Organization Act (P.L. 95-91), which combined energy-related programs from a variety of

agencies with defense-related nuclear programs that dated back to the Manhattan Project. Today,

DOE conducts basic scientific research in fields ranging from nuclear physics to the biological

and environmental sciences; basic and applied R&D relating to energy production and use; and

R&D on nuclear weapons, nuclear nonproliferation, and defense nuclear reactors. The department

has a system of 17 national laboratories around the country, mostly operated by contractors, that

together account for about 40% of all DOE expenditures.

The Administration’s FY2018 budget request for DOE includes $10.172 billion for R&D and

related activities, including programs in three broad categories: science, national security, and

energy. This request is 22.6% less than the enacted FY2017 amount of $13.140 billion. The

House bill (H.R. 3219 as passed by the House, together with H.Rept. 115-230 on H.R. 3266)

would provide $12.033 billion. The Senate committee recommendation (based on S. 1609 as

reported and S.Rept. 115-132) is $13.075 billion. (See Table 7 for details.)

The request for the DOE Office of Science is $4.473 billion, a decrease of 17.1% from the

FY2017 appropriation of $5.392 billion. The House bill would provide $5.393 billion. The Senate

bill would provide $5.550 billion. There is no authorized funding level for the Office of Science

for FY2018. The most recent authorization of appropriations (in the America COMPETES

Reauthorization Act of 2010, P.L. 111-358) was through FY2013.

The Office of Science includes six major research programs. The request for the largest program,

Basic Energy Sciences (BES), is $1.555 billion, a decrease of 16.9% from $1.872 billion in

FY2017. Within BES, most research areas and facilities would receive reduced funding, and

funds would be eliminated for the Experimental Program to Stimulate Competitive Research

(EPSCoR, $15 million in FY2017); the Energy Innovation Hub on Batteries and Energy Storage

($24 million in FY2017); and the Energy Innovation Hub on Fuels from Sunlight ($15 million in

FY2017). The BES program’s five synchrotron light sources would receive $428 million for

50

This section was written by (name redacted), Specialist in Science and Technology Policy, CRS Resources, Science,

and Industry Division.

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operations, down from $494 million in FY2017. This reduction would result in reduced operating

hours (about 85% of optimal, as calculated by DOE) and operation of the Stanford Synchrotron

Radiation Lightsource for only the first quarter of the year. The House bill would provide $1.872

billion for BES, including $15 million for EPSCoR, no funding for the two hubs, and $489

million for operations at the light sources. The Senate bill would provide $1.980 billion, including

$20 million for EPSCoR, the same amounts as in FY2017 for the two hubs, and $496 million for

operations at the light sources.

The request for High Energy Physics is $673 million, a decrease of 18.5% from $825 million in

FY2017. This total includes $44 million for ongoing construction of the Muon to Electron

Conversion Experiment (Mu2E), as previously planned, and $55 million for ongoing construction

of the Long Baseline Neutrino Facility/Deep Underground Neutrino Experiment (LBNF/DUNE),

up from $50 million in FY2017. Most other research areas and facilities would receive reduced

funding. The House bill would provide $825 million, including the requested amount for Mu2E

and $80 million for LBNF/DUNE. The Senate bill would provide $860 million, including the

requested amount for Mu2E and $82 million for LBNF/DUNE.

The request for Biological and Environmental Research (BER) is $349 million, a decrease of

43.0% from $612 million in FY2017. This program has historically consisted of two roughly

equal parts: Biological Systems Science and Climate and Environmental Sciences. The request

would rename the latter program as Earth and Environmental Systems Sciences and decrease its

share of the reduced BER total to about one-third. Within Earth and Environmental Systems

Sciences, funding for Earth and Environmental Systems Modeling (formerly Climate and Earth

System Modeling) would decrease to $27 million from $99 million in FY2016 (the FY2017

amount is not available). Climate Model Development and Validation would receive no funding.

The House bill would provide $582 million. The House report does not directly address the

balance between Biological Systems Science and Earth and Environmental Systems Sciences.

The Senate bill would provide $633 million, roughly evenly divided as in past years between

Biological Systems Science ($322 million) and Earth and Environmental Systems Sciences ($311

million).

The request for Nuclear Physics is $503 million, a decrease of 19.2% from $622 million in

FY2017. The proposed reduction is spread across most research areas and facilities. The request

includes $80 million for ongoing construction of the Facility for Rare Isotope Beams (FRIB),

down from $100 million in FY2017 and $17 million less than previously projected for FY2018. It

includes no further funding for construction of the Continuous Electron Beam Accelerator

Facility (CEBAF) upgrade, which is to be completed in FY2017. Reduced funding for facility

operations would support operation of CEBAF at about 29% utilization and the Relativistic

Heavy Ion Collider (RHIC) at about 67% utilization. The House bill would provide $619 million,

including $97 million for FRIB construction. House report language encourages DOE to fund

optimal operations at CEBAF and RHIC “within available funds.” The Senate bill would provide

$639 million, including $97 million for FRIB construction, $10 million more than the request for

operations at RHIC, and optimal operations at CEBAF.

The request for Advanced Scientific Computing Research is $722 million, an increase of 11.6%

from $647 million in FY2017. Of this total, $347 million would contribute to the DOE-wide

Exascale Computing Initiative: $197 million, up from $164 million in FY2017, for the Office of

Science Exascale Computing Project (SC-ECP), and $150 million for upgrades at the two

Leadership Computing Facilities, located at Oak Ridge and Argonne National Laboratories. The

House bill would provide $694 million, including $170 million for the SC-ECP. The Senate bill

would provide $763 million, including $184 million for the SC-ECP.

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The request for Fusion Energy Sciences is $310 million, a decrease of 18.4% from $380 million

in FY2017. Included is $63 million for U.S. contributions to the construction of the International

Thermonuclear Experimental Reactor (ITER), up from $50 million in FY2017 but down from a

peak of $200 million in FY2014. The DOE budget justification cites U.S. concerns about the cost

and schedule of the ITER project, which is currently under construction in France. The estimated

total U.S. cost range for ITER was updated in January 2017 and is now $4.7 to $6.5 billion (the

low end of the range was previously $4.0 billion). The House bill would provide $395 million for

Fusion Energy Sciences, including the requested amount for U.S. contributions to ITER. The

Senate bill would provide $232 million, including no funding for ITER. The Senate report states

that funding for ITER “would come at the expense of other Office of Science priorities.”

The request for DOE national security R&D is $3.982 billion, an increase of 5.9% from $3.760

billion in FY2017. The bulk of the increase would be in the Weapons Activities account,

including $51 million for a newly consolidated subprogram on Enhanced Capabilities for

Subcritical Experiments, $40 million to initiate a Stockpile Responsiveness program, and $25

million in new construction funding for exascale computing facilities at Los Alamos and

Lawrence Livermore National Laboratories. Funding for Naval Reactors would increase by $60

million. The DOE budget justification describes most of the proposed changes within Naval

Reactors as consistent with prior plans for ongoing projects. The House bill would provide $4.036

billion, including $78 million more than requested for Nuclear Nonproliferation R&D to support

development of low-enriched uranium fuels for research reactors. The Senate bill would provide

$3.865 billion, including no funds for the proposed Stockpile Responsiveness program.

The FY2018 request for DOE energy R&D is $1.717 billion, a decrease of 56.9% from $3.988

billion in FY2017. Funding for energy efficiency and renewable energy R&D would decrease by

64.9%, with reductions in all major research areas and a shift in emphasis toward early-stage

R&D rather than later-stage development and deployment.51 Funding for fossil energy R&D

would decrease by 58.1%, with reductions focused particularly on coal carbon capture and

storage ($31 million, down from $196 million in FY2017) and natural gas technologies ($6

million, down from $43 million in FY2017). Funding for nuclear energy would decrease by

30.8%, with no funding requested for small modular reactor licensing technical support ($95

million in FY2017), the Integrated University Program ($5 million in FY2017), or the

Supercritical Transformational Electric Power (STEP) R&D initiative ($5 million in FY2017),

and $89 million for fuel cycle R&D (down from $208 million in FY2017). The Advanced

Research Projects Agency–Energy (ARPA-E) ARPA-E, which is intended to advance high-impact

energy technologies that have too much technical and financial uncertainty to attract near-term

private-sector investment, would be terminated, with requested FY2018 funds used only to close

out the program.

The House bill would provide $2.620 billion for DOE energy R&D. Relative to FY2017, it would

decrease funding for energy efficiency and renewable energy by 55.4% and nuclear energy by

4.7%, with funding at the FY2017 level for the Integrated University Program and STEP R&D,

but no funding for small modular reactor licensing technical support. A floor amendment restored

funding for fossil energy R&D to the FY2017 level. The House bill would provide no funding for

ARPA-E.

51

For more detailed information about energy efficiency and renewable energy funding, see CRS In Focus IF10661,

DOE Office of Energy Efficiency and Renewable Energy: FY2017 Appropriations and the FY2018 Budget Request, by

(name redacted) and (name redacted)

.

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Federal Research and Development Funding: FY2018

The Senate bill would provide $3.660 billion for DOE energy R&D. Relative to FY2017, it would

decrease funding for energy efficiency and renewable energy by 7.7%, fossil energy R&D by

14.3%, and nuclear energy by 9.1%, including funding at the FY2017 level for the Integrated

University Program but no funding for STEP R&D or small modular reactor licensing technical

support. For ARPA-E, the Senate bill would provide $330 million, $24 million more than the

FY2017 appropriation.

Table 7. Department of Energy R&D and Related Activities

(budget authority, in millions of dollars)

FY2017

Enacted

FY2018

Request

FY2018

House

FY2018

S. Cmte.

$5,392

$4,473

$5,393

$5,550

Basic Energy Sciences

1,872

1,555

1,872

1,980

High Energy Physics

825

673

825

860

Biological and Environmental Research

612

349

582

633

Nuclear Physics

622

503

619

639

Advanced Scientific Computing Research

647

722

694

763

Fusion Energy Sciences

380

310

395

232

Other

435

362

406

443

3,760

3,982

4,036

3,865

Weapons Activities RDT&E

1,842

2,028

2,004

1,964

Naval Reactors

1,420

1,480

1,486

1,437

Defense Nuclear Nonproliferation R&D

470

446

524

436

Defense Environmental Cleanup Technol. Devel.

28

28

23

28

3,988

1,717

2,620

3,660

Energy Efficiency and Renewable Energya

1,812

636

808

1,672

Fossil Energy R&D

668b

280

668

573

Nuclear Energy

1,017

703

969

917

Electricity Delivery and Energy Reliability R&D

185

78

175

168

Advanced Research Projects Agency–Energy

306

20

0

330

13,140

10,172

12,049

13,075

Science

National Security

Energy

DOE, Total

FY2018

Enacted

Source: FY2017 enacted from P.L. 115-31 and explanatory statement, Congressional Record, May 3, 2017. FY2018

request from DOE FY2018 congressional budget justification, https://energy.gov/cfo/downloads/fy-2018-budgetjustification. FY2018 House from H.R. 3219 as passed by the House and H.Rept. 115-230 (on H.R. 3266). FY2018

Senate committee from S. 1609 as reported and S.Rept. 115-132. Figures for the column headed “FY2018

Enacted” will be added, if available, as action is completed.

Notes: Totals may differ from the sum of the components due to rounding.

a. Excluding Weatherization and Intergovernmental Activities.

b. Does not include rescission of $240 million in prior-year balances.

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Federal Research and Development Funding: FY2018

National Aeronautics and Space Administration52

The National Aeronautics and Space Administration (NASA) was created in 1958 by the National

Aeronautics and Space Act (P.L. 85-568) to conduct civilian space and aeronautics activities.

NASA has research programs in planetary science, Earth science, heliophysics, astrophysics, and

aeronautics, as well as development programs for future human spacecraft and for multipurpose

space technology such as advanced propulsion systems. In addition, NASA operates the

International Space Station (ISS) as a facility for R&D and other purposes.

The Administration is requesting about $15.950 billion for NASA R&D in FY2018. This is 4.2%

less than the FY2017 level of about $16.657 billion. The House committee recommendation

(based on H.R. 3627 as reported and H.Rept. 115-231) is $16.737 billion. The Senate committee

recommendation (based on S. 1662 as reported and S.Rept. 115-139) is $16.324 billion. For a

breakdown of these amounts, see Table 8. NASA R&D funding comes through five accounts:

Science, Aeronautics, Space Technology, Exploration, and the ISS and Commercial Crew

portions of Space Operations.

The FY2018 request for Science is $5.712 billion, a decrease of 0.9%. Within this total, funding

for Earth Science would decrease by $167 million (8.7%); funding for the James Webb Space

Telescope would decrease by $36 million (6.3%) in line with previous plans; and funding for

Planetary Science and Astrophysics would increase. The bulk of the proposed reduction for Earth

Science would result from the elimination of four items in the Earth Systematic Missions

program: the Pre-Aerosol, Clouds, and ocean Ecosystem (PACE) mission, the Radiation Budget

Instrument (RBI), the Climate Absolute Radiance and Refractivity Observatory (CLARREO)

Pathfinder mission, and the NASA-provided instruments on the Deep Space Climate Observatory

(DSCOVR) mission. In Planetary Science, funding for an orbiter mission to Jupiter’s moon

Europa (with no accompanying lander) would increase from $275 million in FY2017 to $425

million in the FY2018 request; NASA expects this mission to advance to Phase C (final design

and fabrication) at the beginning of FY2019. The House committee bill would provide $5.859

billion for Science, including $50 million less than the request for Earth Science and $191 million

more than the request for Planetary Science. The House committee report does not mention

PACE, RBI, CLARREO Pathfinder, or DSCOVR. It recommends $495 million for Europa orbiter

and lander missions. The Senate committee bill would provide $5.572 billion for Science,

including $167 million more than the request for Earth Science and $318 million less than the

request for Planetary Science. The Senate committee report includes funds for PACE, CLARREO

Pathfinder, and DSCOVR. It directs NASA to provide a report on the cost and schedule progress

of RBI, and to fund it from within the Earth Science appropriation if the report is favorable. It

does not mention the Europa mission.

The FY2018 request for Aeronautics is $624 million, a decrease of 5.5%. The request includes

$79 million for a low-boom supersonic flight demonstrator, first proposed in the FY2017 budget.

The House committee bill would provide $660 million, the same as in FY2017. The Senate

committee bill would provide $650 million. Both committee recommendations include the

requested amount for the low-boom flight demonstrator.

The FY2018 request for Space Technology is $679 million, a decrease of 1.2%. This is the first

year since FY2011, when Space Technology was first established as a separate account, that the

Administration has not proposed to increase Space Technology funding. The request includes no

52

This section was written by (name redacted), Specialist in Scienceand Technology Policy, CRS Resources, Science,

and Industry Division.

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Federal Research and Development Funding: FY2018

funding for the Restore-L satellite servicing mission. According to the FY2018 congressional

budget justification, NASA will “transition the Restore-L project to reduce its cost and better

position it to support a nascent commercial satellite servicing industry” and “pursue

collaborations with the Defense Advanced Research Projects Agency [DARPA] and industry to

most effectively advance satellite servicing technologies and ensure broad commercial

application.” The House committee bill would provide $687 million, the same as in FY2017. The

committee report states that “The Committee strongly supports Restore-L and expects NASA to

continue developing satellite servicing capabilities in collaboration with its public and private

sector and academic partners.” The Senate committee bill would provide $700 million, including

$130 million for Restore-L “to maintain a schedule that targets a launch in calendar year 2019.”

The committee report states that Restore-L is complementary to DARPA’s activities and

encourages NASA to “share expertise and lessons learned with DARPA and to accept any

financial contributions from DARPA.”

The FY2018 request for Exploration is $3.934 billion, a decrease of 9.0%. The Exploration

account primarily funds development of the Orion Multipurpose Crew Vehicle and the Space

Launch System (SLS) heavy-lift rocket, the capsule and launch vehicle mandated by the NASA

Authorization Act of 2010 for future human exploration beyond Earth orbit. The launch readiness

date for the first test flight of SLS carrying Orion but no crew (known as EM-1) was previously

planned for FY2018 but is expected to slip to 2019.53 The launch readiness date for the first flight

of Orion and the SLS with a crew on board (known as EM-2) continues to be FY2023. The House

committee bill would provide $4.550 billion for Exploration. The committee report expresses

concern about schedule slips and directs NASA to submit a report identifying the schedule

milestones that must be met for EM-1 and EM-2. The Senate committee bill would provide

$4.395 billion. The committee report states that the recommended funding level is “to ensure the

earliest possible crewed launch, as well as prepare for future crewed launches.”

In the Space Operations account, the request for Commercial Crew is $732 million, a decrease of

38.2%, and the request for the ISS is $1.491 billion (an increase of 3.8% from FY2016; the

FY2017 act did not specify an allocation for the ISS). The reduction in Commercial Crew funding

is in line with previous plans and reflects the expected transition of commercial crew activities

from development to operations. A domestic commercial capability to transport crews to the ISS

is expected to become available in September 2018. The House committee bill would provide $64

million (1.4%) less than the request for Space Operations as a whole; it does not specify how

much of the total should be allocated to the ISS and Commercial Crew programs. The Senate

committee bill would provide $11 million more than the request for Space Operations; its

recommendation includes the requested amount for Commercial Crew but does not specify an

allocation for the ISS.

53

See NASA comments in Government Accountability Office, NASA Human Space Exploration: Delay Likely for First

Exploration Mission, GAO-17-414, April 2017, http://www.gao.gov/assets/690/684360.pdf, p. 18.

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Federal Research and Development Funding: FY2018

Table 8. National Aeronautics and Space Administration R&D

(budget authority, in millions of dollars)

FY2017

Enacted

FY2018

Request

FY2018

H. Cmte.

FY2018

S. Cmte.

5,765

5,712

5,859

5,572

Earth Science

1,921

1,754

1,704

1,921

Planetary Science

1,846

1,930

2,121

1,612

Astrophysics

750

817

822

817

James Webb Space Telescope

569

534

534

534

Heliophysics

679

678

678

689

Aeronautics

660

624

660

650

Space Technology

687

679

687

700

4,324

3,934

4,550

4,395

3,929

3,584

4,100

4,045

Science

Exploration

Exploration Systems Development

Exploration R&D

395

350

450

350

n/sa

1,491

n/sa

n/sa

Commercial Crew

1,185

732

n/sa

732

Subtotal R&D

14,005

13,171

13,947

13,546

Non-R&D Programsb

2,519

2,595

2,612

2,660

Safety, Security, and Mission Services

2,769

2,830

2,826

2,827

2,347

2,364

2,380

2,363

361d

496

486

496

Associated with R&Dc

306

414

409

415

NASA, Total (R&D)

16,657

15,950

16,737

16,324

NASA, Total

19,653d

19,092

19,872

19,529

International Space Station

Associated with R&Dc

Construction & Environmental C&R

FY2018

Enacted

Sources: FY2017 enacted from P.L. 115-31 and explanatory statement, Congressional Record, May 3, 2017, pp.

H3374-H3375. FY2018 request from NASA FY2018 congressional budget justification, http://www.nasa.gov/

news/budget/. FY2018 House committee from H.R. 3627 as reported and H.Rept. 115-231. FY2018 Senate

committee from S. 1662 as reported and S.Rept. 115-139. Figures for the column headed “FY2018 Enacted” will

be added, if available, as action is completed.

Notes: Totals may differ from the sum of the components due to rounding. C&R = Compliance and

Remediation.

a. Not specified. The R&D totals shown lower in the table assume that unspecified amounts within Space

Operations are allocated in proportion to the Administration request.

b. Space Operations other than ISS and Commercial Crew; Education; and Inspector General.

c. CRS estimates the allocation between R&D and non-R&D in proportion to the underlying program amounts

in order to allow calculation of a total for R&D. The Safety, Security, and Mission Services account and the

Construction and Environmental Compliance and Remediation account consist mostly of indirect costs for

other programs, assessed in proportion to their direct costs.

d. Does not include $109 million in emergency appropriations for natural disaster repairs.

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Federal Research and Development Funding: FY2018

National Science Foundation54

The National Science Foundation (NSF) supports basic research and education in the non-medical

sciences and engineering. Congress established the foundation as an independent federal agency

in 1950 and directed it to “promote the progress of science; to advance the national health,

prosperity, and welfare; to secure the national defense; and for other purposes.”55 The NSF is a

primary source of federal support for U.S. university research, especially in mathematics and

computer science. It is also responsible for significant shares of the federal science, technology,

engineering, and mathematics (STEM) education program portfolio and federal STEM student

aid and support.56

NSF has six appropriations accounts: Research and Related Activities (RRA, the main research

account), Education and Human Resources (EHR, the main education account), Major Research

Equipment and Facilities Construction (MREFC), Agency Operations and Award Management

(AOAM), the National Science Board (NSB), and the Office of Inspector General (OIG).

Appropriations are generally provided at the account level, while program-specific direction may

be included in appropriations acts, or accompanying conference reports or explanatory

statements.

For FY2017, P.L. 115-31 provided appropriations at the account level, and Congress directed

funding for a subset of programs within the RRA, EHR, and MREFC accounts in the

accompanying explanatory statement.57 Because NSF reports that FY2017 amounts were not

available when the FY2018 budget request was prepared, requested funding at the subaccount

level is generally compared to FY2016 actual funding. Therefore, this section of the report

compares account funding (and program-specific funding, where directed by Congress) to

FY2017 enacted funding; subaccount and R&D funding amounts are compared to FY2016 actual

levels.58

Funding for R&D is included in the RRA, EHR, and MREFC accounts, which also include nonR&D funding. Together, these three accounts comprise 95% of the total requested funding for

NSF. Actual R&D obligations for each account are known after NSF allocates funding

appropriations to specific activities and reports those figures.59 The budget request specifies R&D

funding for the conduct of research, including basic and applied research, and for physical assets,

including R&D facilities and major equipment. Funding amounts for FY2016 actual, FY2017

enacted, and FY2018 requested levels are reported by account, including amounts for R&D

conduct and physical assets where applicable, in Table 9.

54

This section was written by Laurie Harris, Analyst in Science and Technology Policy, CRS Resources, Science, and

Industry Division.

55

The National Science Foundation Act of 1950 (P.L. 81-507).

56

For more information about NSF and the agency’s funding history, see CRS Report R45009, The National Science

Foundation: FY2018 Appropriations and Funding History, by (name redacted) .

57

Explanatory Statement, Consolidated Appropriations Act, 2017, Division B (Commerce, Justice, Science, and

Related Agencies Appropriations Act, 2017), Congressional Record, vol. 163, no. 76—Book II (May 3, 2017), p.

H3375.

58

Long-term, multi-year construction projects supported through the MREFC account are an exception, as NSF is able

to provide FY2017 estimated funding amounts for these projects.

59

R&D prior year (FY2016) and requested (FY2018) amounts are reported in the “Quantitative Data Tables” section of

the FY2018 NSF Budget Request to Congress, May 23, 2017, pp. QDT-1–QDT-7.

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Federal Research and Development Funding: FY2018

Overall. The Trump Administration is requesting $6.653 billion for the NSF in FY2018, an $819

million (11%) decrease from the FY2017 enacted amount of $7.472 billion. The request would

decrease budget authority primarily in three accounts relative to the FY2017 enacted level: RRA

by $672 million (11%), EHR by $119 million (14%), and MREFC by $26 million (12%). The

request would provide slight decreases to the AOAM (0.5%, $1.5 million), and OIG (1.3%,

$200,000) accounts, and no change for the NSB account. Overall, NSF estimates that, under the

FY2018 request, funding for research grant awards would decrease from 21% to 19%, resulting in

800 fewer grants awarded, compared to FY2016.

As a proportion of NSF’s total funding, R&D activities account for approximately 81%. For

FY2018, $5.370 billion is requested for R&D activities, a 10.8% decrease from FY2016 actual

funding for R&D of $6.022 million. The total request includes $4.950 billion (92%) for the

conduct of R&D, and $420 million (8%) for R&D facilities and major equipment. Of funding

requested for the conduct of R&D, 86% is requested for basic research, and 14% for applied

research. Overall funding for R&D facilities and major equipment supports not only the

construction and acquisition phases, funded through MREFC ($183 million requested), but also

the planning, design, and post-construction operations and maintenance, funded through RRA

($237 million requested).

As passed by the House on September 14, 2017, the Interior and Environment, Agriculture and

Rural Development, Commerce, Justice, Science, Financial Services and General Government,

Homeland Security, Labor, Health and Human Services, Education, State and Foreign Operations,

Transportation, Housing and Urban Development, Defense, Military Construction and Veterans

Affairs, Legislative Branch, and Energy and Water Development Appropriations Act, 2018, (H.R.

3354),60 would provide a total of $7.340 billion for NSF in FY2018, a $132.7 million (1.8%)

decrease from the FY2017 enacted level and $687 million (10.3%) more than the FY2018

request. As reported by the Senate Committee on Appropriations, the Commerce, Justice,

Science, and Related Agencies Appropriations Act, 2018 (S. 1662), would provide a total of

$7.311 billion for NSF in FY2018, a $161.1 million (2.2%) decrease from the FY2017 enacted

level and $658.2 million (9.9%) more than the FY2018 request. These amounts include both

R&D and non-R&D funding.

NSF’s budget justification identifies seven ongoing agency-wide investments that aim to bring

researchers from different fields of science and engineering together to address cross-disciplinary

questions. Compared to the FY2016 actual amounts, a slight increase in funding is requested for

one of these initiatives—the Inclusion across the Nation of Communities of Learners of

Underrepresented Discoverers in Engineering and Science (INCLUDES, 6.5%, $1 million

increase). Decreases of between 12% and 70% are requested for the remaining six investments.

These include Cyber-Enabled Materials, Manufacturing, and Smart Systems (CEMMSS, $222

million requested, 18% decrease); Innovations at the Nexus of Food, Energy, and Water Systems

(INFEWS, $24 million requested, 70% decrease); Innovation Corps (I-Corps, $26 million

requested, 12% decrease); Risk and Resilience ($31 million requested, 27% decrease); Secure and

Trustworthy Cyberspace (SaTC, $114 million requested, 12% decrease); and Understanding the

Brain (UtB), $134 million requested, 22% decrease). The committee report to accompany S. 1662

(S.Rept. 115-139) recommends no less than the FY2017 level for I-Corps.

60

Language from the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2018 (H.R. 3267),

originally reported by the House Committee on Appropriations on July 17, 2017, was incorporated as Division C of

H.R. 3354.

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Federal Research and Development Funding: FY2018

Research. The Trump Administration seeks a $627 million (11%) decrease in funding for RRA in

FY2018 compared to FY2017 enacted funding, for a total of $5.362 billion. Compared to the

FY2016 actual levels, the FY2018 request includes decreases for all ten of the RRA subaccounts

except for the U.S. Arctic Research Commission (USARC), which would not change. The largest

percentage decrease would go to Integrative Activities (26%, $111 million decrease). The largest

decrease in dollars would go to Mathematical and Physical Sciences (MPS, $129 million, 9.6%).

The other subaccounts would receive decreases between 7.1% and 10.6%. The FY2018 request

also includes $100 million for the RRA program Established Program to Stimulate Competitive

Research (EPSCoR), which has drawn congressional interest, a decrease of 37.5% from the $160

million directed in the explanatory statement for FY2017 enacted funding.

In recent years, policymakers have debated congressional funding directives at the subaccount

level within RRA. Some assert that legislators have a role in establishing funding priorities by

scientific field, as part of the legislative oversight function and in order to assure accountability

for taxpayer funds. Others argue that the scientists who manage NSF ought to determine the

distribution of funding by field, based on their deeper knowledge of research needs and scientific

possibilities within each field, and of how these needs are best balanced across the NSF portfolio.

For FY2016, P.L. 114-113 did not specify the funding distribution within RRA, though it did limit

the budget authority for Social, Behavioral and Economic Sciences to its FY2015 level.61 For

FY2017, P.L. 115-31 did not specify allocations for RRA subaccounts, but did specify that $544

million remain available for polar research and operations support, including activities for the

U.S. Antarctic program.

Within the RRA account, the FY2018 request includes $4.839 billion for R&D, a decrease of

$537 million (10%) compared to the FY2016 actual amount. Of this amount, the majority ($4.602

billion, 95%) is requested for the conduct of research, including $4.160 billion for basic research

and $443 million for applied research.

As passed by the House, H.R. 3354 would provide a total of $6.034 billion for RRA, equal to the

FY2017 enacted level. As reported by the Senate Committee on Appropriations, S. 1662 would

provide a total of $5.918 billion for RRA, $115.8 million (1.9%) below the FY2017 enacted level.

For EPSCoR, the Senate committee report recommends no less than $160 million for EPSCoR,

equal to the FY2017 level but does not specify funding amounts for RRA subaccounts.

Education. The FY2018 request includes a $119 million (13.6%) decrease for EHR, for a total of

$761 million. This represents the largest percentage reduction requested among NSF’s

appropriations accounts. In FY2017, P.L. 115-31 provided $880 million for EHR and the

accompanying explanatory statement directed funding levels for a number of EHR programs. As

passed by the House, H.R. 3354 would provide $880 billion for EHR, equal to the FY2017

enacted level and $119.4 million (16%) above the FY2018 request. As reported by the Senate

Committee on Appropriations, S. 1662 would provide $862.4 million for EHR, $17.6 million

(2%) below the FY2017 enacted level and $101.8 million (13.4%) above the FY2018 request.

By program division, the largest decrease in the FY2018 request is for the Division of Graduate

Education (20.5%, $57 million decrease), which would receive $221 million. The divisions on

human resource development, formal and informal learning, and undergraduate education would

receive decreases of 9.4% ($200 million requested), 11% ($135 million requested), and 12%

($204 million requested), respectively.

61

Explanatory statement accompanying P.L. 114-113.

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Federal Research and Development Funding: FY2018

EHR programs of particular interest to congressional policymakers include the Graduate

Research Fellowship (GRF) and National Research Traineeship (NRT) programs. The FY2018

request for GRF is $246 million, a reduction of $86 million (26%) from the FY2016 actual level.

The requested amount would support 1,000 new fellows, a reduction from the 2,000 new fellows

supported through the GRF each year since 2011; in addition, funding will continue for an

estimated 5,000 active fellows. The FY2018 request for NRT is $40 million, a $16 million (28%)

decrease from FY2016.

Proposed funding for FY2018 for other EHR programs of particular congressional interest

include CyberCorps: Scholarships for Service ($40 million requested, 27.0% below the FY2017

directed level);62 Advancing Informal STEM Learning ($63 million requested, no change);

Science, Technology, Engineering, and Mathematics + Computing Partnerships ($20 million

requested, 61% decrease); Historically Black Colleges and Universities Undergraduate Program

(HBCU-UP, $35 million requested, no change); Tribal Colleges and University Programs (TCUP,

$13 million requested, 7.1% decrease); and the Louis Stokes Alliance for Minority Participation

(LSAMP, $41 million requested, 10.9% decrease). Funding for the Hispanic Serving Institutions

program (HSI), established in FY2017 per congressional direction, is requested at the FY2017

enacted level of $15 million. The Senate committee report recommends no less than $35 million

for the HBCU-UP program, $14 million for the TCUP program, $46 million for the LSAMP

program, and $15 million for the HSI program. The Senate committee report also recommends no

less than the FY2017 enacted amounts for the GRF program and $55 million for CyberCorps.

Within EHR, requested funding for R&D is $348 million, which accounts for approximately

(6.5%) of the agency’s total R&D request. The requested amount is a $57 million (14%) decrease

from the FY2016 actual amount of $405 million. The vast majority of the requested funding

would support the conduct of R&D, including $120 million for basic research and $228 million

for applied research.

Construction. The MREFC account supports large construction projects and scientific

instruments, with nearly all of the funding directed for R&D facilities. The Trump Administration

is seeking just over $183 million for MREFC in FY2018, $26 million (12.5%) less than the

FY2017 enacted amount.

Requested MREFC funding would support three main projects, including continued construction

of the Large Synoptic Survey Telescope (LSST, $58 million requested, 13.6% decrease from the

FY2017 estimate) and the Daniel K. Inouye Solar Telescope (DKIST, $20 million requested, no

change). Most of the request ($105 million) would fund the Regional Class Research Vessels

(RCRV) program to build ships to support science in U.S. coastal waters. The FY2018 request—

prepared in advance of final FY2017 appropriations action by Congress—included support for

two ships. Subsequently, Congress directed NSF to provide $122 million to build three RCRVs.

This amounts to $41 million per ship, compared to the FY2018 request of $52.5 million per ship.

The budget request notes that the direction from Congress for three RCRVs will impact current

and future funding requirements at unspecified amounts.

As passed by the House, H.R. 3354 would provide a total of $77.8 million for MREFC in

FY2018, $131 million (63%) below the FY2017 enacted level, and $105 million (57%) below the

FY2018 request. This amount would provide $57.8 million for LSST and $20 million for DKIST

but no funding for RCRVs. As reported by the Senate Committee on Appropriations, S. 1662

would provide a total of $182.8 million for MREFC in FY2018, $26.2 million (12.5%) below the

62

The explanatory statement further directed, of the $55 million provided for CyberCorps in FY2017, “no less than

$7.5 million for qualified community colleges as directed by the Senate.”

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Federal Research and Development Funding: FY2018

FY2017 enacted level, and equal to the FY2018 request. The recommended amount includes

funding at the requested levels for DKIST, LSST, and three RCRVs.

Other initiatives. The FY2018 NSF budget request includes funding for three multiagency

initiatives. This funding is included in the six NSF appropriations accounts and not separately

provided. The National Nanotechnology Initiative would receive $389 million, $122 million

(24%) less than in FY2016. The Networking and Information Technology Research and

Development program would receive $1.062 billion, a decrease of $157 million (12.9%). The

U.S. Global Change Research Program would receive $264 million, $85 million (25.6%) less

than in FY2016. P.L. 115-31 did not specify NSF funding for these initiatives. Similarly, H.R.

3354, S. 1662, and Senate committee report do not specify funding for the initiatives.

Table 9. National Science Foundation Funding

(budget authority in millions of dollars)

FY2016

Actual

FY2017

Enacted

FY2018

Request

FY2018

House

FY2018

S.Cmte.

$5,998.1

$6,033.6

$5,361.6

$6,033.6

$5,917.8

R&D, RRA Total

5,375.8

n/s

4,839.0

n/s

n/s

Conduct of R&D

5,184.6

n/s

4,602.3

n/s

n/s

R&D Facilities and Major Equipment

191.2

n/s

236.7

n/s

n/s

Education and Human Resources

(EHR)

884.1

880.0

760.6

880.0

862.4

R&D, EHR Total

405.0

n/s

348.2

n/s

n/s

Conduct of R&D

Account

Research and Related Activities

(RRA)

404.8

n/s

348.0

n/s

n/s

R&D Facilities and Major Equipment

0.2

n/s

0.2

n/s

n/s

Major Research Equipment and

Facilities Construction (MREFC)

241.5

209.0

182.8

77.8

182.8

R&D, MREFC Total

241.5

n/s

182.8

n/s

n/s

–

n/s

–

n/s

n/s

R&D Facilities and Major Equipment

241.5

n/s

182.8

n/s

n/s

Agency Operations and Award

Management (AOAM)a

351.1

330.0

328.5

328.5

328.5

National Science Board (NSB)a

4.3

4.4

4.4

4.4

4.4

Office of the Inspector General

(OIG)a

14.8

15.2

15.0

15.2

15.2

$7,493.9

$7,472.2

$6,652.9

$7,339.5

$7,311.1

6,022.3

n/s

5,369.9

n/s

n/s

5,589.4

n/s

4,950.3

n/s

n/s

432.8

n/s

419.6

n/s

n/s

Conduct of R&D

NSF, Total

R&D, NSF Total

Total, Conduct of R&D

Total, R&D Facilities & Major

Equipment

FY2018

Enacted

Source: Data in the columns titled, “FY2016 Actual” and “FY2018 Request” are from the FY2018 NSF Budget

Request to Congress. Data in the column headed “FY2017 Enacted” are from the Consolidated Appropriations

Act, 2017 (P.L. 115-31) and the accompanying Division B Explanatory Statement. Funding amounts in the column

“FY2018 House-passed” are from the Division C—Commerce, Justice, Science, and Related Agencies

Appropriations Act, 2018 of H.R. 3354, as passed by the House on September 14, 2017. Funding amounts in the

column “FY2018 S.Cmte. Reported” are from the Commerce, Justice, Science, and Related Agencies

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Federal Research and Development Funding: FY2018

Appropriations Act, 2018 (S. 1662), as reported by the Senate Committee on Appropriations on July 27, 2017,

and S.Rept. 115-139.

Notes: Appropriations accounts are in bold. NSF total may differ from the sum of the accounts due to rounding.

Non-bold R&D funding amounts are a subset of funding for the specified accounts. The term “n/s” means “not

specified.”

a. The AOAM, NSB, and OIG accounts have no reported R&D funding.

Department of Agriculture63

The U.S. Department of Agriculture (USDA) was created in 1862, in part to support agricultural

research in an expanding, agriculturally-dependent country. USDA conducts intramural research

at federal facilities with government-employed scientists, and supports external research at

universities and other facilities through competitive grants and formula-based funding. The

breadth of contemporary USDA research spans traditional agricultural production techniques,

organic and sustainable agriculture, bioenergy, nutrition needs and composition, food safety,

animal and plant health, pest and disease management, economic decisionmaking, and other

social sciences affecting consumers, farmers, and rural communities.

Four agencies carry out USDA’s research and education activities, grouped together into the

Research, Education, and Economics (REE) mission area. The agencies involved are the

Agricultural Research Service (ARS), National Institute of Food and Agriculture (NIFA),

National Agricultural Statistics Service (NASS), and Economic Research Service (ERS).

For FY2018, the House-passed bill (H.R. 3354, as amended from committee-reported H.R. 3268)

would provide $2.793 billion for USDA’s four research agencies, a reduction of $98 million (3.4%) from the enacted FY2017 appropriation (P.L. 115-31). The Senate-reported bill (S. 1603)

would provide $2.834 billion ($41 million more than the House bill, and a reduction of 2% from

FY2017). The Administration’s budget request was for $2.508 billion, a reduction of $382 million

(-13.2%) from FY2017. (See Table 10.)

In addition to discretionary appropriations, agricultural research is also funded by state matching

contributions and private donations or grants, as well as mandatory funding from the farm bill.64

USDA’s discretionary appropriations are profiled below.

Agricultural Research Service

The Agricultural Research Service is USDA’s in-house basic and applied research agency. It

operates approximately 90 laboratories nationwide with about 6,600 employees. ARS also

operates the National Agricultural Library, one of the department’s primary information

repositories for food, agriculture, and natural resource sciences. ARS laboratories focus on

efficient food and fiber production, development of new products and uses for agricultural

commodities, development of effective controls for pest management, and support of USDA

regulatory and technical assistance programs.

63

This section was written by (name redacted) and (name redacted), Specialists in Agricultural Policy, CRS Resources,

Science, and Industry Division.

64

For background on agricultural research, see CRS Report R40819, Agricultural Research: Background and Issues,

by (name redacted)

. For background on agricultural appropriations, see CRS Insight IN10710, The President’s FY2018

Budget Request for Agriculture Appropriations and the Farm Bill, by (name redacted)

, and CRS Report R44588,

Agriculture and Related Agencies: FY2017 Appropriations, coordinated by (name redacted)

.

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For FY2018, the House-passed bill would provide $1.134 billion for ARS salaries and expenses,

and $60 million for ARS buildings and facilities; each component is nearly $40 million less than

comparable FY2017 levels (Table 10). The Senate-reported bill would provide $50 million more

than the House bill for salaries and expenses, $1.182 billion, but nothing for buildings and

facilities. The Administration requested $993 million for ARS salaries and expenses, a reduction

of $177 million (-15.1%) from the enacted FY2017 appropriation, and nothing for buildings and

facilities.

To achieve its requested reduction, the Administration proposed budgetary decreases across all

ARS programmatic areas, and specifically reducing or eliminating several dozen prioritized

research projects. The programmatic reduction was coupled with proposals to close 5 laboratories

at ongoing locations, and close another 12 laboratory locations entirely. Both the House and

Senate bills reject these closures and project terminations, though the House bill encourages ARS

to reallocate resources as projects mature and goals are achieved. Previous years’ budgets and

administrations have proposed similar laboratory closures and realignments that were expressly

rejected in enacted appropriations.

For the ARS buildings and facilities account, the Senate-reported bill concurs with the

Administration’s request for no appropriation. The House-passed bill would provide $60 million.

This follows buildings and facilities appropriations of $99.6 million in FY2017 and $212 million

in FY2016. The House report language mirrors past appropriations that have directed ARS to

follow funding priorities identified in the 2012 “USDA ARS Capital Investment Strategy.”65

National Institute of Food and Agriculture

The National Institute of Food and Agriculture provides federal funding for research, education,

and extension projects conducted in partnership with the State Agricultural Experiment Stations,

the State Cooperative Extension System, land grant universities, colleges, and other research and

education institutions, as well as individual researchers. These partnerships include the 1862 landgrant institutions, 1890 historically black colleges and universities (HBCUs), 1994 tribal landgrant colleges, and Hispanic-serving institutions.66 Federal funds enhance capacity at universities

and institutions by statutory formula funding, competitive awards, and grants.

For FY2018, the House-passed bill would provide $1.344 billion for NIFA, a reduction of $19

million from FY2017 (-1.4%). The Senate-reported bill would provide $1.373 billion, an increase

of $10 million above FY2017. The Administration had requested $1.253 billion, a decrease of

$110 million from FY2017 (-8.1%; Table 10).

The Agriculture and Food Research Initiative (AFRI)—USDA’s flagship competitive grants

program with 25% of NIFA’s total budget—would remain at $375 million in both the Housepassed and Senate-reported bills, the same as provided in FY2017.

65

USDA-ARS, The USDA Agricultural Research Service Capital Investment Strategy, April 2012, http://www.ars.

usda.gov/sp2UserFiles/Subsite/ARSLegisAffrs/USDA_ARS_Capital_Investment_Strategy_FINAL_eeo.pdf. In

FY2016, funding went to construction of a biocontainment laboratory at the ARS poultry research facility in Athens,

GA ($145 million); a foreign disease-weed science facility in Frederick, MD ($70 million); and an animal science,

human nutrition, and bee research center in Beltsville, MD ($33 million). The priorities funded in FY2017 include

completion of the Foreign Disease and Weed Science Research Unit in Fort Detrick, MD ($30.2 million) and Phase I of

the Agricultural Research Technology Center in Salinas, CA ($64.3 million).

66

The numbers 1862, 1890, and 1994 in this context refer to the years that laws were enacted creating these

classifications of colleges and universities, not to the number of institutions.

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The Administration had proposed to eliminate or reduce funding for several other specific

organic, pest management, and crop-specific research programs. The House bill is generally more

generous to these programs than the Administration’s request, though it concurs with eliminating

funding for some programs while maintaining it for others. The Senate-reported bill generally has

a slight increase over FY2017 levels for these other smaller research programs.

Formula-funded programs in both research and extension are held constant under both the Housepassed and Senate-reported bills. This is similar to the Administration’s request, though the

Administration proposed a 15% reduction to McIntire-Stennis cooperative forestry research

funding.

The President’s request proposes to eliminate funding for several programs, including several

federal science, technology, engineering, and mathematics education programs at USDA (Higher

Education Challenge Grants, Graduate and Post-graduate Fellowship Grants, the Higher

Education Multicultural Scholars Program, the Women and Minorities in STEM Program,

Agriculture in the Classroom, and Secondary/Postsecondary Challenge Grants). Previous years’

budget requests have proposed moving these programs away from USDA and consolidating

STEM programming across the government, but enacted appropriations have continued to

maintain the programs at USDA. Both the House-reported and Senate-reported bills maintain

these programs at USDA and at FY2017 levels.

As in past years, the House-passed and Senate-reported bills continue to direct that at least 15%

of NIFA’s competitive grant funding be available for research enhancement awards such as

USDA-EPSCoR.

National Agricultural Statistics Service

The National Agricultural Statistics Service conducts the Census of Agriculture and provides

official statistics on agricultural production and indicators of the economic and environmental

status of the farm sector.

For FY2018, the House-passed bill would provide $178 million and the Senate-reported bill

would provide $192 million. Both are increases over the FY2017 appropriation of $171 million.

The FY2018 request by the Administration of $186 million reflects additional expenses for

conducting the Agricultural Census.

For the core NASS Agricultural Estimates program, the Administration had requested a $7.3

million reduction (-5.6%), and the House-passed bill would decrease it an even larger amount, 14.2%. The Senate-reported bill basically maintains the core statistical program at FY2017 levels,

with only a -0.5% reduction. The Administration proposed to achieve at least some of this

reduction by reducing the sample size of 12 specific surveys and producing fewer estimates

(including by reducing the number of published states by commodity).67

Economic Research Service

The Economic Research Service supports economic and social science analysis about agriculture,

rural development, food, commodity markets, and the environment. It collects and disseminates

data concerning USDA programs and policies.

67

USDA, Office of Budget and Program Analysis, FY2018 Congressional Budget Justification for the National

Agricultural Statistics Service, p. 8.

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For FY2018, the House-reported bill follows the Administration request for $77 million, a

decrease of $10 million (-11.5%) from the enacted FY2017 appropriation. The Senate-reported

bill would maintain the FY2018 appropriation at the FY2017 level of $87 million.

The Administration’s budget proposed to reduce activities in many areas of research, including

drought resilience, international agriculture, bioenergy, and consumer food purchases.

Table 10. U.S. Department of Agriculture R&D

(budget authority, in millions of dollars)

FY2017

Enacted

FY2018

Request

FY2018

House

FY2018

S.Cmte.

1,170.2

993.1

1,134.1

1,182.4

99.6

0.0

60.0

0.0

1,269.8

993.1

1,194.1

1,182.4

AFRI (competitive grants)

375.0

349.3

375.0

375.0

Hatch Act (1862 institutions)

243.7

243.2

243.7

243.7

Evans-Allen (1890 institutions)

54.2

54.1

54.2

54.2

McIntire-Stennis (forestry)

34.0

28.9

34.0

34.0

Other

142.7

94.1

126.1

148.0

Subtotal

849.5

769.6

832.9

854.9

Smith-Lever (b) and (c)

300.0

299.4

300.0

300.0

Smith-Lever (d)

85.5

79.2

85.5

85.5

Other

91.9

84.3

90.3

95.8

477.4

462.9

475.9

481.4

36.0

20.3

35.0

37.0

1,362.9

1,252.8

1,343.8

1,373.2

National Agricultural Statistics Service (NASS)

171.2

185.7

178.2

191.7

Economic Research Service (ERS)

86.8

76.7

76.8

86.8

Total, USDA Research Mission Area

2,890.7

2,508.3

2,792.9

2,834.2

Agency or Major Program

Agricultural Research Service (ARS)

Buildings and Facilities

Subtotal, ARS

FY2018

Enacted

National Institute of Food and Agriculture (NIFA)

Research and Education

Extension

Subtotal

Integrated Activities

Subtotal, NIFA

Source: CRS, compiled P.L. 115-31 (including tables in the joint explanatory statement), H.R. 3354, H.R. 3268,

H.Rept. 115-232, S. 1603, and S.Rept. 115-131.

Notes: Components may not add to subtotals or total due to rounding. Figures for “FY 2018 Senate,” and

“FY2018 Enacted” will be added, if available, as Congress completes each action.

Department of Commerce

Two agencies of the Department of Commerce have major R&D programs: the National Institute

of Standards and Technology (NIST) and the National Oceanic and Atmospheric Administration

(NOAA).

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National Institute of Standards and Technology68

The mission of the National Institute of Standards and Technology is “to promote U.S. innovation

and industrial competitiveness by advancing measurement science, standards, and technology in

ways that enhance economic security and improve our quality of life.”69 NIST research provides

measurement, calibration, and quality assurance methods and techniques that support U.S.

commerce, technological progress, product reliability, manufacturing processes, and public safety.

NIST’s responsibilities include the development, maintenance, and custodial retention of the

national standards of measurement; providing the means and methods for making measurements

consistent with those standards; and ensuring the compatibility of U.S. national measurement

standards with those of other nations.70

The President is requesting $725.0 billion in funding for NIST in FY2018, a decrease of $229.0

million (24.0%) from the FY2017 enacted appropriation of $954.0 million. (See Table 11.) NIST

discretionary funding is provided through three accounts: Scientific and Technical Research and

Services (STRS), Industrial Technology Services (ITS), and Construction of Research Facilities

(CRF). The House passed the Commerce, Justice, Science, and Related Agencies Appropriations

Bill, 2018 as Division C of H.R. 3354,71 on September 14, 2017. The House-passed bill includes

$870.0 million in funding for NIST, down $84.0 million (8.8%) from the FY2017 enacted level

and up $145.0 million (20.0%) from the request. The Senate Committee on Appropriation

reported the Commerce, Justice, Science, and Related Agencies Appropriations Act, 2018 (S.

1662) on July 27, 2017. The Senate committee-reported bill includes $944.0 million for NIST,

down $10.0 million (1.0%) from the FY2017 enacted level, up $219.0 million (30.2%) from the

request, and up $74.0 million (8.5%) from the House-passed bill.

The President’s FY2018 request includes $600.0 million for R&D, standards coordination, and

related services in the STRS account, a decrease of $90.0 million (13.0%) from the FY2017

level.72 The House-passed bill includes $660.0 million in funding for the STRS account, down

$30.0 million (4.3%) from the FY2017 enacted level and up $60.0 million (10.0%) from the

request. Specific areas the House committee report identified for NIST attention include disaster

resiliency, textile research, football helmet safety, Internet of Things (IoT) security, cybersecurity,

and nanostructured metals. The Senate committee-reported bill includes $695.0 million for the

STRS, up $5.0 million (0.7%) from the FY2017 enacted level, up $95.0 million (15.8%) from the

request, and up $35.0 million (5.3%) from the House level. Among the specific areas the Senate

committee identified for NIST attention are cybersecurity, the National Cybersecurity Center of

Excellence, the IoT, forensic sciences, disaster resilient buildings, helmet safety, metals-based

additive manufacturing, plastics and polymeric materials, pyrrhotite in concrete aggregate,

regenerative medicine standards, a challenge prize focused on spectrum efficiency, and NIST’s

Urban Dome program. The Senate committee also recommends support for the NIST Baldrige

68

This section was written by (name redacted), Spe cialist in Science and Technology Policy, CRS Resources,

Science, and Industry Division.

69

NIST website, “General Information,” http://nist.gov/public_affairs/general_information.cfm.

70

15 U.S.C. 272.

71

H.R. 3354 is titled the “Interior and Environment, Agriculture and Rural Development, Commerce, Justice, Science,

Financial Services and General Government, Homeland Security, Labor, Health and Human Services, Education, State

and Foreign Operations, Transportation, Housing and Urban Development, Defense, Military Construction and

Veterans Affairs, Legislative Branch, and Energy and Water Development Appropriations Act, 2018.”

72

U.S. Department of Commerce, Department of Commerce, Budget in Brief, Fiscal Year 2018,

http://www.osec.doc.gov/bmi/budget/FY18BIB/All508.pdf.

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Performance Excellence program in the amount of $2.2 million, but emphasizes the need for the

program to become self-sustaining through fundraising and private sector support.

The President is requesting $21.0 million for the ITS account for FY2018, down $134.0 million

(86.5%) from the FY2017 enacted level. The ITS request includes $6.0 million “for the orderly

wind down” of the Manufacturing Extension Partnership (MEP) program, and $15.0 million for

the National Network for Manufacturing Innovation (NNMI, also referred to as Manufacturing

USA), a $10.0 million (40.0%) reduction from the FY2017 enacted level.73 The $15.0 million

provided for the NNMI includes $10.0 million for continued support of the NIST-sponsored

National Institute for Innovation in Manufacturing Biopharmaceuticals and $5.0 million to

support NIST’s role in coordination of the network. The House-passed bill includes $110.0

million in funding for the ITS account, down $45.0 million (29.0%) from the FY2017 enacted

level and up $89.0 million (423.8%) from the request. Within the ITS account, the bill would

provide $105.0 million for the MEP program, down $25.0 million (19.2%) from the FY2017

enacted level and up $99.0 million from the request, and would provide $5.0 million for the

NNMI, down $20.0 million (80.0%) from the FY2017 enacted level and down $10.0 million

(66.7%) from the request. The Senate committee-reported bill includes $145.0 million for the ITS

account, down $10.0 million (6.5%) from the FY2017 enacted level, up $124.0 million (590.5%)

from the request, and up $35.0 million (31.8%) from the House-passed bill. In doing so, the

Senate committee rejected the Administration’s proposed elimination of the MEP program and

funds it at the FY2017 level of $130.0 million, $25.0 million more than the House passed bill.

The Senate committee-reported bill would provide $15 million for the NNMI, $10 million below

the FY2017 level, equal to the Administration’s request, and $10 million more than the Housepassed bill. Of these funds, up to $5.0 million may be used for network coordination activities.

The President is requesting $104.0 million for FY2018 for the NIST CRF account, down $5.0

million (4.6%) from the FY2017 enacted level.74 The House-passed bill includes $100.0 million

in funding for the CRF account, down $9 million (8.3%) from the FY2017 enacted level and

down $4.0 million (3.8%) from the request. The Senate committee-reported bill includes $104.0

million for the CRF account, down $5.0 million (4.6%) from the FY2017 enacted level, equal to

the request, and up $4.0 million (4.0%) from the House-passed bill.

Table 11. National Institute of Standards and Technology Funding

(budget authority, in millions of dollars)

FY2017

Enacted

FY2018

Request

FY2018

House

FY2018

S. Cmte.

Scientific and Technical Research and

Services

$690.0

$600.0

$660.0

$695.0

Industrial Technology Services

155.0

21.0

110.0

145.0

Manufacturing Extension Partnership

130.0

6.0

105.0

130.0

Network for Manufacturing Innovation

25.0

15.0

5.0

15.0

Construction of Research Facilities

109.0

104.0

100.0

104.0

NIST, Totala

$954.0

$725.0

$870.0

$944.0

Budget Account

FY2018

Enacted

73

Ibid. For additional information on the MEP program, see CRS Report R44308, The Manufacturing Extension

Partnership Program, by (name redacted)

74

U.S. Department of Commerce, Department of Commerce, Budget in Brief, Fiscal Year 2018.

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Source: P.L. 115-31; explanatory statement accompanying P.L. 115-31, as published in the Congressional Record,

May 3, 2017, Book II, H3365; U.S. Department of Commerce, National Institute of Standards and

Technology/National Technical Information Service Fiscal Year 2018 Budget Submission to Congress, NIST-4; H.R. 3267;

H.Rept. 115-231; and H.R. 3354.

Notes: Figures for the columns headed “FY2018 Senate” and “FY2018 Enacted” will be added, if available, as

Congress completes each action.

a. NIST stated that it would continue to execute mandatory resources in FY2017 (not include in the table

figures) provided in FY2017 through the NIST Public Safety Communications Research Fund to help develop

wireless technologies for public safety users, as part of the National Wireless Initiative included in the

Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96). This act provides mandatory funds for

NIST from spectrum auction proceeds to help industry and public safety organizations conduct research

and develop new standards, technologies and applications to advance public safety communications in

support of the initiative’s efforts to build an interoperable nationwide broadband network for first

responders. The act provided NIST a total of $300 million, though rescissions have reduced this amount to

$285 million.

National Oceanic and Atmospheric Administration75

The National Oceanic and Atmospheric Administration conducts scientific research in areas such

as ecosystems, climate, global climate change, weather, and oceans; collects and provides data on

the oceans and atmosphere; and manages coastal and marine organisms and environments.

NOAA was created in 1970 by Reorganization Plan No. 4.76 The reorganization was intended to

unify elements of the nation’s environmental programs and to provide a systematic approach for

monitoring, analyzing, and protecting the environment. One of the agency’s main challenges

relates to its diverse mission of science, service, and stewardship. A review of research

undertaken by NOAA found, “The major challenge for NOAA is connecting the pieces of its

research program and ensuring research is linked to the broader science needs of the agency.”77

NOAA’s Research Council78 developed a five-year plan (2013-2017) to guide the agency’s R&D

efforts.79 R&D efforts support the long-term goals and enterprise objectives of NOAA’s Next

Generation Strategic Plan.80 The strategic plan is organized into four categories of long-term

goals including (1) climate adaptation and mitigation, (2) a weather-ready nation,81 (3) healthy

oceans, and (4) resilient coastal communities and economies; and three groups of enterprise

75

This section was written by (name redacted), Analyst in Natural Resources, CRS Resources, Science, and Industry

Division.

76

“Reorganization Plan No. 4 of 1970,” 35 Federal Register 15627-15630, October 6, 1970; see also

http://www.lib.noaa.gov/noaainfo/heritage/ReorganizationPlan4.html.

77

Dr. Kathryn Sullivan, Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator, NOAA

Response to the NOAA Science Advisory Board’s Portfolio Review Task Force Report, NOAA, April 15, 2014,

http://www.sab.noaa.gov/Reports/2014/NOAA.Response.to.PRTF.Report_2014.04.15.pdf.

78

According to NOAA, “The NOAA Research Council is an internal body composed of senior scientific personnel

from every line office in the agency who provide corporate oversight to ensure NOAA’s research and development

activities are of the highest quality, meet near- to long-term mission requirements and societal needs, take advantage of

emerging scientific and technological opportunities, shape a forward-looking research agenda, and are accomplished in

an efficient and cost-effective manner.” Source: NOAA website, “NOAA Research Council,” http://nrc.noaa.gov.

79

NOAA, Research and Development at NOAA, Five-Year Research and Development Plan 2013-2017, Washington,

DC, 2014, http://nrc.noaa.gov/CouncilProducts/ResearchPlans/5YearRDPlan/NOAA5YRPHome/Preface/

Purpose.aspx.

80

NOAA, NOAA’s Next-Generation Strategic Plan, Silver Spring, MD, December 2010, http://www.ppi.noaa.gov/wpcontent/uploads/NOAA_NGSP.pdf.

81

According to NOAA, a weather-ready nation is envisioned as a society that is prepared for and responds to weatherrelated events.

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objectives including (1) stakeholder engagement, (2) data and observations, and (3) integrated

environmental modeling. To achieve the strategic plan’s goals and objectives, NOAA has

identified gaps in knowledge and capabilities. NOAA’s R&D plan attempts to address these gaps

by asking key questions. Key questions are used in the plan to frame and organize R&D

objectives and to identify tasks associated with achieving these objectives.

One of the main challenges identified in the NOAA R&D plan is the need to integrate the diverse

perspectives and professional expertise required by the agency’s mission. The plan states that

“holistically understanding the earth system is not only understanding its individual components,

but understanding and interpreting the way each of the components interact and behave as an

integrated composite that is more than the sum of its parts.”

For FY2018, President Trump requested $671.6 million in R&D funding for NOAA, a decrease

of $176.4 million (20.8%) below the FY2017 enacted level of $848.0 million. R&D funding for

FY2017 consists of $497.8 million for research (58.7% of total R&D funding), $86.9 million for

development (10.3%), and $263.3 million for R&D equipment (31.0%).82 In FY2017, R&D is

14.9% of NOAA’s total discretionary budget of $5,675.4 million. The FY2018 request for R&D

funding includes $365.8 million for research (54.4% of total R&D funding), $64.2 million for

development (9.6%), and $241.6 million for R&D equipment (36.0%). The President’s request

for R&D is 14.1% of NOAA’s total discretionary budget request of $4,770.7 million.

NOAA’s administrative structure is organized by five line offices that reflect its diverse mission:

the National Ocean Service (NOS); National Marine Fisheries Service (NMFS); National

Environmental Satellite, Data, and Information Service (NESDIS); National Weather Service

(NWS); and Office of Oceanic and Atmospheric Research (OAR). In addition to NOAA’s five

line offices, two major funding categories include Mission Support (formerly Program Support)

and the Office of Marine and Aviation Operations (OMAO). Mission support is a cross-cutting

budget activity, which provides administrative functions related to planning, information

technology, human resources, and infrastructure. OMAO is responsible for the agency’s ships and

aircraft that collect data in support of NOAA’s environmental and scientific missions.83

Table 12 provides R&D funding levels for FY2017 enacted and the Administration’s FY2018

request for each NOAA office.84 Funding for NOAA R&D is included in budget line items that

also include non-R&D activities; therefore, it is not possible to identify precisely how much of

the funding provided in appropriations legislation is allocated to R&D. In general, R&D funding

levels are known only after NOAA allocates its appropriations to specific activities and reports

those figures.

Most of NOAA’s R&D activities are conducted by OAR and in most years OAR accounts for

over half of NOAA’s R&D funding. The FY2018 request would provide OAR with $350.0

million for R&D, a decrease of $130.1 million (27.1%) below the FY2017 enacted funding level

of $480.1 million.85

OAR conducts research in three major areas: weather and air chemistry; climate; and oceans,

coasts, and the Great Lakes. A significant portion of these efforts is implemented through

partnerships between NOAA and cooperative research institutes. NOAA supports 16 cooperative

82

NOAA Budget Office, email to CRS, June 14, 2017.

Most of NOAA’s discretionary funding for the five offices, OMAO, and Mission Support is from the Operations,

Research and Facilities and th

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