Analytical Perspectives - 5. Research and Development

[Analytical Perspectives]
[Crosscutting Programs]
[5. Research and Development]
[From the U.S. Government Printing Office, www.gpo.gov]

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5. RESEARCH AND DEVELOPMENT

I. INTRODUCTION

The eminent 19th Century American scientist Joseph Henry once
asserted, ``Modern civilization depends on science.'' This still holds
true. Indeed, investments in science and technology have resulted in
much of the unparalleled economic growth in the United States over the
last 50 years, as well as the standard of living and quality of life we
now enjoy. Advances have been possible only with the support of both
public and private investment in research and development (R&D).
And we continue to invest. The R&D investments of the United States
are unmatched. However, unlike 40 years ago, when Federal R&D
expenditures doubled those of the private sector, industry R&D spending
now exceeds that of the Federal Government. Still, by a wide margin, the
U.S. Government continues to lead the world in R&D spending.
Investments in technological advancement are vital to strengthening
our capabilities to combat terrorism and defend our country. The
President's 2005 Budget continues to focus R&D on winning the war
against terrorism, while moderating the growth in overall spending. But
the benefits of innovation and discovery are not limited to national
security. They are just as critical to economic security. The
Administration, recognizing that fundamental research is the fuel for
future innovation and technology development, has maintained the highest
levels of support for priority R&D areas such as nanotechnology,
information technology, hydrogen energy, and space exploration. The non-
defense R&D share of the discretionary budget is at a near-record high
over the last 30 years.

Author Aubrey Eben noted, ``Science is not a sacred cow. Science is a
horse. Don't worship it. Feed it.'' To this we would add: the horse also
needs to be kept in good shape. The focus should not be solely on
spending but, just as importantly, on performance. The Administration
will continue to meet the President's charge to improve the management,
performance, and results of the Federal Government. By strengthening
effective programs and addressing lower performers through reforms or
reallocations to higher performers, we will increase the productivity of
the Federal R&D portfolio and transcend the attention given to year-to-

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year marginal increases or decreases. Additionally, while it can be
difficult to assess the outcomes of some research programs--many of
which may not have a measurable effect for decades--agencies can
establish meaningful program goals and measure annual progress and
performance in appropriate ways. Towards that end, the Administration is
continuing to implement and improve investment criteria for R&D programs
across the government. Further, the government will coordinate
interrelated and complementary R&D efforts among agencies, combining
programs where appropriate to improve effectiveness and eliminate
redundancy, to leverage these resources to the greatest effect.
The Federal Government funds R&D in many ways. The government is a
strong supporter of basic research, which is directed toward greater
understanding of fundamental phenomena. Basic research is the source of
tomorrow's discoveries and new capabilities, and this long-term research
will fuel further gains in economic productivity, quality of life, and
homeland and national security. The government also has a vital role in
supporting applied research, which is driven by more specific needs, and
development, which applies scientific knowledge and technology to
specific needs. Together, the R&D portfolio is critical to the missions
of Federal agencies, particularly in priority areas that private sources
are not motivated to support. For example, if the private sector cannot
profit from the development of a particular technology, Federal funding
may be appropriate if the technology in question addresses a national
priority or otherwise provides significant societal benefits. A good
indicator of the relevance of Federal development funding is the level
at which industry is willing to share the costs. Also, the Federal
Government should help stimulate private investment and provide the
proper incentives for private sources to continue to fuel the discovery
and innovation of tomorrow. The Administration proposes to do this, for
instance, by permanently extending the Research and Experimentation tax
credit.
This chapter discusses how the Administration will improve the
performance of R&D programs through new investment principles and other
means that encourage and reinforce quality research. The chapter also
highlights the priority areas proposed for R&D agencies and the
coordinated efforts among them. The chapter concludes with details of
R&D funding across the Federal Government.

II. IMPROVING PERFORMANCE OF R&D PROGRAMS

R&D is critically important for keeping our Nation economically
competitive, and it will help solve the challenges we face in health,
defense, energy, and the environment. As a result, and consistent with
the Government Performance and Results Act, every Federal R&D dollar
must be invested as effectively as possible.

R&D Investment Criteria

The Administration is improving the effectiveness of the Federal
Government's investments in R&D by continuing to apply transparent
investment criteria in making recommendations for program funding and
management. R&D performance assessment requires special consideration.
Research often leads scientists and engineers down unpredictable
pathways with unpredictable results. This poses a difficult problem for
measuring an R&D program's performance against its initial goals.
Adopting ideas first laid out by the National Academy of Sciences, the
Administration is improving methods for setting priorities based on
expected results, including applying specific criteria that programs or
projects must meet to be started or continued, clear milestones for
gauging progress, and improved metrics for assessing results.
As directed by the President's Management Agenda, the R&D Investment
Criteria were first applied in 2001 to selected applied R&D programs at
the Department of Energy (DOE). Through the lessons learned from that
DOE pilot, the criteria subsequently were broadened in scope to cover
other types of R&D programs at DOE and other agencies. To accommodate
the wide range of R&D activities from basic research to development and
demonstration programs, a new framework was devised for the criteria to
address three fundamental aspects of R&D:
Relevance.--Programs must be able to articulate why they are
important, relevant, and appropriate for Federal investment;
Quality.--Programs must justify how funds will be allocated
to ensure quality; and
Performance.--Programs must be able to monitor and document
how well the investments are performing.
In addition, R&D projects and programs relevant to industry are
expected to meet criteria to determine the appropriateness of the public
investment, enable comparisons of proposed and demonstrated benefits,
and provide meaningful decision points for completing or transitioning
the activity to the private sector.

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Year Three in DOE Implementation of the Criteria. The Department of
Energy continues to expand its use of the R&D criteria. For example, to
ensure the relevance of the research it supports, DOE's basic research
programs have incorporated the programs' long-term measures into
requests for research proposals. The basic research programs have also
expanded their use of Committees of Visitors, teams of independent
experts that periodically assess the quality and performance of the
research that the program has supported. Many of DOE's applied R&D
programs have made similar improvements, and some have even
incorporated the specific ``industry-related'' R&D criteria into
evaluation forms used by peer reviewers to assess individual projects.
While DOE's applied R&D programs still are faced with the challenge of
generating comparable estimates of expected public benefits, they
continue to work toward improving the consistency and quality of the
data to better inform budget decisions.

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The Administration has been studying R&D management strategies that
some agencies use to operate particularly effective programs. The Office
of Management and Budget (OMB) and the Office of Science and Technology
Policy (OSTP) are continuing to assess the strengths and weaknesses of
R&D programs across agencies, in order to identify and apply good R&D
management practices throughout the government. For example, some
agencies have a more deliberate project-prioritization process, while
other agencies have more experience estimating the returns of R&D and
assessing the impact of prior investments. Assessing and implementing
new approaches is an iterative process, involving the research agencies
and the science and technology community.
As the investment criteria are implemented more broadly and more
deeply, one lesson that is increasingly apparent is the importance of
coordination and partnerships. First, partnerships are key in
determining the proper Federal role. These include partnerships with
industry (such as the Administration's FreedomCAR partnerships with U.S.
automakers), partnerships with other countries (such as the
Administration's International Partnership for a Hydrogen Economy), and
partnerships with university researchers. Partnerships and coordination
across agencies, through the National Science and Technology Council,
for example, can also make the use of research resources more efficient
and effective. More effective coordination and partnerships will be
pursued in further implementation of the investment criteria.
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Broader Application of the R&D Investment Criteria. This was the
second year of implementation of the investment criteria for most R&D
agencies. The National Aeronautics and Space Administration is
recasting its strategic plans and budget to tie directly to the R&D
criteria. To reflect the criteria, the National Science Foundation
changed the way it characterizes its budget, as well as the guidelines
it uses to evaluate its research. Nearly all R&D agencies assessed some
R&D programs using a tailored Program Assessment Rating Tool that was
based on the R&D criteria. The R&D agencies have more work to do to
integrate the R&D criteria more meaningfully into their management
processes and budget decisions, and OMB will continue to improve
guidance and standards for implementing the R&D Investment Criteria.

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DOE has started to use the results of the R&D investment criteria to
help analyze its portfolio of investments on the basis of the potential
public benefits. This approach helps DOE to analyze, for example,
whether the expected fruits of its investments are balanced across time,
as well as the types of benefits they may yield. As data analysis of the
Department's applied R&D programs has shown, there is a greater need for
consistent methods of analysis, including ways to present benefits
estimates that make comparisons meaningful. DOE is continuing to improve
the consistency and quality of its data.
As discussed throughout the 2005 Budget, OMB and the agencies have
been working on other initiatives as part of the President's Management
Agenda. To support the Budget and Performance Integration initiative,
OMB developed a tool to assess the effectiveness of programs
consistently: the Program Assessment Rating Tool (PART). Last year the
effort included a version of the PART to specifically assess R&D
programs, but PART assessments were done in isolation of the R&D
Investment Criteria initiative. This year, the R&D PART was modified to
align with the R&D criteria. In the process, the R&D PART became the
instrument for assessing management and performance at the program
level. In preparation of the 2005 Budget, OMB and the agencies completed
or updated PART assessments of 58 R&D programs.
Some programs rated ``effective'' were provided added funding to
further the work they do. For example, the Budget requests $305 million
for the National Science Foundation's Nanoscale Science and Engineering,
an increase of 20 percent from the 2004 likely enacted level. Other
examples include: DOE's Basic Energy Science

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Program, the National Aeronautics and Space Administration's Mars
Exploration Program, and the Department of Commerce's laboratories at
the National Institute of Standards and Technology. Other programs that
were rated ``ineffective'' were cut, such as DOE's Oil Technology
program. However, funding changes and management reforms are not made by
formula or based solely on PART results. For example, funding may be
reduced for ``effective'' programs that have achieved what they set out
to, and ``ineffective'' programs might receive more money if it is clear
it would help them become more effective. The PART provides information
that permits informed decisions.

OMB will continue to work with the R&D agencies and others to
integrate the R&D criteria more meaningfully into the budget formulation
process in the coming year, and to clarify expectations for using the
R&D Investment Criteria across the agencies. Based on lessons learned
and other feedback from experts and stakeholders, the Administration
will continue to improve the R&D investment criteria and their
implementation to achieve more effective management of R&D programs and
better-informed budget-allocation decisions across the R&D agencies.

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President's Management Agenda Initiative

Better Research and Development (R&D) Investment Criteria

FY 2004, Quarter 1 Status: RED, Progress: YELLOW

The initiative's red status score reflects the limited success many agencies have had in the government-wide
implementation of the initiative. The yellow progress score indicates that the initiative retains momentum, as
some agencies have made improvements this year, including the National Science Foundation, NASA, and DOE. More
R&D agencies are using the criteria to assess their programs, due to the improved alignment of the R&D
investment criteria with the R&D PART for program-level assessments. Twelve of the top 13 R&D agencies are
using the R&D PART to assess their programs this year, up from seven last year. Most of the major R&D agencies
submitted 2005 Budget requests that, to varying degrees, observe the principles of the investment criteria. To
achieve a yellow status score, half of the R&D programs assessed for each agency must receive at least a
``moderately effective'' rating, which is proving to be a challenging requirement. Agencies must also integrate
the R&D criteria framework into their budget proposals, including using detailed criteria-based assessments to
justify specific requests or allocation changes.

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Research Earmarks

The Administration supports awarding research funds based on merit
review through a competitive process. Such a system ensures that the
best research is supported. Research earmarks--in general the assignment
of money during the legislative process for use only by a specific
organization or project--are counter to a merit-based competitive
selection process. The use of earmarks improperly signals to potential
investigators that there is an alternative to creating quality research
proposals for merit-based consideration, including the use of political
influence or appeals to parochial interests.
Moreover, the practice of earmarking funds directly to colleges and
universities for specific research projects has expanded dramatically in
recent years. Despite broad-based support for merit review, earmarks for
specific projects at colleges and universities have yet again broken
prior records. According to The Chronicle of Higher Education, academic
earmarks have steadily increased from a level of $296 million in 1996 to
over $2 billion in 2003. These funds now form a greater share of the
total Federal funding to colleges and universities, and increasingly
displace competitive research that is awarded by merit. For example, in
2003, academic earmarks accounted for eight percent of all Federal
funding to colleges and universities, which is quite high relative to
the 1996 level of 2.5 percent.
Some argue that earmarks help spread the research money to states or
institutions that would receive less research funding through other
means. The Chronicle of Higher Education reports that this is not the
main role they play; often only a minor portion of academic earmark
funding goes to the states with the smallest shares of Federal research
funds. Meanwhile, earmarks help some rich institutions become richer. In
2003, 17 of the 30 institutions receiving the most Federal earmarks were
also among the 100 that received the most research funds from all
sources.
Some proponents of earmarking assert that earmarks provide a means of
funding unique projects that would not be recognized by the conventional
peer-review process. To address this concern, a number of agencies have
procedures and programs to reward out-of-the-box thinking in the
research they award. For example, within the Department of Defense
(DOD), the Defense Advanced Research Projects Agency seeks out high
risk, high payoff scientific proposals, and program managers at NSF set
aside a share of funding for higher-risk projects in which they see high
potential.

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Many earmarks have little to do with an agency's mission. For example,
the Congress earmarked DOD's 2004 budget to fund research on a wide
range of diseases, including breast cancer, ovarian cancer, prostate
cancer, diabetes, leukemia, and polio. Funding at DOD for such research
totals over two-thirds of a billion dollars in 2004 alone. While
research on these diseases is very important, it is generally not unique
to the U.S. military and can be better carried out and coordinated
within civil medical research agencies, without disruption to the
military mission. At the same time, intrusion of earmarks into the peer-
review processes of civilian medical research agencies would have a
significant detrimental impact on funding the most important and
promising research.
The Administration will continue to work with academic organizations,
colleges and universities, and the Congress to discourage the practice
of research earmarks and to achieve our common objectives.

III. PRIORITIES FOR FEDERAL RESEARCH AND DEVELOPMENT

The 2005 Budget requests $132 billion for Federal R&D funding, a $41
billion increase since the beginning of this Administration (Table 5-2
provides details by agency). This is a 44-percent increase over four
years. Even if military R&D is excluded, the Administration has raised
civilian R&D investment 26 percent over this same period. The 2005
Budget targets key basic research investments within agencies such as
NSF, DOE's Office of Science, DOC's National Institute of Standards and
Technology, and the National Institutes of Health (NIH), increasing
basic research funding across all agencies by $6 billion (29 percent)
since 2001.
In a 1995 report from the National Academy of Sciences, the scientific
community proposed a ``Federal Science and Technology'' (FS&T) budget to
highlight the creation of new knowledge and technologies more
consistently and accurately than the traditional R&D data collection.
Also, because the FS&T budget emphasizes research, it does not include
funding for defense development, testing, and evaluation, and totals
less than half of Federal R&D spending. FS&T is readily tracked through
the budget and appropriations process, so the effects of budget
decisions are clearer more immediately. As shown in Table 5-3, the 2005
Budget requests $60.4 billion for FS&T, a 27-percent increase since
2001.
Over the past year, OSTP and OMB have worked with the Federal agencies
and the science community to identify top priorities for Federal R&D.
These are in areas critical to the Nation, such as information
technologies, and in emerging fields, such as nanotechnology, that will
provide new breakthroughs across many fields. Some priorities, such as
combating terrorism R&D, address newly recognized needs. The discussion
below identifies five multi-agency priority

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areas, followed by highlights of agency-specific R&D priorities.

Multi-Agency R&D Priorities

The 2005 Budget targets investments in important research and
innovation that benefits from specialization and improved coordination
across multiple agencies. Three of these multi-agency initiatives--
nanotechnology, information technology R&D, and climate change science--
have dedicated separate coordination offices to ensure unified strategic
planning and implementation. The Administration is strengthening
interagency coordination for other priority areas--such as combating
bioterrorism. The Administration will continue to analyze other areas of
critical need that could benefit in the future from improved focus and
coordination among agencies.

Combating Terrorism R&D: With the creation of the Department of
Homeland Security (DHS), 2003 marked a fundamental change to the
management of the Nation's investment in combating terrorism R&D.
Research programs from across the Federal Government were brought
together and focused with the specific goal to develop systems to help
prevent future terrorist activities, minimize our Nation's vulnerability
to terrorist acts, and respond and recover if an attack should occur. In
addition to the DHS R&D funding (about $1 billion in 2005), substantial
combating terrorism programs exist in the Departments of Health and
Human Services (HHS--over $1.7 billion in 2005), Energy, Defense,
Commerce, and Justice, as well as the National Science Foundation and
Environmental Protection Agency (EPA).
In 2003, there was significant progress in multi-agency efforts,
including:
BioWatch, a collaborative effort of DHS, HHS, and EPA, which
employs environmental sampling devices in 31 cities across the
Nation to quickly detect hazardous biological releases in time
to distribute life-saving pharmaceuticals to affected persons.
Project BioShield--A Presidential initiative that will speed
development and procurement of new medical countermeasures
against current and future terrorist threats. The
Administration is coordinating research agendas and generating
requirements and acquisition plans for the next generation of
medical countermeasures to biological, chemical, and
radiological/nuclear threat agents.
Atmospheric plume modeling and validation was enhanced by a
joint effort of DHS, DOD, and DOE in a month-long atmospheric
aerosol dispersion study in Oklahoma City. The resulting data
and models will help emergency management, law enforcement,
and other personnel to train for and respond to potential
chemical, biological, or radiological events.
Demonstration of radiological and nuclear detection was
deployed in the New York City metropolitan area (tunnels,
bridges, ports, and airports). This demonstration used state-
of-the-art detectors from DOE with operations support by DHS
and the City of New York, and serves as a model for deploying
these technologies in other urban settings.
DHS initiated a development program for protection of
commercial aircraft against surface-to-air missles (Man-
Portable Air Defense Systems), following an interagency effort
that included the Departments of Defense, Transportation,
Justice, and State, and the intelligence community. DHS has
solicited and selected projects to address this research
effort.
The National Science and Technology Council's (NSTC) Committee on
Homeland and National Security is working with the Homeland Security
Council and the National Security Council to identify priorities for and
facilitate planning among Federal departments and agencies involved in
homeland security R&D. The coordinated Federal effort is developing:
strategies to combat weapons of mass destruction; radiological and
nuclear countermeasures; biological agent detection, diagnostics,
therapeutics, and forensics; social, behavioral, and economic aspects of
combating terrorism; and border entry/exit technologies.

Networking and Information Technology R&D: The budget provides $2.0
billion for the multi-agency Networking and Information Technology
Research and Development (NITRD) program. Networking and information
technologies enable advances in other fields and provide capabilities
that are utilized by virtually every sector of the economy, generating
not only new products and tools but also significant improvements in
productivity. Agencies with NITRD investments work together to
coordinate their programs and leverage each others' resources, which
enables more rapid advancement than they could achieve working on their
own. Recent accomplishments of the NITRD program are helping to support
progress towards some of the Nation's highest priorities, including
defense and homeland security. For example, research on the
incorporation of microsensors into wireless networks has implications
not only for battlefield reconnaissance but also for environmental
monitoring, and may also be used to improve the tools that first
responders depend upon for communication in the field. The development
of grid computing for accessing and managing distributed information
technology resources is another example where NITRD research is
influencing the information technology industry.
High-end computing continues to be a major focus of interagency
coordination efforts. In 2003, agencies with responsibilities for high-
end computing formed the High-End Computing Revitalization Task Force
and have worked to develop an interagency R&D roadmap for high-end
computing core technologies, a Federal high-end computing capacity and
accessibility improvement plan, and recommendations relating to Federal
procurement of high-end computing systems. The NITRD interagency working
group has taken the first

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steps toward implementing task force recommendations, and it will
continue to leverage the work of the Task Force in improving interagency
coordination of high-end computing activities and investments.

Nanotechnology R&D: The budget provides $886 million for the multi-
agency National Nanotechnology Initiative (NNI), a three-percent
increase over likely enacted funding in 2004. The NNI focuses on R&D
that is directed toward understanding and creating materials, devices,
and systems that exploit the fundamentally distinct properties of matter
as it is manipulated at the atomic and molecular levels. The results of
NNI-supported R&D could lead to breakthroughs in disease detection and
treatment, manufacturing at the nanoscale, environmental monitoring and
protection, energy production and storage, and electronic devices with
even greater capabilities than those available today.
Last year the President signed the 21st Century Nanotechnology
Research and Development Act, which codified programs and activities
supported by the NNI. Consistent with this legislation, in 2005, the
Initiative will continue to focus on fundamental and applied research
through investigator-led activities, multidisciplinary centers of
excellence, education and training of nanotechnology workers, and
infrastructure development, including user facilities and networks that
are broadly available to researchers from across the scientific research
community. In addition to supporting advancement of scientific and
technical knowledge and understanding, as well as development of useful
applications, the NNI will continue to promote activities aimed at
assessing the societal implications of nanotechnology, including
ethical, legal, environmental, and workforce-related issues.
Last year the President's Council of Advisors on Science and
Technology (PCAST) was tasked with reviewing the multi-agency
nanotechnology R&D program, articulating a strategic plan for the
program, defining specific grand challenges to guide the program, and
identifying metrics for measuring progress toward those grand
challenges. In response, PCAST examined the status of nanotechnology R&D
generally and the NNI in particular. PCAST will deliver an initial
report in 2004 providing recommendations to further strengthen the
Initiative.

Climate Change R&D: In July 2003, the Administration released the
Strategic Plan for the Climate Change Science Program (CCSP). The Plan
provides a 10-year strategy and establishes near-term priorities
consistent with the President's Climate Change Research Initiative,
which focuses on reducing significant uncertainties in climate science,
improving global climate observing systems, and developing resources to
support policymaking and resource management.
To achieve the goals outlined in the Strategic Plan, the 2005 Budget
includes $57 million of the $103 million in targeted funding committed
over two years to accelerate efforts to advance understanding of the
role of aerosols in climate science, better quantify carbon sources and
sinks, and improve the technology and infrastructure used to observe and
model climate variations. These investments will help address critical
knowledge gaps in climate change science.
In November 2003, the Administration's Climate Change Technology
Program (CCTP) released two reports. The first, CCTP's Research and
Current Activities report, highlights several Administration initiatives
and other areas of ongoing technology R&D that can help reduce
greenhouse gas emissions. The CCTP's more comprehensive Technology
Options for the Near and Long Term is a compendium of technology
profiles and ongoing R&D at participating Federal agencies.
The CCTP continues to examine the portfolio of federally funded
climate change technology R&D and to develop a strategic plan to
coordinate and prioritize these activities, consistent with the
President's National Climate Change Technology Initiative (NCCTI). The
2005 Budget continues support for a NCCTI Competitive Solicitation
program, a unique approach to selecting and funding innovative research
ideas based on their potential to reduce, avoid, or sequester greenhouse
gases. The program will enhance and complement the ongoing base of
climate change technology R&D.

Hydrogen R&D: The Hydrogen R&D Interagency Task Force, established by
OSTP shortly after the President's announcement of the Hydrogen Fuel
Initiative, serves as the mechanism for collaboration among the nine
Federal agencies that fund hydrogen-related R&D. In 2003, the task force
gathered information and provided guidance for agency research
directions. In 2004, the task force will complete an interagency 10-year
plan that will improve coordination of agency efforts, accelerate
progress toward the goals of the initiative, and foster collaboration
between the Federal Government and the private sector, state agencies,
and other stakeholders. The DOE-led International Partnership for the
Hydrogen Economy coordinates hydrogen research between the U.S. and
other participating governments.

Agency R&D Highlights

Each Federal agency conducts R&D in the context of that agency's
unique mission, structure, and statutory requirements. Below are
highlights of key programs in selected agencies in the 2005 Budget.
Table 5-3 shows the FS&T budget. As shown in Table 5-2, these programs
and those of other agencies are part of the larger Federal R&D
portfolio.

National Institutes of Health (NIH): The 2005 Budget provides $28.6
billion for NIH, a 2.6-percent increase over the 2004 likely enacted
level. This level is an $8.2 billion (40.5-percent) increase since 2001.
The Administration has demonstrated its strong commitment to
biomedical research by completing a five-year doubling of the
NIH budget.
NIH continues to play a key role in addressing pressing
health research issues, such as access

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to state-of-the-art instrumentation and biomedical
technologies; development of specialized animal and non-animal
research models; and emphasis on ``smart'' network-connected
technologies, computer-aided drug design, gene and molecular
therapy development, and bioengineering approaches to
decreased health care costs.
In addition, the NIH budget continues support for biodefense
research by providing $1.74 billion for NIH to accelerate
clinical trials, target the development of new therapeutic and
vaccine products for agents of bioterrorism, and establish
Regional Centers of Excellence in Biodefense and Emerging
Infectious Diseases.

National Aeronautics and Space Administration (NASA): The 2005 Budget
provides $9.4 billion for FS&T programs at NASA, a 1.3-percent increase
over the 2004 likely enacted level. This is a 35-percent increase since
2001.
The 2005 Budget supports the President's new vision of
sustained solar system exploration involving both humans and
robots. NASA's FS&T programs will increasingly focus on this
vision, which includes:
--a new program of lunar exploration;
--further robotic exploration of the solar system;
--focused exploration of Mars to accelerate the search for water
and life and to prepare for future human exploration;
--development of technologies to support human and robotic space
exploration; and
--refocused Space Station research on activities that support
space-exploration goals.
The budget also supports increased NASA investments in the
President's Climate Change Research Initiative, including
investment in a critical satellite to help determine the
impact of aerosols such as soot and dust on global climate
change.
The budget supports several new major initiatives in
aeronautics R&D, including a five-year $600 million program to
improve the efficiency of aircraft propulsion systems.
PART assessments found NASA's Mars and Solar System
exploration programs to be effective and the agency's
crosscutting technology R&D to be moderately effective. The
PART determined that the Space Station Program, Space Station
R&D, and the Space Shuttle Program need to develop better
performance goals and demonstrate results.

National Science Foundation (NSF): To further promote research and
education across the fields of science and engineering, the 2005 Budget
provides $5.7 billion for NSF, a three-percent increase over the 2004
likely enacted level. This level is a 30-percent increase since 2001.
The budget provides: $761 million for NSF's lead role in
NITRD, focusing on long-term computer science research and
applications; $305 million for NSF's lead role in the National
Nanotechnology Initiative; and $210 million for climate change
science.
The budget provides $1.1 billion for NSF programs that
emphasize the mathematical and physical sciences, including
physics, chemistry, and astronomy. This represents a 31-
percent increase ($261 million) for these programs since 2001.
To attract the most promising students into the sciences,
the 2005 Budget provides funds for 5,500 graduate research
fellowships and traineeships, an increase of 1,800 since 2001.
Annual stipends in these programs have increased to a
projected $30,000, compared with $18,000 in 2001.
To enhance science infrastructure capabilities, the Budget
initiates construction of the National Ecological Observatory
Network, the Scientific Ocean Drilling Vessel, and the Rare
Symmetry Violating Processes (RSVP) facility.
PART assessments found all four of the NSF programs assessed
to be effective: Facilities, Individuals, Nanoscale Science
and Engineering, and Information Technology Research.

Department of Energy (DOE): The 2005 Budget provides $5.4 billion for
FS&T at DOE, a $492 million (or 10-percent) increase since 2001.
DOE will continue the President's Hydrogen Fuel Initiative
to accelerate the worldwide availability and affordability of
hydrogen-powered fuel cell vehicles. The initiative, which
will now include targeted basic research investments, focuses
on research to advance hydrogen production, storage, and
infrastructure. The Initiative complements the Department's
FreedomCAR Partnership with the auto industry, which is aimed
at developing viable hydrogen fuel cell vehicle technology.
The 2005 Budget provides $3.4 billion for the Office of
Science, including funding to ensure its continuing leadership
in physical science research and its unique research in
genomics, climate change, and supercomputing. The fifth and
final nanoscience research center will begin construction as a
part of the Office's $211 million investment in the National
Nanotechnology Initiative.
The budget dedicates $447 million to the President's Coal
Research Initiative on clean coal technologies, including $237
million for FutureGen which will be the world's first zero-
emissions electricity-producing power plant. This 10-year, $1
billion project will be cost-shared by the private sector and
international participants.
DOE will continue its support for R&D to improve energy
efficiency and reliability in buildings, industry,
transportation, and the Federal Government ($544 million), and
to reduce the cost of renewable energy technologies, such as
wind, solar, geothermal, and biomass ($375 million).
The budget provides $34 million for the Generation IV
Nuclear Energy Systems Initiative and $46 million for the
Advanced Fuel Cycle Initiative to develop next-generation
nuclear reactor and fuel

[[Page 56]]

cycle technologies that are sustainable, proliferation-
resistant, and economical.
The budget includes $91 million for electricity transmission
and distribution reliability R&D activities, a 12-percent
increase over 2004. These funds include $45 million for high
temperature superconductivity, $6 million for the new
Gridworks program to support research that will enable power
lines to carry more power and better control the flow of
electricity to prevent blackouts, and $5 million for the
Gridwise program to improve the communications and control
system for the electricity grid.

Department of Defense (DOD): DOD funds a wide range of R&D to ensure
that our military forces have the tools to protect the Nation's
security. In 2005, DOD's budget includes $5.2 billion that appears in
the FS&T budget. This level is a $225 million (4.6-percent) increase
since 2001.
The 2005 Budget funds ``Science and Technology'' programs to
explore and develop technical options for new defense systems
and to avoid being surprised by new technologies in the hands
of adversaries. Areas of emphasis include computing and
communications, sensors, nanotechnology, and hypersonic
propulsion systems. DOD's S&T includes the research counted in
the FS&T budget, plus advanced technology development.
The Missile Defense Agency continues to develop technologies
for intercepting ballistic missiles in multiple phases of
flight. The budget provides funding for missile defense R&D,
which includes new efforts for high-speed, boost-phase
interceptors, sea-based radars, directed energy technology and
advanced battle management systems.
The Army continues development efforts in support of the
Future Combat System as a major part of its transformation to
a lighter, more mobile, and more effective fighting force.
Development continues on the Joint Strike Fighter, the next
generation affordable multi-role fighter aircraft, which will
use innovative technologies to keep costs low.
The Navy continues development of the next generation DD(X)
destroyer, the Littoral Combat Ship and associated shipboard
technologies. These platforms will provide advanced
capabilities that will ensure U.S. naval superiority continues
into the future.
R&D to address terrorist and other unconventional threats
continue to be a high priority. Systems and technologies under
development to address defense against chemical or biological
agents include: improved detectors of chemical and biological
threats; troop protective gear for use under chemical and
biological attack that is both more effective and more
comfortable; and vaccines to protect against biological
agents.

Department of Agriculture (USDA): The 2005 Budget provides $1.9
billion for FS&T at USDA.
Funding for the Agricultural Research Service includes
increases in high priority areas, such as homeland security
(food safety and emerging and exotic diseases), genomics and
genetics, human nutrition, and the establishment of a National
Plant Disease Recovery System.
The Cooperative State Research, Education, and Extension
Service funding for research and education grants includes
$180 million for the National Research Initiative, an increase
of $16 million (10 percent) over 2004, and $30 million for the
network of university-based diagnostic laboratories. The
budgets for both in-house research and research grants do not
continue funding for unrequested earmarks.
The Economic Research Service budget includes increases
totaling $7 million to study consumer behavior, particularly
dietary attitudes, food consumption, and health awareness.
The budget includes an emphasis on putting forestry research
to work, providing a significant increase to optimize the
delivery of research findings by improving Forest Service
management of investments in research, development, and
technology applications. Funds are also provided for research
on rapid management responses to address threats against
forest and rangeland health and agriculture by invasive
species.

Department of the Interior (DOI): Within the Department of the
Interior, the 2005 Budget provides $920 million for the United States
Geological Survey (USGS). USGS provides science and information for DOI
bureaus and local communities to make informed decisions regarding land
and resource management. In 2005 some areas of focus for USGS include:
Work with at-risk jurisdictions to increase the number that
have adopted hazard mitigation measures based on USGS geologic
hazard information, and coordination with Federal partners to
determine the effectiveness of Federal efforts to reduce the
loss of life and property due to geologic hazards.
Expansion of USGS capabilities to monitor ground
deformations with remote sensing technology, InSAR, to assist
in predicting volcanic activity.
Additional water availability and aquifer characterization
studies to support DOI's Water 2025, and an additional $2
million to provide critical information about water quality
and quantity and fish ecology that is necessary for management
of the Klamath River Basin.
Consistent with 2004 PART findings, USGS is restructuring
the Geography program in order to migrate from its traditional
role as the primary data collector and producer of topographic
maps to one that focuses on data sharing and partnerships.
Workforce restructuring will provide savings in 2004 and 2005
to fund partnerships to

[[Page 57]]

develop needed science and applications to promote geographic
integration and analyses.

Department of Commerce (DOC): The 2005 Budget provides $832 million
for FS&T at the Department of Commerce.
For the National Institute of Standards and Technology
(NIST), the budget provides $482 million for research and
physical improvements at NIST's Measurement and Standards
Laboratories. The budget also supports NIST facilities,
including equipment for the Advanced Measurement Laboratory in
Maryland and renovations of facilities in Boulder, Colorado.
The 2005 Budget proposes to terminate the Advanced
Technology Program (ATP). The Administration believes that
other NIST research and development programs are much more
effective and necessary in supporting the fundamental
scientific understanding and technological needs of U.S.-based
businesses, American workers, and the domestic economy.
Further, large shares of ATP funding have gone to major
corporations, and projects often have been similar to those
being carried out by firms not receiving such subsidies.
For the National Oceanic and Atmospheric Administration
(NOAA) the 2005 Budget provides $350 million for ongoing
research on climate, weather, air quality, and ocean
processes. This funding level includes $19 million for NOAA to
expand climate observing capabilities in support of the
Administration's recently released Climate Change Science
Program (CCSP) Strategic Plan.

Department of Veterans Affairs (VA): The 2005 Budget provides $770
million for FS&T at the Department of Veterans Affairs. This level is a
seven-percent increase since 2001. This will provide level funding to
the VA R&D program after taking into consideration the significant
funding the Department receives from other governmental agencies and
private entities to support VA-conducted research. The total VA R&D
program resources are $1.7 billion.
VA will soon begin to use increased funding from private
companies for the indirect administration costs of conducting
research in VA facilities.
The 2005 Budget provides for clinical, epidemiological, and
behavioral studies across a broad spectrum of medical research
disciplines. Among the agency's top research priorities are
improving the translation of research results into patient
care, special populations (those afflicted with spinal cord
injury, visual and hearing impairments, and serious mental
illness), geriatrics, diseases of the brain (e.g., Alzheimer's
and Parkinson's), treatment of chronic progressive multiple
sclerosis, and chronic disease management.
The 2005 Budget reflects a restructuring of total resources
in the Research Business Line as first shown in the 2004
Budget.

Environmental Protection Agency (EPA): The budget provides $725
million for FS&T for the Environmental Protection Agency to ensure that
its efforts to safeguard human health and the environment are based on
the best available scientific and technical information.
EPA's homeland security research will result in more
efficient and effective cleanup of contaminated buildings and
faster threat detection and response for water systems.
Additionally, EPA will develop practices and procedures that
provide elected officials and other decision makers, the
public, and first responders with rapid risk assessment
protocols for chemical and biological threats.
As part of its Water Quality Monitoring initiative, EPA will
address the integration of different scales and types of
monitoring to target effective water quality management
actions and document effectiveness of water quality management
programs.

Department of Transportation (DOT): The 2005 Budget provides $659
million for FS&T at DOT, a $138 million (26.5-percent) increase since
2001.
The Federal Highway Administration ($429 million in 2005)
supports research, technology, and education to improve the
quality and safety of the Nation's transportation
infrastructure, such as increasing the quality and longevity
of roadways, identifying safety improvements, and promoting
congestion mitigation through the use of Intelligent
Transportation Systems.
The budget of the National Highway Traffic Safety
Administration provides $103 million for R&D in crash-
worthiness, crash avoidance, and data analysis to help reduce
highway fatalities and injuries. The budget also includes
funding for a crash causation survey.
In 2005, R&D at the Federal Motor Carrier Safety
Administration focuses on issues including driver safety
performance, commercial vehicle safety performance, carrier
compliance and safety, and other studies toward the goal of
achieving a substantial reduction in crashes and fatalities.
The 2005 Budget provides $117 million for the Federal
Aviation Administration to continue critical safety and
capacity research. The PART assessment found this program to
be effective; it is well-managed and results-oriented, with a
strategic plan that sets forth clear long-term goals that are
tied to program performance measures.

Department of Education: The 2005 Budget provides $370 million for
research activities at the Department of Education, a $20 million
increase over the 2004 likely enacted level.
The Institute of Education Sciences (IES) has the lead
responsibility for the Department's strategic goal of
transforming education into an evidence-based field. Research,
development, and dissemination ($185 million in 2005) supports
research

[[Page 58]]

to advance our understanding of how students learn and
identify effective approaches and interventions to improve
education.
Research and innovation in special education activities ($78
million in 2005) yield new knowledge and help translate
scientifically valid information into applied strategies. The
2005 PART showed that the program does not have specific long-
term outcome goals against which its impact can be measured.
The program is working to articulate long-term research
objectives that have measurable outcomes. Pending legislation
would transfer this program from the Office of Special
Education Programs to IES to promote better coordination.
The National Institute for Disability Rehabilitation and
Research (NIDRR--$107 million in 2005) conducts research,
demonstration and training activities that advance independent
living for people with disabilities. Consistent with the
President's New Freedom Initiative, NIDRR's activities promote
community integration and employment outcomes. The 2005 PART
showed that NIDRR cannot demonstrate the results of its
investments without long term performance measures. In
response to this finding, NIDRR is developing long-term
research goals that have measurable outcomes.

Department of Homeland Security (DHS): The 2005 Budget requests just
over one billion dollars for DHS R&D. Within DHS, the Directorate of
Science and Technology (S&T) serves as a centralized R&D arm that
consolidates piecemeal R&D efforts into one agency. Its sole focus is to
harness revolutionary technology, which can be used by law enforcement
and emergency response personnel in carrying out their mission to
protect the Nation. S&T works to solicit proposals and seeks to engage
our Nation's well-established R&D community in the fight against
terrorism. S&T has separate offices dedicated to addressing the threat
posed by each major category of weapons of mass destruction, such as
chemical, biological, radiological, nuclear, and high-explosives.

Stimulating Private Investment

Along with direct spending on R&D, the Federal Government has sought
to stimulate private R&D investment through tax preferences. Current law
provides a 20-percent tax credit for private research and
experimentation expenditures above a certain base amount. The credit,
which expired in 1999, was retroactively reinstated for five years,
through 2004, in the Tax Relief Extension Act of 1999. The budget
proposes to make the Research and Experimentation (R&E) tax credit
permanent. The proposed extension will cost nearly $30 billion over the
period from 2005 to 2009. In addition, a permanent tax provision lets
companies deduct, up front, the costs of certain kinds of research and
experimentation, rather than capitalize these costs. Also, equipment
used for research benefits from relatively rapid cost recovery. Table 5-
1 shows a forecast of the costs of the tax credit.

Table 5-1. PERMANENT EXTENSION OF THE RESEARCH AND EXPERIMENTATION TAX CREDIT
(Budget authority, dollar amounts in millions)
----------------------------------------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009 2005-09
----------------------------------------------------------------------------------------------------------------
Current Law...................................... 4,400 2,550 1,090 460 150 60 4,310
Proposed Extension............................... 672 3,610 5,187 6,291 7,129 7,775 29,992
--------------------------------------------------------------
Total.......................................... 5,072 6,160 6,277 6,751 7,279 7,835 34,302
----------------------------------------------------------------------------------------------------------------

IV. FEDERAL R&D DATA

Federal R&D Funding

R&D is the collection of efforts directed towards gaining greater
knowledge or understanding and applying knowledge toward the production
of useful materials, devices, and methods. R&D investments can be
characterized as basic research, applied research, development, R&D
equipment, or R&D facilities, and OMB has used those or similar
categories in its collection of R&D data since 1949.

Basic research is defined as systematic study directed toward greater
knowledge or understanding of the fundamental aspects of phenomena and
of observable facts without specific applications towards processes or
products in mind.
Applied research is systematic study to gain knowledge or
understanding necessary to determine the means by which a recognized and
specific need may be met.

[[Page 59]]

Development is systematic application of knowledge toward the
production of useful materials, devices, and systems or methods,
including design, development, and improvement of prototypes and new
processes to meet specific requirements.
Research and development equipment includes acquisition or design and
production of movable equipment, such as spectrometers, microscopes,
detectors, and other instruments.
Research and development facilities include the acquisition, design,
and construction of, or major repairs or alterations to, all physical
facilities for use in R&D activities. Facilities include land,
buildings, and fixed capital equipment, regardless of whether the
facilities are to be used by the Government or by a private
organization, and regardless of where title to the property may rest.
This category includes such fixed facilities as reactors, wind tunnels,
and particle accelerators.
There are over twenty Federal agencies that fund R&D in the U.S. The
nature of the R&D that these agencies fund depends on the mission of
each agency and on the role of R&D in accomplishing it. Table 5-2 shows
agency-by-agency spending on basic and applied research, development,
and R&D equipment and facilities.

Table 5-2. FEDERAL RESEARCH AND DEVELOPMENT SPENDING
(Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dollar Percent
2003 2004 2005 Change: Change: 2004
Actual Estimate Proposed 2004 to 2005 to 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Agency
Defense............................................................................ 58,838 65,484 69,856 4,372 7%
Health and Human Services.......................................................... 27,411 28,275 29,381 1,106 4%
NASA............................................................................... 10,681 10,893 11,308 415 4%
Energy............................................................................. 8,312 8,835 8,893 58 1%
National Science Foundation........................................................ 3,972 4,115 4,252 137 3%
Agriculture........................................................................ 2,334 2,308 2,105 -203 -9%
Homeland Security.................................................................. 737 1,053 1,216 163 15%
Commerce........................................................................... 1,200 1,126 1,075 -51 -5%
Veterans Affairs................................................................... 819 824 772 -52 -6%
Transportation..................................................................... 701 701 749 48 7%
Interior........................................................................... 643 675 648 -27 -4%
Environmental Protection Agency.................................................... 568 575 577 2 0%
Other.............................................................................. 1,223 1,092 1,034 -58 -5%
------------------------------------------------------------------
Total............................................................................ 117,439 125,956 131,866 5,910 5%

Basic Research
Defense............................................................................ 1,369 1,404 1,341 -63 -4%
Health and Human Services.......................................................... 14,120 14,732 15,198 466 3%
NASA............................................................................... 2,213 2,584 2,324 -260 -10%
Energy............................................................................. 2,556 2,750 2,664 -86 -3%
National Science Foundation........................................................ 3,422 3,551 3,642 91 3%
Agriculture........................................................................ 867 914 783 -131 -14%
Homeland Security.................................................................. 47 47 153 106 226%
Commerce........................................................................... 54 57 83 26 46%
Veterans Affairs................................................................... 327 332 308 -24 -7%
Transportation..................................................................... 23 20 40 20 100%
Interior........................................................................... 41 40 38 -2 -5%
Environmental Protection Agency.................................................... 97 79 91 12 15%
Other.............................................................................. 170 165 182 17 10%
------------------------------------------------------------------
Subtotal......................................................................... 25,306 26,675 26,847 172 0.6%

Applied Research
Defense............................................................................ 4,252 4,425 3,828 -597 -13%
Health and Human Services.......................................................... 11,982 13,174 13,522 348 3%
NASA............................................................................... 3,192 3,052 3,122 70 2%
Energy............................................................................. 2,656 3,020 3,395 375 12%
National Science Foundation........................................................ 218 211 220 9 4%
Agriculture........................................................................ 974 1,049 888 -161 -15%
Homeland Security.................................................................. 92 124 278 154 124%
Commerce........................................................................... 910 891 838 -53 -6%
Veterans Affairs................................................................... 451 450 425 -25 -6%
Transportation..................................................................... 405 398 455 57 14%
Interior........................................................................... 547 584 560 -24 -4%
Environmental Protection Agency.................................................... 366 361 346 -15 -4%
Other.............................................................................. 579 609 617 8 1%
------------------------------------------------------------------
Subtotal......................................................................... 26,624 28,348 28,494 146 0.5%

[[Page 60]]

Development
Defense............................................................................ 53,172 59,603 64,622 5,019 8%
Health and Human Services.......................................................... 160 140 386 246 176%
NASA............................................................................... 2,963 2,994 3,247 253 8%
Energy............................................................................. 1,946 1,956 1,840 -116 -6%
National Science Foundation........................................................ ......... ........... ........... ............ N/A
Agriculture........................................................................ 145 152 142 -10 -7%
Homeland Security.................................................................. 549 794 750 -44 -6%
Commerce........................................................................... 135 128 53 -75 -59%
Veterans Affairs................................................................... 41 42 39 -3 -7%
Transportation..................................................................... 254 270 235 -35 -13%
Interior........................................................................... 53 48 47 -1 -2%
Environmental Protection Agency.................................................... 105 135 140 5 4%
Other.............................................................................. 460 311 228 -83 -27%
------------------------------------------------------------------
Subtotal......................................................................... 59,983 66,573 71,729 5,156 8%

Facilities and Equipment
Defense............................................................................ 45 52 65 13 25%
Health and Human Services.......................................................... 1,149 229 275 46 20%
NASA............................................................................... 2,313 2,263 2,615 352 16%
Energy............................................................................. 1,154 1,109 994 -115 -10%
National Science Foundation........................................................ 332 353 390 37 10%
Agriculture........................................................................ 348 193 292 99 51%
Homeland Security.................................................................. 49 88 35 -53 -60%
Commerce........................................................................... 101 50 101 51 102%
Veterans Affairs................................................................... ......... ........... ........... ............ N/A
Transportation..................................................................... 19 13 19 6 46%
Interior........................................................................... 2 3 3 ............ ..............
Environmental Protection Agency.................................................... ......... ........... ........... ............ N/A
Other.............................................................................. 14 7 7 ............ ..............
------------------------------------------------------------------
Subtotal......................................................................... 5,526 4,360 4,796 436 10%
--------------------------------------------------------------------------------------------------------------------------------------------------------

[[Page 61]]

Table 5-3. FEDERAL SCIENCE AND TECHNOLOGY BUDGET
(Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dollar Percent
2001 2003 2004 2005 Change: Change: 2004
Actual Actual Estimate Proposed 2004 to 2005 to 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
By Agency

National Institutes of Health............................................. 20,361 27,066 27,878 28,607 729 3%
NASA \1\.................................................................. 6,945 7,276 9,249 9,373 124 1%
Space Science........................................................... 2,609 3,531 3,971 4,068 97 2%
Earth Science........................................................... 1,762 1,717 1,613 1,485 -128 -8%
Biological & Physical Research.......................................... 362 883 985 1,049 64 6%
Aeronautics Technology.................................................. 975 1,145 1,034 919 -115 -11%
Exploration Systems and Crosscutting Technology \2\.................... 1,237 1,741 1,646 1,852 206 13%

National Science Foundation............................................... 4,431 5,323 5,578 5,745 167 3%

Energy \3\................................................................ 4,886 5,208 5,494 5,378 -116 -2%
Science Programs........................................................ 3,218 3,307 3,484 3,432 -52 -1%
Energy Supply: Renewables............................................... 312 322 357 375 18 5%
Energy Supply: Electricity Transmission & Distribution \4\.............. 56 88 81 91 10 12%
Energy Supply: Nuclear Energy........................................... 238 258 292 300 8 3%
Energy Conservation \5\................................................. 619 612 607 544 -63 -10%
Fossil Energy \6\....................................................... 443 621 673 636 -37 -5%

Defense................................................................... 4,944 5,621 5,829 5,169 -660 -11%
Basic Research.......................................................... 1,271 1,369 1,404 1,341 -63 -4%
Applied Research........................................................ 3,673 4,252 4,425 3,828 -597 -13%

Agriculture............................................................... 1,885 1,988 2,048 1,865 -183 -9%
CSREES Research & Education \7\......................................... 514 626 629 516 -113 -18%
Economic Research Service............................................... 69 69 71 80 9 13%
Agricultural Research Service \8\....................................... 936 1,043 1,082 988 -94 -9%
Mandatory IFAFS \9\..................................................... 120 ......... ........... ........... ............ N/A
Forest Service \10\..................................................... 246 250 266 281 15 6%

Interior (USGS)........................................................... 884 919 938 920 -18 -2%

Commerce.................................................................. 817 974 965 832 -133 -14%
NOAA (Oceanic & Atmospheric Research)................................... 325 372 393 350 -43 -11%
NIST Intramural Research and Facilities................................. 347 423 401 482 81 20%
NIST Advanced Technology Program........................................ 145 179 171 ........... -171 -100%

Veterans Affairs \11\..................................................... 719 818 820 770 -50 -6%

Environmental Protection Agency \12\...................................... 746 801 826 725 -101 -12%

Transportation............................................................ 521 655 683 659 -24 -4%
Highway research \13\................................................... 387 508 564 542 -22 -4%
Aviation research \14\.................................................. 134 147 119 117 -2 -2%

Education................................................................. 363 325 350 370 20 6%
Special Education Research and Innovation............................... 77 77 78 78 ............ ..............
NIDRR \15\.............................................................. 100 109 107 107 ............ ..............
Research, Development, and Dissemination \16\........................... 186 139 165 185 20 12%
-----------------------------------------------------------------------------
Total................................................................... 47,502 56,974 60,658 60,413 -245 -0.4%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ All years normalized to reflect 2003 transfers of funding for Space Station research facilities, space communications activities, and associated
institutional support from human space flight.
\2\ Includes Integrated Technology Transfer Partnerships, Mission and Science Measurement Technology, and the Space Launch Initiative.
\3\ 2001 and 2003 data reflect transfers to Science Programs from other Department of Energy R&D programs to support the Small Business Innovation
Research program and the Small Business Technology Transfer program.
\4\ This office was created in 2004. Data for 2001 and 2003 reflect funding for these activities from within the Renewable budget, which has been
adjusted accordingly.
\5\ Excludes weatherization and state grant programs.
\6\ Enacted and requested levels exclude balances transferred from the Clean Coal Technology program for activities in 2003 ($40 million), and 2004 ($14
million). No transfers in 2005.
\7\ Includes Receipts for Native American Endowment: $7 million in 2003; $9 million in 2004; $12 million in 2005.
\8\ Excludes buildings and facilities.
\9\ Initiative for Future Agriculture and Food Systems.
\10\ Forest and Rangeland Research.
\11\ The VA research program budget has been restructured to include the research appropriation and VA medical care support transfer to research. This
table shows resources under the revised budget structure.
\12\ Science and Technology, plus superfund transfer. The 2003 superfund transfer includes homeland resources for building decontamination research.
\13\ Includes research and development funding for the Federal Highway Administration, the Federal Motor Carrier Safety Administration, and the National
Highway Traffic Safety Administration.
\14\ Includes Federal Aviation Administration Research, Engineering, and Development.
\15\ National Institute on Disability and Rehabilitation Research.
\16\ Does not include funding for Regional Educational Labs.

[[Page 62]]

Table 5-4. AGENCY DETAIL OF SELECTED INTERAGENCY R&D EFFORTS
(Budget authority, dollar amounts in millions)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Dollar Percent
2003 2004 2005 Change: Change: 2004
Actual Estimate Proposed 2004 to 2005 to 2005
--------------------------------------------------------------------------------------------------------------------------------------------------------
Networking and Information Technology R&D
National Science Foundation........................................................ 743 754 761 7 1%
Health and Human Services \1\...................................................... 376 368 371 3 1%
Energy............................................................................. 308 344 354 10 3%
National Aeronautics and Space Administration...................................... 213 275 259 -16 -6%
Defense............................................................................ 296 252 226 -26 -10%
Commerce........................................................................... 26 26 33 7 27%
Environmental Protection Agency.................................................... 2 4 4 ............ ..............
------------------------------------------------------------------
Total.............................................................................. 1,964 2,023 2,008 -15 -1%

National Nanotechnology Initiative
National Science Foundation........................................................ 221 254 305 51 20%
Energy............................................................................. 134 203 211 8 4%
Defense............................................................................ 220 218 180 -38 -17%
National Institutes of Health...................................................... 78 80 89 9 11%
Commerce (NIST).................................................................... 64 63 53 -10 -16%
National Aeronautics and Space Administration...................................... 36 37 35 -2 -5%
Agriculture........................................................................ ......... 1 5 4 400%
Environmental Protection Agency.................................................... 5 5 5 ............ ..............
Justice............................................................................ 1 2 2 ............ ..............
Homeland Security (TSA)............................................................ 1 1 1 ............ ..............
------------------------------------------------------------------
Total.............................................................................. 760 864 886 22 3%

Climate Change Science Program
National Aeronautics and Space Administration...................................... 1,146 1,334 1,271 -63 -5%
National Science Foundation........................................................ 202 213 210 -3 -1%
Commerce (NOAA).................................................................... 117 130 142 12 9%
Energy............................................................................. 120 133 134 1 1%
Agriculture........................................................................ 68 67 74 7 10%
National Institutes of Health...................................................... 59 61 61 ............ ..............
Interior (USGS).................................................................... 26 28 29 1 4%
Environmental Protection Agency.................................................... 19 22 21 -1 -5%
Smithsonian........................................................................ 6 6 6 ............ ..............
U.S. Agency for International Development.......................................... 6 6 6 ............ ..............
Transportation..................................................................... ......... ........... 3 3 N/A
State.............................................................................. ......... 1 1 ............ ..............
------------------------------------------------------------------
Total.............................................................................. 1,769 2,001 1,958 -43 -2%
------------------------------------------------------------------
Subtotal, CCRI \2\ (included in CCSP total)........................................ 41 168 238 70 42%
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Includes funds from offsetting collections for the Agency for Healthcare Research and Quality.
\2\ Climate Change Research Initiative.