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

    [[Page 45]]

                           5. RESEARCH AND DEVELOPMENT

      At a record $147 billion in the President's 2009 Budget, Federal
    research and development (R&D) comprises one out of every seven dollars
    funded in the discretionary budget and 5 percent of total government
    spending. This substantial investment in the quest for new knowledge and
    future discovery will enhance U.S. economic strength, national security,
    and world leadership by building innovation capacity through a world-
    class science and technology research enterprise and a high-quality
    scientific and technical education infrastructure.
      The relationship between support for science and economic growth is
    well documented. Investments in basic research lead to knowledge
    breakthroughs that fuel innovation, drive productivity, grow the
    economy, and improve our understanding of the world. Economists estimate
    that as much as half of post-World War II economic growth is directly
    due to technological progress fueled by R&D. Economic payoffs from
    research come in the form of process and product innovations that reduce
    the costs of production, lower product prices, and result in new and
    better products and services. Consumers ultimately benefit from less
    expensive, higher quality and more useful products and services. Today's
    transforming technologies and most popular consumer items have deep
    roots in basic and applied research.
      Under this Administration, Federal R&D is being increased 61 percent,
    from $91 billion in 2001 to the $147 billion in this year's request. To
    sustain the nation's economic competitiveness, the President, in his
    2006 State of the Union address, presented a long-term vision to
    strengthen Federal support for the Nation's innovation enterprise in an
    integrated package of investments and policies called the American
    Competitiveness Initiative (ACI). President Bush remains firmly
    committed to the fulfillment of that vision and seeks to continue that
    implementation of the ACI in the 2009 Budget.

                   I. THE AMERICAN COMPETITIVENESS INITIATIVE

      The President's 2009 Budget maintains a strong commitment to invest in
    basic research areas that advance knowledge and technologies used by
    scientists in nearly every field. Through the ACI, the President plans
    to double, over 10 years, investment in innovation-enabling research at
    three Federal agencies--the National Science Foundation (NSF), the
    Department of Energy's (DOE's) Office of Science, and the Department of
    Commerce's National Institute of Science and Technology (NIST)
    laboratories.

    [[Page 46]]

      In 2009, the third year of the ACI, President Bush proposes $12.2
    billion total for NSF, DOE's Office of Science, and NIST laboratories,
    an overall funding increase of $1.6 billion, or 15 percent, above the
    2008 enacted total of $10.6 billion. Unfortunately, the 2008 omnibus
    appropriations bill drastically cut proposed ACI research increases,
    funding only one-third of the President's requested increase. In
    addition, Congress directed over half of the enacted increase ($207
    million of a total $408 million increase) to earmarks and an unrequested
    new grants program.

      This outcome greatly impairs the Administration's efforts to
    strengthen long-term economic competitiveness through support for
    innovation-enabling basic research in the physical sciences and
    engineering. President Bush's call for doubling of these research levels
    had been roundly supported by business and academic leaders and embraced
    by Congress when it enacted the bipartisan America COMPETES Act (Public
    Law 110-69). The President's Budget continues funding for ACI research
    on its doubling path to ensure this consensus national priority
    objective is realized.

    [[Page 47]]

    ------------------------------------------------------------------------

                              Research Agencies in the American Competitiveness Initiative

    The National Science Foundation is the primary source of support for academic research in the physical sciences,
     funding basic research in areas such as nanotechnology, advanced networking and information technology,
     physics, chemistry, materials science, mathematics, and engineering. It also is well regarded for funding
     nearly all of its research through a competitive, peer-reviewed process. The increase in NSF funding will
     support many more researchers, students, post-doctoral fellows and technicians contributing to the innovation
     enterprise.

    The Department of Energy's Office of Science supports grants and infrastructure for a wide range of basic
     research related to economically significant innovations including nanotechnology, biotechnology, high-end
     computing and advanced networking, and energy technologies. The 2009 Budget increases funding for both research
     and cutting-edge facilities, meets the United States' contribution to the international fusion energy project
     known as ITER, upgrades the nuclear physics accelerator at the Thomas Jefferson lab in Virginia, accelerates
     strategic basic research for electrical energy storage and an advanced nuclear fuel cycle, and reorganizes and
     reforms the radioisotope production and application programs within the Department.

    The Department of Commerce's National Institute of Standards and Technology (NIST) invests in technological
     innovation through research and standards development. These investments will improve NIST's research
     capabilities by providing high performance laboratory space for diverse research fields and world-class
     researchers; aid the responsible development of nanotechnology manufacturing; expand NIST's neutron facility to
     aid in characterizing novel materials in high-growth research fields; and improve our understanding of complex
     biological systems to accelerate innovations and enable investment in biosciences, including disease diagnosis
     and treatment.

    ------------------------------------------------------------------------

                  II. IMPROVING THE 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. Therefore, every Federal R&D
    dollar must be invested as effectively as possible.

                             R&D Investment Criteria

      The Administration continues to improve the effectiveness of the
    Federal Government's investments in R&D by applying transparent
    investment criteria in analyses that inform recommendations for program
    funding and management. R&D performance assessment must be done with
    care. Research often leads scientists and engineers down unpredictable
    pathways with unpredictable results. This outcome can require special
    consideration when measuring an R&D program's performance against its
    initial goals.
      With this in mind, the Administration is improving methods for setting
    priorities based on expected results, and is asking agencies to apply
    specific criteria that programs or projects must meet to be started or
    continued and supply clear milestones for gauging progress and improved
    metrics for assessing results.
      As directed by the President's Management Agenda, the R&D Investment
    Criteria accommodate the wide range of R&D activities, from basic
    research to development and demonstration programs, by addressing 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 apply 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.
      As part of the President's Management Agenda's Performance Improvement
    initiative, the Administration uses the Program Assessment Rating Tool
    (PART) to consistently assess the effectiveness of programs. A section
    of the PART specifically addresses the assessment of R&D program
    management and performance and is aligned with the R&D Investment
    criteria. In the last six years, agencies completed 1,016 PART
    assessments, of which 130 were for R&D programs. The results of these
    PART assessments may be found on the web at www.expectmore.gov.
      Performance assessments help policy makers identify those programs
    that are the most effective and worthy of funding; however, the
    Administration does not allocate funding levels and initiate management
    reforms strictly by formula or based solely on PART results. For
    instance, funding may be reduced for programs rated Effective by the
    PART that have achieved what they set out to do, and programs rated
    Ineffective by the PART might receive more money if it is clear it would
    help them become more effective. The PART provides information that
    leads to more informed decisions.

    [[Page 48]]

                                Research Earmarks

      President Bush called on Congress to reform the earmark process,
    proposing a series of reforms that include full disclosure for each
    earmark and cutting the total number and cost of all earmarks by at
    least half. Consistent with this effort, the Administration is
    continuing its strong support for awarding research funds based on merit
    review through a competitive process refereed by scientists. Such a
    system has the best prospects for ensuring that the top research is
    supported. Research earmarks--in general the assignment of money during
    the legislative process for use by a specific organization or project--
    are counter to a merit-based competitive selection process. Earmarks
    signal to potential investigators that there is an acceptable
    alternative to creating quality research proposals for merit-based
    consideration. Such an alternative can be an ineffective use of taxpayer
    funds.
      Unfortunately, the practice of earmarking funds to colleges,
    universities, and other entities for specific research projects expanded
    in recent years. Some argue that earmarks help spread the research money
    to states or institutions that would receive less research funding
    through other means. However, The Chronicle of Higher Education has
    reported that this is not the main role earmarks play. Often only a
    minor portion of academic earmark funding goes to the states with the
    smallest shares of Federal research funds.
      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 research
    agencies have procedures and programs to reward ``out-of-the-box''
    thinking. For example, the Defense Advanced Research Projects Agency,
    within the Department of Defense, seeks out high-risk, high-payoff
    scientific proposals, the National Institutes of Health has established
    a similarly focused ``Pioneer Award,'' and program managers at NSF set
    aside a share of funding for higher-risk projects in which scientists
    and engineers see high potential.
      Earmarks for activities that are outside of an agency's mission can
    detract from an efficient and effective Federal effort on behalf of
    taxpayers. For instance, in 2008, the Congress has directed DOD to fund
    research on a wide range of diseases including diabetes, autism, and
    muscular dystrophy. Funding for unrequested medical research projects in
    DOD's budget totals about $800 million in 2008 alone. While research on
    these diseases is very important, these diseases are not unique to the
    U.S. military and the research could be better selected, 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 ensuring that the most important and
    promising research is chosen by medical research professionals with
    access to information on the most promising research opportunities.
      Earmarks that divert funding from a merit-based process undermine
    America's research productivity. The Administration commends Congress
    for taking measures to protect NSF and the National Institutes of Health
    from this practice, a practice that should be followed throughout the
    R&D programs.

    [[Page 49]]

              III. PRIORITIES FOR FEDERAL RESEARCH AND DEVELOPMENT

      The 2009 Budget requests $147 billion for Federal R&D funding, which
    targets key research investments within agencies, in particular, the
    three ACI agencies: NSF, the DOE's Office of Science, and the NIST
    laboratories. In addition, DOD requests $1.7 billion for basic research,
    $270 million more than was requested in the 2008 Budget. This increase
    is partially hidden by the earmarked funding included in the 2008
    enacted level. (Table 5-1 provides details by agency.)

                           Multi-Agency R&D Priorities

      The 2009 Budget continues to target important research investments
    that must be coordinated across multiple agencies. A number of these
    challenges are being addressed through multi-agency research efforts
    coordinated through the National Science and Technology Council (NSTC)
    and other interagency forums. The Administration will continue to
    analyze other areas of critical need that could benefit in the future
    from improved focus and coordination among agencies.
      Homeland Security R&D: A robust R&D effort continues to be a key asset
    in advancing technologies in support of the President's national
    strategy for homeland security. The United States derives much of its
    ability to thwart and recover from these threats via its advantage in
    the realm of science and technology (S&T), and we must continue to use
    this advantage and encourage innovative R&D to assist in protecting and
    defending against the range of natural and man-made threats confronting
    the country. Though there have been numerous achievements over the past
    five years to improve the Nation's counterterrorism capability, many
    challenges remain.
      The Administration's annual R&D budget priorities memorandum
    summarizes priorities from the Administration's homeland security
    strategies that should be addressed via multi-agency coordination. For
    example, in response to the 2007 memo, agencies:
        advanced biometric capabilities as outlined in The National
              Biometrics Challenge, and established policy for agency
              adoption of biometric standards that will enable real-time,
              verifiable, interoperable, and privacy-protecting root
              identification;
        improved radiation portal monitors and developed standards
              for technologies that detect nuclear and radioactive material
              before it enters the U.S.;
        developed more sensitive environmental sensors to quickly
              detect the presence of biological or toxic agents; and
        integrated modeling efforts for high consequence foreign
              animal diseases, including avian influenza and foot and mouth
              disease, to facilitate coordinated response planning and guide
              countermeasure R&D investments.
      The 2009 Budget provides continued support for these and many other
    interagency R&D programs, including: pursuing stand-off detection and
    imaging capabilities to locate and identify nuclear threat materials at
    a distance; improving the capability to detect and mitigate the use of
    improvised explosive devices in the U.S.; continuing the implementation
    of the 2008-2012 R&D plan for high-consequence foreign animal diseases;
    and accelerating the advanced development of critical medical
    countermeasures that do not have a pre-existing market to stimulate
    their development.
      Networking and Information Technology R&D: The Budget provides $3.6
    billion for the multi-agency Networking and Information Technology
    Research and Development (NITRD) Program, which plans and coordinates
    agency research efforts in advanced networking, cyber security, high-end
    computing systems, software development, high-confidence systems,
    information management, and other information technologies. Advances in
    information technology contribute both to accelerating progress in
    scientific research and to U.S. economic competitiveness. Federal
    agencies coordinate their R&D investments in the NITRD Program to avoid
    unnecessary duplication and to help ensure that the investments have
    maximum impact.
      The NITRD agencies focused on implementing the recommendations
    contained in both the Federal Plan for High-End Computing and the
    Federal Plan for Cyber Security and Information Assurance R&D in 2007,
    and will complete the Federal Plan for Advanced Networking R&D in early
    2008. Also in 2007, the President's Council of Advisors on Science and
    Technology (PCAST) issued a report reviewing the NITRD program and
    providing recommendations for the future. The Federal agencies are
    evaluating these recommendations and will begin implementation in 2008.
      The 2009 Budget sustains a substantial level of investment in high-end
    computing research for large-scale scientific and national security
    applications, particularly in scalable systems software and applications
    that can capitalize on emerging architectures based on processing units
    with many computational cores. The 2009 Budget also increases support
    for investments in innovative research in both cyber security and
    advanced networking R&D that have the potential to transform the
    Internet into a more secure and reliable interconnected network to
    support both commerce and high-speed data transfers for scientific
    applications. Reports and general information about NITRD are available
    at www.nitrd.gov/.
      Nanotechnology R&D: The Budget provides $1.5 billion for the multi-
    agency National Nanotechnology Initiative (NNI). The NNI focuses on R&D
    that creates 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 are
    already leading to breakthroughs in disease detection and treatment,
    manufacturing at or near the nanoscale level, environmental monitoring
    and protection, energy production and storage, and creating electronic
    devices that have even greater capabilities than those available today.
    Re

    [[Page 50]]

    search opportunities cover a similarly broad spectrum. Advances that
    will be foundational for all aspects of nanotechnology R&D in particular
    include: instrumentation for characterizing nanoscale materials in the
    laboratory, in the body, and in the environment; and computational
    research to model and predict properties at the nanoscale, for designing
    novel materials, and for determining their behavior under various
    conditions and environments.
      Guided by the NNI Strategic Plan, participating agencies will continue
    to support discovery, development and application of nanotechnology
    through investigator-led fundamental and applied research;
    multidisciplinary centers of excellence; education and training of
    nanotechnology researchers, teachers, workers, and the public; and
    infrastructure and standards development, including user facilities and
    networks that are broadly available to support research and innovation.
    In addition, agencies continue to maintain a focus on the responsible
    development of nanotechnology, with attention to the human and
    environmental health impacts, as well as ethical, legal, and other
    societal issues.
       These activities will be appropriately coordinated with stakeholders
    outside of the Federal government, including industry, academia, and
    other governments. Agency investments in nanotechnology R&D are informed
    by the NSTC's Nanoscale Science, Engineering, and Technology
    Subcommittee and by outside reviews of the PCAST and the National
    Research Council. Reports of these Federal and non-Federal bodies help
    to identify and prioritize research, including in the area of
    environmental, health, and safety aspects of nanotechnology. Reports and
    general information about the NNI are available at www.nano.gov/.
      Climate Change R&D: The 2009 Budget for the Climate Change Science
    Program (CCSP) continues to support the implementation of the CCSP
    Strategic Plan, which was released in July 2003. The 13 departments and
    agencies that participate in the CCSP coordinate preparation of the
    budget and program implementation. During 2009, the CCSP will continue
    research into important physical science aspects of climate change,
    including scientific uncertainties and preparation of a series of
    Synthesis and Assessment reports. In addition, added emphasis will be
    placed on the impacts of climate change and the science of adaptation.
    Working within the overarching priorities defined in the Strategic Plan,
    the CCSP's interagency coordination and integration efforts will give
    particular emphasis in FY 2009 to the following climate change research
    issues: development of an integrated earth system analysis capability; a
    focus toward creating a high-quality record of the state of the
    atmosphere and ocean since 1979; development of an end-to-end hydrologic
    projection and application capability; enhanced carbon cycle research on
    high latitude systems; quantification of climate forcing and feedbacks
    by aerosols, non-carbon dioxide greenhouse gases, water vapor, and
    clouds; assessment of abrupt change in a warming climate; examination of
    the feasibility of development an abrupt change early warning system;
    and ecological forecasting.
      The program expects to receive input from the National Research
    Council under the terms of a continuing advisory agreement. This advice
    will include review of several CCSP Synthesis and Assessment Products.
    The CCSP will continue to track deliverables and milestones for each of
    its programs in order to assess overall performance. Additional detail
    on individual agency activities will be provided in the Administration's
    2009 edition of Our Changing Planet. Reports and general information
    about the CCSP are available on the program's website:
    www.climatescience.gov/.
      The Climate Change Technology Program (CCTP) continues to provide
    strategic direction, planning, and analysis to help coordinate and
    prioritize activities within the portfolio of federally funded climate
    change technology R&D consistent with the President's National Climate
    Change Technology Initiative (NCCTI). The CCTP has published a Vision
    and Framework for Strategy and Planning and a Strategic Plan that
    outlines the program's goals and priorities. The CCTP has also
    identified within its portfolio a subset of NCCTI priority activities,
    defined as discrete R&D activities that address technological
    challenges, which, if solved, could advance technologies with the
    potential to dramatically reduce, avoid, or sequester greenhouse gas
    emissions. In 2009, CCTP will continue to focus on implementing the
    elements of its Vision and Framework document and Strategic Plan.
    Reports and general information about the CCTP are available on the
    program's website: www.climatetechnology.gov/.
      The CCSP and CCTP will continue to coordinate implementation of
    relevant climate change provisions in the 2005 Energy Policy Act as
    appropriate.
      Ocean Research: The 2009 Budget supports ocean and coastal research as
    outlined in Charting the Course for Ocean Science in the United States
    for the Next Decade: An Ocean Research Priorities Plan and
    Implementation Strategy. Developed by the NSTC's Joint Subcommittee on
    Ocean Science and Technology, the plan provides a framework for an ocean
    observing system that will accurately describe marine conditions in
    real-time, enhance our capability to forecast ocean processes, and
    provide scientific support for ecosystem-based management. These three
    overarching goals will maintain U.S. leadership in ocean technology and
    enhance U.S. competitiveness. These goals are supported by 20 national
    ocean research priorities, established with extensive community input
    and oriented around the most compelling societal issues. The Joint
    Subcommittee on Ocean Science and Technology will coordinate multi-
    agency research into key aspects of the oceans, coasts and Great Lakes
    and work closely with the other coordinating bodies of the President's
    Ocean Action Plan.

      Biomass R&D: The Biomass R&D Act of 2000 established the Biomass R&D
    Board to guide interagency coordination and bring coherence to Federal
    strategic planning on biomass-related issues. The Board is com

    [[Page 51]]

    pleting an interagency coordination and planning document that will be
    reviewed by the National Academy of Sciences. In addition to assessing
    the goals and plans for interagency biomass research, the Academy will
    be tasked with considering economic and other impacts of increased
    biomass utilization under various energy price and policy scenarios.
    Additional information on the Biomass R&D Board is available online at
    www.biomass.govtools.us.

                         Stimulating Private Investment

      Along with direct spending on R&D, the Federal Government has sought
    to stimulate private R&D investment through incentives in the Internal
    Revenue Code. A long-standing credit, which had provided a 20-percent
    tax credit for private research and experimentation expenditures above a
    certain base amount, expired at the end of December 2007. The
    Administration again proposes making the enhanced Research and
    Experimentation tax credit permanent starting in 2008. The proposed
    extension will cost $55 billion over the period from 2008 to 2013. 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 tax depreciation allowance.

                              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 the Office of Management and Budget
    has used those or similar categories in its collection of R&D data since
    1949.
      Basic research is systematic study directed toward a fuller knowledge
    or understanding of the fundamental aspects of phenomena and of
    observable facts without specific applications towards processes or
    products in mind. Basic research, however, may include activities with
    broad applications 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.
      Development is systematic application of knowledge or understanding,
    directed 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, research
    satellites, detectors, and other instruments. At a minimum, this
    category should include programs devoted to the purchase or construction
    of R&D equipment.
      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 5-1 shows
    agency-by-agency spending on basic and applied research, development,
    and R&D equipment and facilities.
      The ``Federal Science and Technology'' (FS&T) budget (shown in Table
    5-2) highlights the creation of new knowledge and technologies more
    consistently and accurately than the overall R&D data. The FS&T budget
    emphasizes research; does not count funding for defense development,
    testing, and evaluation; and totals less than half of Federal R&D
    spending. The 2009 Budget requests $62 billion for FS&T.

    [[Page 52]]

                                                          Table 5-1.  FEDERAL RESEARCH AND DEVELOPMENT
                                                         (Budget authority, dollar amounts in millions)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Dollar         Percent
                                                                                              2007        2008         2009        Change:     Change:  2008
                                                                                             Actual     Estimate     Proposed   2008 to 2009      to 2009
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    By Agency
      Defense............................................................................     78,329       80,192       80,494           302              0%
      Health and Human Services..........................................................     29,201       29,475       29,480             5              0%
      NASA...............................................................................      9,952       10,436       10,737           301              3%
      Energy.............................................................................      8,522        9,739       10,558           819              8%
      National Science Foundation........................................................      4,479        4,500        5,201           701             16%
      Homeland Security..................................................................      1,246        1,143        3,287         2,144            188%
      Agriculture........................................................................      2,275        2,309        1,952          -357            -15%
      Commerce...........................................................................      1,080        1,113        1,157            44              4%
      Transportation.....................................................................        768          823          901            78              9%
      Veterans Affairs...................................................................        892          960          884           -76             -8%
      Interior...........................................................................        604          676          617           -59             -9%
      Environmental Protection Agency....................................................        606          557          550            -7             -1%
      Other..............................................................................      1,118        1,140        1,145             5              0%
                                                                                          ------------------------------------------------------------------
      TOTAL..............................................................................    139,072      143,063      146,963         3,900              3%

    Basic Research
      Defense............................................................................      1,525        1,634        1,699            65              4%
      Health and Human Services..........................................................     15,646       15,897       15,884           -13              0%
      NASA...............................................................................      1,786        2,104        1,912          -192             -9%
      Energy.............................................................................      3,123        3,232        3,556           324             10%
      National Science Foundation........................................................      3,635        3,689        4,336           647             18%
      Homeland Security..................................................................        247          248          276            28             11%
      Agriculture........................................................................        893          856          798           -58             -7%
      Commerce...........................................................................        142           96          176            80             83%
      Transportation.....................................................................          2            3            3  ............  ..............
      Veterans Affairs...................................................................        358          385          354           -31             -8%
      Interior...........................................................................         34           43           40            -3             -7%
      Environmental Protection Agency....................................................        101           97           95            -2             -2%
      Other..............................................................................        196          188          190             2              1%
                                                                                          ------------------------------------------------------------------
        SUBTOTAL.........................................................................     27,688       28,472       29,319           847              3%

    Applied Research
      Defense............................................................................      5,103        5,058        4,245          -813            -16%
      Health and Human Services..........................................................     13,405       13,414       13,424            10              0%
      NASA...............................................................................        947          974          919           -55             -6%
      Energy.............................................................................      2,630        3,513        3,474           -39             -1%
      National Science Foundation........................................................        357          340          422            82             24%
      Homeland Security..................................................................        434          382          381            -1              0%
      Agriculture........................................................................      1,072        1,103          922          -181            -16%
      Commerce...........................................................................        637          731          737             6              1%
      Transportation.....................................................................        562          576          614            38              7%
      Veterans Affairs...................................................................        482          519          478           -41             -8%
      Interior...........................................................................        510          549          513           -36             -7%
      Environmental Protection Agency....................................................        415          379          370            -9             -2%
      Other..............................................................................        576          574          588            14              2%
                                                                                          ------------------------------------------------------------------
        SUBTOTAL.........................................................................     27,130       28,112       27,087        -1,025             -4%

    Development
      Defense............................................................................     71,641       73,358       74,393         1,035              1%
      Health and Human Services..........................................................         22           22           22  ............  ..............
      NASA...............................................................................      5,576        5,436        5,731           295              5%
      Energy.............................................................................      1,973        2,232        2,472           240             11%
      National Science Foundation........................................................  .........  ...........  ...........  ............  ..............
      Homeland Security..................................................................        434          365          380            15              4%
      Agriculture........................................................................        195          195          186            -9             -5%
      Commerce...........................................................................         83           76           68            -8            -11%
      Transportation.....................................................................        185          225          264            39             17%
      Veterans Affairs...................................................................         52           56           52            -4             -7%
      Interior...........................................................................         55           62           62  ............  ..............
      Environmental Protection Agency....................................................         90           81           85             4              5%
      Other..............................................................................        300          324          298           -26             -8%
                                                                                          ------------------------------------------------------------------
        SUBTOTAL.........................................................................     80,606       82,432       84,013         1,581              2%

    Facilities and Equipment
      Defense............................................................................         60          142          157            15             11%
      Health and Human Services..........................................................        128          142          150             8              6%

    [[Page 53]]

      NASA...............................................................................      1,643        1,922        2,175           253             13%
      Energy.............................................................................        796          762        1,056           294             39%
      National Science Foundation........................................................        487          471          443           -28             -6%
      Homeland Security..................................................................        131          148        2,250         2,102           1420%
      Agriculture........................................................................        115          155           46          -109            -70%
      Commerce...........................................................................        218          210          176           -34            -16%
      Transportation.....................................................................         19           19           20             1              5%
      Veterans Affairs...................................................................  .........  ...........  ...........  ............  ..............
      Interior...........................................................................          5           22            2           -20            -91%
      Environmental Protection Agency....................................................  .........  ...........  ...........  ............  ..............
      Other..............................................................................         46           54           69            15             28%
                                                                                          ------------------------------------------------------------------
        SUBTOTAL.........................................................................      3,648        4,047        6,544         2,497             62%
    --------------------------------------------------------------------------------------------------------------------------------------------------------

    [[Page 54]]

                                    Table 5-2.  FEDERAL SCIENCE AND TECHNOLOGY BUDGET
                                     (Budget authority, dollar amounts in millions)
    ----------------------------------------------------------------------------------------------------------------
                                                                                           Dollar         Percent
                                                 2007 Actual      2008         2009     Change: 2008   Change: 2008
                                                                Estimate     Proposed      to 2009        to 2009
    ----------------------------------------------------------------------------------------------------------------
    By Agency
    National Institutes of Health..............       28,880       29,307       29,307  ............  ..............
    Energy \1\.................................        6,200        7,226        7,627           401              6%
      Science Programs.........................        3,797        3,973        4,722           749             19%
      Electricity Transmission & Distribution..           97          110          100           -10             -9%
      Nuclear Energy...........................          540          962          854          -108            -11%
      Energy Efficiency and Renewable Energy           1,176        1,440        1,197          -243            -17%
       Resources \2\...........................
      Fossil Energy R&D \3\....................          590          741          754            13              2%
    National Science Foundation................        5,917        6,032        6,854           822             14%
    Defense....................................        6,628        6,692        5,944          -748            -11%
      Basic Research...........................        1,525        1,634        1,699            65              4%
      Applied Research.........................        5,103        5,058        4,245          -813            -16%
    NASA.......................................        6,148        5,911        5,517          -394             -7%
      Science..................................        4,610        4,627        4,442          -185             -4%
      Aeronautics..............................          594          505          447           -58            -11%
      Exploration Systems \4\..................          755          654          452          -202            -31%
      Innovative Partnerships..................          189          125          176            51             41%
    Agriculture................................        2,158        2,156        1,921          -235            -11%
      CSREES Research and Education \5\........          674          672          539          -133            -20%
      Economic Research Service................           75           77           82             5              6%
      Agricultural Research Service \6\........        1,129        1,121        1,037           -84             -7%
      Forest Service: Forest and Rangeland               280          286          263           -23             -8%
       Research................................
    Commerce...................................          891        1,008        1,012             4              0%
      NOAA: Oceanic & Atmospheric Research.....          398          398          378           -20             -5%
      NIST Intramural Research and Facilities..          493          610          634            24              4%
    Interior (USGS)............................          988        1,006          969           -37             -4%
    Veterans Affairs \7\.......................          892          891          884            -7             -1%
    Environmental Protection Agency \8\........          764          786          790             4              1%
    Transportation.............................          560          577          601            24              4%
      Highway research: Federal Highway                  430          430          430  ............  ..............
       Administration \9\......................
      Federal Aviation Administration:                   130          147          171            24             16%
       Research, Engineering, and Development..
    Education..................................          342          337          344             7              2%
      Special Education Research and Innovation           72           71           71  ............  ..............
      National Institute on Disability and               107          106          106  ............  ..............
       Rehabilitation Research.................
      Research, Development, and Dissemination           163          160          167             7              4%
       \10\....................................
                                                --------------------------------------------------------------------

      Total....................................       60,368       61,929       61,770          -159           -0.3%
    ----------------------------------------------------------------------------------------------------------------
    \1\ Data do not reflect actual transfers to Science Programs from other Department of Energy R&D programs to
      support the Small Business Innovation Research and the Small Business Technology Transfer programs.
    \2\ Excludes Weatherization, State grants, and intergovernmental activities.
    \3\ Excludes funding for the Alaska Natural Gas Pipeline project.
    \4\ Exploration Systems includes the Exploration Technology Development Program, the Human Research Program, and
      the Lunar Precursor Robotic Program.
    \5\ Includes the appropriation of earnings from the Native American Endowment Fund, but not the appropriation to
      the Endowment's principal.
    \6\ Excludes building and facilities. Also excludes $3 million transfer to the account in 2007.
    \7\ Includes the medical care and prosthetic research appropriation and research support from the VA medical
      care appropriations. In 2008, $69 million in emergency funding provided to the Medical and Prosthetics
      Research account by the Consolidated Appropriations Act of 2008.
    \8\ Science and Technology, plus superfund transfer.
    \9\ According to the process established in section 1102(f) of SAFETEA-LU, FHWA annually adjusts the research
      funding level from the appropriated obligation limitation.
    \10\ Does not include funding for Regional Educational Labs.

    [[Page 55]]

                                                  Table 5-3.  AGENCY DETAIL OF SELECTED INTERAGENCY R&D EFFORTS
                                                         (Budget authority, dollar amounts in millions)
    --------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                   Dollar         Percent
                                                                                              2007        2008         2009        Change:     Change:  2008
                                                                                             Actual     Estimate     Proposed   2008 to 2009      to 2009
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    Networking and Information Technology R&D:
      Defense............................................................................      1,194        1,267        1,242           -25             -2%
      National Science Foundation........................................................        909          931        1,090           159             17%
      Health and Human Services \1\......................................................        566          556          555            -1              0%
      Energy.............................................................................        349          436          494            58             13%
      Commerce...........................................................................         76           85           90             5              6%
      National Aeronautics and Space Administration......................................         91           86           84            -2             -2%
      Environmental Protection Agency....................................................          6            6            6  ............  ..............
      National Archives and Records Administration.......................................          4            5            5  ............  ..............
                                                                                          ------------------------------------------------------------------
        TOTAL............................................................................      3,195        3,372        3,566           194              6%

    National Nanotechnology Initiative:
      Defense............................................................................        450          487          431           -56            -11%
      National Science Foundation........................................................        389          389          397             8              2%
      Energy.............................................................................        236          251          311            60             24%
      Health and Human Services \2\......................................................        222          232          232  ............  ..............
      Commerce (NIST)....................................................................         88           89          110            21             24%
      National Aeronautics and Space Administration......................................         24           24           24  ............  ..............
      Environmental Protection Agency....................................................          8           10           15             5             50%
      Agriculture........................................................................          7           11            8            -3            -27%
      Justice............................................................................          2            2            2  ............  ..............
      Transportation.....................................................................          1            1            1  ............  ..............
      Homeland Security..................................................................          2            1            1  ............  ..............
                                                                                          ------------------------------------------------------------------
        TOTAL............................................................................      1,429        1,497        1,532            35              2%

    Climate Change Science Program:
      National Aeronautics and Space Administration......................................      1,084        1,078        1,204           126             12%
      Commerce (NOAA)....................................................................        184          240          260            20              8%
      National Science Foundation........................................................        207          205          221            16              8%
      Energy.............................................................................        126          128          146            18             14%
      Agriculture........................................................................         61           65           62            -3             -5%
      National Institutes of Health......................................................         47           47           47  ............  ..............
      Interior (USGS)....................................................................         27           34           31            -3             -9%
      U.S. Agency for International Development..........................................         14           14           20             6             43%
      Environmental Protection Agency....................................................         16           20           16            -4            -20%
      Smithsonian........................................................................          6            6            6  ............  ..............
      Transportation.....................................................................          1            1            2             1            100%
                                                                                          ------------------------------------------------------------------
        TOTAL............................................................................      1,773        1,838        2,015           177             10%
    --------------------------------------------------------------------------------------------------------------------------------------------------------
    \1\ Includes funds from offsetting collections for the Agency for Healthcare Research and Quality.

    \2\ Includes funds from both the National Institutes of Health and National Institute of Occupational Safety and Health.