[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.