Federal Research and Development Funding: FY2005

Publication Date: February 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Science and technology

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Abstract:

The Bush Administration requested $131.9 billion in federal research and development (R&D) funding for FY2005. This was $5.9 billion above the estimated $126 billion that was appropriated for federal R&D in FY2004. Based on Congressional actions, CRS estimates that federal R&D funding will reach $132.9 billion in FY2005, a 5.5% increase over FY2004. CRS estimates that 78% of this increase was for defense R&D. CRS estimates that defense R&D will reach $75.4 billion, a 7.4% increase over FY2004, while civilian R&D is estimated to reach $57.5 billion, a 2.7% increase over FY2004.

Congress passed four individual appropriations bills, but only two of them, Defense and Homeland Security, have R&D programs. Congress approved a record $69.853 billion for DOD’s RDT&E program, including a 10.4% increase for DOD’s S&T programs (P.L. 108-287). Congress approved a 26% increase, or $1.3 billion for Department of Homeland Security’s (DHS) R&D programs (P.L. 108-334). The remaining nine appropriations bills are contained in the Consolidated Appropriations Act of FY2005, (P.L 108-447, H.R. 4818). All funding estimates derived from that Act reflect a 0.80% across-the-board rescission. Further, programs in the Commerce appropriations bill reflect an additional 0.54% across-the-board reduction, while programs in the Interior appropriations bill reflect an additional 0.594% reduction.

Funding for USDA would increase agricultural research 1.6% over FY2004. Most of this increase is the related to congressionally directed projects that USDA requested be removed from the bill. Congress approved an estimated $8.783 billion for R&D at DOE, a 1.2% increase over FY2004. DOE’s basic science programs would increase 2.8%, to $3.6 billion.

P.L. 108-447 does not provide a specific number for NASA R&D funding. Instead, it states that NASA has “unrestrained” authority to transfer funding among its various programs. Despite passing an authorization bill two years ago to double NSF’s budget over five years (P.L. 107-368), Congress approved a 1.9% reduction in funding for FY2005, including the first decline for NSF’s Research and Related Activities account since 1986. NSF’s Education and Human Resources programs would decline 10% below FY2004 levels.

Funding for NIH would increase 2% to $28.452 billion, $560 million over FY2004. Most NIH institutes would receive increases between 1.6 and 2.5 percent.

Within the Department of Commerce, Congress funded NIST at an estimated $699 million, a 14.5% increase over FY2004. It funded the Manufacturing Extension Program at $108 million, but instructed the Secretary not to re-compete the program until FY2007. Congress also approved $136 million to complete work on current Advanced Technology Programs, with no new projects to be competed in FY2005. In response to the findings of a new Ocean Commission Initiative, Congress funded NOAA at $681 million, a 7.2% increase over FY2004 levels.

Congress approved an extension of the research and experimentation tax credit (H.R. 1308, P.L. 108-311) extending the credit through December 31, 2005 (see CRS Report RL31181 for more information on the R&E tax credit).