Federal Research and Development: Budgeting and Priority-Setting Issues, 109th Congress (CRS Report for Congress)
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| Release Date |
Revised Dec. 29, 2006 |
| Report Number |
RL33511 |
| Report Type |
Report |
| Authors |
Genevieve J. Knezo, Resources, Science, and Industry Division |
| Source Agency |
Congressional Research Service |
| Older Revisions |
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Summary:
This report summarizes current research and development (R&D) priority-setting issuesâin terms of expenditures; agency, topical, or field-specific priorities; and organizational arrangements to determine priorities. Federal R&D funding priorities reflect presidential policies and national needs. Defense R&D predominated in the 1980s, decreasing to about 50% of federal R&D in the 1990s. In non-defense R&D, space R&D was important in the 1960s as the nation sought to compete with the Soviet Union; energy R&D was a priority during the energy-short 1970s, and, since the 1980s, health R&D has predominated in non-defense science. This Administration's R&D priorities include weapons development, homeland security, space launch vehicles, and, beginning in 2006, more support for physical sciences and engineering. For FY2007, R&D was requested at almost $137 billion of budget authority, about 1.8% more than enacted in FY2006. The request would have increased funding for physical sciences and engineering programs in the National Science Foundation, the Department of Energy's Office of Science, and National Institute of Standards and Technology laboratories as part of the President's American Competitiveness Initiative (ACI) to enhance innovation. Funding for the National Aeronautics and Space Administration's R&D would have increased by about 8% largely to develop human space vehicles. For FY2007, two appropriations bills were signed; the rest of the government is operating on a continuing resolution through February 2007, but likely to continue throughout FY2007, funding domestic agencies at FY2006 levels. Appropriations action increased support for defense development and decreases homeland security R&D funding.
The latest estimated expenditure for national (public and private) R&D is $312.1 billion for FY2004. Federal R&D expenditures, at $93.4 billion, have grown, but have declined to 30% of total national R&D spending. During the 109th Congress, some proposals to increase incentives for industrial R&D included H.R. 1454, H.R. 1736, S. 14, S. 627, S. 2199, and S. 2720. H.R. 6111, passed in both Houses, extended the R&D tax credit for two years and widened eligibility for the credit. The FY2007 budget would have emphasized three interagency R&D initiatives: networking and information technology; climate change science; and nanotechnology. Proposals to coordinate R&D include a continuing priority-setting mechanism; a cabinet-level S&T body; functional R&D budgeting; and reestablishment of a technology assessment function. The Administration opposes R&D earmarking, estimated at $2.4 billion in budget authority for FY2006. Although the Administration is using the Government Performance and Results Act and the Program Assessment Rating Tool for R&D budgeting, some critics say better data and concepts are needed before performance budgeting can be used to identify R&D priorities.
