Summary: The Federal Aviation Administration's (FAA) Research, Engineering, and Development (RE&D) Program plays an important role in ensuring the safety, security, and efficiency of the U.S. air transport system. Several systems developed through the program, such as the Traffic-Alert/Collision Avoidance System, are now finding their way into everyday use. GAO testified that FAA is taking some important steps to strengthen the RE&D Program, such as introducing mission need statements in fiscal year 1993 to prioritize research and guide funding decisions. FAA has not, however, included the requisite budget and staffing information in the RE&D plan. This information is critical in today's budget environment, which is forcing FAA to make hard choices between diverse research needs. The success of the RE&D Program in meeting current and future challenges depends on integrating RE&D goals into other program areas, leveraging research done by other federal agencies, integrating various technologies to meet specific safety and capacity problems, and incorporating human factors into all research. The solution to some of today's most pressing problems may call for greater cooperation between FAA and the National Aeronautics and Space Administration.