American Association for the Advancement of Science

AAAS R&D Funding Update on R&D in House FY 2006 USDA Appropriations -


House Retains Formula Funds, Boosts USDA Competitive Grants

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-Table. R&D in the FY 2006 House USDA Appropriations

PDF version of this document

Supplemental Materials:

Full Text of AAAS Report XXX: Research and Development FY 2006 (R&D in the President's request for FY 2006)

U.S. Department of Agriculture R&D in the FY 2006 Request (March 3 AAAS R&D Funding Update)

 

 

 

 


 

Highlights

- The U.S. Department of Agriculture (USDA), enjoying a record R&D portfolio this year, would see its R&D funding fall 7.4 percent down to $2.2 billion in 2006 in the latest House budget plan (see Table). Although the House would add $174 million to the budget request, mostly for earmarks, the appropriation would still leave USDA R&D $178 million below this year’s funding level.

- The House would reject USDA’s proposals to slash formula funds in its extramural research portfolio. The House would keep Hatch Act formula funding for land-grant colleges at $179 million, in contrast to USDA proposals to eliminate half of this funding and shift the funds to a new $75 million competitive research grants program for these institutions. The National Research Initiative (NRI) of competitively awarded research grants would increase almost 20 percent to a new record of $215 million, while earmarked Special Research Grants would fall slightly from $120 million down to $107 million.

- USDA intramural R&D would fall 12.7 percent in the House plan to $1.1 billion. The House would go along with the request for $59 million in 2006 to complete the renovation of the National Centers for Animal Health in Ames, Iowa.

USDA R&D in FY 2006 House Appropriations

On June 3, the House Appropriations Committee filed its version of the FY 2006 Agriculture appropriations bill (HR 2744), which funds most of the U.S. Department of Agriculture (USDA). The full House is expected to debate and approve the bill the week of June 6. USDA’s Forest Service is funded in the Interior appropriations bill (HR 2361), which was approved by the full House on May 19. In the House bills, USDA R&D funding would improve dramatically from a proposed 15 percent cut in the USDA budget request, but would still remain 7.4 percent below this year’s funding level at $2.2 billion, a cut of $178 million (see Table). The House would add back funds for earmarks that were deleted in the request, and would also reject USDA proposals to shift formula funds for land-grant institutions to competitive grants. (For details of the President’s request for USDA R&D, please see Chapter 11 of AAAS Report XXX: R&D FY 2006 or the March 3 USDA R&D Funding Update). 

USDA’s extramural research grants, nearly entirely to colleges and universities, are administered by the Cooperative State Research, Education and Extension Service (CSREES). Total CSREES R&D would fall 4.0 percent in FY 2006 to $624 million, a big improvement from a proposed 20 percent cut. The difference is that USDA proposed to eliminate $180 million in 2005 congressional earmarks, but the House would restore just over $120 million in earmarked projects and keep formula funding stable. Most of these earmarks are in the nearly entirely earmarked Special Research Grants program, which USDA proposed to cut from $120 million this year down to just $3 million in 2006; the House would provide $107 million. The remaining earmarks are in other parts of the CSREES budget, and would be terminated in the 2006 request but restored in the FY 2006 House appropriation. 

The National Research Initiative (NRI) of competitively awarded, extramural research grants would receive a new record of $215 million, up $35 million from the record $180 million funding level for this year.  USDA requested even more money for a total of $250 million. Part of the increase, however, would be due to the transfer of some competitive grants currently funded in Integrated Grants to NRI; the truly new money in 2006 would be roughly $15 million. USDA also proposed to make competitive grants more attractive to potential applicants by repealing a longstanding limit on indirect cost reimbursements for USDA grants, currently capped at 20 percent, but the House Agriculture bill would keep the 20 percent  limit in place.

The House would reject USDA’s proposal to dramatically restructure formula funds for agricultural R&D at land-grant institutions in 2006. Hatch Act formula funding for agricultural R&D at land-grant colleges would remain at $179 million in the House plan instead of the USDA proposal to cut it in half to $89 million. The House would also reject similar proposed cuts to other formula research grants (in “All Other CSREES R&D” in the Table), and the House would reject USDA’s proposed alternative to formula funds, a new $75 million competitive research grants program just for land-grant institutions. 

Most of USDA’s intramural research is performed in the Agricultural Research Service (ARS). ARS R&D would fall 12.7 percent or $166 million to $1.1 billion. The appropriation includes the $59 million request for the National Centers for Animal Health in Ames, Iowa. Congress provided $122 million for the Ames facility in the FY 2005 budget, and the FY 2006 request of $59 million would be sufficient to finish the major renovation project. The renovated National Centers for Animal Health will serve as the nation’s premier animal research and diagnostic laboratory and will enhance the nation’s ability to respond to attacks on the food supply as a biosafety level 3 (BSL-3) facility.

 
Figure 1.
(click on the image for PDF)

The other major USDA R&D agency is the Forest Service; the FY 2006 House appropriation for its R&D is $331 million, up 5.3 percent or $17 million from this year. Although the primary focus of its R&D portfolio is forestry and ecosystems research, in recent years the Forest Service has emphasized its fire science and wildfire management research portfolio as well. Most of this research is performed in intramural laboratories, although there is also an extramural fire science grants program that would receive $22 million in 2006.

 Impacts of the USDA R&D Portfolio

 The FY 2006 House cuts to USDA R&D bring the portfolio down dramatically from peaks in inflation-adjusted dollars in 2003 and 2005 (see Figure 1). USDA R&D has been at historical highs for the past few years. Since hitting a recent low in FY 1996, the funding trend has been generally upward, first because the federal budget surplus made more discretionary funds available to congressional appropriators, then in FY 2000 and FY 2001 from the release of mandatory competitive research funds, and then since FY 2002 because heightened concern about agricultural terrorism and the security of USDA laboratories resulted in millions for security upgrades and other homeland security-related investments. But with homeland security-related construction needs waning at locations such as Ames, the FY 2006 budget would bring USDA R&D down to the $2 billion level.

 Although NRI hits a new high in 2005 and would go even higher in the 2006 House appropriation and USDA request, the history of competitive agricultural research grants has been mixed in recent years as Congress and USDA have blocked mandatory competitive programs, directed the bulk of recent increases to facilities rather than research, siphoned off NRI dollars to fund earmarks, and repeatedly fallen short of the original vision of NRI as a $500 million-a-year program. Late last year, there was a push to create a National Institute for Food and Agriculture (NIFA) employing an extramural, peer-reviewed basic research model for agricultural research like the National Institutes of Health (NIH); advocates hope that a NIFA existing as a semi-independent agency within USDA would offer a higher profile for basic agricultural research and perhaps higher dollars. The NIFA proposal did not make it into the FY 2006 USDA request or the House Agriculture bill, but increases for competitive grants did.

 The full House is expected to debate and approve the Agriculture bill the week of June 6. The Senate Appropriations Committee is expected to draft its version of the bill later this month.

- June 7, 2005
(This analysis is one of a series of AAAS R&D Funding Updates on FY 2006 congressional appropriations. The complete series of AAAS R&D Funding Updates, including continually updated analyses of R&D in FY 2006 appropriations, is available on the AAAS R&D Web Site (http://www.aaas.org/spp/rd) in the "FY 2006 R&D" or the "What's New" sections.)

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Table. U.S. Department of Agriculture

 

 

 

 

 

House Appropriations Committee Action on R&D in the FY 2006 Budget

 

(budget authority in millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

House Action

 

FY 2005

FY 2006

FY 2006

Chg. from Request

Chg. from FY 2005

 

Estimate

Request

House

Amount

Percent

Amount

Percent

 

 

 

 

 

 

 

 

Agricultural Research Service (ARS)

 

 

 

 

 

 

 

  Salaries and Expenses

        1,102

           996

        1,035

39

4.0%

-67

-6.0%

  Trust Funds

             18

             18

             18

0

0.0%

0

0.0%

  Buildings and Facilities

           186

             65

             87

23

34.7%

-99

-53.1%

 

_______

_______

 _______

_______

 

_______

 

  Total ARS R&D

        1,306

        1,079

        1,141

62

5.7%

-166

-12.7%

 

 

 

 

 

 

 

 

Cooperative State Research, Education and Extension Service (CSREES)

 

 

 

 

     National Research Initiative

180

250

215

-35

-14.1%

35

19.5%

     Special Research Grants

120

3

107

104

3105.7%

-13

-11.0%

     Hatch Act

179

89

179

89

100.1%

0

0.1%

     Ag. Experiment Competitive Grants

0

75

0

-75

-100.0%

0

- -  

     Integrated Grants

25

9

4

-5

-55.7%

-21

-84.0%

     All Other CSREES R&D

146

93

119

26

27.9%

-27

-18.5%

 

_______

_______

_______

_______

 

_______

 

  Total CSREES R&D

650

520

624

104

20.0%

-26

-4.0%

 

 

 

 

 

 

 

 

  (CSREES Non-R&D Programs)

524

510

516

6

1.2%

-8

-1.4%

 

_______

_______

_______

_______

 

_______

 

  (Total CSREES Budget)

1,174

1,030

1,140

110

10.7%

-34

-2.9%

 

 

 

 

 

 

 

 

Forest Service

314

318

331

13

4.0%

17

5.3%

Economic Research Service

74

81

76

-5

-6.3%

2

2.6%

Agricultural Marketing Service

6

4

4

0

0.0%

-2

-33.3%

Foreign Agricultural Service

2

2

2

0

0.0%

0

0.0%

Nat'l Agricultural Statistics Service

5

5

5

0

0.0%

0

0.0%

Grain Inspection

7

8

8

0

0.0%

1

14.3%

Natural Resources Conservation

14

12

12

0

0.0%

-2

-14.3%

Animal & Plant Inspection Service

25

22

23

1

4.4%

-2

-8.1%

 

_______

_______

_______

_______

 

_______

 

Total USDA R&D

        2,403

        2,051

        2,225

174

8.5%

-178

-7.4%

 

 

 

 

 

 

 

 

AAAS estimates based on FY 2006 appropriations bills.  Includes conduct of R&D and R&D facilities.

 

 

FY 2005 and FY 2006 request figures based on OMB R&D data and supplemental agency budget data.

 

Figures are rounded to the nearest million. Changes calculated from unrounded figures.

 

 

 

June 7, 2005 - AAAS estimates of House Appropriations Committee-approved bills.

 

 

These figures may be amended or rejected by the full House.

 

 

 

 

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