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Highlights

The outgoing 106th Congress and President Clinton agreed to provide record increases for R&D programs throughout the federal government, and provided substantial increases to nearly all categories of R&D spending and most R&D funding agencies.

  • In FY 2001, total federal support for R&D exceeds $90 billion for the first time, thanks to a record dollar increase of $7.6 billion over FY 2000. Because of increases across the entire breadth of R&D programs in the federal portfolio, federal R&D totals $90.9 billion in FY 2001, an increase of 9.1 percent (see Table 1).

  • The FY 2001 R&D total far exceeds the $85.4 billion President's request, primarily because Congress allocated far more for R&D in the Department of Defense (DOD) and the National Institutes of Health (NIH), the two largest R&D funding agencies, than the Administration requested (see Table 1).

· Nearly every major R&D funding agency receives a substantial increase over FY 2000, and most receive more than the request. Of the major R&D funding agencies, only the National Science Foundation (NSF) receives less for R&D than requested, but NSF still receives 13.2 percent more for R&D than in FY 2000.

· Nondefense R&D increases by more than 11 percent to reach $45.3 billion, a boost of $4.6 billion. In addition to a 14.6 percent or $2.5 billion increase in NIH R&D, there are substantial increases for other nondefense agencies. R&D in the Department of Energy (DOE) increases by 12.3 percent to reach $8.0 billion, including a 13.8 percent boost to programs in the Office of Science; NSF R&D increases by 13.2 percent to $3.2 billion, with substantial increases for all the research directorates; and Science, Aeronautics and Technology R&D in the National Aeronautics and Space Administration (NASA) increases by nearly 11 percent.

  • Defense R&D increases by a smaller but still substantial 7.0 percent to $45.5 billion, bringing defense and nondefense R&D near parity for the first time in 20 years. DOD basic research ("6.1") jumps by nearly 13 percent, while applied research ("6.2") increases by nearly 8 percent. DOE's defense R&D continues the gains of recent years with a 12.0 percent increase in FY 2001.

  • Basic research receives large increases in FY 2001 appropriations. Federal support for basic research is expected to total $21.2 billion in FY 2001, up $2.2 billion or 11.8 percent (see Table 2). There are across-the-board increases for agencies' basic research-oriented programs, including increases greater than 10 percent for basic research in NIH, NSF, and DOD.

  • The Clinton Administration's multi-agency initiatives do well in FY 2001, though funding levels fall short of the requested increases. The new nanotechnology initiative grows from $247 million in FY 2000 to an estimated $418 million in FY 2001, a 55 percent increase. The Information Technology R&D initiative sees its funding climb nearly 24 percent to $2.1 billion in FY 2001, including a dramatic jump from $90 million to $215 million for NSF's IT Research component.

  • Health-related R&D and defense R&D both rise by nearly $3 billion in FY 2001 (see Table 3). Most other functional categories of R&D also see large increases, including a 13.5 percent increase to $6.2 billion for general science R&D because of large increases for NSF and DOE's Science programs.
  • Nondefense R&D reaches an all-time high in FY 2001, the fifth year in a row that it has increased in inflation-adjusted terms. Much of the recent increase, however, has been due to steady growth in the NIH budget. NIH R&D has become nearly as large as all other nondefense agencies' R&D combined. The large FY 2001 increases for non-NIH nondefense agencies follow several years of stagnant or declining budgets.

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