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Fiscal Year 2006 R&D Appropriation Status: Overview

As the U.S. Congress adjourned for its August recess, only two final appropriations bills had been passed into law (Interior and Environment, and Legislative Branch). However, action to datein the House and Senate appropriations committees signals that Federal agencies–with few exceptions will see flat or declining R&D budgets.

There has been a significant reorganization of the Congressional committee jurisdictions over appropriations for the science and technology-related agencies. In the House, the National Science Foundation and NASA have been moved into the funding pool with the Departments of Commerce, State, and Justice. The Senate has a different reorganization plan, incorporating appropriations for Commerce, Justice, NASA, and NSF in a single bill, but moving the State Department appropriation into a different bill. These newly aligned jurisdictions are likely to exacerbate problems in agreeing to final R&D appropriations for these agencies.

Appropriations committee actions indicate that the House would allocate $135 billion for Federal R&D—a modest increase of $2.4 billion over FY 05, and $2.8 billion more than the President’s request, but still a new high for the Federal investment. The Congress does not appear ready to support the President’s requested budget cuts at the Departments of Defense and Energy, but rather would add funding for R&D at these agencies. However, it looks like Congress will go along with the President’s request for flat or declining R&D budgets (after inflation adjustments) in most other Federal agencies.

Defense R&D: Most of the R&D budget increase would go to the Defense Department, bringing the defense share of Federal R&D to more than 57 percent. Despite the President’s request for budget cuts, the House would add nearly $3 billion for defense science and technology research, and another $2 billion for weapons systems development—setting an all time high of $72 billion for defense R&D and weapons development. The Senate had not taken up defense appropriations when it adjourned for its August recess.

Non-defense R&D: Non-defense R&D programs get little or no gain at $57 billion, just a 0.9 increase over last year and a bit higher than the President’s request. Most increases have been targeted to homeland security and weapons development. And, after its long budget run-up, NIH still accounts for almost half of all Federal civilian R&D. That means there is little change in the balance of the non-defense R&D portfolio; life sciences has the lion’s share and paltry treatment for other key areas of civilian R&D.

For more information on any of these Administration initiatives, and how they may affect your organization, please contact us at info@techvision21.com or (202) 263-0168.


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