Federal Research and Development Funding: FY2017

Summary

President Obama’s budget request for FY2017 includes $152.333 billion for research and development (R&D), an increase of $6.195 billion (4.2%) over the estimated FY2016 enacted R&D funding level of $146.138 billion. The request represents the President’s R&D priorities; Congress may opt to agree with part or all of the request, or it may express different priorities through the appropriations process. In particular, Congress will play a central role in determining the growth rate and allocation of the federal R&D investment in a period of intense pressure on discretionary spending. Budget caps may limit overall R&D funding and may require movement of resources across disciplines, programs, or agencies to address priorities.

Funding for R&D is concentrated in a few departments and agencies. Under President Obama’s FY2017 budget request, seven federal agencies would receive 95.6% of total federal R&D funding, with the Department of Defense (47.8%) and the Department of Health and Human Services (21.5%) accounting for nearly 70% of all federal R&D funding.

In dollars, the largest increases in agency R&D funding in the President’s request would go to the Department of Energy (up $2.755 billion, 19.1%), the Department of Defense (up $1.953 billion, 2.8%), and the Department of Health and Human Services (up $772 million, 2.4%).

The President’s FY2017 request continues support for a number of multiagency R&D initiatives: the National Nanotechnology Initiative, Networking and Information Technology Research and Development program, U.S. Global Change Research Program, Brain Research through Advancing Innovative Neurotechnologies (BRAIN) initiative, Precision Medicine Initiative, Cancer Moonshot, Materials Genome Initiative, National Robotics Initiative, and National Network for Manufacturing Innovation.

In recent years, continuing resolutions and sequestration have resulted in the annual appropriations process being completed after the start of the fiscal year. This can affect agencies’ execution of their R&D budgets, including the delay or cancellation of planned R&D activities and acquisition of R&D-related equipment.