Summary

The U.S. government supports a broad range of scientific and engineering research and development (R&D). Its purposes include addressing national defense, health, safety, the environment, and energy security; advancing knowledge generally; developing the U.S. scientific and engineering workforce; strengthening the capacity of U.S. institutions and firms to conduct cutting-edge scientific research and develop innovative technologies; and enhancing the competitiveness of the United States in the global economy. Most of the R&D funded by the federal government is performed in support of the unique missions of individual funding agencies. President Biden’s budget proposal for FY2024 includes approximately $209.7 billion for R&D, $8.9 billion (4.4%) above the FY2023 estimated level of $200.8 billion. Adjusted for inflation to FY2024 dollars, the President’s FY2024 R&D proposal represents a constant-dollar increase of 2.4% above the FY2023 actual level. Funding for R&D is concentrated in a few federal departments and agencies. In FY2023, six agencies received nearly 95% of total federal R&D funding, with the Department of Defense (DOD, 46.2%) and the Department of Health and Human Services (HHS, 24.0%) combined accounting for more than 70% of all federal R&D funding. In the FY2024 proposal, the top six R&D agencies would account for nearly 95%, with DOD accounting for 45.8% and HHS for 24.3%. Federal Research and Development Funding, FY2022-FY2024 In billions of dollars / Source: CRS analysis of data from the Office of Management and Budget, Analytical Perspectives, Budget of the United States Government, Fiscal Year 2024, Research and Development, March 2023. Under the President’s FY2024 budget proposal, most agencies would see their R&D funding increase relative to FY2023. The only exceptions in FY2024 are the Department of Commerce (DOC), which would decrease by $726 million (14.2%) to $4.4 billion, the Department of Education (ED), which would decrease by $19 million (5.4%) to $330 million, and the Department of Homeland Security (DHS), which would decrease by $9 million (1.4%) to $625 million. The largest dollar increases in R&D funding would be for DOD (up $3.1 billion, 3.4%), HHS (up $2.8 billion, 5.8%), the National Science Foundation (NSF, up $1.3 billion, 16.6%), and the Department of Energy (up $1.0 billion, 4.3%). The largest percentage increases in R&D funding would be at the Department of the Interior (up 16.9%), NSF (up 16.6%), and the Department of Transportation (up 10.3%). The President’s FY2024 budget proposal would increase funding for basic research by $1.0 billion (2.2%), applied research by $2.5 billion (5.0%), and development by $5.9 billion (6.2%), and decrease R&D facilities and equipment by $547 million (7.5%). Several multiagency R&D initiatives continue under the President’s FY2024 budget proposal. Some activities supporting these initiatives are discussed in agency budget justifications. However, comprehensive aggregate budget information on these initiatives will likely not be available until budget supplements for each are released later in the year. The request represents the President’s R&D priorities. Congress may opt to agree with none, part, or all of the request, and it may express different priorities through the appropriations process. Congress provides annual R&D appropriations through 9 of the 12 regular appropriations bills. In recent years, Congress has completed the annual appropriations process after the start of the fiscal year. Completing the process after the start of the fiscal year and the accompanying use of continuing resolutions 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.

What this is

The Congressional Research Service is a nonpartisan policy and legal analysis arm of the Library of Congress. CRS reports are written for members of Congress and their staff, not the public — but they’re made available openly through Congress.gov.