The US National Science Foundation (NSF) recently released its updated “NSF Survey of Federal Funds for Research and Development FY 2007–2009” (see IBO 2/15/08 for fiscal 2008 projections) detailing the R&D spending and “R&D plant” spending by 27 federal agencies for fiscal 2008 and fiscal 2009. R&D plant expenditures are spending for facilities construction, acquisition and renovation, and for the rental of fixed equipment or facilities. Fiscal 2008 and fiscal 2009 data are preliminary and projected, respectively. Funding amounts are given in current dollars, which do not account for inflation. The NSF report showed that total R&D spending in fiscal 2009 by federal agencies, which includes basic and applied research, development and R&D plant obligations, remained flat, increasing by only 0.1% to $116.6 billion, excluding American Recovery and Reinvestment Act (ARRA) funding (see IBO 4/30/09). The previous fiscal year, total R&D obligations increased a slight 0.5% to $116.5 billion.

Total basic and applied research funding is projected to have decreased 0.5% to $54.8 billion in fiscal 2009, following a 1.8% increase in fiscal year 2008 to $55.1 billion. Basic research spending increased 2.6% in fiscal 2008 to $27.6 billion, and grew 2.1% in fiscal 2009 to $28.5 billion, excluding ARRA funding. Applied research expenditures decreased 1.2% to $27.5 billion in fiscal 2008 and fell 6.0% in fiscal 2009. In addition, total federal funding for development, 30% of which went to the Department of Defense (DOD) in fiscal 2009, remained steady, increasing 0.2% in both fiscal 2008 and fiscal 2009 to $59.5 billion and $59.7 billion, respectively. Basic research, applied research, and development represented 25%, 23% and 51% of federal research obligations in fiscal 2009.

Federal obligations for R&D plant research, which are projected to have made up 1.8% of federal R&D obligations in fiscal 2009, have fluctuated over the past two years. R&D plant spending plummeted in fiscal 2008, decreasing 14.6% to $1.9 billion. It is projected that fiscal 2009 was kinder to R&D plant spending, with federal obligations increasing 14.3% to $2.1 billion.

The Department of Health and Human Services (HHS), which received 53.7% of federal research dollars in fiscal 2008 (see chart, pg. 6), decreased its research funding in fiscal 2008 by 1.1% to $29.6 billion. A majority of HHS research funding, 96.5%, went to the National Institutes of Health in fiscal 2008, for which fiscal 2008 research spending is estimated to have increased 1.4% to $28.5 billion. In fiscal 2008, 84.2% of the HHS research funding supported the life sciences, and the HHS was responsible for 53.7% of the $29.7 billion in federal life science research spending for the fiscal year.

Department of Energy (DOE) research spending grew 2.7% to $6.2 billion in fiscal 2008. According to the report, 38% of the DOE’s research funding supported the physical sciences that year, providing 45.1% of the $5.2 billion in federal research funding for the field in fiscal 2008. Funding for engineering represented 36% of DOE research spending.

In fiscal 2008, the Office of Science (OS), Energy Efficiency and Renewable Energy, and Fossil Energy received 52%, 7% and 5% of the DOE’s research budget, respectively. In fiscal 2008, the OS’s research budget grew 7.1% to $3.2 billion, and the DOE was the third-largest provider of development funding, behind NASA and the DOD, at $2.1 billion.

NSF research spending fell 0.8% to $4.0 billion in fiscal 2008. NSF research funding was more evenly spent between scientific fields than other agencies, with 20% spent on the physical sciences, 15% on the life sciences and 17% on the environmental sciences. In fiscal 2008, the NSF provided 20% of research obligations to the environmental sciences, the highest among federal agencies. Federal environmental sciences research obligations in fiscal 2008 totaled $3.3 billion.

The Department of Agriculture’s (USDA) research spending increased 5.8% in fiscal 2008 to $2.2 billion, of which 84% was spent on the life sciences. The USDA’s Agricultural Research Service accounted for 46% of the USDA’s research funding that year and experienced a 1.8% decrease in research spending to $1.0 billion. In contrast, the USDA’s Cooperative State Research, Education and Extension Service represented 35% of the USDA’s research funding and received a 22.2% increase in research spending to $766.0 million.

Chart: FY2008 US Research Obligations by Agency ($ millions)

HHS DOD DOE NSF USDA NASA Other

FY08 Preliminary 29,583 6,856 6,160 4,031 2,187 2,126 4,153

Chart: US Research Performer and Year ($ millions)

HHS DOE NSF USDA

FY04 27,991 5,498 3,771 1,919

FY05 28,617 5,704 3,743 2,003

FY06 28,680 5,720 3,791 2,031

FY07 29,211 5,857 3,970 2,068

FY08 Preliminary 29,583 6,160 4,031 2,187

Chart: US Federal Research Obligations FY08 Preliminary ($ millions)

Enviro. Sci. 3,315

Life Sci. 29,675

Math and Computer Sci. 3,285

Physical Sci. 5,249

Psychology 1,861

Social Sci. 1,071

Other Sci. 1,287

Engineering 9,353