According to recent figures from the NSF, funding from the American Recovery and Reinvestment Act 2009 (ARRA) (see IBO 2/28/09) contributed an additional $17.4 billion in constant fiscal 2005 dollars to federal obligations for R&D and R&D plant (facilities and fixed equipment) funding in fiscal year (FY) 2009 and FY10 combined. This accounted for 7% of total R&D and R&D plant obligations, based on preliminary FY10 figures.

ARRA funds prevented total obligations for R&D and R&D plant funding from declining 2.9% in FY09 and dropping 4.8% in FY10. Because there were no ARRA funds for FY11, total obligations for R&D and R&D plant are projected to have fallen 8.5% year over year, with research obligations, excluding development and R&D plant, expected to have declined 8.7%.

In FY09 and FY10 combined, ARRA contributed 44%, 32%, 15% and 9% to basic research, applied research, R&D plant and development federal funding obligations, respectively. Consequently, ARRA accounted for 13%, 10%, 37% and 1% of total obligations for basic research, applied research, R&D plant and development for those years, respectively.

For research, excluding development and R&D plant, ARRA made up 11% of total obligations in FY09 and FY10 combined. The Department of Health and Human Services (HHS) funded the largest amount of ARRA research obligations, at 73%. The NSF, the Department of Energy (DOE) and the Department of Defense (DOD) funded 13%, 10% and less than 1%, respectively. In FY11, without ARRA, HHS, DOE and DOD research obligations are estimated to have decreased 13.4%, 3.0% and 9.0%, respectively. However, NSF research obligations are expected to have grown 6.9%.

In current dollars, ARRA funding for R&D, excluding R&D plant, comprised 6% of obligations in FY09 and FY10 combined (see pie chart). In FY11, funding for all performers is expected to have decreased. Nonprofits’ obligations are estimated to have fallen the most, 13.5%, in FY11. Obligations for industry, universities, FFRDCs and intramural agencies are projected to have declined 9.0%, 7.8%, 4.8% and 0.2%, respectively.

 Federal Obligations for R&D and R&D Plant in FY05 Dollars

                  FY09 ($M)        FY10 % Chg.(Prelim.)     FY11 % Chg.(Proj.)

 Basic Research     $29,773             -3.2%                    -7.4%

 ARRA                $4,633            -37.1%                  -100.0%

 Applied Research   $27,919              6.9%                   -10.0%

 ARRA                $2,364             34.3%                  -100.0%

 Development        $63,063              1.4%                    -6.5%

 ARRA                  $894            -13.0%                  -100.0%

 R&D Plant           $3,304             10.7%                   -40.5%

 ARRA                $1,239              9.1%                  -100.0%

 Pie Chart: FY09 and FY10 ARRA Obligations for R&D by Performer (Current Dollars)

 Univ. & Coll.    55%

 Intra. Agen.     16%

 Nonprofits       12%

 Industry         10%

 FFRDCs            7%