Federal Research and Development Funding: Possible Impacts of Operating under a Continuing Resolution

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On September 30, 2008, President Bush signed into law the Consolidated Security, Disaster
Assistance, and Continuing Appropriations Act, 2009 (P.L. 110-329). Division A of this law is a
continuing resolution and provides funding (through March 6, 2009, unless superseded by further
congressional action) for agencies and programs normally funded by nine of the 12 regular
appropriations bills. The same law also includes the other three FY2009 appropriations acts: one
funding the Department of Defense (Division C of P.L. 110-329), one funding the Department of
Homeland Security (Division D of P.L. 110-329), and one funding military construction, the
Department of Veterans Affairs, and related agencies (Division E of P.L. 110-329). The
continuing resolution funds most other agencies and programs at FY2008 pre-supplemental
levels. The continuing resolution generally prohibits agencies from beginning or resuming
programs that did not receive appropriations in FY2008. Thus new civilian research and
development programs and funding increases for existing activities will be delayed until further
appropriations bills have passed. For many research and development programs, FY2008 funding
was provided under the Consolidated Appropriations Act, 2008 (P.L. 110-161), which largely
extended FY2007 funding levels. FY2007 funding was provided under a continuing resolution
(P.L. 110-5) based on FY2006 appropriations. Therefore, some programs are operating in FY2009
with budgets similar to those of FY2006.

The Current Status of FY2009 R&D Appropriations......................................................................1
Issues for Congress..........................................................................................................................2
Table 1. Estimated Federal R&D Appropriations for FY2009........................................................3
Author Contact Information............................................................................................................4

ederal funding for research and development (R&D) is generally supported by both ¹
Congress and the Administration, though programmatic priorities often differ. The Bush
Administration states that it has requested $147 billion in federal R&D funding for ²F

FY2009, approximately 2.7% more than the estimated FY2008 appropriation of $143 billion.
The bulk of the proposed increase would come from continuing the American Competitiveness
Initiative (ACI) and treating the new availability of previously appropriated funds for purchasing ³
biodefense countermeasures through Project BioShield as research and development funding.
The President proposed the ACI in response to growing concerns about America’s ability to
compete technologically in the global marketplace. As part of the ACI, the President called for
doubling, over 10 years, the aggregate funding of the National Science Foundation (NSF), the
Department of Energy (DOE) Office of Science, and the core programs of the National Institute
of Standards and Technology (NIST). The main focus of the increases would be to support basic
research in the physical sciences and engineering. The FY2009 request would increase R&D
funding for NSF by $701 million, for the DOE Office of Science by $749 million, and for NIST ⁴
core programs by $33 million relative to FY2008 appropriated levels.
The President’s request shifts the funding balance between research and development. Despite the
President’s continued support for the ACI, total funding for basic and applied research would
decrease by 0.3% in 2009 compared to 2008. While some specific agency basic and applied
research budgets would increase, these increases are more than offset by decreases at other
agencies. In contrast, funds for development would increase by 1.9%. This increase in support for
development more than offsets the decrease in support for research, thus total R&D funding
would increase under the President’s proposal.

The 110^th Congress has passed three appropriations acts, the Department of Defense
Appropriations Act, 2009 (Division C of P.L. 110-329), the Department of Homeland Security
Appropriations Act, 2009 (Division D of P.L. 110-329), and the Military Construction and
Veterans Affairs Appropriations Act, 2008 (Division E of P.L. 110-329). Since the beginning of
FY2009 on October 1, 2008, funding for all other agencies and programs has been provided
through a continuing resolution (Division A of P.L. 110-329). The continuing resolution maintains
current funding levels through March 6, 2009, or until superseded by subsequent appropriations
law, for the agencies covered under the nine regular appropriations bills still outstanding.

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For all agencies that have not had an appropriations bill for FY2009 signed into law, the
continuing resolution provides funding at the same level they received in FY2008. Funds are
provided on a prorated basis for the duration of the continuing resolution. The continuing
resolution also generally prohibits agencies from using these funds to “initiate or resume any
project or activity for which appropriations, funds, or other authority were not available during ⁵
fiscal year 2008.” The current status of FY2009 funding for R&D is summarized by agency in
Table 1.
The three major crosscutting multiagency R&D initiatives are all funded largely by agencies
operating under the continuing resolution:
• The FY2009 request for the National Nanotechnology Initiative (NII) is $1.532
billion, a 2% increase from $1.497 billion in FY2008. Approximately 72% of this
request is at agencies operating under the continuing resolution.
• The FY2009 request for the Networking and Information Technology R&D
(NITRD) program is $3.566 billion, a 6% increase from $3.372 billion in
FY2008. Approximately 65% of this request is at agencies operating under the
continuing resolution.
• The FY2009 request for the Climate Change Science Program (CCSP) is $2.105
billion, a 10% increase from $1.838 billion in FY2008. More than 99% of this ⁶
request is at agencies operating under the continuing resolution.

If the federal government continues to operate under a continuing resolution, most existing
nondefense R&D programs would continue to receive funding at the FY2008 level. To some
extent, this funding mechanism is likely to cause federal agencies to continue to support existing
R&D priorities, rather than shifting to new ones, since only existing programs retain funding. In
addition, because of inflation, even funds provided at the FY2008 level represent a reduction in ⁷
actual purchasing power. For R&D programs in some agencies, FY2008 funding is close to the
level appropriated in FY2006. For these programs, the loss of purchasing power and the difficulty
of adjusting policy goals and priorities may be especially challenging.
Most new nondefense R&D programs planned for FY2009 would not be allowed to start. Even
once regular appropriations for FY2009 become law, allowing new programs to begin, agencies
may have difficulty meeting their projected R&D milestones and goals because of the shortened
time frame for obligating funds for these programs. Expected completion times for research
programs may need to be revised and new research performers identified. Also, agency plans for

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purchase of major instruments and other capital equipment may be delayed or prevented under
the continuing resolutions. For new R&D programs, milestones planned to occur in the first half
of FY2009 are unlikely to be met, since, if the continuing resolution extends through March 6,
2009, the first half of the fiscal year will be almost completed. Another issue for new programs is
whether agencies will be able to obligate whatever new appropriations they receive. Most agency
appropriations for R&D expire at the end of the fiscal year for which they are appropriated.
Because most new programs cannot be started under a continuing resolution, even if
appropriations for them are eventually received, agencies will have less time than the full fiscal
year to establish these programs and obligate the funds for them.
Table 1. Estimated Federal R&D Appropriations for FY2009
^{($ in mill}^ions)
^FY20⁰⁸^FY20⁰⁹^FY20⁰⁹^FY20⁰⁹^FY20⁰⁹
^{Department/Agency}^Estimate^Request^House^Senate^Appr^opriation
^Department^{of E}^nergy^9,90³^10,5³⁵^10,9⁰³^11,0¹⁰^—
^Department^{of Defense}^a^76,9⁰⁵^79,6¹⁶^—^—^80,3⁰²
^{National Aeronautics and Spac}^e^12,2^{12 12,8}⁵⁷^12,9⁶⁷^13,0⁴⁴^—
^{Administration}
^{National Institutes of}^Health^29,3²¹^29,1⁶⁵^30,3¹⁶^30,1⁹¹^—
^{National Science Foundation}^6,03²^6,85⁴^6,85⁴^6,85⁴^—
^Department^{of Agriculture}^2,59¹^2,28⁰^—^2,54³^—
^Department^{of Homeland}^b^1,34^{0 1,44}⁹^1,44⁷^1,47⁶^1,46⁵
^Security
^{National Institute of Standards}^{756 636}⁸¹⁷⁸¹⁴^—
^{and Technology}
^{National Oceanic and}^{581 577}^—⁶³³^—
^{Atmospheric Administration}
^Department^{of Trans}^portation⁸²³⁹⁰¹^—⁹¹²^—
^Department^{of the}^Interior⁶⁷¹⁶²⁸^—^—^—
^Environme^{ntal Protection}^{713 726}^—^—^—
^Agency
^Source:^{Compiled by CRS from}^{various sources. For details, see CRS Report RL344}^48,^{Federal Res}^{earch and}
^{Development Funding: FY2009}^{, by J}^{ohn F. Sargent J}^{r. et al.}
^Note:^{Agencies for which no FY}²⁰⁰^{9 a}^ppro^{priations act has}^beeⁿ^{signed into law are fu}^{nded unde}^r^the
^{continuing re}^{solution (P.L. 110-3}^{29) at FY2}⁰⁰^{8 levels.}
^a.^{This line consists of Title IV funding in the}^Departme^{nt of Defe}^nse^appro^{priations act and does not}^include
^researc^{h, development, testing, and evaluation fu}^{nds associated with the Def}^ense^{Health Program, t}^he
^{Chemical Agents and}^Mu^{nitions Destruction Program, and t}^{he Mi}^{ne Resistant Am}^bus^{h Protected}^Vehicle
^{program. It also does not include}^{R&D funds f}^{rom su}^ppleme^{ntal or additional appropriations acts.}
^b.^{This line does not include the $}^2.175^{billion newly available from p}^{rior approp}^{riations for Project Bi}^oShield^.

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