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The U.S. Federal R&D Budget: Overview and Outlook

The U.S. Federal R&D Budget: Overview and Outlook. Matt Hourihan February 20, 2014 for the Australian Trade Commission AAAS R&D Budget and Policy Program http://www.aaas.org/spp/rd. Emergent Budget Tendencies. Discretionary spending tends to be constrained…

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The U.S. Federal R&D Budget: Overview and Outlook

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  1. The U.S. Federal R&D Budget: Overview and Outlook Matt Hourihan February 20, 2014 for the Australian Trade Commission AAAS R&D Budget and Policy Programhttp://www.aaas.org/spp/rd

  2. Emergent Budget Tendencies • Discretionary spending tends to be constrained… • Early 1980s: nondefense constraints under Reagan • Late 1980s/early 1990s: spending caps • 2011 Budget Control Act caps • While mandatory spending tends to grow • Health care costs • Expanding beneficiaries, aging population • Medicare Part D, Affordable Care Act… • …versus failed efforts at control/constraint/reform • And, of course, anti-tax politics

  3. Recent R&D Budget History • R&D down by 8.4 percent between FY10 and FY12 • August 2011: Budget Control Act • AAAS estimated ~$50 billion R&D cuts in first 5 years • January 2013: American Taxpayer Relief Act • FY 2013: Sequester cuts nearly $10 billion more • Summer 2013: Appropriators operate under two different spending baselines • December 2013 budget deal: 50% sequester rollback for FY14

  4. Positive outcomes Less positive • Physical Sciences did well • Defense S&T • Department of Energy • Technology programs and Science • NSF facilities, EPSCoR, political science • NASA Science and Exploration • Defense contractors • NIH overall • Better for translational science, IDeA, BRAIN • Environmental R&D • But cuts avoided • High-performance rail

  5. Select International Programs • Fogarty IC (NIH) keeps pace with most other institutes (3%) • International Ocean Discovery Program (NSF) funding matched request • USAID Global Health programs boosted above request • ITER below request

  6. Looking ahead… • President’s budget to be released March 4 (and beyond) • Priorities: manufacturing, clean energy, climate, IT and computing, biological innovation, neuroscience, STEM Ed • Discretionary spending in FY 2015 has already been agreed • And will increase hardly at all • 25% of sequester reductions rolled back • Beyond FY 2015: back to sequester levels • Big-picture fiscal challenges remain largely unchanged

  7. For more info… mhouriha@aaas.org 202-326-6607 www.aaas.org/spp/rd/

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