EXECUTIVE OFFICE OF THE PRESIDENT 


WASHINGTON, D_C_ 


August 17, 2017 

M-17-30 


MEMORANDUMFORTHEHEADSOFEXEC EPARTMENTS AND AGENCIES 

FROM: 	 MICK MULVANEY 

DIRECTOR, OFFICE OF 

DEPUTY 

MICHAEL 

ASSIST 

KRATSIOS 

ANT TO 

~ 

THE PRESIDENT 

OFFICE OF SCIENCE AND TECHNOLOGY POLICY 

SUBJECT: 	 FY 2019 Administration Research and Development Budget Priorities 

American leadership in science and technology is critical to achieving this Administration's 

highest priorities: national security, economic growth, and job creation. American ingenuity 

combined with free-market capitalism have driven, and will continue to drive, tremendous 

technological breakthroughs. American inventions have fundamentally changed the course of 

human history: the incandescent light bulb, the airplane, satellite navigation, and the internet have 

improved the lives of millions of Americans and billions around the world. In spurring future 

advances, Federal funding of research and development (R&D) programs and research 

infrastructure can play a crucial supporting role. 

This memorandum highlights the Administration's R&D priority areas for formulating FY 2019 

Budget submissions to the Office of Management and Budget (OMB). These priorities should 

receive special focus in agency budget requests. This memorandum also provides additional 

guidance on balancing new priorities with existing demands, encouraging agencies to focus on 

R&D investments that best serve the American people and are budget neutral. 

R&D Priority Areas 

American Military Superiority 

The American warfighter requires state-of-the-art tools and technologies to defeat a growing 

number of emerging threats. Agencies should invest· in R&D that can support the military ofthe 

future, including in technologies related to the development of missile defense capabilities, a 

modern strategic deterrent, hypersonic weapons and defenses, autonomous and space-based 

systems, trusted microelectronics, and future computing capabilities. Historically, Federal R&D 

investments in military technology have led to the development ofbreakthrough technologies that 

have improved lives beyond the battlefield. While military R&D should serve the national defense 

first and foremost, the Administration recognizes the contributions of military R&D to the 

development oftremendously useful civil applications. Accordingly, we encourage programs with 

dual-use potential to be leveraged for Federal non-military advancements. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Security 

The security of Americans at home and abroad is paramount. Emerging threats against the 

American homeland compel the Federal Government to develop the technologies necessary to 

prevent terrorist attacks, mitigate the effects of both natural and adversarial threats and hazards, 

and secure American borders. Agencies should invest in R&D to increase the security and 

resilience of the Nation’s critical infrastructure from both physical threats and cyber-attacks, which 

have increased rapidly in number and complexity in recent years. To develop stronger air, land, 

and maritime border defenses, agencies should invest in technologies that can support border 

surveillance and law enforcement capabilities that can detect and interdict illegal activity, 

including the smuggling of contraband and radioactive material. Special attention should be paid 

to R&D that can support the safe and secure integration into society of new technologies that have 

the potential to contribute significantly to American economic and technological leadership. 

American Prosperity 

Federal investment in R&D plays an important supporting role in America’s economic growth. 

Properly executed, it can lead to tremendous job creation in new businesses and industries. 

Emerging technologies such as autonomous systems, biometrics, energy storage, gene editing, 

machine learning, and quantum computing, may well have the highest potential to drive the 

economy and create entirely new industries. Agencies should continue, and expand where 

necessary, efforts to focus on basic research in these areas and reduce funding overlaps with 

industry in later-stage research, development, and deployment of technologies. By providing the 

fundamental building blocks of new technological advances, the Government can empower the 

private sector to accelerate research discoveries from the laboratory to the marketplace. Working 

in tandem, the Government and the private sector can promote the nation’s economic growth 

through innovation, and create new products and services for the American people. 

American Energy Dominance 

A consistent, long-term supply of lower-cost American energy will provide security through 

energy independence and help create a stable supply of high-paying jobs, while lower prices for 

electricity and fuel will spur American prosperity. Development of domestic energy sources 

should be the basis for a clean energy portfolio composed of fossil, nuclear, and renewable energy 

sources. Agencies should invest in early-stage, innovative technologies that show promise in 

harnessing American energy resources safely and efficiently. As initiated in the FY 2018 budget, 

Federally-funded energy R&D should continue to reflect an increased reliance on the private sector 

to fund later-stage research, development, and commercialization of energy technologies. 

American Health 

R&D investments in health-related fields both lengthen and improve the quality of American lives. 

As part of the Administration’s commitment to improving health outcomes while lowering 

healthcare costs, agencies should give priority to biomedical programs that encourage innovation 

to prevent, treat, and defeat diseases, and maintain America’s standing as a world leader in 

medicine. Agencies should prioritize R&D focused on solutions for an aging population, as well 

as on combating drug addiction and other public health crises. Alongside foundational biological 

research, agencies should support investments that develop tools and technologies with the 

potential to open new areas of discovery. In particular, agencies should prioritize R&D efforts that 

will lead to more efficient and effective healthcare. 

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R&D Priority Practices 

Increasing Government Accountability and Efficiency 

In order to maximize the impact of taxpayer dollars, the Administration is committed to improving 

the efficiency of Federal programs, eliminating government waste where it exists, and creating 

benefit for the American public. When considering new research programs, agencies should 

ensure that the proposed programs are based on sound science, do not duplicate existing 

R&D efforts, and have the potential to contribute to the public good. Agencies should also 

identify existing R&D programs that could progress more efficiently through private sector 

R&D, and consider their modification or elimination where Federal involvement is no longer 

needed or appropriate. To the extent possible, quantitative metrics to evaluate R&D 

outcomes should be developed and utilized for all Federal R&D programs. 

Supporting Innovative Early-Stage Research 

Basic and early-stage applied research are critical components of the American research enterprise 

and the basis of new technological development and commercialization. However, in the 

development of high-payoff technology, early-stage research often involves greater uncertainty 

and may not provide the economic incentive needed to attract private sector investment. Therefore, 

agencies should give priority to funding basic and early-stage applied research that, supplemented 

by private sector financing of later-stage R&D, can result in the development of transformative 

commercial products and services. Strong partnerships with the private sector will be critical to 

maximizing the efficacy of Federal funding. Furthermore, agencies should take advantage of 

innovation from the private sector, where possible, to adapt to Federal needs, rather than reinventing solutions in parallel. Budget proposals should minimize focus on incremental efforts that 

are already being explored by industry. 

Maximizing Interagency Coordination 

The Administration’s R&D priorities require coordinated interagency initiatives, which yield 

greater impact than that of individual agency activities. Agencies should support ongoing 

interagency initiatives and participate in applicable interagency coordination groups. Where 

appropriate, agencies should maximize the coordination, promotion, and planning of their R&D 

programs through the National Science and Technology Council (NSTC). The interagency process 

is encouraged to avoid duplicative efforts and maximize collaboration, including in assessments 

of the impact of R&D investments. 

R&D Workforce and Infrastructure 

Developing a Future-Focused Workforce 

The Administration is committed to improving the technical training of the American workforce 

through Science, Technology, Engineering, and Math (STEM) education and apprenticeships. 

Emerging technologies will present tremendous opportunities for new job creation, but will also 

require a technically skilled and capable workforce to meet demand. In order to maintain American 

competitiveness and help ensure that the domestic workforce is available and qualified for the jobs 

of the future, agencies should incorporate STEM education, including computer science education, 

and workforce training opportunities into their programs. Agencies should give priority to policies 

and actions that place an emphasis on expanding the STEM workforce to include all Americans, 

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both urban and rural, and including women and other underrepresented groups in STEM fields. In 

order to track improvements in these areas, agencies should develop quantitative methods or 

metrics and collect data to analyze the effectiveness of the STEM programs. 

Modernizing and Managing Research Infrastructure 

State-of-the-art research infrastructure provides the United States with unique capabilities, 

ensuring that the American science and technology workforce has the capabilities it needs to 

conduct world-leading research. Maintaining and modernizing research infrastructure is critical to 

getting the best value out of R&D investments. Innovative partnership models involving other 

agencies, state and local governments, the private sector, academia, and international partners can 

help maximize utilization of underused facilities and lead to sharing the costs of new R&D 

facilities. As in previous years, proposals for the construction and operation of new facilities must 

be justified and balanced with funding for the operation and maintenance of existing facilities. 

Where feasible, agencies must take steps to reduce waste by disposing of facilities that are no 

longer needed. Agencies must also carefully manage long-term, multi-year investments, so that 

resources are not wasted at the end of the fiscal year. 

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