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June 6, 2012 

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MEMORANDUM FOR THE HEADS OF EXECUTIVE DEPARTMENTS AND AGENCIES 

FROM: Jeffrey D. Zient/ '\)~ Acting DirectorG 

Office ofManagement and Budget 

Dr. John P. HOldren~t\ Director 


Office of Science an Technology Policy 


SUBJECT: Science and Technology Priorities for the FY 2014 Budget 

Scientific discovery, technological breakthroughs, and innovation are the primary engines for 

expanding the frontiers ofhuman knowledge and are vital for responding to the challenges and 

opportunities ofthe 21 st century. We look to scientific innovation to promote sustainable economic 

growth and job creation, improve the health ofthe population, move toward a clean energy future, 

address global climate change, manage competing demands on environmental resources, and ensure 

the security ofthe Nation. 

This memorandum outlines the Administration's multi-agency science and technology priorities for 

formulating FY 2014 Budget submissions to the Office ofManagement and Budget (OMB). These 

priorities require investments from and cooperation among multiple Federal agencies for success. 

They build on priorities reflected in this Administration's past budgets and documents, such as the 

President's Strategy for American Innovation. 

Science and engineering research is a valuable source of new knowledge that has driven important 

developments in fields ranging from telecommunications to medicine, yielding high economic and 

social rates ofreturn and creating entirely new industries with highly-skilled, high-wage jobs. In 

particular, the Nation benefits from government funding for basic and applied research in areas in 

which the private sector does not have the economic incentive to invest. Because ofthe crucial 

government role in supporting research, in general agencies should give priority to funding for 

research above funding for development activities. Within research portfolios, agencies are 

encouraged to identify and pursue "Grand Challenges" - ambitious goals that require advances in 

science, technology and innovation to achieve. Agencies should also support the research tools and 

infrastructure needed to ensure that U.S, science remains at the leading edge of discovery, but in 

delineating priorities, any proposals for new major facilities must fit within Federal real property 
guidance and be fully justified and balanced against funding for research activities and operations of 

existing facilities. 

Prioritizing key science and technology activities 

In a time of constrained resources, agencies should continue to direct resources to high-priority 

activities and identify potential eliminations or reductions in less-effective, lower-quality, or lowerpriority programs. Agencies engaged in complementary activities should consult with each other 

during the budget planning process so that resources are coordinated to maximize their impact and 

to avoid inappropriate duplication. They should also avoid duplicating research in areas that 

already receive funding from the private sector. Agencies should explain in their budget 

submissions how they are redirecting available resources from lower-priority areas to science and 

technology activities that address the priorities described below. 

Program guidance 

In accordance with OMB Circular A-II and the GPRA Modernization Act of2010, agencies should 

describe the targeted outcomes ofresearch and development (R&D) programs using meaningful, 

measurable, quantitative metrics where possible and describe how they plan to evaluate the success 

ofthose programs. 

Multi-agency priorities 

The Administration recognizes that agency-specific research needed to make progress toward 

agency missions is important, though this memorandum does not include priorities that fall within 

the purview of a single agency. In the 2014 Budget, agencies should balance priorities to ensure 

resources are adequately allocated for agency-specific, mission-driven research while focusing 

resources, where appropriate, on addressing the following multi-agency research activities that 

cannot be addressed effectively by a single agency. 

Advanced manufacturing 

The Administration is committed to revitalizing and transforming America's manufacturing 

sector. Agencies should give priority to those programs that advance the state of the art in 

manufacturing, with particular emphasis on government-industry-university partnerships 

and enabling technologies (such as robotics, materials development, and additive 

manufacturing) that benefit multiple sectors, as described in the National Strategic Plan for 

Advanced Manufacturing. 

Clean energy 

The Administration intends for the United States to lead the world in clean-energy 

technology R&D to help reduce dependence on oil and to help reduce air pollution and 

greenhouse gas emissions while creating high-wage, highly-skilled, clean-energy jobs and 

businesses. Agencies should give priority to R&D to advance clean-energy technologies; 

R&D to address the manufacturing challenges of clean-energy technologies; R&D to 

advance meteorological and oceanic forecasting to support deployment of clean-energy 

technologies; and R&D to increase energy efficiency in industry, buildings, and 

manufacturing. 

Global climate change 

Within the U.S. Global Change Research Program, agencies should give priority to new 

activities identified in the recently released 2012 Strategic Plan. Particular emphasis should 

be given to research that advances understanding of vulnerabilities in human and 

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biogeophysical systems and their relationships to climate extremes, thresholds, and tipping 

points. This will require integrated cross-sectoral, biogeophysical, and socioeconomic 

observations as well as improved simulation and modeling. Specific areas where progress is 

needed include observations to detect trends in extremes; integration of observation into 

models; attribution of change to human or natural causes; integrated research on Earth and 

human systems; simulation and prediction at spatial and temporal scale conducive to 

decision making; and adaptation responses to changing frequency and intensity of extreme 

events. 

R&D for informed policy-making and management 

Agencies, especially those with primary missions other than R&D, should give priority to 

R&D that strengthens the scientific basis for decision-making, particularly with regard to 

health, safety, and environmental impacts. This includes efforts to enhance the accessibility 

and usefulness of data and tools for decision support. Agencies should give priority to R&D 

that advances the delivery ofthe following policy goals: ecosystem and landscape-scale 

management; implementation ofthe National Ocean Policy and other priority ecosystem and 

restoration initiatives; sustainable stewardship of critical energy, mineral, air, water, and 

species resources; implementation of Federal sustainabilityand adaptation initiatives; and 

development of sustainable food production systems that minimize the use ofinputs such as 

water, energy, pesticides, and fertilizer and increase the productivity of agriculture while 

minimizing environmental impacts. 

Information Technology Research and Development 

Within the interagency Networking and Information Technology Research and Development 

initiative, agencies should give priority to investments that address the challenges of, and tap 

the opportunities afforded by, the Big Data revolution - the fast-growing volume oflarge 

and complex collections of digital data to advance agency missions and further scientific 

discovery and innovation. Within the initiative, agencies should give priority to investment 

in data analytics and management and to fundamental research in computer science and 

engineering above funding for the development and procurement oflarge-scale highperformance computing systems. Agencies should also give priority to research guided by 

the Trustworthy Cyberspace: Strategic Plan for Cybersecurity R&D Programs to develop 

technologies that can protect our systems against current and future cyber-attacks. 

Nanotechnology 

Within the interagency National Nanotechnology Initiative, agencies should give priority to 

implementation ofthe 2011 Environmental, Health, and Safety (EHS) Research Strategy, 

presenting an approach to ensuring the safe, effective, and responsible development and use 

ofnanotechnology; and support for the Nanotechnology Signature Initiatives, which 

spotlight topical areas that represent key opportunities and can be more rapidly advanced 

through focused interagency R&D efforts. 

Biological Innovation 

Agencies should give priority to R&D investments that have the potential to foster 

biological innovations, in particular enhancing translational sciences and science that 

supports regulation to accelerate innovation and regulatory decision-making, and enhancing 

post-secondary and graduate-training programs to ensure that existing programs adequately 

prepare students for the bioeconomy workforce. 

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Science, technology, engineering, and mathematics (STEM) education 

In keeping with the forthcoming Federal STEM-education strategic plan, agencies should 

give priority to programs that use evidence to guide program design and implementation and 

improve measurement of outcomes. Agencies should also enhance coordination with other 

agencies and focus their funding on those areas of STEM education where the Federal 

government can have maximum impact. These areas include engaging more citizens in 

STEM, preparing effective STEM teachers, improving undergraduate STEM success, and 

better supporting the participation and success in STEM ofindividuals from historically 

underrepresented groups. 

Innovation and commercialization 

Agencies should promote innovation and commercialization from Federal R&D 

investments, where appropriate, through support for inducement prizes, early-stage 

technology development, university-industry partnerships, and efforts to better link graduate 

training with both private and public-sector workforce needs. Such efforts should be aligned 

with the Administration's Cross-Agency Priority Goal to improve performance across 

Federal services for entrepreneurs and small businesses. 

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