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Methodology
Data

Analysis

## Info

### Summary

This collection presents data on the federal budget authority for R&D and R&D plant by agency and functional categories. Agency R&D data are classified into federal budget functions, such as Defense, Health, Space, and Energy.

#### Areas of Interest

                    - Government Funding for Science and Engineering

                      - Data Tables (PDF 686 KB)

### Featured Analysis

Federal R&D Funding, by Budget Function: FYs 2022–24
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Federal Budget Authority for R&D
 View and Download 

### Data Highlights

                    The national defense function made up 45.7% of total R&D and R&D plant FY 2022 budget authority; civilian functions made up the remaining 54.3%                   
 View analysis 

24.2%                    Among civilian functions, health is the largest category and made up 24.2% of the total R&D and R&D plant budget authority in FY 2022                   

## Methodology

-  Technical Notes  -  Overview
-  Definitions
-  Budget Functions and Classifying R&D
-  Data Sources

-  Technical Tables

### Technical Notes

#### Overview

All activities covered by the federal budget, including R&D, are classified into 20 broad functional categories (see section “Budget Functions and Classifying R&D”). R&D activities currently are in 16 of the 20 categories.

The tables in this report provide R&D budget authority for FYs 2022–24 by agency and major programs for each of the categories in which R&D is present. Several concluding tables also show budget authority data for R&D in FY 2021 and earlier years.

*Budget authority* is the primary source of legal authorization to enter into obligations that result in outlays. The data for FY 2022 are the *actual* budget authorities received by federal agencies for R&D activities that year. These numbers update the preliminary data for FY 2022 published in the previous edition (FYs 2021–23) of this report series.

The data for FY 2023 are *preliminary*. These preliminary numbers are normally agency estimates based on final congressional appropriations for the fiscal year. However, considerable delay arose in the Congress and with the administration in completing the final spending legislation for FY 2023, which had already formally started on 1 October 2022. Initial FY 2023 funding for the government came in the form of three continuing resolutions extending 1 October to 30 December. The final funding levels were passed as a consolidated spending bill on 29 December 2022: the Consolidated Appropriations Act, 2023 (H.R. 2617; Public Law 117-328).

The data for FY 2024 are the funding levels *proposed* by the president’s *Budget of the United States Government, Fiscal Year 20**2**4***(released 9 March 2023). At the time of this report, the funding levels for FY 2024 remain the subject of ongoing legislation by Congress.

The data throughout this report reflect agency documents and other Office of Management and Budget (OMB) data available through October 2023. Data reported here as *preliminary* or *proposed* will be revised in subsequent editions of this report series to reflect the eventual congressional appropriation actions and agency program funding decisions.

In general, the agencies’ estimates of funding for R&D in FYs 2022 and 2023 that stem from the CHIPS and Science Act (H.R. 4346) and the Inflation Reduction Act (H.R. 5376) are not independently documented and cannot be separated from the appropriations totals. Additionally, Congressionally Funded Projects (known in the Senate as Congressionally Directed Spending and in the House as Community Project Funding) were reintroduced in FY 2022 and contributed to substantial increases in R&D for some agencies—notably National Institute of Standards and Technology (table 13).

Congress took a number of legislative steps from March 2020 through March 2021 to provide added appropriations in response to the COVID-19 pandemic, some of which increased funding for related R&D. Included here are the Coronavirus Preparedness and Response Supplemental Appropriations Act, 2020 (H.R. 6074, 6 March 2020); the Families First Coronavirus Response Act (H.R. 6201, 18 March 2020); the Coronavirus Aid, Relief, and Economic Security Act (H.R. 748, 27 March 2020); and the Paycheck Protection Program and Health Care Enhancement Act (H.R. 266, 24 April 2020). Additional funding for R&D related to COVID-19 was also provided by the Consolidated Appropriations Act, 2021 (H.R. 133, 27 December 2020) and by the American Rescue Plan Act of 2021 (H.R. 1319, 10 March 2021). In general, agency reporting on funding for R&D in FYs 2020–22 stemming from COVID-19 pandemic appropriations was uneven and incomplete. Notes accompanying many of the tables indicate the extent to which funding from these supplementary appropriations are recognized in the reported data.

Table 26 of this report reclassifies the budget function data in this report’s earlier tables according to the 14 socioeconomic objective categories identified by the European Union’s NABS classification (*Nomenclature for the Analysis and Comparison of Scientific**Programmes**and Budgets*, 2007 edition). NABS is used by the Organisation for Economic Co-operation and Development (OECD) in reporting Government Budget Allocations for R&D (GBARD) indicators. The GBARD indicators are widely recognized around the world as a basis for comparing countries’ priorities for government R&D funding.

#### Definitions

##### Research, Development, and R&D Plant

In this report, R&D refers to basic research, applied research, and experimental development activities in science and engineering.

*Research and experimental development*is creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of people, culture, and society—and to devise new applications using available knowledge.

*R&D* includes administrative expenses, such as the operating costs of research facilities and equipment and other overhead costs. It also includes funds for the purchase of minor equipment—such as personal computers, standard microscopes, and simple spectrometers.

*Basic research*is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts. Basic research may include activities with broad or general applications in mind, such as the study of how plant genomes change, but should exclude research directed toward a specific application or requirement, such as the optimization of the genome of a specific crop species.

*Applied research*is original investigation undertaken in order to acquire new knowledge. Applied research is, however, directed primarily toward a specific, practical aim or objective.

*Experimental development* is creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes. Like research, experimental development will result in gaining additional knowledge.

Experimental development activities include (1) the production of materials, devices, and systems or methods, including the design, construction, and testing of experimental prototypes; and (2) technology demonstrations, where a system or component is being demonstrated at scale for the first time and it is realistic to expect additional refinements to the design (feedback R&D) following the demonstration.

Before the publication of OMB’s revised guidance in Circular A-11 of July 2016, a more expansive definition of “development” was the basis for agency R&D reporting. The present guidance now identifies several specific exclusions. Experimental development does *not* include (1) *user demonstrations*, where the cost and benefits of a system are being validated for a specific use case (e.g., low-rate initial production activities); or (2) *preproduction development*, which is defined as nonexperimental work on a product or system before it goes into full production, including activities such as tooling and development of production facilities. For example, activities and programs that are categorized as “Operational Systems Development” in the Department of Defense’s Research, Development, Test, and Evaluation (RDT&E) budget activity structure are no longer included as R&D. Activities and programs of that type generally are now reported as investments in other major non-R&D equipment.

*R&D plant* includes facilities and major equipment necessary for the execution of an R&D program. It includes the purchase, construction, manufacture, rehabilitation, or major improvement of physical assets such as land, major fixed equipment, and supporting infrastructure like a sewer line or housing at a remote location. It also includes the acquisition, design, or production of major movable equipment, such as mass spectrometers, research vessels, DNA sequencers, and other movable major instruments for use in R&D activities.

The data in this report exclude (1) all non-R&D activities performed within budget functions that conduct R&D and (2) all functions in which no R&D is conducted. Table 6 is an exception, however; it continues to report RDT&E totals that previously would have been classified as R&D. In part, this table provides a gauge of the impact of the narrowed definition of development (as detailed earlier) on defense R&D totals.

##### Budget Authority, Obligations, and Outlays

The federal R&D funding data presented here (with only a few noted exceptions) are provided in terms of *budget authority*. Budget authority is used because it is the initial budget stage for congressional action on the president’s proposed budget. Budget authority imposes a ceiling on obligations and outlays; obligations and outlays flow from budget authority.

*Budget authority* is the primary source of legal authorization to enter into obligations that will result in outlays. Budget authority is most commonly granted in the form of appropriations by the congressional committees assigned to determine the budget for each function.

*Obligations* represent the amounts for orders placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and when future payment of money is required.

*Outlays* represent the amounts for checks issued and cash payments made during a given period, regardless of when the funds were appropriated or obligated.

#### Budget Functions and Classifying R&D

The federal budget total is the sum of funding across the 20 broad functional categories. These categories are National defense (function 050); International affairs (150); General science, space, and technology (250); Energy (270); Natural resources and environment (300); Agriculture (350); Commerce and housing credit (370); Transportation (400); Community and regional development (450); Education, training, employment, and social services (500); Health (550); Medicare (570); Income security (600); Social security (650); Veterans benefits and services (700); Administration of justice (750); General government (800); Net interest (900); Allowances (920); and Undistributed offsetting receipts (950).

R&D has never been reported in 4 of these 20 functions: Social security (650), Net interest (900), Allowances (920), and Undistributed offsetting receipts (950). As such, these categories are not present in this report’s data—except indirectly, where R&D is described as a proportion of total federal budget authority.

Small amounts of R&D had been reported in the General government (800) category up through FY 2002 but turned to zero thereafter. A small amount of R&D was again reported in FY 2012 but has been zero throughout the FY 2021–23 period covered in this report.

To better highlight R&D areas of high interest, the tables in this report split the General science, space, and technology (250) category into its two subfunctions: General science and basic research (251) and Space flight, research, and supporting activities (252).

Overall, this report’s tables separately cover 16 functional categories: 14 at the broad functional category level and 2 at the subcategory level (viz., General science and basic research (251) and Space flight, research, and supporting activities (252)).

Each R&D activity is assigned to only one functional category—which is consistent with the official codes used in budget documents, even though the R&D activity may address the objectives of several functions. For example, all R&D activities sponsored by the Department of Defense (except for those of the U.S. Army Corps of Engineers) are classified as National defense (050), even though some of these have secondary objectives, such as Space flight, research, and supporting activities (252) or Health (550). Nonetheless, an agency’s overall R&D effort can involve multiple activities spread across several functional categories, which means that a functional category can show the presence of several agencies.

Finally, not all federally sponsored basic research is categorized in the General science and basic research (251) subfunction. Some basic research is included in many of the other functional categories. Also, not all the R&D included in the General science and basic research (251) subfunction is basic research—some is applied research.

Table A-1 maps the mix of agency funding of R&D activities in FYs 2022–24 across the budget function categories.

#### Data Sources

The federal budget does not include a separately identified R&D account. Furthermore, most appropriations for R&D are not directly labeled as such (except in certain program areas, such as defense, energy, health, and environment). Thus, most funds for R&D are not line items in agency budget submissions but are included instead as part of general program funding.

To provide information on federal R&D funding, OMB requires all agencies with R&D funding levels greater than $10 million annually to submit data on their R&D programs as part of their annual budget submissions. Such agencies are requested to provide data on their funding levels for basic research, applied research, experimental development, R&D facilities, and capital equipment for R&D, in accordance with OMB’s Circular A-11, Section 84, “Character Classification (Schedule C)” at https://www.whitehouse.gov/wp-content/uploads/2018/06/s84.pdf.

The data in this report were collected from May through October 2023 and represent the agencies’ official estimates of actual and proposed federal funding for R&D over FYs 2022–24. The data are based primarily on information provided to OMB by 25 agencies, which account for about 99% of all federally sponsored R&D activities. (OMB has routinely tracked the R&D budget authority for these 25 agencies; other agencies with negligible levels of R&D budget authority are excluded, and some agencies may not have responded to OMB’s data call within the data collection period.) The data reflect R&D funding information that became available from individual agencies after the administration’s FY 2024 budget proposal, *B**udget of the United States Government, Fiscal Year 20**2**4*, was prepared and transmitted to Congress on 9 March 2023. This information consists of budget justification documents that agencies submit to Congress and supplemental, program-specific information obtained from agency budget and program staff through October 2023. Accordingly, the budget numbers reported for individual activities, programs, or agencies may differ somewhat from those published in the president’s budget or in agency budget documents.

### Technical Tables

                                        - All Formats(ZIP 80 KB)
                                        - Excel(ZIP 7 KB)
                                        - PDF(ZIP 72 KB)

ViewDownload
Agency and budget function crosswalk, federal R&D funding, by budget function: FYs 2022–24

Table A-1

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## Data

-  Key Data Tables
-  Data Tables  -  Federal budget authority for R&D and R&D plant aggregate estimates
-  Federal budget authority for R&D and R&D plant, by percentage
-  Federal budget authority for basic research
-  Federal budget authority for R&D and R&D plant, by specific function
-  Federal budget authority for basic research: FYs 1978–2024
-  Federal budget authority for R&D and R&D plant: FYs 1955–2024
-  Federal budget authority for R&D and R&D plant, by socioeconomic objectives: FYs 2000–24

-  General Notes
-  Acknowledgments and Suggested Citation  -  Acknowledgments
-  Suggested Citation

Product ID  NSF 24-310
  |  
Published  January 2024

### Key Data Tables

Recommended data tables

#### Federal budget authority for R&D and R&D plant aggregate estimates

ViewDownload
Federal budget authority for R&D and R&D plant, by budget function, ordered by FY 2022 R&D and R&D plant total: FYs 2022–24

Table 1

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#### Federal budget authority for R&D and R&D plant, by percentage

ViewDownload
Distribution of federal budget authority for R&D and R&D plant, by budget function: FYs 2022–24

Table 2

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ViewDownload
Federal budget authority for R&D and R&D plant as a percentage of total budget authority, by budget function: FYs 2022–24

Table 3

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#### Federal budget authority for R&D and R&D plant: FYs 1955–2024

ViewDownload
Federal funding for R&D and R&D plant, by budget function: FYs 1955–2024

Table 24

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#### Federal budget authority for R&D and R&D plant, by socioeconomic objectives: FYs 2000–24

ViewDownload
Federal funding for R&D plus capital R&D, by GBARD socioeconomic objectives: FYs 2000–24

Table 26

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### Data Tables

                                        - All Formats(ZIP 2.1 MB)
                                        - Excel(ZIP 198 KB)
                                        - PDF(ZIP 1.9 MB)

#### Federal budget authority for R&D and R&D plant aggregate estimates

ViewDownload
Federal budget authority for R&D and R&D plant, by budget function, ordered by FY 2022 R&D and R&D plant total: FYs 2022–24

Table 1

                                                  - Excel 
                                                  - PDF 

#### Federal budget authority for R&D and R&D plant, by percentage

ViewDownload
Distribution of federal budget authority for R&D and R&D plant, by budget function: FYs 2022–24

Table 2

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ViewDownload
Federal budget authority for R&D and R&D plant as a percentage of total budget authority, by budget function: FYs 2022–24

Table 3

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#### Federal budget authority for basic research

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Federal budget authority for basic research, by budget function: FYs 2022–24

Table 4

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#### Federal budget authority for R&D and R&D plant, by specific function

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Federal budget authority for National defense (050) R&D and R&D plant: FYs 2022–24

Table 5

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Department of Defense, total obligational authority for research, development, test, and evaluation, by DOD budget activity: FYs 2022–24

Table 6

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Federal budget authority for International affairs (150) R&D and R&D plant: FYs 2022–24

Table 7

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Federal budget authority for General science and basic research (251) R&D and R&D plant: FYs 2022–24

Table 8

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Federal budget authority for Space flight, research, and supporting activities (252) R&D and R&D plant: FYs 2022–24

Table 9

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Federal budget authority for Energy (270) R&D and R&D plant: FYs 2022–24

Table 10

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Federal budget authority for Natural resources and environment (300) R&D and R&D plant: FYs 2022–24

Table 11

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Federal budget authority for Agriculture (350) R&D and R&D plant: FYs 2022–24

Table 12

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Federal budget authority for Commerce and housing credit (370) R&D and R&D plant: FYs 2022–24

Table 13

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Federal budget authority for Transportation (400) R&D and R&D plant: FYs 2022–24

Table 14

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Federal budget authority for Community and regional development (450) R&D and R&D plant: FYs 2022–24

Table 15

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Federal budget authority for Education, training, employment, and social services (500) R&D and R&D plant: FYs 2022–24

Table 16

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Federal budget authority for Health (550) R&D and R&D plant: FYs 2022–24

Table 17

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National Institutes of Health, federal budget authority for R&D and R&D plant: FYs 2022–24

Table 18

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Federal budget authority for Medicare (570) R&D and R&D plant: FYs 2022–24

Table 19

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Federal budget authority for Income security (600) R&D and R&D plant: FYs 2022–24

Table 20

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Federal budget authority for Veterans benefits and services (700) R&D and R&D plant: FYs 2022–24

Table 21

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Federal budget authority for Administration of justice (750) R&D and R&D plant: FYs 2022–24

Table 22

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#### Federal budget authority for basic research: FYs 1978–2024

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Federal funding for basic research, by budget function: FYs 1978–2024

Table 23

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#### Federal budget authority for R&D and R&D plant: FYs 1955–2024

ViewDownload
Federal funding for R&D and R&D plant, by budget function: FYs 1955–2024

Table 24

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Federal funding for R&D and R&D plant for National defense and Civilian functions: FYs 1955–2024

Table 25

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#### Federal budget authority for R&D and R&D plant, by socioeconomic objectives: FYs 2000–24

ViewDownload
Federal funding for R&D plus capital R&D, by GBARD socioeconomic objectives: FYs 2000–24

Table 26

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### General Notes

This report provides data on the budget authority conferred to U.S. federal agencies to fund the research and development (R&D) and R&D plant components of their programs in FYs 2022–24. *Budget authority* is the primary source of legal authorization to enter into obligations that result in outlays. Budget authority is most commonly granted in the form of appropriations by the congressional committees assigned to determine the budget for each function.

### Acknowledgments and Suggested Citation

#### Acknowledgments

Christopher V. Pece of the National Center for Science and Engineering Statistics (NCSES) developed and oversaw preparation of this report under the guidance of Amber Levanon Seligson, NCSES Program Director; under the leadership of Emilda B. Rivers, NCSES Director; Christina Freyman, NCSES Deputy Director; and John Finamore, NCSES Chief Statistician. Jock Black (NCSES) reviewed the report.

Under NCSES contract with the American Association for the Advancement of Science, data were collected and compiled by Alessandra Zimmermann, Analyst/Writer, R&D Budget and Policy Program.

NCSES thanks the program and budget offices at the federal agencies that provided information for this report.

#### Suggested Citation

National Center for Science and Engineering Statistics (NCSES). 2024.*Federal R&D Funding, by Budget Function: Fiscal Years 20**2**2**–2**4*. NSF 24-310. Alexandria, VA: National Science Foundation. Available at https://ncses.nsf.gov/data-collections/federal-budget-function/2022-2024#data.

## Analysis

### Featured Analysis

Federal R&D Funding, by Budget Function: FYs 2022–24
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Analysis of Federal Funding for Research and Development in 2022: Basic Research
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## Data Collection Contact

For additional information about this data collection or the methodology, contact
                    Christopher V. Pece         
          Senior Analyst         
          Phone         
          (703) 292-7788         
          E-mail         
cpece@nsf.gov

                  Address       
        National Center for Science and Engineering Statistics         
         National Science Foundation         
         2415 Eisenhower Avenue, Suite W14200         
         Alexandria, VA 22314       

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