The 113 th Congress continues to take a strong interest in the health of the U.S. research and development (R&D) enterprise and in providing support for federal R&D activities. The federal government has played an important role in supporting R&D efforts that have led to scientific breakthroughs and new technologies, from jet aircraft and the Internet to communications satellites and defenses against disease. However, widespread concerns about the federal debt and recent and projected federal budget deficits are driving difficult decisions involving prioritization of R&D within the context of the entire federal budget and among competing priorities within the federal R&D portfolio. The U.S. government supports a broad range of scientific and engineering R&D. Its purposes include addressing specific concerns such as national defense, health, safety, the environment, and energy security; advancing knowledge generally; developing the scientific and engineering workforce; and strengthening U.S. innovation and competitiveness in the global economy. Most of the R&D funded by the federal government is performed in support of the unique missions of the funding agencies. Congress plays a central role in defining the nation's R&D priorities as it makes decisions about the size and distribution of R&D funding—overall, within agencies, and for specific programs. Some Members of Congress have expressed concerns about the level of federal funding (for R&D as for other purposes) in light of the current federal fiscal condition, deficit, and debt. As Congress moved to complete the FY2014 appropriations process it faced two overarching issues: the extent to which the federal R&D investment could grow in the context of increased pressure on discretionary spending and how available funding would be prioritized and allocated. President Obama released his proposed FY2014 budget on April 10, 2013. Since FY2013 final appropriations figures (post-sequestration) were not yet available, the President's budget compared the FY2014 request generally to FY2012 funding rather than to FY2013 funding. As a result, some analyses in this report use FY2012 as the base comparison year; in some cases the analysis of growth rates is also presented in terms of compound annual growth rates (CAGRs). This report provides government-wide, multi-agency, and individual agency analyses of the President's FY2014 request as it relates to R&D and related activities. The President's budget sought $142.773 billion for R&D in FY2014, a 1.3% increase (0.7% CAGR) over the actual FY2012 R&D funding level of $140.912 billion. Adjusted for inflation, the President's FY2014 R&D request represented a decrease of 2.6% (1.3% CAGR) from the FY2012 level. Among its provisions, the R&D funding in the President's proposed FY2014 budget maintained an emphasis on increasing support for the physical sciences and engineering, an effort consistent with the intent of the America COMPETES Act ( P.L. 110-69 ) and the America COMPETES Reauthorization Act of 2010 ( P.L. 111-358 ). These acts sought to achieve this objective by authorizing increased funding for accounts at three agencies with a strong R&D emphasis in these disciplines: the Department of Energy Office of Science, the National Science Foundation, and the Department of Commerce National Institute of Standards and Technology's core laboratory research and R&D facilities construction funding (collectively referred to as the "targeted accounts"). Appropriations provided to these agencies fell short of the levels authorized in P.L. 110-69 and P.L. 111-358 . (See " Multiagency R&D Initiatives " for detailed information.) More broadly, in a 2009 speech before members of the National Academy of Sciences, President Obama put forth a goal of increasing the national (public and private) investment in R&D to more than 3% of the U.S. gross domestic product (GDP). President Obama did not provide details on how this goal might be achieved (e.g., how much would be funded through increases in direct federal R&D funding or through indirect mechanisms such as the research and experimentation (R&E) tax credit). Doing so likely would have required a substantial increase in government and/or corporate R&D spending. When President Obama set forth the goal in 2009, total U.S. R&D expenditures were $404.7 billion, or approximately 2.90% of GDP, so reaching the 3% goal would have required an increase of 3.6% in national R&D spending. Since then, however, GDP has grown faster than R&D (due, in large measure, to comparatively small growth in federal R&D funding). As a result, total estimated U.S. R&D expenditures of $428.2 billion in 2011 accounted for a somewhat smaller fraction (2.84%) of GDP than in 2009. Therefore, reaching the 3% goal in 2011 would have required an increase of 5.6% in national R&D spending. Analysis of federal R&D funding is complicated by several factors, such as inconsistency among agencies in the reporting of R&D and the inclusion of R&D in accounts with non-R&D activities. As a result of these and other factors, the R&D agency figures reported by the White House Office of Management and Budget (OMB) and White House Office of Science and Technology Policy (OSTP), including those shown in Table 1 , may differ somewhat from the agency budget analyses that appear later in this report. Federal R&D funding can be analyzed from a variety of perspectives that provide different insights. The following sections examine the data viewed by agency, by the character of the work supported, by a combination of these two perspectives, and by defense-related and nondefense-related R&D. The authorization and appropriations process views federal R&D funding primarily from the perspective of individual agencies and programs. Table 1 provides data on R&D by agency for FY2012 (actual), FY2013 (estimate), and FY2014 (request) as reported by OMB. This table will be updated as post-sequestration funding data become available. Under President Obama's FY2014 budget request, seven federal agencies would have received 95.3% of total federal R&D funding: Department of Defense (DOD), 47.8%; Department of Health and Human Services (HHS) (primarily the National Institutes of Health), 22.4%; Department of Energy (DOE), 8.9%; National Aeronautics and Space Administration (NASA), 8.1%; National Science Foundation (NSF), 4.3%; Department of Commerce (DOC), 1.9%; and Department of Agriculture (USDA), 1.8%. This report provides an analysis of the R&D budget requests for these agencies, as well as for the Department of Homeland Security (DHS), Department of the Interior (DOI), Department of Transportation (DOT), and the Environmental Protection Agency (EPA). In total, these 11 agencies accounted for 98% of FY2012 and FY2014 (requested) federal R&D funding. The largest agency R&D increases proposed in the President's FY2014 request, compared with the FY2012 levels, were for DOE, $1.928 billion (17.8%); DOC, $1.428 billion (113.9%); DHS, $893 million (185.7%); HHS, $669 million (2.1%); NSF, $512 million (9.1%); and NASA, $290 million (2.6%). Under the President's FY2014 budget request, DOD R&D funding would have been reduced by $4.625 billion (6.3%) and EPA R&D by $8 million (1.4%). Federal R&D funding can also be examined by the character of work it supports—basic research, applied research, or development—and by funding provided for construction of R&D facilities and acquisition of major R&D equipment. (See Table 2 .) President Obama's FY2014 request included $33.162 billion for basic research, up $1.422 million (4.5%) from FY2012 (2.2% CAGR); $34.963 billion for applied research, up $3.345 billion (10.6%) from FY2012 (5.2% CAGR); $71.463 billion for development, down $3.781 billion (5.0%) from FY2012 (2.5% CAGR); and $3.185 billion for facilities and equipment, up $875 million (37.9%) from FY2012 (17.4% CAGR). Combining these perspectives, federal R&D funding can be viewed in terms of each agency's contribution to basic research, applied research, development, and facilities and equipment. (See Table 3 .) The overall federal R&D budget reflects a wide range of national priorities, from supporting advances in spaceflight to developing new and affordable sources of energy. These priorities and the mission of each agency contribute, in part, to the composition of that agency's R&D spending (i.e., the allocation between basic research, applied research, development, and facilities and equipment). In the President's FY2014 budget request, the Department of Health and Human Services, primarily the National Institutes of Health (NIH), accounted for nearly half of all federal funding for basic research. HHS is also the largest funder of applied research, accounting for about 45% of all federally funded applied research in the President's FY2014 budget request. DOD is the primary federal agency funder of development, accounting for 86.1% of total federal development funding in the President's FY2014 budget request.