R48307 — Federal Research and Development (R&D) Funding: FY2025

The U.S. government supports a broad range of scientific and engineering research and development (R&D). The purposes of this R&D include addressing national defense, health, safety, the environment, and energy security; advancing knowledge generally; developing the U.S. scientific and engineering workforce; strengthening the capacity of U.S. institutions and firms to conduct cutting-edge research and to develop innovative technologies; and enhancing the competitiveness of the United States in the global economy. Most of the R&D funded by the federal government is performed in support of the unique missions of individual funding agencies. Congress provides annual R&D appropriations through 9 of the 12 regular appropriations bills. President Biden’s budget proposal for FY2025 includes approximately $201.9 billion for R&D, $7.4 billion (4%) above the FY2024 estimated level of $194.6 billion (see figure). Adjusted for inflation to FY2023 dollars, the President’s FY2025 R&D proposal represents a constant-dollar increase of 1.5% above the FY2024 estimated level. Amounts discussed below have not been adjusted for inflation. Federal-government-wide R&D funding amounts are included in the “Research and Development” chapter of the Analytical Perspectives portion of the President’s FY2025 budget. This chapter notes that the FY2024 amounts are estimated using annualized appropriations provided by the Continuing Appropriations Act, 2024 (Division A of P.L. 118-15), since final FY2024 appropriations were not enacted at the time the FY2025 budget was prepared. FY2023 amounts reflect actual R&D funding from enacted appropriations. Funding for R&D is concentrated in a few federal departments and agencies. In FY2025, six agencies would receive nearly 95% of total federal R&D funding—the Department of Defense (DOD), the Department of Health and Human Services (HHS), the Department of Energy (DOE), the National Aeronautics and Space Administration (NASA), the National Science Foundation (NSF), and the U.S. Department of Agriculture (USDA)—with DOD (46%) and HHS (25%) combined accounting for more than 70% of all proposed federal R&D funding. Federal Research and Development Funding, FY2023-FY2025 (In billions of current dollars) / Source: CRS analysis of data from Executive Office of the President, Office of Management and Budget, “Research and Development,” in Analytical Perspectives, Budget of the United States Government, Fiscal Year 2025, March 2024. Under the President’s FY2025 budget proposal, R&D funding would increase (in current dollars), relative to FY2024 estimates, for four of the six agencies receiving the most R&D funding. The largest increases in R&D funding (without accounting for inflation) would be for HHS (up $3.8 billion, 8%, to $51.3 billion), DOD (up $2.1 billion, 2%, to $92.8 billion), DOE (up $1.2 billion, 5%, to $23.4 billion), and NSF (up $322 million, 4%, to $8.1 billion). The exceptions in FY2025 are NASA, which would decrease by $82 million (-1%) to $11.7 billion, and USDA, which would decrease by $96 million (-3%) to $3.3 billion. Other agencies would see decreases in their R&D funding: the Department of Commerce (down $4.0 million, -1%, to $3.9 billion), the Department of Veterans Affairs (down $90 million, -5%, to $1.7 billion), the Department of Homeland Security (down $90 million, -14%, to $544 million), and the Department of Education (down $5.0 million, -1%, to $441 million). Other agencies that would see increases in R&D funding are the Department of Transportation (up $51 million, 3%, to $1.5 billion), the Department of the Interior (up $72 million, 6%, to $1.3 billion), the Environmental Protection Agency (up $46 million, 8%, to $614 million), and the Smithsonian Institution (up $43 million, 12%, to $390 million). The President’s FY2025 budget proposal would increase funding, in current dollars, relative to FY2024 estimates for basic research by $1.6 billion (3%), applied research by $3.3 billion (7%), development by $2.0 billion (2%), and R&D facilities and equipment by $487 million (9%). Several multiagency R&D initiatives continue under the President’s FY2025 budget proposal. Some activities supporting these initiatives are discussed in agency budget justifications. However, comprehensive aggregate budget information on these initiatives will likely not be available until budget supplements for each are released later in the year. Given that the request represents the President’s R&D priorities, Congress may opt to agree with none, part, or all of the request, and it may express different priorities through the appropriations process. In recent years, Congress has completed the annual appropriations process after the start of the fiscal year. Doing so, as well as using continuing resolutions, can affect agencies’ executions of their R&D budgets, which among other things may result in delays or cancellations of planned R&D activities and acquisitions of R&D-related equipment.

Curated by CRS — every bill listed in this report's relatedMaterials. Edge type cited_in_report, gold confidence.

• HR 8998 — Department of the Interior, Environment, and Related Agencies Appropriations Act, 2025 · 118th Cong
• HR 8774 — Department of Defense Appropriations Act, 2025 · 118th Cong
• HR 8752 — Department of Homeland Security Appropriations Act, 2025 · 118th Cong
• HR 8580 — Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2025 · 118th Cong
• HR 4366 — Consolidated Appropriations Act, 2024 · 118th Cong