Federal Research and Development (R&D) Funding: FY2022

President Biden’s budget request for FY2022 includes approximately $171.3 billion for research and development (R&D), $13.5 billion (8.5%) above the FY2021 estimated level of $157.8 billion. In constant FY2022 dollars, the FY2022 R&D request represents an increase of $10.6 billion (6.6%) above the FY2021 estimated level. Funding for R&D is concentrated in a few federal departments and agencies. In FY2021, five agencies received 93.0% of total federal R&D funding, with the Department of Defense (DOD, 40.1%) and the Department of Health and Human Services (HHS, 27.6%) combined accounting for more than two-thirds of all federal R&D funding. In the FY2022 request, the top five R&D agencies would account for 92.4%, with DOD accounting for 36.7% and HHS for 29.9%. Federal Research and Development Funding, FY2020-FY2022 In billions of dollars / Source: CRS analysis of data from OMB, Analytical Perspectives, Budget of the United States Government, Fiscal Year 2022, Research and Development, May 28, 2021. Under the President’s FY2022 budget request, nearly all federal agencies would see their R&D funding increase relative to FY2021. The only exception is DOD, which would decrease by $550 million (0.9%) in FY2022 to $62.8 billion. The largest dollar increases in R&D funding would be made to HHS (up $7.7 billion, 17.8%), the Department of Energy (up $2.1 billion, 11.1%), and the National Aeronautics and Space Administration (up $1.3 billion, 10.1%). The largest percentage increases in R&D funding would be at the Department of the Interior (up 30.8%), the Department of Commerce (up 29.3%), and the Department of Agriculture (up 21.7%). The President’s FY2022 budget request would increase funding for basic research by $4.4 billion (10.2%), applied research by $6.3 billion (14.0%), development by $2.4 billion (3.6%), and R&D facilities and equipment by $380 million (9.0%). Several multiagency R&D initiatives continue under the President’s FY2022 budget request. 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. 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. Congress provides annual R&D appropriations through 9 of the 12 regular appropriations bills. In recent years, Congress has completed the annual appropriations process after the start of the fiscal year. Completing the process after the start of the fiscal year and the accompanying use of continuing resolutions can affect agencies’ execution of their R&D budgets, including the delay or cancellation of planned R&D activities and acquisition of R&D-related equipment.