Federal Research and Development (R&D) Funding: FY2026

The U.S. government supports a broad range of scientific and engineering research and development (R&D). Most of the R&D funded by the federal government is performed in support of the unique missions of individual funding agencies. Using information provided by the Office of Management and Budget (OMB) regarding funding for activities and assets characterized as R&D, CRS calculated that President Trump’s budget proposal for FY2026 included approximately $181.4 billion for R&D, $10.7 billion (-6%) below the FY2025 estimated level of $192.2 billion. The requested $181.4 billion, which included advance and supplemental appropriations, was to support federal investments in the conduct of R&D as well as R&D-related physical assets (such as the construction of R&D facilities or equipment). Approximately 92% of the total R&D funding requested in the President’s FY2026 budget would have gone to five agencies—the Department of Defense (DOD), which is “using a secondary Department of War designation” under Executive Order 14347 of September 5, 2025; the National Institutes of Health (NIH); the Department of Energy (DOE); the National Aeronautics and Space Administration (NASA); and the National Science Foundation (NSF)—with DOD (62%) and NIH (15%), combined, having accounted for 77% of all proposed federal R&D funding. Under the President’s FY2026 budget proposal, R&D funding would have decreased, relative to FY2025 estimates, for four of these five agencies. DOD would have seen the only increase in R&D funding, relative to FY2025 estimates (up $21.0 billion, 23%, to $112.9 billion). According to OMB, DOD’s budget request assumed $37.1 billion in supplemental R&D funding for FY2026, without which DOD R&D funding would have decreased by $16.1 billion (-18%) compared with FY2025 amounts. The 119th Congress has completed action on FY2026 regular appropriations for DOD, NIH, DOE, NASA, and NSF with the enactment of the Consolidated Appropriations Act, 2026 (P.L. 119-75) and the Commerce, Justice, Science; Energy and Water Development; and Interior and Environment Appropriations Act, 2026 (P.L. 119-74). Prior to enactment of these full-year appropriations bills, P.L. 119-37 had also provided continuing appropriations for FY2026 (Division A; discussed in “FY2026 Continuing Appropriations”). For FY2026, two of the five agencies covered in this report received increased research funding through regular appropriations compared with FY2025 levels: DOD (up $4.9 billion; 3%) and NIH (up $458.2 million; 1%). Amounts enacted for FY2026 through regular appropriations declined, compared with FY2025, for the remaining three agencies: NASA (down $400.0 million; -2%), NSF (down $310.0 million; -3%), and selected R&D-related activities at DOE (down $92.0 million; -0.4%). Congress funded all five agencies at higher levels for FY2026, compared with the President’s request, with NIH receiving the largest dollar increase ($19.6 billion) and NSF receiving the largest percentage increase (124%). As Congress oversees execution of budget authority provided through regular appropriations and potentially considers further appropriations action affecting R&D funding levels for FY2026, it may also consider a number of issues. First, enacted FY2026 appropriations for DOD R&D activities largely aligned with the President’s request, which had signaled a shift in R&D funding away from civilian agencies to military components under DOD. Congress may consider potential short- and long-term implications of this shift. Second, Congress funded all five agencies covered in this report at higher levels for FY2026 than those requested by the President and may continue oversight of agency budget authority execution in these areas, among others. Third, though Congress provided funding for R&D in FY2025 at FY2024 levels through a continuing resolution, the President’s budget proposal estimated FY2025 R&D funding at 5% below the actual FY2024 amount, potentially signaling a shifting of resources away from R&D to non-R&D activities within agency accounts that support both, among other potential explanations. Congress may examine actual and estimated spending levels reported for FY2025 and FY2026 in the President’s FY2027 budget request to evaluate potential changes in R&D-related allocations. Fourth, Congress may continue oversight of federal agencies that support R&D to assess whether and, if so, how reported staffing reductions at such agencies may affect execution of R&D-related budget authority for FY2026.