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. Congress typically provides R&D appropriations through the annual appropriations process, including through 9 of the 12 regular appropriations bills, supplemental appropriations, or continuing resolutions. 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 includes approximately $181.4 billion for R&D, $10.7 billion (-6%) below the FY2025 estimated level of $192.2 billion (see figure). The requested $181.4 billion, which includes advance and supplemental appropriations, would 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 go 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, accounting for 77% of all proposed federal R&D funding. Under the President’s FY2026 budget proposal, R&D funding would decrease, relative to FY2025 estimates, for four of these five agencies. DOD would see 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 assumes $37.1 billion in supplemental R&D funding for FY2026, without which DOD R&D funding would decrease by $16.1 billion (-18%) compared with FY2025 amounts. Following a lapse in appropriations, the 119th Congress passed and the President signed into law P.L. 119-37, which consolidated the following appropriations measures that provide funding for R&D in FY2026: the Continuing Appropriations Act, 2026 (Division A; discussed in “FY2026 Continuing Appropriations”), and two regular appropriations bills—the Agriculture, Rural Development, Food and Drug Administration, and Related Agency Appropriations Act, 2026 (Division B), and the Military Construction, Veterans Affairs, and Related Agencies Appropriations Act, 2026 (Division D). Beyond the two enacted full-year appropriations bills that provide R&D funding for FY2026, as of the date of this report, the House has passed two of the nine regular appropriations bills expected to provide the majority of R&D funding in FY2026: the Energy and Water Development and Related Agencies Appropriations Act, 2026 (H.R. 4553), and the Department of Defense Appropriations Act, 2026 (H.R. 4016)—and the Senate has not advanced any additional appropriations bills expected to provide FY2026 R&D funding. Various House and Senate committees have also advanced appropriations proposals containing R&D funding for FY2026. Committee-level funding proposals for the five agencies expected to receive the majority of R&D funding for FY2026 are also included in this report’s analysis. As it continues to act on the FY2026 appropriations process, Congress may consider a number of issues regarding the proposed federal R&D funding levels. First, the President’s FY2026 budget request appears to signal a shift in R&D funding away from civilian agencies to military components under DOD. Second, though Congress provided funding for R&D in FY2025 at FY2024 levels, the President’s budget proposal estimates 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. Third, federal agencies that support R&D may enter FY2026 with reduced staffing compared with FY2025 levels. Should Congress decide to maintain or increase current R&D funding levels, factors such as staffing reductions (as well as any future reductions) may affect how federal agencies execute their budget authority for FY2026.