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Analysis of President FY Request University Corporation for by alicejenny


									           Analysis of the
President’s FY 2013 Budget Request
     for Federal Research and
       Education Programs

  Prepared by Lewis-Burke Associates LLC
            February 13, 2012

                                                  Table of Contents

Executive Summary....................................................................................................................... 3
Department of Commerce ............................................................................................................ 4
   National Oceanic and Atmospheric Administration ................................................................... 4
   National Institute of Standards and Technology ......................................................................... 7
   Economic Development Administration................................................................................... 10
Department of Defense ............................................................................................................... 12
Department of Education ........................................................................................................... 16
Department of Energy................................................................................................................. 20
Department of Health and Human Services .............................................................................. 24
   National Institutes of Health ..................................................................................................... 24
   Other HHS Agencies and Priorities .......................................................................................... 29
Department of Homeland Security ............................................................................................ 33
Department of Housing and Urban Development .................................................................... 35
Department of State/USAID ....................................................................................................... 36
Environmental Protection Agency ............................................................................................. 38
Institute of Museum and Library Services ................................................................................ 40
National Aeronautics and Space Administration ...................................................................... 41
National Endowment for the Arts & National Endowment for the Humanities .................... 45
National Science Foundation ...................................................................................................... 47
U.S. Department of Agriculture .................................................................................................. 52
U.S. Geological Survey ................................................................................................................. 54
Interagency Initiatives and Priorities ........................................................................................ 56
   U.S. Global Change Research Program .................................................................................... 56
   National Nanotechnology Initiative .......................................................................................... 57
   Corporation for National and Community Service ................................................................... 58
   Advanced Manufacturing.......................................................................................................... 59
   Networking and Information Technology Research and Development Program ..................... 60


                                     Executive Summary
President Obama released his budget request for fiscal year (FY) 2013 on February 13, 2012 in the midst
of major disagreement in Congress about federal spending and future tax policy. In this election year,
the request reflects a political and campaign strategy for the President which communicates to the
public that his Administration is “all in” on the President’s top line objectives of job creation, clean
energy, education, manufacturing and infrastructure renewal. The White House is hoping to draw sharp
contrasts with Republican presidential candidates’ ideas.

The President’s FY 2013 budget request maintains federal funding for scientific research agencies and
federal postsecondary education programs. Winners include the National Science Foundation, the
Department of Energy’s Office of Science, defense basic research, Pell Grant funding, the Agriculture and
Food Research Initiative, and the National Endowment for the Humanities. As for science and
technology supporting job creation, the Obama budget embraces advanced manufacturing research,
renewable energy technologies, science, technology, engineering, and math (STEM) programs, and
research commercialization.

The budget would provide flat funding for the National Institutes of Health with continued emphasis on
translational science and certain diseases. The National Aeronautics and Space Administration Planetary
Science division is also targeted for major budget reductions. In total, to fund his initiatives, President
Obama’s FY 2013 budget proposes 210 cuts, consolidations, and savings measures (including
congressionally supported ones such as The Low Income Home Energy Assistance Program, Area Health
Education Centers and Community Services Block Grants) for overall savings of $24 billion in FY 2013. In
addition, the President’s proposal outlines changes in student aid, cost reimbursement policies, and
research grant rules to squeeze more awards within existing funding.

Building on debt conversations from the summer and fall of 2011, the FY 2013 budget relies on many of
the President’s prior proposals, including $1.5 trillion in additional tax revenue and limiting the value of
certain itemized deductions to 28 percent for high-income taxpayers, to reduce the federal deficit in the
next 10 years and avoid a future budget sequestration in FY 2013.

While the overall budget request is considered “dead on arrival” by many in Congress tasked with
ushering through the annual appropriations bills, the highlighted research and education programs
reflect future agency investment areas should the President be reelected to another four year term.


Department of Commerce
National Oceanic and Atmospheric Administration

The President’s FY 2013 budget request includes $5.008 billion for the National Oceanic and
Atmospheric Administration (NOAA), which is an increase of $169 million or 3.5 percent over the FY
2012 enacted level.

       Full details of the FY 2013 NOAA budget request are still pending, and are expected to be
        available in the coming days.
       Support for NOAA’s weather and climate satellites continues to be a priority for the
        Administration, with the National Environmental Satellite, Data and Information Service
        (NESDIS) proposed to receive an 8.5 percent increase in FY 2013. Other line offices, with the
        exception of the Office of Oceanic and Atmospheric Research (OAR), would remain basically flat.
        OAR would receive an increase to make up for cuts experienced in the FY 2012 appropriations
       Scrutiny of NOAA by Congressional Republicans is likely to continue this year, especially with
        respect to NOAA’s climate research activities. However, NOAA appears to have abandoned its
        efforts to reorganize the agency in order to create a climate service, which could put the agency
        back in favor with some in Congress. That being said, the issue of NOAA satellite costs relative
        to other NOAA programs will continue to present challenges for the agency in the annual
        appropriations process.

New and Signature Initiatives

NOAA’s procurement of weather and climate satellite systems continues to eat up the increases for
other parts of the agency. The budget request would provide a total of $1.8 billion for NOAA satellites,
including $916 million for the Joint Polar-orbiting Satellite System (JPSS) and $802 million for the
Geostationary Satellites—R Series. If provided, the funding for JPSS in FY 2013 would allow for a launch
date in calendar year 2017, with an eye toward minimizing the gap in polar satellite coverage that has
resulted due to funding shortfalls in recent appropriations cycles.

Additional planned new and signature initiatives will likely be announced once the full NOAA budget
request is released in the coming days.

Proposed Reductions and Terminations

Though not surprising, the FY 2013 request reflects an apparent abandonment by NOAA of efforts to
create a climate service line office within the agency. NOAA attempted to create the new office over
the past two fiscal years; however, in both FY 2011 and FY 2012, Congressional Republicans, particularly
in the House, were successful in blocking NOAA’s efforts to reorganize, expressing concerns about the
perceived politicization of climate research and concerns over cuts to NOAA’s Office of Oceanic and
Atmospheric Research, which is where many Climate Service programs would have been transferred


The request proposes to terminate the National Undersea Research Program (NURP). In recent years,
attempts have been made to merge NURP with the NOAA Ocean Exploration program; Congress had
raised issues with such a merger in past appropriations bills. Instead of proposing to merge the
programs again this year, the President proposes canceling the NURP component, advising universities
to seek funding for undersea research projects from other programs. The request would still support
the Ocean Exploration program.

Ongoing Areas of Interest

The Office of Oceanic and Atmospheric Research (OAR), which funds most of NOAA’s extramural
research programs, would receive an increase of about 7.1 percent over the FY 2012 enacted level. This
largely reflects the fact that the climate research programs at NOAA took a major hit by Congress in FY
2012. The FY 2013 request seeks to reverse those cuts by proposing a 21.1 percent increase for the
Competitive Climate Research Program.

Additionally, the request includes a 3.1 percent cut to the National Weather Service (NWS), a 1.5
percent cut to the National Ocean Service (NOS), and an increase of 1.7 percent for the National
Marine Fisheries Service (NMFS).

Additional Resources: The Department of Commerce Budget in Brief, which includes a section with some
NOAA details, can be viewed at

                     National Oceanic and Atmospheric Administration
                                                (In thousands)
                                                FY 2012         FY 2013        Request
                                               Enacted*         Request       vs. FY 2012
           NOAA, total                         4,839,325       5,008,196    168,871 (3.5%)
             Operations, Research &            3,022,231      3,042,460     20,229 (0.7%)
             Facilities (ORF)
             Oceanic & Atmospheric             376,575         403,441      26,866 (7.1%)
             Research (OAR)
              Competitive Climate Research     120,000         145,330      25,330 (21.1%)
                 National Sea Grant College     63,000         61,648       -1,352 (2.1%)
                              Program Base
                         Ocean Exploration &    26,200         19,665       -6,535 (24.9%)
             National Weather Service          903,098         874,754      -28,344 (3.1%)
                Local Warnings & Forecasts     733,919         693,154      -40,765 (5.6%)
                  Central Forecast Guidance     80,771         79,224       -1,547 (1.9%)
             National Ocean Service (NOS)      465,662         458,466      -7,196 (1.5%)
                         Integrated Ocean        N/A           36,053            N/A
                         Observing System
                    Response & Restoration      27,531         24,288       -3,243 (11.8%)


               National Marine Fisheries         794,210         807,808           13,598 (1.7%)
               Services (NMFS)
                                 Aquaculture       N/A            5,682                 N/A
               NOAA-Wide Program Support         419,461         431,958           12,497 (3.0%)
                    NOAA Education Program        31,540          11,266           -20,274 (64.3)
               Procurement, Acquisition &        1,817,094      1,965,736          148,642 (8.2%)
               Construction (PAC)
               National Environmental            1,705,904      1,850,309          144,405 (8.5%)
               Satellite, Data and Information
               Service (NESDIS)
                                          JPSS   924,014         916,364           -7,650 (0.8%)
                                      GOES-R     617,390         802,000          184,610 (29.9%)
                                     DSCOVR       30,100          22,883           -7,217 (24.0%)

*At the time of this writing, the FY 2012 NOAA spend plan has not been finalized; therefore, the FY 2012 numbers
reflected in this chart may change in the coming days or weeks.


National Institute of Standards and Technology

The President’s FY 2013 budget request includes $857.0 million in discretionary funding for the
National Institutes of Standards and Technology (NIST), which is an increase of $106.2 million or 14.1
percent over the FY 2012 enacted level.

       NIST continues to see increased support from the Administration as it maintains its focus on
        innovation and manufacturing activities.
       Research and development (R&D) programs within NIST would see significant increases as the
        Administration expands NIST’s leadership role in advanced manufacturing initiatives.
       Congress has recently been hesitant to fund extramural NIST R&D programs, such as AMTech
        and the Technology Innovation Program. Given the fiscal climate and NIST’s limited history of
        supporting extramural research, Congress is unlikely to support some of these proposed
        programs in FY 2013.

New and Signature Initiatives

The budget request would establish a new competitive grant program for universities, the NIST Centers
of Excellence (COE) program. This program would fund four COEs in measurement science areas that
would bring together NIST, academia, and industry to engage in basic and applied research on priority
topics. Potential areas could include advanced communications, advanced manufacturing,
biomanufacturing, cyberphysical systems, forensic science, robotics, materials, quantitative biology, and
telecommunications. With the President’s request proposing NIST allot $20 million for this program,
these centers would be funded for five to seven years and would likely be structured similarly to NIST’s
existing collaborative research centers at the University of Colorado and the University of Maryland.

More than half of the proposed increases at NIST focus on advanced manufacturing initiatives,
demonstrating the Administration’s continued emphasis on this area as well as NIST’s increased
leadership of it. Among these initiatives is the Advanced Manufacturing Technology Consortia
(AMTech), a program aimed at addressing long-term industrial manufacturing needs by supporting
industry-led consortia focused on early stage technology development in manufacturing and more
efficient technology transfer methods. Consortia would develop roadmaps for addressing long-term
research and technology needs and issue sub-awards for research at universities, national laboratories,
and private businesses. This program was first proposed in the President’s FY 2012 budget request but
was not funded by Congress. The $21 million included in the request is nearly double the $12.3 million
sought in the FY 2012 budget request.

The President’s budget request includes $45 million for advanced manufacturing initiatives through
NIST’s Laboratory Program, including $10 million for activities focused on measurement and science
standards to support smart manufacturing. This program would build a testbed to allow industry,
academia, and government collaborators to develop an open standards platform to help create physical
and virtual components of manufacturing systems. The budget request also proposes $5 million for a
new Manufacturing Fellowships Program for industry and non-profit organizations to work with NIST
researchers in developing better standards for manufacturers.


Additionally, the budget request indicates that the Administration would propose legislation creating a
mandatory account making $1 billion available to establish a National Network for Manufacturing
Innovation (NNMI). This program would create a collaborative, public-private network of institutes
focused on bridging the gap between the laboratory and the market to enhance manufacturing
technology commercialization. Along with NIST, the Department of Defense, the Department of Energy,
and the National Science Foundation would serve as the federal participants.

Following significant natural disasters in 2011, NIST seeks to enhance its capabilities in disaster resilience
and natural hazards risk reduction through a new $5 million initiative. This funding would create a
private-sector group to develop a resilience framework and standards and support partnerships among
universities, industry, and government to address research and development gaps in the national
resiliency field.

The President’s budget request would continue NIST’s focus on cybersecurity research by providing $8
million to the National Program Office of the National Strategy for Trusted Identities in Cyberspace
begun in FY 2012. This initiative aims to enhance the security of online transactions and aligns with the
Administration’s larger emphasis on cybersecurity. FY 2013 funding would create a competitive pilot
project grant program centered on public-private partnerships.

Proposed Reductions and Terminations

The request includes a $12 million reduction to the Scientific and Technical Research Services (STRS)
extramural grants. Half of this reduction would come from the one-time external grants to help
consortia develop technology road maps while the other half would result from eliminating low-priority
research areas.

Ongoing Areas of Interest

STRS, which provides investments for research, competitive grants, and research fellowships, would
receive a substantial increase of 14 percent over FY 2012 levels.

The Hollings Manufacturing Extension Partnership (MEP), which helps manufacturers streamline
manufacturing techniques and increase efficiency and profits through training resources and specific
project assistance, would receive a slight reduction of $443,000 for FY 2013 but remains a priority for
the agency.

Additional Resources: The Department of Commerce’s FY 2013 budget can be viewed at


         National Institutes of Standards and Technology
                                   (In thousands)*
                                        FY 2012      FY 2013      Request
                                        Enacted      Request     vs. FY 2012
NIST, total                             750,824      857,000      106,176

Scientific and Technological          567,000        648,000   81,000 (14.3%)
Research and Services (STRS)
     NIST Centers of Excellence           0          20,000    20,000 (100%)
Hollings Manufacturing Extension      128,443        128,000   -443 (0.003%)
Partnership (MEP)
Advanced Manufacturing                    0          21,000    21,000 (100%)
Technology Consortia (AMTech)

 *Funding amounts reflect discretionary funding levels.


Economic Development Administration

The President’s FY 2013 budget request includes $220 million for the Economic Development
Administration (EDA), which is $38 million or 14.7 percent below the FY 2012 enacted level.

      The EDA budget request prioritizes ongoing innovation and entrepreneurship initiatives, such as
       the i6 Challenge and the Jobs and Innovation Accelerator Challenge within the Regional
       Innovation Strategies program.
      In addition to the innovation and entrepreneurship initiatives, traditional technical assistance
       programs and programs that support market analysis to drive regional economic development
       strategies are favored in the budget request. Reductions are proposed for the Public Works
       program and the Global Climate Change Mitigation Incentive Fund (GCCMIF), citing alternative
       federal funding for these types of projects within other agencies.
      Congress is generally supportive of the local economic development assistance grants offered by
       EDA, especially in the absence of Congressional earmarks that traditionally supported
       infrastructure projects and business development services, but has not fully embraced new EDA
       initiatives from past years.

New and Signature Initiatives

The budget includes $25 million for a new Regional Innovation Strategies program. The program would
support ongoing innovation and entrepreneurship initiatives such as the i6 Challenge and the Jobs and
Innovation Accelerator Challenge (funding for each of these grant programs was not specified); however
it would also support new investments in science parks; specifically $7 million for science park loan

Proposed Reductions and Terminations

The budget proposes reforms to three existing programs: the Public Works program, the Planning
program, and GCCMIF.
     21st Century Innovation Infrastructure would replace the existing Public Works program, which
       supported the construction or rehabilitation of essential public infrastructure. The new program
       would continue to support hard and soft infrastructure development, but at half the budget of
       the original Public Works program. The budget request cites other sources of funding for these
       projects, such as tax-free bonds.
     Partnership Planning would replace the traditional Planning program, which supported planning
       organizations in developing and implementing comprehensive economic development
       strategies. While the title has changed, the scope of the program does not appear to be any
     Sustainable Economic Development would replace the existing GCCMIF program, which
       supported projects that create jobs through investments in a clean energy economy. Despite
       the inclusion of this successor program, the budget did not include any new funding for the


Ongoing Areas of Interest

The Technical Assistance program, which includes the University Center grant program, would receive a
4 percent reduction. The Economic Adjustment Assistant program, which supports a range of technical,
planning, and infrastructure assistance in regions that have experienced an economic downturn, would
receive a significant 17 percent increase over FY 2012.

Additional Resources: Department of Commerce’s FY 2013 full budget details can be viewed at

                            Economic Development Administration
                                                 (In thousands)
                                                     FY 2012      FY 2013      Request
                                                     Enacted      Request    vs. FY 2012
              EDA, total                             258,000      220,000      -38,000
                Economic Development                220,000       182,000      -38,000
                Assistance Programs                                            (17.3%)
                Regional Innovation Strategies         0          25,000    25,000 (100%)
                21 Century Innovation               138,528       65,500       -73,028
                Infrastructure (Successor to                                   (52.7%)
                Public Works)
                Economic Adjustment                 55,718        65,200     9,482 (17%)
                Assistance Program
                Partnership Planning                29,000        27,000    -2,000 (6.9%)
                (Successor to Planning
                Technical Assistance Program        12,481        12,000     -481 (3.9%)
                Research and Evaluation              1,537         1,500      37 (2.4%)
                Sustainable Economic                   0            0            0
                Development (Successor to
                Global Climate Change)
                Salaries and Expenses               38,000        38,000         --


Department of Defense
The President’s FY 2013 budget request includes $525.4 billion for the Department of Defense (DOD),
which is a decrease of about 1 percent below the FY 2012 enacted level. An additional $88.5 billion is
requested in contingency funding for ongoing operations in Afghanistan.

       The President’s FY 2013 budget request for DOD aligns with the defense Strategic Guidance
        announced by President Obama last month and reflects the first step in reducing $487 billion
        from planned defense spending over the next decade.
       Defense science and technology programs of interest to universities and research institutes are
        largely protected in the request as critical to the military’s continued technological superiority.
        Also in accordance with the Strategic Guidance, the FY 2013 President’s request favors the Navy
        and Air Force in anticipation of future conflicts in the Asia Pacific and Middle East likely to be
        heavily reliant on sea and air power.
       The President’s request for DOD will be the subject of fierce debate on Capitol Hill, with
        conservatives charging that the proposed reductions to the defense budget harm national
        security. Conversely, others will argue that the cuts should be deeper in order to reduce the
        federal deficit and support domestic programs. The science and technology programs important
        to the university community are likely to receive strong bipartisan support.

New and Signature Initiatives

As expected, the President’s FY 2013 budget request outlines a strategy for implementing a shift in
defense policy proposed by the Strategic Guidance released last month. Consistent with that document,
the FY 2013 budget request proposes a smaller but more agile fighting force, an enhanced reliance on
technology to maintain military supremacy, modernizing the Navy and Air Force in preparation for
future conflicts in the Asia Pacific and Middle East, and a Department which employs better
management, contracting, and procurement practices in order to ensure the best possible use of
constrained dollars. Research, development, test, and evaluation (RDTE) programs would receive a total
of $69.4 billion in the President’s request, a reduction of about 4 percent below the FY 2012 enacted

Of interest to the research community, the President’s FY 2013 budget request includes a total of $11.9
billion for defense science and technology (S&T, 6.1-6.3) programs, a reduction of 2.5 percent from the
FY 2012 enacted level. President Obama, Secretary of Defense Leon Panetta, and Chairman of the Joint
Chiefs of Staff Martin Dempsey have repeatedly stressed the importance of these programs to future
advancements in military technology and announced their intent to protect them in this budget request.
Despite the proposed reduction from the FY 2012 level, the President’s FY 2013 budget request calls out
defense basic research, applied research, and advanced technology development programs as essential
to protecting national security. Specifically, the President’s request would sustain defense basic
research programs at the FY 2012 level of $2.1 billion in an effort to keep U.S. universities and research
institutes closely tied to the nation’s defense enterprise.

The President proposes continuing many signature DOD research initiatives in his budget request,
including cybersecurity, bio-defense, robotics, and improved data protection and processing. In


addition, the President’s FY 2013 request identifies DOD as a key player in the Administration’s
advanced manufacturing initiative, particularly through public-private partnerships. Elsewhere, the
President’s request proposes a sustained commitment to military mental health issues as troops
returning from Iraq and Afghanistan struggle with psychological health issues including traumatic brain
injury (TBI) and post traumatic stress disorder (PTSD).

Proposed Reductions and Terminations

As noted above, the President’s FY 2013 request for DOD makes significant reductions as a first step
towards meeting spending caps mandated by the Budget Control Act. While defense S&T programs are
down $300 million, the lion’s share of these reductions come from the applied research and advanced
technology development accounts as basic research is relatively protected. Beyond S&T, most of the
$2.9 billion which the President proposes to cut from the RDTE account would come from the 6.4 and
higher accounts where research institutions typically receive little funding.

Most of the large reductions across the Department come from terminations or downsizing of weapons
systems, a reduction in overall force size (particularly among from the Army and Marine Corps), and
proposed changes to military benefits. The President’s request also proposes another Base Realignment
and Closure (BRAC) commission to investigate potential savings from closing or realigning military
installations. Many of these programs have strong constituencies and any proposed reductions are
likely to be hotly contested by Congress. Numerous Members of Congress have already publicly
denounced the idea of another BRAC process.

Ongoing Areas of Interest

The President’s FY 2013 request for DOD continues to reflect the seven science and technology priorities
laid out by Assistant Secretary of Defense for Research and Engineering Zach Lemnios in 2011. For
example, the President’s request focuses heavily on cybersecurity, electronic warfare, and countering
weapons of mass destruction as science and technology priorities for the coming years. DOD’s ongoing
interest in information sciences, and particularly projects which improve the military’s ability to make
decisions based on large amounts of data, is identified as a priority in the President’s FY 2013 request as

In addition to continuing Assistant Secretary Lemnios’ S&T priorities, the President’s FY 2013 request
maintains the Administration’s commitment to making DOD more energy independent and conserving
military energy use. The President’s request includes $1 billion for DOD energy conservation programs,
which encompasses retrofitting military buildings, meeting energy efficiency standards for new
buildings, and renewable energy research and development projects. The President’s request states
that these investments are designed to both reduce the risk associated with transporting traditional
fuels to war zones and limit the budgeting challenges associated with drastic swings in oil prices.

The Defense Advanced Research Projects Agency (DARPA), viewed as critical to pursuing game-
changing solutions in many of these areas, would see a minimal increase to $2.81 billion in the
President’s FY 2013 request. This amount includes $348.8 million for basic research – part of a 6
percent overall proposed increase for Defense Wide 6.1 programs.


Additional Resources:
An overview of the President’s FY 2013 budget request for DOD is available at

The complete R-1 with detailed program level numbers is available at

                                    Department of Defense
                                               (In thousands)*

                                  FY 2012 Enacted      FY 2013 Request   Request vs. FY 2012
    RDTE, total                     72,310,402            69,407,767      -2,902,635 (4.0%)

    S&T, total                      12,200,000            11,900,000       -300,000 (2.5%)
      Basic (6.1), total             2,112,434             2,116,874        4,440 (0.2%)

      Applied (6.2), total           4,739,270             4,477,966       -261,304 (5.5%)

     Advanced Technology             5,352,732             5,266,274       -86,458 (1.6%)
     Development (6.3), total
    RDTE, Army                       8,741,715             8,929,415       187,700 (2.1%)
      Army Basic Research (6.1)      456,200                444,071        -12,129 (2.7%)

      Army Applied Research          946,836                874,730        -72,106 (7.6%)
      Army Advanced                  1,132,838              890,722       -242,116 (21.4%)
      Technology Development
    RDTE, Navy                      17,739,575            16,882,877       -856,698 (4.8%)

      Navy Basic Research (6.1)      605,319                605,021         -298 (0.01%)

      Navy Applied Research          822,951                790,302        -32,649 (4.0%)
      Navy Advanced                  692,105                584,402       -107,703 (15.6%)
      Technology Development

    RDTE, Air Force                 26,480,201            25,428,046      -1,052,155 (4.0%)
      Air Force Basic Research       530,859                516,034        -14,825 (2.8%)
      Air Force Applied              1,219,086             1,109,053       -110,033 (9.0%)
      Research (6.2)


      Air Force Advanced                627,102               596,737                  -30,365 (4.8%)
      Technology Development

    RDTE, Defense Wide (DW)            19,160,874            17,982,161              -1,178,713 (6.2%)

      DW Basic Research (6.1)           520,056               551,748                  31,692 (6.1%)

      DW Applied Research              1,750,397             1,703,881                 -46,516 (2.7%)
      DW Advanced Technology           2,900,687             3,194,413                293,726 (10.1%)
      Development (6.3)

*Funding levels in the chart above include only base DOD funding; any operational funding is not incorporated.


Department of Education
The President’s FY 2013 budget request includes $69.8 billion for the Department of Education (ED),
which is an increase of 2.5 percent over the FY 2012 enacted level.

       In the lead up to the 2012 midterm election, the Obama Administration is keeping education
        front and center by investing in federal student aid and increasing the maximum Pell grant
        award to $5,635; continuing to fund signature initiatives such as Race to the Top; and creating
        new programs to encourage colleges and universities to control increasing college costs.
       The proposed restructuring of the campus based aid programs and the creation of new grant
        programs to encourage institutions to rein in college cost are not likely to be accomplished this
        year and instead will likely be included in a future reauthorization of the Higher Education Act.
        President Obama’s message regarding college cost and increasing transparency will receive
        bipartisan support in Congress.
       While Congress has been willing to support Administration priorities, such as Race to the Top, it
        is unclear whether Members will support the authorization of these programs in the Elementary
        and Secondary Education Act (ESEA), scheduled for debate this year. The Administration is
        unlikely to push very hard for this reauthorization as eleven states have already submitted
        waivers for flexibility regarding the accountability measures included in No Child Left Behind (the
        previous ESEA reauthorization) and agreed to a series of Administration supported reforms.

New and Signature Initiatives

The Administration’s FY 2013 Budget request continues to fund programs created in the 2009 American
Recovery and Reinvestment Act (ARRA) and seeks to expand those programs into new areas such as
college cost. The budget request includes three major initiative areas for education: improving
affordability and quality in postsecondary education, elevating the teaching profession, and aligning job
training and education with workforce demands.

Improving Affordability and Quality in Postsecondary Education
In FY 2013, the Administration would provide $1 billion for a new Race to the Top: College Affordability
and Completion program. Like previous Race to the Top competitions, funds would be awarded directly
to States. States would need to demonstrate a strong record of support for higher education and a
focus on affordability and quality, such as through consistent state appropriations for higher education,
collaborations with state institutions to stabilize college cost, or efforts to align K-12 and postsecondary

The Administration would continue to fund the Investing in Innovation (i3) program, and would include
funding for the proposed Advanced Research Projects Agency for Education (ARPA-ED) within i3.

The President’s budget request proposes $55.5 million for a new First in the World grant competition
for institutions of higher education, including private and non-profit organizations, to develop, evaluate,
or scale up innovative and effective strategies for improving college completion outcomes while
lowering college cost. Up to $20 million would be directed to minority serving institutions (MSIs) to


encourage coordination with existing Title III and Title V institutional development awards.

Elevating the Teaching Profession
The budget request includes funding for teacher training programs that were proposed in the
September 2011 White House proposal Our Future, Our Teachers: The Obama Administration’s Plan for
Teacher Education Reform and Improvement (
teachers-accesible.pdf). This includes $5 billion in one-time funds to provide states and districts grants
to reform colleges of education, create new career ladders for teachers, ensure earnings are tied to
performance, improve professional development for teachers, and reshape tenure systems for K-12
teachers. This funding would be provided through the Administration’s American Jobs Act, which has
been unable to move in Congress, and not annual appropriations. The budget request would also fund a
new Effective Teachers and Leaders State Grants program, provide $400 million for a Teacher and
Leader Innovation Fund, and direct $190 million for a new Presidential Teaching Fellows program. The
Presidential Teaching Fellows program would shift mandatory funding from the current TEACH Grant
program, which provides loan forgiveness for students who teach in high need areas, to formula funding
to States for teacher preparation and alternative teacher preparation programs to provide scholarships
of up to $10,000 for high-achieving, final year students.

Aligning Job Training and Education with Workforce Demands
During this year’s State of the Union Address, President Obama promised to double the number of
federal work study positions. His budget request would increase funding for that program from $977
million to $1.127 billion in FY 2013. In addition, the budget request also proposes a new $8 billion
initiative between the Department of Education and the Department of Labor to fund partnerships
between States and community colleges and industry to support workforce training programs. This is
similar to the Trade Adjustment Assistance Community College and Career Training Grant program
created and funded through ARRA which provided $2 billion for community colleges to expand
workforce programs.

Proposed Reductions and Terminations

As with previous requests, the FY 2013 budget request would end the Title II Teacher Quality
Partnership, Striving Readers, Civics Education, and Arts in Education programs. Funding from these
programs would be directed to new Effective Teaching and Learning programs which would offer
competitive grants for literacy; science, technology, engineering, and mathematics (STEM) education;
arts; and civic education. Congress has not yet funded these programs, but the Administration has
asked that these new programs be authorized in ESEA.

Ongoing Areas of Interest

Federal Student Aid
In order to reform and strengthen the Pell Grant program, the Administration would increase
mandatory funding through a proposed change to subsidized, undergraduate student loans, thus
increasing the maximum Pell Grant award to $5,635, $85 over the FY 2012 maximum. The budget
request would end the interest subsidy for student borrowers who remain in school beyond 150 percent
of their program length (in general, over six years), saving an estimated $1.8 billion over 10 years.


The budget request would also make changes to guaranty agencies’ compensation for rehabilitating
federal student loans, including reducing the fee charged to a borrower’s outstanding loan balance. In
addition, if the guaranty agency is unable to identify a private borrower willing to purchase the
rehabilitated loan, the loan must be sent to the Department of Education. These savings would then be
redirected to the Pell Grant program.

The President’s budget request would also make the American Opportunity Tax Credit permanent. This
$2,500 tax credit for college tuition and fees is set to expire in 2012. The request would also suspend the
scheduled interest rate increase on subsidized, undergraduate federal student loans from 3.4 percent to
6.8 percent for one additional year.

The budget request proposes to reallocate the federal campus based aid programs, including the Perkins
Loan program, federal Work Study, and the Supplemental Education Opportunity Grants (SEOG), to
reward institutions that keep tuition and tuition increases low, enroll and graduate a high-number of
Pell eligible students, offer work-study experiences relevant to a student’s studies, and provide a good
value. Currently those programs are allocated based on an institution’s historic participation in the
programs. Through this restructuring, the Perkins Loan program, which has not received new capital
funding in several years, would expand to provide $8.5 billion in new loan volume annually. In order to
save money and redirect dollars, new Perkins loans would be serviced by the Department rather than at
the institution of higher education.

Additional Programs
The request includes $30 million, within the Fund for the Improvement of Education (FIE), for a new
joint STEM Education initiative with the National Science Foundation (NSF). Funding would be used for
grants to develop, validate, and scale up evidence based approaches to improve K-12 STEM learning.
The request would level fund Title V: Hispanic Serving Institutions programs at $109.4 million; however,
it also includes $30 million for the new Hawkins Centers of Excellence program which would increase
the number of minority educators by providing grants to teacher training programs at MSIs. The
President’s budget request proposes a $1.7 million increase to the Title VI International programs. The
request would direct this increase to the domestic programs, including the National Resource Centers
(NRCs) and Foreign Languages and Area Studies (FLAS) program. The President’s budget request
includes a $27.5 million increase to the Institute of Education Sciences (IES), the research arm of the
Department. This increase will allow IES to award up to $30 million in additional competitive grants.

Additional Resources: Department of Education’s FY 2013 Blue Book can be viewed at


                                          Department of Education
                                                     (In thousands)
                                                               FY 2012      FY 2013         Request
                                                               Enacted      Request        vs. FY 2012
         ED, total                                           68,112,000    69,800,000   1,688,000 (2.5%)
         Elementary and Secondary Education
           Race to the Top                                    549,000       850,000     301,000 (54.8%)
           Investing in Innovation (I3)                       149,000       150,000       1,000 (0.6%)
               ARPA-ED                                           0            N/A               --
           Effective Teaching and Learning (ETL)              361,600       426,600       65,000 (18%)
               ETL: Literacy                                    N/A         186,900           N/A
               ETL: STEM                                        N/A         149,700           N/A
               ETL: Well-Rounded Education                      N/A         90,000            N/A
           Promise Neighborhoods                               59,900       100,000      40,100 (66.9%)
         Federal Student Aid
           Pell Grant                                          5,550*        5,635          85 (1.5%)
           Perkins Loan Program                              8,000,000**   8,500,000    500,000 (6.25%)
           Supplemental Education Opportunity                  735,000      735,000             0
           Grants (SEOG)
           Federal Work Study                                 977,000      1,127,000    150,000 (15.4%)
           TEACH Grants                                        41,000       10,500       -30,500 (74.4%)
           Presidential Teaching Fellows                        N/A         190,000           N/A
         Higher Education
           Aid for Hispanic Serving Institutions (Title V)    109,400       109,400             --
           Title VI International                              74,000       75,700        1,700 (2.3%)
           Race to the Top: College Affordability and           N/A        1,000,000          N/A
           Fund for the Improvement of                          3,500       70,000       66,500 (1900%)
           Postsecondary Education (FIPSE)
               First in the World                               N/A         55,500            N/A
           TRIO                                               839,900       839,900             0
           GEAR UP                                            302,000       302,000             0
           Javits                                                0             0                0
           Graduate Assistance in Areas of National          30,900***      30,900              0
           Need (GAANN)
         Institute of Education Sciences (IES)                594,000       621,200       27,200 (4.6%)

*The Pell Grant is reported as the maximum grant available to a Pell eligible student. In FY 2012 the maximum Pell
grant is $5,550.
**$8 billion represents the total assets estimated in the Perkins Loan program by the Department of Education.
The proposed increase would be a result of reallocation and reinvestment, not in new capital contributions.
***In the final FY 2012 Omnibus, the Javits program was consolidated into the GAANN program. The FY 2013
budget request includes language that GAANN funding should be used for non-competing continuation Javits


Department of Energy
The President’s FY 2013 budget request includes $27.155 billion for the Department of Energy (DOE),
which is an increase of 3.2 percent over the FY 2012 enacted level.

       The Obama Administration continues its budgetary commitment to DOE given its central role in
        achieving the President’s goal of a clean and secure energy future.
       While the Office of Science (up 2.4 percent) is relatively protected as part of the President’s
        commitment to research, Energy Efficiency and Renewable Energy (increased 25.3 percent), the
        Advanced Research Projects Agency-Energy (up 27.3 percent), Fossil Energy (increased 15.3
        percent), and Advanced Manufacturing, formerly Industrial Technologies, (up 150.9 percent) are
        the biggest winners in the budget.
       Congress likely will support the modest increase for the Office of Science, but conservative
        Republicans may skeptically view the increases to EERE and ARPA-E as they are concerned DOE
        is supporting too much applied research more suitable to industry. DOE overall is under
        increased scrutiny in light of the attention on federal loan guarantees in the wake of the
        Solyndra bankruptcy in 2011.

New and Signature Initiatives

Building on one of Secretary Chu’s signature priorities and funding mechanisms, DOE announced a new
Energy Innovation Hub on Electricity Systems, which will focus on electricity grid systems and the
connection between distribution and transmission systems. DOE also proposed this Hub in its FY 2012
budget request, calling it a “Smart Grid” Hub; however, Congress did not fund it last year. The new Hub
would be in addition to five currently funded hubs that focus on batteries, critical materials, fuels from
sunlight, energy efficient buildings, and advanced nuclear reactor operations, all of which would
continue to receive support in the budget. DOE plans to complement both the existing Hubs and the
new Hub with the Office of Science’s Energy Frontier Research Centers (EFRC). DOE will continue to
support its 46 EFRCs, although the budget proposes no new Centers. However, new funding would be
provided to accelerate EFRC innovations into the marketplace.

Consistent with the Obama Administration’s support for game-changing and catalytic energy
technologies, Advanced Research Projects Agency-Energy (ARPA-E) is slated for a substantial increase of
27.3 percent, with special emphasis on transportation and stationary power as recommended in the
Quadrennial Technology Review released in September 2011.

The Advanced Scientific Computing Research (ASCR) program and the National Nuclear Security
Administration (NNSA) would continue to collaborate and prioritize challenges related to exascale
computing. In addition, recognizing the growing challenge to handle massive data expected from
current and next generation scientific user facilities, the budget proposes an 18.2 percent increase for
new core research efforts in Applied Mathematics, Computer Science, and Next Generation Networking
Science and new Computational Partnership investments.


Proposed Reductions and Terminations

Consistent with the President’s emphasis on clean energy and existing scientific priorities, DOE’s budget
request would offset some of the proposed increases within the Office of Science with decreased
funding levels for the High-energy and Nuclear Physics programs. The Department would continue
funding for several ongoing construction projects such as the Nuclear Physics Facility for Rare Isotope
Beams (FRIB), but would seek to pare back projects such as the High-energy Physics Long Baseline
Neutrino Experiment by providing no additional construction funds while DOE further evaluates its plans
in the new budget environment. Additionally, the Office of Science notes it plans to continue to assess
the feasibility of conducting underground neutrino and dark matter research, proposes a 15.9 percent
increase for the Large Synoptic Survey Telescope camera and second-generation dark matter
experiments, and would terminate the International Linear Collider research and development program.

Meanwhile, the budget proposes a 42.9 percent increase for U.S. contributions to the ITER project
within Fusion Energy Sciences, which will primarily come from a corresponding 14.6 percent decrease to
fusion research funding.

The budget request would eliminate funding for DOE Office of Science Graduate Fellowships, which
began in FY 2010 with funding from the American Recovery and Reinvestment Act (stimulus package).

Within EERE, both Water Power and Hydrogen and Fuel Cell Technology would receive a decrease. In
regard to Water Power, much of the decrease in funding is due to the completion of large multi-year
projects. For Hydrogen and Fuel Cell Technology, the DOE budget notes the decrease is due to progress
made in research innovations.

Nuclear Energy’s Reactor Concepts Research, Development, and Demonstration program would receive
a decrease of 35.9 percent while the Small Modular Reactor Advanced Concepts R&D program would
receive a decrease of 34 percent. DOE says these decreases are due to refocusing the program.

Ongoing Areas of Interest

Reflecting the goals of the “Blueprint for a Secure Energy Future,” which the President released in
March 2011, and the DOE Strategic Plan, released in May 2011, the DOE budget proposal would build
upon pre-existing initiatives in clean and renewable energy, energy efficiency, and scientific research.
While DOE’s budget would continue to support the Office of Science overall by modestly increasing its
budget, it continues its prioritization of computing, environmental research, and transformative
investments in chemical and materials research and design through Basic Energy Sciences. Building on
the Administration’s emphasis on translational research, BES also will collaborate with EERE to jointly
fund research to increase the rate at which basic science discoveries are translated into prototype clean
energy technologies.

Biological and Environmental Research would receive a modest increase of 2.6 percent, with the
biggest increases within the program directed at Environmental System Science and Climate and Earth
System Modeling. The budget request notes it will shift priorities from modeling climate on a global
scale to focusing on modeling for the Arctic and tropics.


Additional Resources: DOE’s FY 2012 budget request is available at

                                        Department of Energy
                                             (In thousands)
                                           FY 2012          FY 2013    Request vs. FY 2012
                                           Enacted          Request
          DOE, total                      26,299,547      27,155,072     855,525 (3.2%)
           Science                         4,873,634      4,992,052*     118,418 (2.4%)
           Advanced Scientific             440,868         455,593        14,725 (3.3%)
           Computing Research
           Basic Energy Sciences           1,688,093      1,799,592      111,499 (6.6%)
           Biological and                  609,557         625,347        15,790 (2.6%)
           Environmental Research
           Fusion Energy Sciences          400,996         398,324        -2,672 (0.7%)
           High-energy Physics             790,860         776,521       -14,339 (1.8%)
           Nuclear Physics                 547,387         526,938       -20,449 (3.7%)
           Workforce Development for        18,500          14,500       -4,000 (21.6%)
           Teachers and Scientists
           Science Laboratories            111,800         117,790        5,990 (5.4%)
           EERE                            1,809,638     2,267,333**    457,695 (25.3%)
           Hydrogen and Fuel Cell          103,624          80,000       -23,624 (22.8%)
           Biomass and Biorefinery         199,276         270,000       70,724 (35.5%)
           Systems R&D
           Solar Energy                    288,951         310,000        21,049 (7.3%)
           Wind Energy                      93,254          95,000        1,746 (1.9%)
           Geothermal Technology            37,862          65,000       27,138 (71.7%)
           Water Power                      58,787          20,000       -38,787 (66.0%)
           Vehicle Technologies            328,807         420,000       91,193 (27.7%)
           Building Technologies           219,204         310,000       90,796 (41.4%)
           Advanced Manufacturing          115,580         290,000      174,420 (150.9%)
           (formerly known as
           Industrial Technologies)
           Federal Energy                   29,891          32,000        2,109 (7.1%)
           Management Program
           Electricity Delivery and        139,103         143,015        3,912 (2.8%)
           Energy Reliability
           Nuclear Energy                  765,391         770,445        5,054 (0.7%)
           Reactor Concepts Research,      114,871          73,674       -41,197 (35.9%)
           Development, and


      Small Modular Reactor        28,001            18,479      -9,522 (34.0%)
    Advanced Concepts R&D
Fossil Energy Research and        346,703           420,575      73,872 (21.3%)
ARPA-E                            275,000           350,000      75,000 (27.3%)
DOE Defense Activities           16,826,314        17,743,589    917,275 (5.5%)
Weapons Activities                7,214,120         7,577,341    363,221 (5.0%)
Defense Nuclear                     2,295,880        2,458,631   162,751 (7.1%)
Defense Environmental               5,002,950        5,472,001   469,051 (9.4%)
 * Reflects $9,104 in use of prior year balances.
 ** Reflects $69,667 in cancellation of prior year balances.


Department of Health and Human Services
National Institutes of Health

The President’s FY 2013 budget request includes $30.698 billion for NIH, which is the same level as the
FY 2012 enacted budget.

       The Obama Administration is highly supportive of basic research and NIH’s role in innovation
        and translational science, but opts to provide increases to other science agencies to catalyze
        innovation and manufacturing.
       The budget emphasizes the need to translate new discoveries in biomedical science into new
        therapies and cures. The budget highlights the role of the National Center for Advancing
        Translational Sciences (NCATS) in speeding up translation. NCATS would receive an 11.1 percent
        increase, with a significant portion of the increase allocated to the Cures Acceleration Network
        (CAN) to support the new center’s extramural activities.
       While Congress is very supportive of NIH translational research activities and NCATS, it may not
        be willing to provide a sizeable increase to the new center and CAN at the expense of other NIH
        institutes and centers that support research for specific diseases and conditions of personal
        interest to lawmakers.

New and Signature Initiatives

Reflecting the flat funding request, the President’s budget identifies a few new initiatives for NIH to
pursue in FY 2013.

Translational Research
Despite a somewhat contentious road leading to its launch, with the passage of the final FY 2012 budget
in December 2011, NCATS was created as the home of NIH’s efforts to bridge the translational divide
between basic science and therapeutic applications. The new center, which would receive an 11.1
percent increase over the FY 2012 level, is primarily made up of existing NIH activities such as the
Clinical and Translational Science Awards (CTSA) program. NCATS also houses CAN, the primary
mechanism for distributing extramural NCATS funding, which would receive $50 million, a 400 percent
increase from FY 2012. As NIH seeks to ramp up CAN activities, NCATS leadership is interested in
hearing visionary ideas from research institutions that could start immediately when funding becomes

Initially, the primary NCATS activities will be around: target validation and identifying new molecular
targets by allowing NIH intramural programs to partner with extramural researchers; predictive
toxicology to improve approaches to assessing safety of therapeutic compounds, including a
collaboration with the Food and Drug Administration (FDA) and the Defense Advanced Research Projects
Agency (DARPA); and drug rescue and repurposing to research previously abandoned compounds for
possible new applications and to review approved drugs for new indications. In addition, NIH is
strengthening its partnerships with industry to advance the movement of drug candidates into the
commercial development pipeline and is seeking to increase its network of healthcare delivery
organizations to conduct research to move research results into practice.


Alzheimer’s Research
As announced by President Obama on February 7, the FY 2013 budget request includes an additional
$80 million for Alzheimer’s disease research. These funds are to be transferred from the Public Health
and Prevention Fund, which was created in ACA and would be directed toward gaining a greater
understanding of the risk factors of the disease and identifying new strategies for interrupting the
disease process. Part of the National Plan to Address Alzheimer’s Disease, this funding combined with
$50 million designated in the current FY 2012 budget brings the total NIH investment in Alzheimer’s
research to $130 million, a 25 percent increase over the current level.

New Grants Management Policies
In the budget request, NIH estimates that it will support 9,415 new and competing research project
grants (RPGs) in FY 2013, which is an increase of 7 percent above FY 2012. The budget request also
estimates that the average cost of a new and competing NIH RPG in FY 2013 will be $431,000.

Recognizing the need to maximize resources to avoid a drop in investigator-initiated grants, NIH
proposes a number of strategies:
    Discontinue out-year inflationary allowances for competing and continuation grants.
    Reduce non-competing continuation grants by 1 percent below the FY 2012 level and negotiate
       the budgets of competing grants to avoid growth in the average award size.
    Continue current policies to equalize success rates of new investigators to those of established
    Establish a process for additional scrutiny and review by advisory councils of awards to any
       principal investigator with existing grants of $1.5 million or more in total costs.

Already in practice is the elimination of inflationary increases throughout the life of a grant, and the
advisory council of the National Institute of General Medical Sciences (NIGMS) regularly reviews grants
to investigators whose grants exceed $1 million per year. NIH circulated these and other proposals for
input in October 2011, resulting in concern from the stakeholder community over shifting costs to
research institutions. However, facing flat budgets for the foreseeable future, it is safe to assume that
NIH will continue to employ new grant policies aimed at achieving new savings.

Proposed Reductions and Terminations

The budget proposes the salary cap for extramural grants at Executive Level II, which is the same level
set in last year’s appropriations bill. The decrease from Executive Level I had been proposed for many
years in the President’s budget request, but until last year, had never been enacted by Congress.

Additionally, the increase of the percent set aside in the NIH budget to be made available for HHS
planning and evaluation activities from 2.5 to 3.2 percent will decrease NIH funding available for
research activities.


Ongoing Areas of Interest

The ongoing emphases highlighted in the budget request include (1) Investing in Basic Research; (2)
Accelerating Discovery Through Technology; (3) Advancing Translational Sciences; and (4) Encouraging
New Investigators and New Ideas. A number of activities received special mention in the budget request
but no additional funding.

       The budget request highlights genomics and efforts to capitalize on the completion of the
        human genome, the advances in genomic sequencing, and the economic activity derived from
        these advances.
       The National Children’s Study is cited as a unique longitudinal study that will result in a wealth
        of data on the effects of genetics and the environment on the health of children across the
        country. The budget notes that in FY 2013, the Vanguard Study will continue and the Main
        Study will begin, and by building on the existing infrastructure and administrative components,
        the study should save on costs in FY 2013.
       Technologies for systems biology are noted, including metabolomics, sensitive technologies to
        assess potential toxins in the air, water, and food, and new molecular imaging technologies for
        early detection of disease.
       The budget highlights the Administration’s continued support for HIV/AIDS research and
        innovation in clinical trial design in this research area, but would provide no increase over the FY
        2012 level for this activity.
       As in previous years, the budget request states the need to bolster the biomedical research
        workforce and would provide $775 million to support 16,171 scientists for the Ruth Kirschstein
        National Research Service Awards program, and a 2 percent stipend increase for predoctoral
        and postdoctoral trainees in this program. Additionally, the budget request highlights NIH
        efforts to improve the representation of racial and ethnic groups in the workforce through the
        Advisory Committee to the Director Working Group on Diversity in the Biomedical Research

Additional Resources: NIH’s Congressional Justification can be viewed at


                      National Institutes of Health
                                   (In thousands)
                                    FY 2012         FY 2013        Request
                                    Enacted         Request       vs. FY 2012
NIH, total                         30,698,000       30,698,000         --
 National Cancer Institute          5,066,147       5,068,864    2,717 (<0.1%)
 National Heart, Lung, and          3,075,358       3,076,067     709 (<0.1%)
 Blood Institute (NHLBI)
 National Institute of Dental        410,222         408,212     -2,010 (0.5%)
 and Craniofacial Research
 National Institute of              1,944,905       1,942,107    -2,798 (0.1%)
 Diabetes and Digestive and
 Kidney Diseases (NIDDK)
 National Institute of              1,624,429       1,624,707     278 (<0.1%)
 Neurological Disorders and
 Stroke (NINDS)
 National Institute of Allergy      4,485,097       4,495,307    10,210 (0.2%)
 and Infectious Diseases
 National Institute of General      2,427,189       2,378,835    -48,354 (1.9%)
 Medical Sciences (NIGMS)
 Institutional Development             276             276             --
 Award (IDeA)
 Eunice Kennedy Shriver             1,319,825       1,320,600     775 (<0.1%)
 National Institute of Child
 Health and Human
 Development (NICHD)
 National Eye Institute (NEI)        701,876         693,015     -8,861 (1.2%)
 National Institute of               684,755         684,030      -725 (0.1%)
 Environmental Health
 Sciences (NIEHS)
 National Institute on Aging        1,102,128       1,102,650     522 (<0.1%)
 National Institute of Arthritis     535,148         535,610      462 (<0.1%)
 and Musculoskeletal and
 Skin Diseases (NIAMS)
 National Institute on               415,778         417,297     1,519 (0.4%)
 Deafness and Other
 Communications Disorders
 National Institute of Mental       1,478,503       1,479,204     701 (<0.1%)
 Health (NIMH)
 National Institute on Drug         1,052,114       1,054,001    1,887 (0.2%)
 Abuse (NIDA)
 National Institute on Alcohol       458,972         457,104     -1,868 (0.4%)
 Abuse and Alcoholism


National Institute of Nursing   144,597     144,153      -444 (0.3%)
Research (NINR)
National Human Genome           512,263     511,370      -893 (0.2%)
Research Institute (NHGRI)
National Institute of           337,954     336,896     -1,058 (0.3%)
Biomedical Imaging and
Bioengineering (NIBIB)
National Institute on           276,111     279,389     3,278 (1.2%)
Minority Health and Health
Disparities (NIMHD)
National Center for             127,904     127,930      26 (<0.1%)
Complementary and
Alternative Medicine
National Center for             574,713     639,033     64,320 (11%)
Advancing Translational
Sciences (NCATS)
 Cures Acceleration Network      10,000      50,000     40,000 (400%)
National Center for Research    1,257,754      0         -1,257,754
Resources (NCRR)                                           (100%)
John E. Fogarty International    69,539      69,758      219 (0.3%)
Center (FIC)
National Library of Medicine    365,043     372,651     7,608 (2.0%)
Office of the Director (OD)     1,457,381   1,429,161   -28,220 (1.9%)
National Children’s Study        1,319       1,320        1 (<0.1%)
Common Fund                       544         544             --
Office of AIDS Research            63          63             --
Building and Facilities         125,308     125,308           --


Other HHS Agencies and Priorities

The President’s FY 2013 budget request includes $932.23 billion in mandatory and discretionary
funding for the Department of Health and Human Services (HHS), which is an increase of $66.22 billion
or 7.6 percent over the FY 2012 enacted level.

       Reductions in spending on healthcare entitlements such as Medicare and Medicaid will remain a
        priority for Congress and the Administration. The Administration continues to prioritize
        activities related to reducing health disparities, prevention and management of chronic
        diseases, and improving health quality.
       The deficit discussions in Congress and the Administration over the past year and a half have
        created a “menu” of health care cuts to achieve savings and reduce spending on mostly
        healthcare entitlement programs. Keeping in line with previous recommendations, the
        President’s budget request would achieve savings from reductions in the Medicare and
        Medicaid programs.
       As Congress continues to examine ways to reduce spending on healthcare programs, especially
        healthcare entitlements, it will continue to give consideration to proposals that have been
        vetted by the Administration. Administration proposals that have also been vetted by the
        Medicare Payment Advisory Commission (MedPAC), such as reductions to indirect graduate
        medical education (IME), will likely be given strong consideration as Congress examines options
        to cut spending before sequestration takes effect in 2013.

New and Signature Initiatives

Despite the pending case before the Supreme Court, which will decide on the constitutionality of
provisions contained in the healthcare reform law, the Administration would continue to invest in the
implementation of the Patient Protection and Affordable Care Act (ACA). The President’s budget
request seeks an additional $1 billion in discretionary funding for ACA, which would mostly go toward
implementing the state-based exchanges. However, as long as Republicans remain in control of the
House, new funding for the implementation of ACA is unlikely.

The President’s request would also continue to support activities aimed at testing new models of
healthcare delivery that support the triple aim of better health, better health care, and lower cost
through activities associated with the Centers for Medicare and Medicaid Services (CMS) Innovation
Center. The Innovation Center was appropriated $10 billion through FY 2019 as part of ACA. In
addition, the President’s budget request supports $34 million for research activities at the Agency for
Healthcare Research and Quality (AHRQ) that reduce the prevalence of healthcare associated infections.
This is an increase of 13.3 percent over the FY 2012 enacted level and will go toward supporting the
activities of Comprehensive Unit-based Safety Program (CUSP) at AHRQ.

The President’s budget would continue to support comparative effectiveness research that focuses on
using evidence-based medicine to help providers and patients make informed decisions about their
healthcare, including treatments. Overall the President’s budget would include $599 million for patient-
centered health research. This amount supports research at the National Institutes of Health (NIH),
AHRQ, and the Patient-Centered Outcomes Research Institute (PCORI), which was established in ACA.


Proposed Reductions and Terminations

The deficit discussions of the past year and a half have created a “menu” of health care cuts to achieve
savings and reduce spending on health programs. Several of the proposed cuts originated with the
Administration’s efforts to reduce spending through discussions by the National Commission on Fiscal
Responsibility and Reform and/or from the President’s budget plan, which was submitted to the Joint
Select Committee on Deficit Reduction (Super Committee) in September 2011. Keeping in-line with the
previous recommendations, the President’s budget request offers several of the same reductions to
Medicare and Medicaid programs that have been previously discussed by the Administration. The
President’s budget recommendations would include the following changes to the Medicare and
Medicaid programs:
     Reducing the adjustment for payments for indirect graduate medical education (IME) by 10
     Reducing the amount Medicare reimburses providers for bad debts on behalf of beneficiaries
        from 70 percent to 25 percent.
     Rebasing Disproportionate Share Hospital (DSH) payments in 2021 so that the allotment is
        based on the 2020 allotments and does not revert back to pre-ACA implementation.
     Establish a blended rate for state Medicaid payments so that payments would not be a separate
        matching rate for the Federal Medical Assistance Percentage (FMAP), Enhanced Federal Medical
        Assistance Percentage (eFMAP), and the increased match for FMAP for individuals that will be
        eligible for Medicaid under ACA. Instead states would receive a single payment that would be
        particular to each state.
     Gradually phasing down the Medicaid Provider Tax threshold from 6 percent in 2014 to 3.5
        percent in 2017.

The President’s budget would reduce funding for the Prevention and Public Health Fund, which has
been considered a “slush fund” by some in Congress. The President’s proposal would reduce funding for
the program by $4 billion over ten years and would provide $1.25 billion in FY 2013. However, what
appears to be a point of contention is that $903 million of that $1.25 billion would be allocated to
activities at the Centers for Disease Control and Prevention (CDC); $12 million would be allocated to
activities at AHRQ in the President’s FY 2013 budget, leaving little flexibility for other activities and new

The President’s budget would consolidate over 40 programmatic activities focused on chronic disease
and prevention at CDC into four new programs which are outlined in the President’s budget request as
the Coordinated Chronic Disease Prevention and Health Promotion Program; Child Health and
Development; Health and Development for People with Disabilities; and Public Health Approaches to
Blood Disorders. According to the budget request, this grant program would focus on prevention rather
than treating conditions.

The President’s FY 2013 budget request would eliminate funding for Area Health Education Centers
(AHECs) within the Health Resources and Services Administration (HRSA). Instead of support for AHECs,
the President’s FY 2013 budget proposes prioritizing workforce training programs focused on increasing
the number of primary care providers.


Ongoing Areas of Interest

The President’s budget request includes $8.4 billion for HRSA, which is an increase 2.8 percent increase
over the FY 2012 enacted level. The President’s budget prioritizes investments in health disparities and
barriers to care; supporting access to medical, dental and behavioral health providers; and assisting
states and communities identify and address service and workforce gaps. HRSA’s Bureau of Health
Professions would receive $477.81 million in the President’s FY 2013 budget request. This is a decrease
of 29 percent from the FY 2012 enacted level.

The President’s budget request includes $88 million for children’s graduate medical education
(CHGME), a 66 percent decrease from the FY 2012 enacted level. Despite proposed reductions in the
President’s previous budget requests, Congress has continued to fund CHGME.

The President requests $66 million for the Office of the National Coordinator for Health Information
Technology (ONC) in FY 2013, which represents an increase of 8.2 percent over the FY 2012 total. The
increase in funds is to speed the adoption of meaningful use of health information technology (IT) and
promote electronic health records (EHRs). Through the HITECH provision of ACA, CMS is providing
hospitals and medical professionals with substantive incentive payments to encourage the meaningful
use of EHRs.

Additional Resources: HHS’ Budget in Brief and Congressional Justifications can be viewed at


                            Department of Health and Human Services
                                                   (In thousands)
                                       FY 2012                 FY 2013           Request
                                       Enacted                 Request          vs. FY 2012
HHS, total                            866,017,000             932,234,000     66,217,000 (7.6%)
 Health Resources and                  8,203,000               8,431,000       228,000 (2.8%)
 Services Administration
 Title VII Health Professions           268,188                 228,088        -40,100 (15.0%)
 Title VIII Nursing                     231,948                 251,099         19,151 (8.3%)
 Substance Abuse and                   3,565,000               3,423,000       -142,000 (4.0%)
 Mental Health Services
 Administration (SAMHSA)
 Center for Mental Health               999,000                 952,000        -47,000 (4.7%)
 Center for Substance Abuse            1,881,000               1,813,000       -68,000 (3.6%)
 Center for Substance Abuse             530,000                 470,000        -60,000 (11.3%)
 Agency for Healthcare                  405,000                 409,000         4,000 (1.0%)
 Research and Quality
 Center for Medicare and              757,125,000             829,377,000     72,252,000 (9.5%)
 Medicaid Services (CMS)
 Food and Drug                         3,832,000               4,486,000      654,000 (17.1%)
 Administration (FDA)
 Centers for Disease Control          11,196,000              11,236,000        40,000 (0.4%)
 and Prevention (CDC)
 Chronic Disease Prevention             1,183,000               1,145,000       -38,000 (3.2%)
 and Health Promotion
 Occupational Safety & Health            467,000                    420,000     -47,000 (10.1%)
 Environmental Health                    140,000                    133,000      -7,000 (5.0%)
 Indian Health Service (IHS)           5,386,000               5,502,000       116,000 (2.2%)
 Administration on Aging               2,005,000               2,012,000        7,000 (0.3%)
 Administration for Children          16,489,000              16,181,000       -308,000 (1.9%)
 and Families (ACF)

* Total includes mandatory and discretionary funds.


Department of Homeland Security
The President’s FY 2013 budget request includes $48.7 billion in gross discretionary funding for the
Department of Homeland Security (DHS), which is a decrease of $896.0 million or 1.8 percent below
the FY 2012 enacted level.

       While receiving a slight decrease in the budget request, DHS continues to be an Administration
        priority; terrorist prevention, border security, immigration enforcement, cyber defense, and
        disaster resiliency remain the central agency foci.
       The Science and Technology Directorate (S&T) would receive a substantial increase, including a
        notable increase in the University Programs Office. This reflects the Administration’s belief that
        science and technology remains a small but critical piece in carrying out DHS’s mission.
       While DHS has taken steps to prioritize research and development (R&D) funding efforts within
        the agency, Congress (the House in particular) is likely going to oppose significant increases to
        S&T going forward. Some in Congress feel that DHS R&D efforts are duplicative, inefficient, and
        lack prioritization.

Proposed Reductions and Terminations

Reflecting the agency’s tough budgetary situation and desire to streamline activities, DHS has proposed
to cut a number of low-priority or duplicative programs, including the Pre-Disaster Mitigation program
within the Federal Emergency Management Agency (FEMA). This is part of DHS’s consolidation of
duplicative FEMA programs. DHS cites that the elimination of this program will not have an impact due
to its duplication with other FEMA programs, such as the Hazard Mitigation program.

The Administration has recommended that no additional funding be provided in FY 2013 for the
National Bio-Agro-Defense Facility (NBAF). This decision is based on the current fiscal environment and
that Congress has only appropriated $50 million of the $150 million needed to begin construction, which
is not adequate. Instead, the President’s budget request would support $10 million to complement
ongoing research while DHS conducts an assessment of costs, safety and alternatives that might be less
costly while ensuring safety.

Ongoing Areas of Interest

The Science and Technology Directorate (S&T) would receive a 24.5 percent increase over FY 2012
levels in the President’s budget request. This increase reflects the Administration’s view that science
and technology remain critical to supporting DHS’s mission and helping the agency deliver new
technologies. S&T’s Research, Development, and Innovation (RD&I) programs, which are the
Directorate’s core R&D programs, would receive a 79 percent increase over the FY 2012 enacted level.
This funding would support 107 ongoing programs and 12 new programs.

Top priority R&D areas highlighted in the budget request include biological defense, explosives,
cybersecurity, and first responders, with all areas receiving notable increases over FY 2012 levels. These
increases reflect the agency’s attempt to prioritize R&D efforts and align them with Administration
priority areas. Cybersecurity remains a central Administration priority; DHS would provide $64.5 million


for cyber-related R&D efforts as well as $12.9 million for education and training activities in this space.
R&D areas that were cut in FY 2012, such as border security and counterterrorism, would see restored
funding to continue R&D efforts.

The University Programs Office, which funds Centers of Excellence and education programs that provide
tuition and stipends to undergraduates, graduate students, and post-doctoral researchers, would
receive a 9.4 percent increase over FY 2012.

Additional Resources: DHS’s FY 2013 budget can be viewed at

                                 Department of Homeland Security
                                                (In thousands)*
                                                  FY 2012       FY 2013          Request vs.
                                                  Enacted       Request           FY 2012
                    DHS, total                  49,594,814 48,698,830**           895,984
                      Science and                 668,000         831,472         163,472
                      Technology                                                  (24.5%)
                         University Programs       36,563          40,000       3,437 (9.4%)

                *Funding amounts reflect gross discretionary funding levels.
                **This includes $3.7 billion in discretionary fees and $5.5 billion provided for the Disaster
                Relief Fund pursuant to the Budget Control Act of 2011.


Department of Housing and Urban Development
The President’s FY 2013 budget request includes $44.8 billion for HUD, which is an increase of $1.4
billion or 3.2 percent over the FY 2012 enacted level.

       HUD continues to be a priority for the Administration with respect to programs serving the
        underserved; however, HUD proposals have been some of the more controversial in Congress,
        and many of the proposals will not be seen favorably, particularly by the House Majority.
       The request would restore $100 million for the Sustainable Communities Initiative which was
        zeroed out by Congress in the FY 2012 appropriations process.

New and Signature Initiatives

Sustainable Communities Initiative
The budget request would provide $100 million for the Sustainable Communities Initiative, which was
zeroed out in the final FY 2012 appropriation. This is the central piece of a broader Administration goal
to provide resources to help develop communities in need. Other agency partners include the
Environmental Protection Agency and the Department of Transportation. The goal of the initiative is for
communities to develop comprehensive housing and transportation plans that result in sustainable
development, reduction of greenhouse gases, and increased transit-accessible housing. The funds
would support about 20 planning grants for municipalities, state and local governments; however
institutions of higher education can be partners. The funding would also support
neighborhood/community efforts to adjust building codes and zoning regulations.

Choice Neighborhoods Initiative
The budget would provide $150 million for the Choice Neighborhood Initiative, which was initially
proposed in Obama’s FY 2010 budget. This is an increase of 3.2 percent over the FY 2012 funding. The
proposed $150 million would fund implementation grants in four to six neighborhoods designed to
preserve, rehabilitate, and transform public and private assisting housing developments. The goal for
the Choice Neighborhoods program is for grantees to engage with local governments and non-profits
and to attract additional support from for-profit entities, essentially sparking economic development
and revitalization. This initiative is a follow-up to the public housing HOPE VI initiative started in 1992.

Additional Resources: HUD’s FY 2012 Blue Book can be viewed at

                     U.S. Department of Housing and Urban Development
                                                  (In thousands)
                                                      FY 2012       FY 2013          Request
                                                      Enacted       Request         vs. FY 2012
           HUD, total                               43,389,000     44,759,000    1,370,000 (3.2%)
             Choice Neighborhoods Program            120,000        150,000       30,000 (25.0%)
             Sustainable Communities Initiative         0           100,000           100,000
             Policy Development and Research         46,000         52,000         6,000 (13.0%)


Department of State/USAID
The President’s FY 2013 budget request includes base funding of $43.38 billion for the Department of
State and the United States Agency for International Development (USAID), which is an increase of 9.4
percent over the FY 2012 enacted level. This figure does not include contingency funding for conflict
regions, for which an additional $8.24 billion is requested.

       Illustrating the Administration’s continued desire to expand the role of diplomacy and
        development in foreign policy, the President’s FY 2013 budget request proposes a significant
        increase to the international affairs budget, much of which is attributable to the transition to
        civilian operations in Iraq and a continued emphasis on Afghanistan and Pakistan.
       The President’s FY 2013 request for the Department of State and USAID maintains existing
        priorities in food security, education, climate change, global health, and women’s
        empowerment. The request for Global Health is down by $300 million from the FY 2012 level,
        but the Administration states that this is due to successes and efficiencies rather than changing
       Always one of the most controversial budget items, the foreign aid request is subject to deep
        ideological divides on Capitol Hill. House Republicans are expected to renew their efforts to
        reduce foreign aid in FY 2013 after previously proposing significant cuts to these programs as
        part of an effort to reduce federal spending.

New and Signature Initiatives

The President’s FY 2013 budget request is the first which fully encompasses the priorities outlined in the
Quadrennial Diplomacy and Development Review (QDDR) released in late 2010. The QDDR was created
to guide U.S. diplomacy and development policy while modernizing the country’s foreign aid enterprise.
With this in mind, the President’s FY 2013 budget request for international affairs continues priority
initiatives in global health, global food security, education, climate change, and women’s empowerment.
The President’s FY 2013 request also emphasizes reforming the international development enterprise
through Administrator Rajiv Shah’s USAID Forward initiative.

Of interest to universities, the request proposes a slight increase for Educational and Cultural Exchange
(ECE) programs through the Department of State. In addition to a 9 percent increase for the Fulbright
Program, the FY 2013 request proposes $5 million for a new Global University Innovation Fund designed
to support a “new model” of multilateral exchange with key partners. Also of interest, the President’s
request includes $1 billion to continue the Feed the Future global food security initiative with increased
research funding a primary goal of this allocation.

While not a prime opportunity for research institutions, a new $770 million Middle East and North
Africa Incentive Fund is one of the highest-profile additions to the President’s FY 2013 request.
Designed in response to the Arab Spring events of the last year, the Fund would provide additional
bilateral assistance to countries in the Middle East and North Africa which commit to advancing
democratic governance and market-based economic growth. The Fund is specifically intended to
support interim governments and civil society during rapid transitions.


Proposed Reductions and Terminations

While many of the accounts of interest to the research community would see increases in the
President’s FY 2013 budget request, the Administration’s Global Health Initiative (GHI) would be
reduced by $313.9 million across the Department of State and USAID. However, the President’s request
cites this reduction as being due to program efficiencies and identifies GHI as a continuing priority.
Other reductions are largely due to direct foreign aid, with the President’s request proposing to shift
funding away from Europe and Eurasia and towards more pressing needs in the Middle East and Africa.

Ongoing Areas of Interest

The President’s FY 2013 budget request reflects the Administration’s ongoing interest in modernizing
the international development enterprise through an increased leveraging of science, technology, and
innovation. This includes funding for the Development Innovation Ventures (DIV) program which funds
high-risk, high-reward development projects. The request would also continue USAID’s Grand
Challenges for Development program which supports innovative applications of science and technology
to produce potentially game-changing advances to targeted development challenges. While omitting a
specific funding proposal, the FY 2013 budget request indicates the Administration’s continued support
for the joint NSF-USAID Partnerships for Enhanced Engagement in Research (PEER) program which
provides funding for scientists in the developing world to collaborate with U.S. researchers.

Finally, the President’s FY 2013 request illustrates a continued commitment to using data and evidence
to evaluate the success of USAID programs. This is another key component of Administrator Shah’s
reform agenda for USAID, and features prominently in the recently announced competition for
university centers through the agency.

Additional Resources: The Department of State and USAID is available at

                                    Department of State / USAID
                                                (In thousands)

                                                 FY 2012          FY 2013       Request
                                                 Enacted          Request      vs. FY 2012
              International Affairs (Function   43,860,682       48,126,015    4,265,333
              150), Total                                                        (9.7%)
              State and USAID, total            39,644,437       43,377,114    3,733,114
                State Operations                12,414,329       13,511,302    1,096,973
                Education and Cultural            583,200         586,957     3,757 (0.6%)
                Exchange Programs
                USAID, Total                     1,268,500       1,448,445      179,945
              Development Assistance             2,519,950       2,525,500    5,550 (0.2%)
              Global Health Program, Total       8,167,860       7,854,000     -313,860


Environmental Protection Agency
The President’s FY 2013 budget request includes $8.344 billion for the Environmental Protection
Agency (EPA), which is a decrease of $104.9 million or 1.2 percent over the FY 2012 enacted level.

       The Administration continues to prioritize EPA, but recognizes that no agency is immune to the
        current budget realities. As such, the request for EPA includes a number of cuts, primarily
        through the Drinking Water and Clean Water State Revolving Funds, in order to invest in new
       Science and Technology as well as Environmental Program and Management would receive
        modest increases. The budget proposes refocusing its resources to support a Center for
        Innovative Estuarine Approaches and to build upon its current efforts to assess the potential
        impacts of hydraulic fracturing on ground water and surface water.
       Conservatives in Congress likely will continue their intense scrutiny of EPA, focusing on
        regulatory science, especially regulating greenhouse gas emissions and cross-state emissions
        rules, hydraulic fracturing, and clean water standards. Conversely, liberals in Congress will
        continue to champion EPA and highlight the human health benefits of environmental
        regulations and the need for scientific research to support those regulations.

New and Signature Initiatives

EPA’s budget would allot $2 million for a new Center for Innovative Estuarine Approaches. The Center
would work with industry, city, and state partners to develop science-based solutions to inform policy
and environmental management.

EPA will develop a Memorandum of Understanding with the Department of Energy (DOE) and the U.S.
Geological Survey (USGS) to study the potential impacts of hydraulic fracturing on groundwater and
surface water. EPA plans to release an interim report on the Impacts of Hydraulic Fracturing on Drinking
Water Resources at some point in 2012.

EPA also will coordinate with the U.S. Department of Agriculture (USDA) to work toward reducing non-
point source pollution in America’s waterways, such as from agriculture and construction.

Ongoing Areas of Interest

The budget request includes $81 million for the Science to Achieve Results (STAR) program, and has
placed an emphasis on hydraulic fracturing, green infrastructure, and endocrine disruptors as future
STAR topics.

The budget would continue to position EPA as the “go-to” agency for environmental regulation.
Furthermore, EPA would continue to restore and protect sensitive ecosystems, such as the Chesapeake
Bay and the Gulf Coast.

As in previous years, EPA’s budget request revolves around major themes. FY 2013’s themes are:


   1.   Taking Action on Climate Change and Improving Air Quality
   2.   Protecting America’s Waters
   3.   Cleaning Up Communities and Advancing Sustainable Development
   4.   Ensuring the Safety of Chemicals and Preventing Pollution
   5.   Enforcing Environmental Laws

Additional Resources: EPA’s budget is available at

                             Environmental Protection Agency
                                           (In thousands)
                                                FY 2012      FY 2013    Request vs.
                                               Enacted       Request      FY 2012
                EPA, total                    8,449,385     8,344,480    -104,908
                  Science and Technology      793,728       807,257       13,529
                  Environmental Program      2,678,222      2,817,179     138,957
                  and Management                                           (5.2%)


Institute of Museum and Library Services
The President’s FY 2013 budget request includes $231.95 million for Institute of Museum and Library
Services (IMLS), which is the same as the FY 2012 enacted level.

New and Signature Initiatives

IMLS undertook a strategic planning exercise over the last year, as instructed by Congress in the 2012
reauthorization of the Museum and Library Services Act. All programs in the FY 2013 budget request
would align with this new strategic plan. The funding included in the FY 2013 request is the same as the
funding levels in FY 2012; however, several programs would be consolidated to accommodate a more
streamlined application and review process including the 21st Century Museum Professionals Grants
(21MP) and the National Leadership Grant (NLG) programs.

Additional Resources: IMLS’ FY 2013 Blue Book can be viewed at

                            Institute of Museum and Library Services
                                                (In thousands)
                                                    FY 2012      FY 2013       Request
                                                    Enacted      Request      vs. FY 2012
              IMLS, total                           231,954      231,954           --
                Research, Evaluation and Data       1,886         1,886           --
                Library Services                   184,704       184,704          --
                Museum Services                    30,859        30,859           --


National Aeronautics and Space Administration
The President’s FY 2013 budget request includes $17.711 billion for the National Aeronautics and
Space Administration (NASA), which is a decrease of $58.6 million or 0.3 percent below the FY 2012
enacted level.

       NASA overall would not fare as well as other science agencies in the budget request; however
        specific areas of technology and scientific investment, such as Space Technology and
        Commercial Crew Development, remain high priorities for the Administration.
       Within the Science Mission Directorate, cost increases for the James Webb Space Telescope are
        juxtaposed with decreases in Planetary Science, including proposed cancellation of future Mars
        missions and scaling back of Outer Planet investments.
       NASA top line Exploration and Science priorities are largely supported by Congress and
        consistent with cost and schedule plans approved in the FY 2012 appropriations. However, the
        significantly reduced funding for Mars robotic exploration, one of NASA’s most successful
        programs to date, is unlikely to be supported by Congress.

New and Signature Initiatives

The budget request would largely continue signature initiatives begun in previous years of the Obama
Administration. In the Science Mission Directorate, a key priority is placed on the James Webb Space
Telescope, which would increase 21 percent to accommodate a recent cost rebaseline and to support a
launch by 2018.

Reflecting the White House commitment to the top scientific mission needs for Earth observations,
Earth Science would be protected in the budget proposal with an increase of 1.4 percent to
accommodate Decadal Survey priorities SMAP (planned for launch in 2014), OCO-2 (planned for launch
in 2015), and ICESat-2 (planned for launch in 2016).

The budget also proposes a 22 percent increase for Space Technology, which began under the Obama
Administration to develop advanced technologies in areas such as communications, sensors, robotics,
materials, and propulsion. For FY 2013, the program would continue support for competitions such as
NASA Innovative Advanced Concepts (NIAC) and Game Changing Developments, while ramping up
investments to current demonstration projects. New investments will be guided by a recently released
report of the National Research Council ( that
identified 16 critical priority technologies including radiation mitigation, solar power generation, and
thermal control.

Building on past year proposals, the budget request would provide a large increase for Commercial
Crew (up 104 percent) to develop commercial vehicles capable of transporting humans to low earth


Proposed Reductions and Terminations

Reflecting the agency’s tough budgetary situation and growing mission costs, the request includes a
number of reductions and terminations to programs which have received prior year support. The
largest reduction (20.6 percent) is to Planetary Science, including termination of a planned collaboration
with the European Space Agency for robotic exploration missions to Mars in 2016 and 2018. The White
House and NASA propose a dramatic reformulation of the Mars program with a possible lower-cost
Mars mission by 2020 and future missions likely delayed until the late 2020s. Also in Planetary Science,
the Lunar Quest program would receive a large decrease as the program will end in 2014 once the
LADEE mission launches, as recommended by the 2011 Planetary Science Decadal Survey. Outer Planets
funding would also be reduced significantly (31.2 percent) due to the completion of studies on a future
mission to Europa. In contrast to the rest of Planetary Science, Planetary Science Research would
increase 8.3 percent supporting increased grants to individual investigators and a new Joint Robotics
Program for Exploration.

Other Science programs would also see reductions. For example, Earth Science Research would
decrease 1.5 percent and the pace for future missions recommended by the 2007 Earth Science Decadal
Survey would be tempered, with several missions currently in pre-formulation or formulation slipping
launch dates by one or two years.

As in past budget requests, Education would be significantly decreased. The proposed 26.5 percent cut
would impact virtually all education programs, while Space Grant (down 38.3 percent) and EPSCoR
(down 48 percent) would receive especially large decreases. Education investments would focus
remaining funds on efforts to enhance learning and teacher professional development for middle school
students and well as student opportunities, scholarships, and internships for high school students and
undergraduates. The proposed reduction to Education is consistent with decreases proposed for
education programs in other mission agencies ahead of the release of a new interagency strategic plan
for STEM education by the National Science and Technology Council.

Ongoing Areas of Interest

Both Heliophysics and Astrophysics would receive increased research funding while other proposed
increases and decreases reflect missions entering new stages of development as planned.

After several years of proposed increases, Aeronautics would receive a 3.1 percent decrease, largely
reflecting a restructuring of the Fundamental Aeronautics program and the shift of entry, descent, and
landing activities to Space Technology.

In addition to the large increases proposed for Commercial Crew development, Exploration would
receive funding to keep development of the Orion Crew Vehicle and the Space Launch System on track.
The Human Research program would also receive a 4.4 percent increase.

Additional Resources: NASA’s FY 2013 budget request can be viewed at


                         National Aeronautics and Space Administration
                                              (In thousands)
                                   FY 2012                      FY 2013        Request
                                   Enacted                      Request       vs. FY 2012
NASA, total                      17,770,000                17,711,400       -58,600 (0.3%)
 Science                         5,073,700                 4,911,200       -162,500 (3.2 %)
   Earth Science                  1,760,500                 1,784,800        24,300 (1.4%)
     Earth Science                 440,100                   433,600         -6,500 (1.5%)
     Earth Systematic              881,100                     886,000       4,900 (0.6%)
     Venture Class                 53,600                      106,200      52,600 (98.1%)
   Planetary Science              1,501,400                    1,192,300   -309,100 (20.6%)
      Planetary Science            174,100                      188,500      14,400 (8.3%)
      Lunar Quest                  139,900                      61,500     -78,400 (56.0%)

      Discovery                    172,600                     189,600      17,000 (9.8%)

      Mars Exploration             587,000                     360,800     -226,200 (38.5%)
      Outer Planets                122,100                      84,000      -38,100 (31.2%)
   Astrophysics                    672,700                     659,400       -13,300 (2.0%)
     Astrophysics                  164,100                     176,200        12,100 (7.4%)
     Astrophysics                  112,200                      75,100     -37,100 (33.1%)
   James Webb Space                518,600                     627,600     109,000 (21.0%)
   Heliophysics                    620,500                     647,000      26,500 (4.3%)
      Heliophysics                 175,200                     178,900      3,700 (2.1%)
      Living with a Star           196,300                     232,600      36,300 (18.5%)
     Heliophysics                  60,200                       46,100     -14,100 (23.4%)
 Aeronautics                       569,400                      551,500     -17,900 (3.1%)
 Space Technology                  573,700                      699,000    125,300 (21.8%)
 Exploration                      3,712,800                    3,932,800   220,000 (5.9%)
   Exploration Systems            3,007,100                    2,769,400   -237,700 (7.9%)
   Commercial Crew                 406,000                     829,700     423,700 (104.4%)
   Exploration Research            299,700                     333,700      34,000 (11.3%)
   and Development
     Human Research                157,700                     164,700       7,000 (4.4%)
 Space Operations                 4,187,000                    4,013,200   -173,800 (4.2%)


Education              136,100     100,000     -36,100 (26.5%)
  Aerospace            56,100       33,000     -23,100 (41.2%)
  Research &
  Career Dev.
    Space Grant         38,900      24,000     -14,900 (38.3%)
    EPSCoR              17,300      9,000       -8,300 (48.0%)
  STEM Education        80,000      67,000     -13,000 (16.3%)
  & Accountability
Cross Agency Support   2,993,900   2,847,500   -146,400 (4.9%)
Construction and        487,000     619,200    132,200 (27.1%)
Compliance and
OIG                     38,300      37,000      -1,300 (3.4%)


National Endowment for the Arts & National Endowment for the
The President’s FY 2013 budget request includes $154.2 million each for the National Endowment for
the Humanities (NEH) and the National Endowment for the Arts (NEA). This would be an increase of
$8.2 million or 5.6 percent over the FY 2012 enacted level for each of the Endowments.

       While the proposed increase to NEH and NEA is a welcome signal of the Administration’s
        support for the Endowments, Congress is unlikely to fund any increase to the cultural agencies
        in this funding environment.
       The President’s budget request would fund signature priorities within NEA (the Our Town
        Program) and NEH (the Bridging Culture Program), but would zero out the popular NEH We the
        People program. While this decrease was originally proposed in the FY 2012 budget request,
        Congress rejected this proposal and continued funding for this program.

New and Signature Initiatives

National Endowment for the Humanities
The budget would provide $9 million for the Bridging Cultures program, an increase of 157 percent
above the FY 2012 enacted level. This has been a signature program for NEH Chairman Jim Leach. The
Bridging Cultures program is designed to help with the understanding of this nation’s culture and
history, providing a “global context for economic, political, and cultural interactions.” Universities are
positioned to be centrally engaged in competing for this funding. Funding from this program would be
available for collaborations with community colleges on course development and improvement;
development of distance learning technologies; research on humanities topics; international
collaborations and holding forums and workshops.

The FY 2013 budget request would not provide funding for the We the People program. The
Administration feels it has incorporated the key initiatives from the We the People program into annual
NEH programs and separate funding would be duplicative. As mentioned above, the Administration has
requested this in the past and Congress has restored the funding. The President’s budget request also
includes a 2.7 percent increase for the Digital Humanities programs. These programs have received
bipartisan support in previous years in Congress.

National Endowment for the Arts
The budget would provide $10 million for the NEA Our Town program, a signature initiative of NEA
Chairman Rocco Landesman, launched in 2011. Our Town was designed to help transform communities
into beautiful and sustainable areas to live and requires a partnership with local government.

Additional Resources:

NEH’s FY 2013 full budget details can be viewed at


NEA’s FY 2013 full budget details can be viewed at

                          National Endowment for the Humanities
                             National Endowment for the Arts
                                                (In thousands)
                                                   FY 2012       FY 2013      Request
                                                   Enacted       Request     vs. FY 2012
            NEH, total                             146,021       154,255    8,234 (5.6%)
              Bridging Cultures                    3,494          9,000    5,506 (157.6%)
              We the People                        2,995           0       -2,995 (100%)
              Digital Humanities                   4,143          4,250      107 (2.6%)
              Education Programs                   13,179        13,550      371 (2.8%)
              Federal/State Partnerships           40,435        40,350      -85 (0.2%)
              Preservation and Access              15,176        15,700      524 (3.5%)
              Public Programs                      13,404        13,900      496 (3.7%)
              Research                             14,502        15,255      753 (5.2%)
              Challenge Grants                     8,357          8,750      393 (4.7%)
            NEA, total                            146,021        154,255    8,234 (5.6%)
              Grants                               69,097        73,143     4,046 (5.9%)
                 Our Town                           N/A          10,000         N/A
              State and Regional Partnerships      46,065        48,762     2,697 (5.9%)


National Science Foundation
The President’s FY 2013 budget request includes $7.373 billion for the National Science Foundation
(NSF), a proposed increase of $340.0 million or 4.8 percent over the FY 2012 enacted level. Of this
amount, Research & Related Activities would receive $5.983 billion, 5.2 percent over FY 2012, and
Education and Human Resources would receive $876 million, 5.6 percent over FY 2012.

       The National Science Foundation remains a priority for the President, with continued attention
        at NSF on advanced manufacturing; clean energy and sustainability; and science, technology,
        engineering, and mathematics (STEM) education—trends expected to continue should President
        Obama win reelection. The budget request would also increase support for basic research
        across all fields.
       NSF is increasingly focused on “OneNSF” to enable the Foundation to work across traditional
        boundaries, thus interdisciplinary initiatives such as Science, Engineering, and Education for
        Sustainability (SEES) will continue to be prioritized throughout the Foundation.
       Both the House and Senate continue to be supportive of NSF, recognizing the need for
        continued investment in basic research. While NSF may not receive the full proposed increase,
        Congress will likely protect the Foundation from significant cuts.

New and Signature Initiatives

NSF’s FY 2013 request continues or expands several existing initiatives while proposing the creation of
new programs to bolster capacity in targeted areas, such as:

Cyber-enabled Materials, Manufacturing, and Smart Systems (CEMMSS)
In response to the Advanced Manufacturing Partnership and the Materials Genome Initiative announced
by the White House in June 2011, CEMMSS would bring together existing NSF investments in smart
systems, breakthrough materials, and advanced manufacturing in a new framework to seek answers to
three questions:
      “What is the scientific basis for designing, manufacturing, and deploying cyber-enabled smart
        systems and the new materials from which they will need to be composed?
      Who will have the multidisciplinary skills to design, build, and implement these materials and
      What gives us confidence that these materials and future systems will predictably perform as
        designed once transitioned into practice?”

Funding for CEMMSS is proposed at $257.42 million, an increase of 82 percent over funding provided for
similar areas of research in FY 2012. CEMMSS would include three tracks: cyberinfrastructure;
education and workforce; and science and engineering. NSF will convene an internal working group in
2012 to develop and plan activities to be implemented over the next four years, including workshops,
coordinated solicitations and dear colleague letters.

Cyberinfrastructure Framework for 21st Century Science and Engineering (CIF21)
NSF continues to be supportive of CIF21 for what would be its second year of funding, proposing
$106.08 million in FY 2013, a 36 percent increase over FY 2012. CIF21 is an agency-wide effort to


develop comprehensive, integrated, sustainable, and secure cyberinfrastructure to accelerate research
and education capabilities in computational and data-enabled science and engineering. For FY 2013,
NSF would continue and expand existing activities such as EarthCube, the Software Infrastructure for
Sustained Innovation program, and Research Coordination Networks. A new solicitation on Core
Techniques and Technologies for Advancing Science and Engineering (BIGDATA) is also planned for both
FY 2012 and FY 2013 through the Networking and Information Technology Research and Development
program and will involve several NSF directorates as well as other agencies, including the National
Institutes of Health.

NSF Innovation Corps (I-Corps)
First announced in July 2011, I-Corps would continue to be supported in FY 2013 at $18.85 million, over
double the $7.5 million it received in FY 2012. Through I-Corps, NSF seeks to catalyze technology
transfer and entrepreneurship by identifying and fostering research capable of transitioning out of the
laboratory, and linking it into a broader network of entrepreneurs, investors, and industry experts.

Integrated NSF Support Promoting Interdisciplinary Research and Education (INSPIRE)
Launched in FY 2012 with $20.4 million, INSPIRE would receive a significant increase in FY 2013 to $63
million. The purpose of INSPIRE is to strengthen support for interdisciplinary research that addresses
scientific problems at the interface of traditional disciplines.

Secure and Trustworthy Cyberspace (SaTC)
SaTC would be supported at $110.25 million in FY 2013, slightly less than the $111.75 million related
activities received in FY 2012. SaTC aligns NSF’s investments in cybersecurity to the thrust areas
identified in the National Science and Technology Council report, Trustworthy Cyberspace: Strategic Plan
for the Federal Cybersecurity Research and Development Program: inducing change, developing
scientific foundations, maximizing research impact, and accelerating transition to practice. SaTC
supports research to protect America’s information technology infrastructure from various threats. For
FY 2013, NSF would expand large, multi-institution projects and increase cross-disciplinary support while
reducing Education and Human Resources funding.

Science, Engineering, and Education for Sustainability (SEES)
The budget request would support SEES at $202.5 million, 29 percent above the FY 2012 level. Started in
FY 2010, SEES engages NSF’s 11 directorates and offices to address interdisciplinary research and
education needs as they relate to understanding the interactions between human and environmental
systems. For the last few years, the initiative has provided funding for programs in energy and
environment. In FY 2013, SEES would initiate five programs: Coastal SEES; Arctic SEES; Sustainable
Chemistry, Engineering, and Materials (SusChEM); Creating a More Disaster-Resilient America (CaMRA);
and the Role of Information Sciences and Engineering in SEES (RISES), which would support research to
utilize advanced information technologies to decrease energy consumption and increase the use of
renewable energy.

Undergraduate STEM Education
NSF would expand its undergraduate STEM education activities in response to a new PCAST Report
calling for increased efforts in this area
Several new and existing programs seek to bolster the Foundation’s efforts:


       K-16 Math Education: NSF will work with the Department of Education to develop an “evidence-
        based initiative to improve K-16 mathematics and knowledge building.” In FY 2013, the
        Department of Education and NSF’s Directorate for Education and Human Resources (EHR) will
        each contribute $30 million, with EHR’s support through the Discovery Research K-12 and
        Transforming Undergraduate Education in STEM (TUES) programs. Funding for other TUES
        activities would also be increased.
       Expeditions in Education (E2): E2 would establish a partnership between EHR and other NSF
        directorates and offices to “integrate, leverage, and expand STEM education research and
        development…” E2 would be supported at $49 million in FY 2013 with a focus on
        undergraduate education, sustainability, and cyberlearning.
       Widening Implementation and Demonstration of Evidence-based Reforms (WIDER): A 150
        percent increase for this program would be provided to increase the use of evidence-based
        undergraduate STEM education practices through institutional reforms.

Proposed Reductions and Terminations

The FY 2013 budget request for NSF proposes eleven reductions, eliminations, and consolidations
totaling $67 million. The proposed cuts reflect NSF prioritization and programs that have been
consolidated, the purpose has been duplicated, or the program has reached its desired outcome.

Computer and Information Science and Engineering (CISE) Research Programs
Support for the following programs is expected to be “absorbed” into the CISE core programs:
    Network Science and Engineering (NetSE)
    Social-Computational Systems
    Interface between Computer Science and Economic & Social Sciences (ICES)

Cyber-enabled Discovery and Innovation (CDI)
Funding for CDI has been redirected to support new efforts in CEMMSS and CIF21.

Mathematical and Physical Sciences Research Programs
The following programs are proposed for elimination as they either overlap with core programs or “have
achieved their original goal:”
     Mathematical Physics
     Grid Computing
     Cultural Heritage Science
     CHE-DMR-DMS Solar Energy Initiative (SOLAR)

Nanoscale Science & Engineering Centers (NSECs)
Proposed support for NSECs is reduced by $5 million to support new Nanosystems Engineering Research
Centers that are currently being competed. NSF will continue to support the eleven continuing NSECs in
FY 2013.

Public Outreach Terminations
The following programs are proposed for elimination as they are duplicative of the larger Advancing
Informal STEM Learning program (formerly called Informal Science Education):
     Communicating Science Broadly


       Connecting Researchers with Public Audiences

Ongoing Areas of Interest

Major Research Equipment and Facilities Construction (MREFC)
The FY 2013 budget request would fully support the established commitments to the four continuing
MREFC projects: Advanced Laser Interferometer Gravitational-Wave Observatory (AdvLIGO); Advanced
Technology Solar Telescope (ATST); National Ecological Observatory Network (NEON); and Ocean
Observatories Initiative (OOI). No new funding was requested for the Atacama Large Millimeter Array
(ALMA) as construction will be completed with funding provided in FY 2012.

Continued Investment in Young Researchers
The FY 2013 President’s budget request would continue the emphasis on the pipeline of students
choosing science and engineering careers by providing increases for the Graduate Research Fellowship
(GRF) program and the Faculty Early Career Development (CAREER) program. The GRF program would
receive $242.98 million (22.6 percent over FY 2012), which would again support 2,000 new fellowships
and would also allow for a stipend increase to $32,000. The CAREER program would receive $216.49
million (4.9 percent over FY 2012) and would support an additional 40 CAREER awards over FY 2012,
totaling 440 new awards for FY 2013 if funded.

Research at the Interface of Biological, Mathematical, and Physical Sciences (BioMaPS)
In the second year of this initiative, BioMaPS would receive $30.17 million (51 percent above FY 2012
levels). BioMaPS is a collaboration between the Biological Sciences, Engineering, and Mathematical and
Physical Sciences Directorates with the goal of integrating research to gain a better understanding of
biological systems, then use that understanding to develop new technologies, particularly in clean
energy and advanced manufacturing.

US Ignite
NSF would provide US Ignite with $10 million in FY 2013. US Ignite would leverage NSF’s investment in
the Global Environment for Network Innovations (GENI). The Ignite initiative seeks to provide “unique,
at-scale, network testbed for foundational research in networking, distributed systems, cloud
computing, and security and for public sector gigabit application development.”

NSF provides large-scale multidisciplinary awards through a variety of center programs which, in most
cases, do not run competitions every year. Updates on some of the center programs follow below:
     Science and Technology Centers (STCs): The STC program would receive $74.39 million to
        support the existing 11 STCs and five new STCs in FY 2013. Of note, the solicitation for the FY
        2013 competition (posted in January 2011) expected to support six new centers as opposed to
        five referenced in this budget request.
     Engineering Research Centers (ERCs): The first class of Nanosystems ERCs (NERCs) is expected
        to be funded in the fall of 2012 with a new general ERC solicitation expected in September 2012.
     Centers for Chemical Innovation (CCI): In FY 2013, the Mathematical & Physical Sciences
        Directorate’s Division of Chemistry expects to support three new Phase I CCI awards.


Additional Resources: NSF’s FY 2013 budget materials can be viewed at

                                      National Science Foundation
                                                   (In thousands)
                                                       FY 2012       FY 2013         Request
                                                       Enacted       Request        vs. FY 2012
               NSF, total                             7,033,100     7,373,100         340,000
                 Research and Related               5,689,000       5,983,280         294,280
                 Activities                                                            (5.2%)
                 Biological Sciences                 712,380        733,860        21,480 (3.0%)
                 Computer and Information            653,590        709,720        56,130 (8.6%)
                 Science and Engineering
                 Engineering                         826,170        876,330        50,160 (6.1%)
                 Geosciences                         885,270        906,440        21,170 (2.4%)
                 Mathematical and Physical          1,308,940       1,345,180      36,240 (2.8%)
                 Social, Behavioral, and             254,250        259,550         5,300 (2.1%)
                 Economic Sciences
                 Office of Cyberinfrastructure       211,640        218,270         6,630 (3.1%)
                 Office of International Science      49,850         51,280         1,430 (2.9%)
                 and Engineering
                 Office of Polar Programs            435,870        449,740        13,870 (3.2%)
                 Integrative Activities              349,590        431,520        81,930 (23.4%)
                 U.S. Arctic Research                  1,450         1,390           -60 (4.1%)
                 Education and Human                 829,000        875,610        46,610 (5.6%)
                 Major Research Equipment            197,060        196,170         -890 (0.5%)
                 and Facilities Construction*
                 Agency Operations and Award         299,400        299,400              --
                 National Science Board                4,440         4,440               --
                 Office of Inspector General          14,200         14,200              --

* In FY 2012, $30 million was transferred from the Research and Related Activities (R&RA) account to the Major
Research Equipment and Facilities Construction (MREFC) account, as provided by P.L. 112-55.


U.S. Department of Agriculture
The President’s FY 2013 budget request would provide $23.0 billion in discretionary funding for the
U.S. Department of Agriculture (USDA), which is a decrease of 3.0 percent below the FY 2012 enacted

      The President’s FY 2013 budget request would make targeted investments in USDA’s research
       enterprise. Though USDA’s research mission is not as large as other key agencies, USDA’s
       National Institute of Food and Agriculture (NIFA) provides critical research expertise for several
       Administration priority areas including renewable energy, climate change, human nutrition and
       obesity, food safety, and global food security. NIFA’s primary extramural research program, the
       Agriculture and Food Research Initiative (AFRI), would receive an increase of 23.1 percent.
      As expected, the FY 2013 request for USDA is focused on job creation and economic
       development. Underpinning these two goals is a safe, sustainable, and competitive agriculture
       industry supported by research, education, and extension programs. Top research priorities
       highlighted in the FY 2013 budget include climate change, resource management, renewable
       energy, nutrition, and food security. These priority areas would be offset by reductions in
       farming subsidies, loan programs, other direct payments, as well as savings from increased
       efficiencies and service modernizations. These tradeoffs reflect the Obama Administration’s
       focus on increasing the nation’s renewable energy portfolio, job creation, and economic
      It is unlikely that the President’s request will pass Congress in its current form. However,
       Congress is preparing to reauthorize the Farm Bill in 2012 and may incorporate parts of the
       President’s budget request.

New and Signature Initiatives

The President’s budget request would create two new NIFA initiatives through the reauthorization of
the Farm Bill: a Crop Protection program and a Sustainable Agriculture Federal-State Matching Grant
program. Because these two new initiatives remain unformed, they will offer stakeholders the
opportunity to interact with USDA on their development. The budget request includes $29.1 million for
the new Crop Protection program and reflects funding transferred from other pest management
activities in the NIFA portfolio. The funding would support integrated research, education, and
extension programs for pest management that have a regional and national focus. The program also
fosters regional and national team building efforts, communication networks, and enhanced stakeholder
participation. The President’s budget request would also provide $3.5 million for a new Federal-State
Matching Grant program to enhance agricultural sustainability research, extension, and education

Similar to last year, the FY 2013 budget request proposes the creation of a $10.0 million Hispanic-
Serving Agricultural Colleges and Universities Endowment Fund to increase participation of Hispanic
students in agricultural sciences.


Proposed Reductions and Terminations

Given the fiscal challenges associated with reducing the federal deficit, the FY 2013 budget proposes
multiple reductions and terminations for USDA. In general, the President’s request would cancel
approximately $23.0 million in funding from NIFA’s Research and Education area, including Competitive
Grants for Policy Research, Animal Health and Disease Research, and Special Research Grants, among

Ongoing Areas of Interest

The FY 2013 budget request for USDA is organized around four broad areas of engagement: helping
rural communities to become self-sustaining and economically prosperous; conserving, restoring, and
protecting natural resources from climate change; promoting agricultural production and biotechnology
to support food security; and ensuring the nation’s children have safe, nutritious, and balanced meals.

The President’s budget request recognizes the critical role of agriculture research and education
activities in addressing these four broad areas and sustaining the productivity of the nation’s agricultural
enterprise. As a result, the Research, Education, and Economics account would receive a 2.1 percent
increase, the majority of which, 48 percent, would go towards extramural research programs of NIFA.
Though other federal agencies have been tasked with leading initiatives on climate change and energy,
the Administration has recognized the need to engage USDA’s research capabilities to advance biofuels
research as well as land and resource management as it relates to climate mitigation and environmental
protection. To this end, major proposed initiatives within AFRI include $30.0 million for renewable
energy research focused on feedstocks for biofuel production; $3.7 for climate adaptation research;
$7.2 million for international food security research focused on health threats; and $7.2 million in
nutrition and obesity research.

Additional Resources: USDA’s FY 2013 budget materials can be viewed at

                                    U.S. Department of Agriculture
                                               (In thousands)
                                                      FY 2012       FY 2013         Request
                                                      Enacted       Request        vs. FY 2012
            USDA, Research, Education, Extension     2,715,000     2,657,000     -58,000 (2.1%)
            Agricultural Research Service (ARS)     1,126,000      1,130,000      4,000 (0.4%)
            NIFA                                    1,353,000      1,271,000      -82,000 (6.1%)
              AFRI                                   264,000       325,000       61,000 (23.1%)
              Hatch Act                              236,000       235,000        -1,000 (0.4%)
              Hispanic Serving Institutions           9,219          9,219              --
              Education Grants
              Higher Education Programs              47,000         48,000        1,000 (2.1%)
              Smith-Lever Act 3(b) and 3(c)          294,000       292,000        -2,000 (0.7%)
            Food Safety and Inspection Service      1,014,000      1,006,000      -8,000 (0.8%)


U.S. Geological Survey
The President’s FY 2013 budget request would provide $1.103 billion for the U.S. Geological Survey
(USGS), an increase of $34.5 million, or 3.2 percent, over the FY 2012 enacted level.

       Though USGS plays a critical role as the Department of the Interior’s (DOI) scientific research
        arm, it has had relatively level funding for well over a decade. Recently, numerous natural
        disasters and potential shortages of rare earth minerals have raised the importance of USGS’s
        research mission. However, the President’s request for USGS is below the FY 2012 requested
       Reflecting world events, the Natural Hazards account would receive a 7.7 percent increase,
        which would include a 6.9 percent gain for Earthquake Hazards. In total, every account except
        Water Resources and Facilities would receive an increase. As in past requests, the FY 2013
        request would zero out the Water Resources Research Act funding which supports Water
        Resource Research Institutes (WRRI).

New and Signature Initiatives

As in past budget requests, the President’s FY 2013 request seeks to sustain funding for USGS’s existing
initiatives. The request would provide increased funding of approximately $73.2 million spread across
the New Energy Frontier, WaterSMART, Cooperative Landscape Conservation, Youth in the Great
Outdoors, Ecosystem Priorities, Rapid Disaster Response, and Science for Coastal and Ocean
Stewardship programs.

Proposed Reductions and Terminations

Similar to the FY 2012 President’s budget request, the FY 2013 request would eliminate funding for the
Water Resources Research Act programs which support the Water Resources Research Institutes.
However, Congress has traditionally sustained these funds due to the local value of the water research
the Institutes support.

Though the USGS budget request in FY 2012 proposed creating a new account to handle the finances
associated with USGS Landsat satellite missions, no such proposal is included in the FY 2013 budget
request. USGS states that it will continue to work with the National Aeronautics and Space
Administration (NASA) to develop cost-effective land-sensing capabilities.

Ongoing Areas of Interest

For FY 2013, the President’s budget request is organized around six scientific thrusts, which have
prioritized the following research areas.

    1. The Natural Hazards area would prioritize research focused on effects of the 2011 earthquake in
       Mineral, Virginia.


   2. The Ecosystem area remains focused on supporting research in at-risk ecosystems across the
      nation. Specific ecosystem research programs are focused on invasive species like Asian Carp,
      brown tree snakes, and white-nose syndrome in bats.
   3. The Climate and Land Use Change area would focus on activities that advance national
      understanding of the physical, chemical, and biological components of the Earth system, the
      causes and consequences of climate and land use change, and the vulnerability and resilience of
      the Earth system to these changes.
   4. The Energy, Minerals, and Environmental Health area would pursue research related to
      locating rare earth minerals, which has become a top political priority given their relative
      shortage and importance to key high technology areas. USGS also plans to continue evaluating
      potential impacts to wildlife in connection with wind-energy development.
   5. The Water Resources area would continue to emphasize hydrologic modeling as well as the
      impacts of wildfires and climate change on water resources.
   6. The Core Science Systems continues to prioritize data preservation related to the USGS mission.

Additional Resources: The USGS FY 2013 Greenbook can be viewed at

                                      U.S. Geological Survey
                                             (In thousands)
                                                         FY 2012     FY 2013      Request
                                                         Enacted     Request     vs. FY 2012
          USGS, total                                   1,068,032   1,102,492   34,460 (3.2%)
            Natural Hazards                              134,480    144,778     10,298 (7.7%)
            Earthquake Hazards                           55,125      58,917      3,792 (6.9%)
            Global Seismographic Network                  5,312      5,451        139 (2.6%)
            Ecosystems                                   161,278    177,852     16,574 (10.3%)
            Climate and Land Use Change                  144,090    153,749      9,659 (6.7%)
            Energy, Minerals, and Environmental Health   96,213      97,127       914 (0.9%)
            Water Resources                              214,652    209,828      -4,824 (2.2%)
            Water Resources Research Act                  6,490        0        -6,490 (100.0%)
            Core Science Systems                         106,678    120,390     13,712 (12.9%)
            Facilities                                   100,421     99,717       -704 (0.7%)


Interagency Initiatives and Priorities
U.S. Global Change Research Program

The President’s budget request includes $2.6 billion for the U.S. Global Change Research Program
(USGCRP), which is $136 million and 5.6 percent over the FY 2012 enacted level. USGCRP is an
interagency effort that brings together 13 federal agencies to address issues dealing with global change,
including but not limited to global climate change. The budget request lays out a vision for USGCRP that
is consistent with the program’s new decadal strategic plan, which is set to be finalized and released to
the public within weeks.

In FY 2013 and beyond, USGCRP will be guided by the following four objectives: (1) advance scientific
knowledge of the climate system, including the human components; (2) use the best science to inform
decision making around mitigation and adaptation; (3) conduct sustained, ongoing assessments of
climate impacts and vulnerabilities; and (4) broaden public understanding of global change through
education and outreach. Over the past two decades, USGCRP has focused on understanding the basic
science of global change, specifically the climate system. With a move toward understanding the
societal impacts and ways to adapt to global change, as outlined in its new strategic plan and in the FY
2013 budget request, the program now will be better aligned with its initial congressional mandate,
which is to “understand, predict, mitigate, and adapt to global change,” not just climate change.

The table below outlines the proposed funding contributions for each participating agency:

                           USGCRP Agency Contributions, in millions
                             (Percentages are comparisons to FY 2012 enacted)

                     USGCRP, total                           $2,563            (5.6%)
                        NSF                                    $333            (0.0%)
                        DOE                                    $230            (9.0%)
                        DOC (NOAA and NIST)                    $342            (7.2%)
                        USDA                                    $86            (3.6%)
                        Interior (USGS)                         $68           (15.3%)
                        EPA                                     $20            (5.3%)
                        NIH                                      $4            (0.0%)
                        NASA                                 $1,469            (5.7%)
                        Smithsonian                              $8            (0.0%)
                        Transportation                           $3          (200.0%)
                *USAID, Department of State and DOD fund USGCRP activities separately.


National Nanotechnology Initiative

The President’s budget request includes $1.8 billion for the National Nanotechnology Initiative (NNI),
which is $70 million or 4.1 percent over the FY 2012 enacted level. NNI is a multi-agency initiative that
coordinates research and development on materials, devices and systems in the size range of one to 100
nanometers. Participating agencies support fundamental nanoscience, nanotechnology innovation,
technology transfer, and nanomanufacturing through individual investigator awards, multi-disciplinary
centers of excellence, education and training programs, and the development of new infrastructure and
standards. NNI currently supports three signature initiatives announced in the FY 2012 budget request
on nanomanufacturing, solar energy, and nanoelectronics.

NNI is currently guided by two strategic plans released in 2011, an overall plan
( and a specific plan for Environmental, Health, and Safety Research
( The plans continue to support the four NNI goals: (1) to advance world-
class nanotechnology research and development; (2) to foster the transfer of new technologies into
products for commercial and public benefit; (3) to develop and sustain educational resources, a skilled
workforce and the supporting infrastructure and tools to advance nanotechnology; and (4) to support
the responsible development of nanotechnology.

The below table outlines the proposed funding contributions for each participating agency:

                             NNI Agency Contributions, in millions
                             (Percentages are comparisons to FY 2012 enacted)

                     NNI, total                             $1,766                (4.1%)
                         NSF                                  $435                (2.1%)
                         DOD                                  $289              (19.9%)
                         DOE                                  $443              (40.3%)
                         NASA                                  $22                (4.3%)
                         DOC (NIST)                           $102                (7.0%)
                         HHS                                  $429                (0.4%)
                         USDA                                  $17                     --
                         EPA                                   $19              (11.8%)
                         DHS                                    $6              (14.3%)
                         DOT                                    $2               (100%)
                         All Other                              $2                     --


Corporation for National and Community Service

The President’s FY 2013 budget request includes $1.3 billion for the Corporation for National and
Community Service (CNCS), which is an increase of $13.8 million or 1.2 percent over the FY 2012
enacted level.

      CNCS fits within the Obama Administration’s social innovation/community service agenda;
       however, is too small to be identified as a true priority.
      If Congress is only looking to make cuts based on the amount of money it would save to address
       deficit reduction, CNCS would not make this list simply because of its size. However, as it does
       not rank high on many Members priority lists and other Members of Congress dislike the notion
       of federal support for volunteer oriented programs, CNCS could again be a target for significant

Proposed Reductions and Terminations
The budget request would not provide funding for the Learn and Serve America Program, the Nonprofit
Capacity Building Program, and the Volunteer Generation Fund in order to fund priority CNCS programs
such as AmeriCorps and the Social Innovation Fund. While these programs would not receive funding in
FY 2013, they are still authorized and may receive funding from Congress during the appropriations

Additional Resources: CNCS’ FY 2013 Blue Book can be viewed at

                      Corporation for National and Community Service
                                             (In thousands)
                                             FY 2012         FY 2013         Request
                                             Enacted         Request        vs. FY 2012
             CNCS, total                    1,048,883       1,062,642     13,759 (1.3%)
               Social Innovation Fund        44,815         50,000         5,185 (11.6%)
               AmeriCorps                    471,050        470,410         -640 (.1%)
                  State and National         344,348        345,000          652 (.2%)
                  VISTA                      94,820         95,300           480 (.5%)
                  NCCC                       31,882         30,110         -1,772 (5.6%)


Advanced Manufacturing

In June 2011 the White House launched the Advanced Manufacturing Partnership (AMP), a multi-agency
initiative to support new funding opportunities to advance manufacturing technology; foster greater
collaboration between federal agencies, academia, and the manufacturing industry; and build the
necessary infrastructure to support a robust U.S. manufacturing sector. Building on these activities, the
President’s budget request includes approximately $2.2 billion for advanced manufacturing research
and development (R&D) across several agencies but primarily at the National Science Foundation (NSF),
the Department of Defense (DOD), the Department of Energy (DOE), and the Department of Commerce
(DOC). This represents a 19 percent increase over FY 2012 funding levels for advanced manufacturing
initiatives in FY 2012, demonstrating the Administration’s commitment to supporting the growth of a
robust U.S. manufacturing sector.

The President’s FY 2013 request identifies DOD as a key player in the Administration’s advanced
manufacturing initiative, particularly through public-private partnerships. While the budget request
includes little in the way of details on how the agency plans to engage in the Administration’s efforts to
promote advanced manufacturing, it proposes $2.1 billion for research in high priority areas which
includes robotics and advanced manufacturing technology. DOD will continue to emphasize reducing
the time it takes to develop and manufacture technologies with defense applications.

NIST is expected to take over leadership of the AMP initiative and play a strong role in administering the
Administration’s manufacturing policy agenda in the coming year. The budget includes $135 million for
advanced manufacturing research at NIST labs and $21 million for the Advanced Manufacturing
Technology Consortia program, which will support public-private partnerships to develop strategies for
addressing long-term industrial research needs and fund research at universities. The budget request
also includes a proposal for legislation to provide $1 billion for a competitive grant program through
NIST entitled the National Network for Manufacturing Innovation (NNMI) to establish a number of
regional institutes for manufacturing innovation.

The President’s budget request would more than double the Office of Energy Efficiency and Renewable
Energy’s (EERE) funding for the recently established Advanced Manufacturing Office. In FY 2013, the
program would focus on developing innovative manufacturing processes and advanced materials that
will cut energy consumption by U.S. companies. The President’s budget request also emphasizes R&D
on new manufacturing processes for cars, biofuels, and clean energy technologies.

The budget request includes $257 million for a research initiative to develop smart manufacturing
systems with embedded computational intelligence that can adapt and react. This research initiative
would also provide $28 million for the National Robotics Initiative (NRI), an ongoing multi-agency effort
to accelerate the development and use of robots in the U.S. The budget also proposes $149 million, or a
26 percent increase over FY 2012, for basic research in partnership with other federal agencies and the
private sector to revolutionize manufacturing technologies.


Networking and Information Technology Research and Development Program

The President’s budget request includes $3.8 billion for the Networking and Information Technology
Development Program (NITRD), which is $69 million or 1.8 percent over the FY 2012 enacted level.
NITRD is an interagency program that plans and coordinates individual federal research agency funding
and initiatives in cyberinfrastructure and information technology. Ongoing focus areas of NITRD include
high priorities for FY 2013 such as cybersecurity, health IT, wireless spectrum research, and high end
computing. The budget request would add a new focus on “big data”, looking at how to capture,
manage and process large, heterogeneous data sets such as those produced by satellites, telescopes,
genome sequencing technologies, and particle accelerators. A NITRD Big Data Senior Steering Group
(BDSSG) has been established that will review current federal activities in this area and develop a high-
level strategic vision for a new national initiative. In 2012, BDSSG will coordinate with NSF, NIH, and
other NITRD agencies to launch a solicitation on Core Techniques and Technologies for Advancing
Science and Engineering (BIGDATA) that aims to develop new tools and approaches to address the
challenges of big data science. In FY 2013, BIGDATA will be expanded to include additional NITRD
agencies and to cover education and workforce development activities, as well as competitions and
prizes relevant to big data challenges.

The table below outlines the proposed NITRD funding contributions for each participating agency:

                             NITRD Agency Contributions, in millions
                               (Percentages are comparisons to FY 2012 enacted)

                       NITRD, total                             $3,807             (1.8%)
                           NSF                                  $1,207             (6.1%)
                           DOE                                    $594             (5.9%)
                           DOC                                    $142            (16.4%)
                           DOD                                  $1,116             (5.7%)
                           DHS                                     $64            (36.2%)
                           HHS*                                   $577             (0.3%)
                           NASA                                   $100             (2.9%)
                           All Other                                $7            (16.7%)

*HHS includes funds from offsetting collections for Agency for Healthcare Research and Quality (AHRQ).


This report was prepared by Lewis-Burke Associates LLC and may be used by our clients in whole
or in part with attribution. This report may not be quoted or reproduced by other entities without
                  the express prior written consent of Lewis-Burke Associates LLC.

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