President George W. Bush's budget for fiscal 2002 proposes spending $87.2 billion on federal research and development activities, an increase of about 11% over fiscal 2001 appropriations. But almost the entire$9 billion increase in outlays--money actually spent--is allocated to the Department of Defense and to NIH.

Although it is very early in the budget process, there are indications that Congress might move to increase some of the other research program spending levels for those areas that have either very small proposed increases or none at all.

For example, under the proposed budget, NSF would get a 1% increase, to $4.5 billion, with the increase primarily going to fund expanded education programs. The Office of Science at the Department of Energy, which funds most of the department's civilian research, would get essentially the same amount as in 2001, $3.2 billion, but other major DOE programs, such as nuclear research, energy conservation, and renewable energy sources, are facing budget cuts.

The President has proposed giving NASA $14.5 billion in fiscal 2002, a 2% increase. The funds are equally divided between spaceflight and science and technology programs. At other departments, the story is the same. Agriculture research would remain unchanged from this year at $1.5 billion. Funding for the Commerce Department's science and technology programs is down as the Administration proposes significant cuts to the Advanced Technology Program, and research at EPA is cut again, slated to get just $679 million, or 7% less than this year's funding.

The huge increase in defense spending is not targeted at DOD's basic or applied research programs. Those categories are slated to get just 2% increases for fiscal 2002, to $1.35 billion for basic research and $3.74 billion for applied research. The bulk of the increase in defense R&D spending--more than $5 billion--goes to support development and testing of new weapons systems and a new Initiative Transfer Account, which is generally presumed to be funds for the national missile defense program, getting about $2.5 billion. Details on the initiative will not be made available until the Administration finishes its defense strategy review, now underway.

Congressional reaction to the budget proposal has been less than enthusiastic. There are, for instance, major differences between some of Bush's proposals and the budget plan passed by the Senate earlier this month. That plan would spend more on health care, farm aid, and environmental programs. Senators are likely to want to keep funding for these programs at the levels indicated in the Senate budget plan, so reductions proposed by the Administration could be revised.

Among the amendments added to the Senate budget measure during floor debate was a provision that says fiscal 2002 R&D funding for NSF, NASA, and DOE is to be increased by $1.44 billion above the levels Bush had indicated in his budget blueprint (C&EN, March 5, page 12). The amendment, introduced by Sen. Christopher S. Bond (R-Mo.), signals the Senate's intention to redress what it sees as a growing imbalance in federal R&D funding between biomedical research at NIH and the physical sciences.

The balance issue was not ignored by the Administration. In its overview of budget priorities, the White House Office of Science & Technology Policy (OSTP) noted that NIH contributed more than $1 billion in grants in fiscal 2000 for research in physics, chemistry, and mathematics. Such contributions will grow as the NIH budget grows, OSTP concluded.

The Administration's budget proposal will now go to House appropriations subcommittees for hearings and revision. How much money the subcommittees will have to allocate depends, in part, on the final form of the Bush tax cut plan, which has passed the House and is pending in the Senate. All of the spending bills are supposed to be passed by Sept. 30, the end of the fiscal year.--DAVID HANSON