Research Reporter: December 2007
Research Information from the University of Michigan

Washington Update

FY08 funds for defense research set, domestic funding at an impasse

By Sarah Walkling
Director of Federal Relations for Research & Assistant Director of the UM Washington, D.C. office

On November 13, the President signed the fiscal year 2008 (FY08) Defense Appropriations bill into law. This is the first of twelve appropriations bills this year to complete the annual appropriations process. The remaining bills currently are at the center of a deadlock between the White House and Congress on the overall spending for federal domestic programs.

Research dollars from the Department of Defense comprise $52.2 million -- 6.6 percent -- of University of Michigan research expenditures for FY06.

The FY08 Defense Appropriations bill provides for an increase in basic research but an over decrease in dollars for science and technology (S&T). This reflects the continuing shift in focus at the Pentagon from S&T to weapons development programs. Overall, S&T will receive $12.77 billion for the new fiscal year. This is $556.9 million less than the FY07 amount. Within this, applied research will receive $233.4 million less than last year.

In contrast, basic research accounts at the Department of Defense are expected to receive $1.63 billion - approximately $700 million more than last year.

Within the Services, the Army receives the largest increase with a $15.6 million increase to $381.5 million. Defense-wide programs, such as Defense Research Services and the Science Mathematics Research for Transformation/National Defense Education Program, receive the most significant increases with a total of $40.8 million added for these vital programs.

Reflecting Congressional frustration with the Defense Advanced Research Projects Agency over its inability to spend past budgets, the agency will see a cut of $155.5 million from last year.

While funding levels for military programs have been set for FY08, the rest of the federal research budget remains in limbo. Domestic programs - such as the NIH, NASA and the National Science Foundation - currently are frozen at FY07 levels as leaders in Washington wrestle over the difference between the Congressional budget resolution the President's slimmer budget proposal. Rumors are circulating that negotiations might last into the week before Christmas, particularly if there is a presidential veto override battle between the two branches.

Sarah Walkling can be reached in Washington at (202) 554-0578. Her e-mail address is: skwa@umich.edu

December 2007

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