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CROSSCUTTING PROGRAMS


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15

Section 889 o the Homeland Security Act o 2002 re-quires a homeland security unding analysis be incorpo-rated in the Presidents Budget. This analysis addressesthat legislative requirement, and covers the homelandsecurity unding and activities o all Federal agencies,not only those carried out by Department o HomelandSecurity (DHS), as well as State, local, and private sectorexpenditures. Since not all activities carried out by DHSconstitute traditional homeland security unding (e.g. re-

sponse to natural disasters and Coast Guard search andrescue activities), DHS estimates in this section do notencompass the entire DHS budget.

In the coming months, uture homeland security bud-getary priorities will be inormed by the comprehensiveNational Security Strategy o the Obama Administrationthe Quadrennial Homeland Security Review and otherrelated eorts. One principle that will remain constant

3. HOMELAND SECURITy FUNDING ANALySIS

T 31. Homeland SecuriTy Funding by agency(budget authority in millions o dollars)

Agency2008

Enacted

2008Supplemental/

Emergency

2009Enacted

2009Supplemental/

Emergency

2010Request

Department o Agriculture 5746 5071 5747Department o Commerce 2069 2581 129 2675Department o Deense 17,3744 6577 19,4135 3650 19,3033Department o Education 271 318 306Department o Energy 1,8273 1,9388 2,0075Department o Health and Human Services 4,3006 4,6268 500 4,8398Department o Homeland Security 29,7558 2,7300 34,3509 2,5091 34,7315Department o Housing and Urban Development 19 48 49Department o the Interior 502 527 542Department o Justice 3,2775 2500 3,6413 467 3,9739Department o Labor 478 485 527Department o State 1,7191 1,8092 1,7678Department o Transportation 2053 2209 2479Department o the Treasury 1200 1337 1298Department o Veterans Aairs 3089 3046 3691

Corps o Engineers 420 420 430Environmental Protection Agency 1381 1570 1601Executive Oce o the President 210 191 170General Services Administration 1430 2330 1594 3690 1920National Aeronautics and Space Administration 2052 2218 2204National Science Foundation 3651 10 3772 294 3855Oce o Personnel Management 23 19 22Social Security Administration 1842 2146 2288District o Columbia 34 390 150Federal Communications Commission 23 23 30Intelligence Community Management Account 1220 328 155National Archives and Records Administration 177 207 206Nuclear Regulatory Commission 721 728 646Securities and Exchange Commission 134 140 150Smithsonian Institution 910 923 981United States Holocaust Memorial Museum 80 90 90

Tt, H St bt atht .. .............. ............. .............. .............. ............. .............. . 61,227.8 3,871.6 68,818.5 3,382.1 69,845.0

Less Department o Deense 17,3744 6577 19,4135 3650 19,3033

n-ds H St ba, bSh ......................... .............. ............. ........ 43,853.4 3,213.9 49,405.0 3,017.1 50,541.6

Less Fee-Funded Homeland Security Programs 4,7438 5,4786 5,4145Less Mandatory Homeland Security Programs 2,8870 2,6043 79 2,6227

nt n-ds dst H St ba, bSh .............................. 36,222.6 3,213.9 41,322.0 3,009.2 42,504.4

Plus BioShield 1,2640

nt n-ds dst H St ba , bSh .............................. 36,222.6 3,213.9 41,322.0 3,009.2 43,768.4


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16 ANALYTICAL PERSPECTIVES

is that the Presidents highest priority is to keep theAmerican people sae.

Data Collection Methodolog and Adjustments

The Federal spending estimates in this analysis uti-lize unding and programmatic inormation collected

on the Executive Branchs homeland security eorts.Throughout the budget ormulation process, the Oce oManagement and Budget (OMB) collects three-year und-ing estimates and associated programmatic inormationrom all Federal agencies with homeland security respon-sibilities. These estimates do not include the eorts o theLegislative or Judicial branches. Inormation in this chap-ter is augmented by a detailed appendix o account-levelunding estimates, which is available on the Analytical

Perspectives CD-ROM.To compile this data, agencies report inormation us-

ing standardized denitions or homeland security.1 Thedata provided by the agencies are developed at the ac-tivity level, which incorporates a set o like programs or

projects, at a level o detail sucient to consolidate theinormation to determine total Governmental spendingon homeland security.

To the extent possible, this analysis maintains pro-grammatic and unding consistency with previous esti-mates. Some discrepancies rom data reported in earlieryears arise due to agencies improved ability to extracthomeland security-related activities rom host programsand rene their characterizations. As in the Budget, whereappropriate, the data is also updated to refect agency ac-tivities, Congressional action, and technical re-estimates.In addition, the Administration may rene denitions

1

Federal homeland security activities are currently dened by OMB in Circular A11 as,activities that ocus on combating and protecting against terrorism, and that occur within the

United States and its territories (this includes Critical Inrastructure Protection (CIP) and Con-

tinuity o Operations (COOP) data), or outside o the United States and its territories i they

support domestically-based systems or activities (e.g., visa processing or pre-screening high-risk

cargo at overseas ports). Such activities include eorts to detect, deter, protect against, and, i

needed, respond to terrorist attacks.

or mission area estimates over time based on additionalanalysis or changes in the way specic activities are char-acterized, aggregated, or disaggregated.

Federal Expenditures

Total unding or homeland security has grown signi-

cantly since the attacks o September 11, 2001. For 2010the Presidents Budget includes $69.8 billion o gross budget authority or homeland security activities, a $1.0 billion (1.5 percent) increase above the 2009 enacted level.2

Excluding mandatory spending, ees, and the Departmento Deenses (DOD) homeland security budget, the 2010Budget proposes a net, non-Deense, discretionary budget authority level o $42.5 billion, which is an increaseo $1.2 billion (3 percent) above the 2009 level (see Table31).

A total o 31 agency budgets include Federal homeland security unding in 2010. Five agenciestheDepartments o Homeland Security, Deense, Healthand Human Services (HHS), Justice (DOJ) and Energy

(DOE)account or approximately $64.9 billion (93 per-cent) o total Government-wide gross discretionary homeland security unding in 2010.

As required by the Homeland Security Act, this analysis presents homeland security risk and spending in threebroad categories: Prevent and Disrupt Terrorist AttacksProtect the American People, Our Critical Inrastructureand Key Resources, and Respond to and Recover FromIncidents.

Prevent and Disrupt Terrorist Attacks

Activities o both intelligence-and-warning and domestic counterterrorism aim to disrupt the ability oterrorists to operate within our borders and prevent theemergence o violent radicalization. Intelligence-and-warning unding covers activities designed to detect ter

2 The 2010 gross homeland security unding request level excludes $1.3 billion or BioShield

T 32. PrevenT and diSruPT TerroriST aTTackS(budget authority in millions o dollars)

Agency 2008Enacted

2008Supplemental/

Emergency

2009Enacted

2009Supplemental/

Emergency

2010Request

Department o Agriculture 2651 1822 2068Department o Commerce 36 Department o Energy 512 507Department o Homeland Security 22,2547 2,6700 25,5756 1,7991 27,5500Department o the Interior 02 02 02Department o Justice 2,8091 2317 2,9657 438 3,2710Department o Labor 04 04Department o State 1,6593 1,7382 1,6863Department o Transportation 383 403 585Department o the Treasury 666 762 735General Services Administration 1150 2250 1100 3000 1510Social Security Administration 02 Intelligence Community Management Account 764

Tt, Pt dspt Tst atts .................................................... 27,288.5 3,126.7 30,739.8 2,142.9 33,048.4


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3. HOMELAND SECURITY FUNDING ANALYSIS 17

rorist activity beore it maniests itsel in an attack sothat proper preemptive, preventive, and protective actioncan be taken. Specically, it is made up o eorts to iden-tiy, collect, analyze, and distribute source intelligenceinormation or the resultant warnings rom intelligenceanalysis. It also includes inormation sharing activitiesamong Federal, State, and local governments, relevant

private sector entities, and the public at large; but it doesnot include most oreign intelligence collectionalthoughthe resulting intelligence may inorm homeland securityactivities. In 2010, unding or intelligence-and-warningis distributed between DHS (53 percent), primarily in theOce o Intelligence and Analysis; and DOJ (43 percent),primarily in the Federal Bureau o Investigation (FBI).The 2010 unding or intelligence and warning activitiesis 12 percent above the 2009 level.

Activities to deny terrorists and terrorist-relatedweapons and materials entry into our country and acrossall international borders include measures to protect bor-der and transportation systems, such as screening air-port passengers, detecting dangerous materials at ports

overseas and at U.S. ports-o-entry, and patrolling ourcoasts and the land between ports-o-entry. Securing ourborders and transportation systems is a complex task.Security enhancements in one area may make anotheravenue more attractive to terrorists. Thereore, our bor-der and transportation security strategy aims to makethe U.S. borders smartertargeting layered resourcestoward the highest risks and sharing inormation sothat rontline personnel can stay ahead o potential ad-

versarieswhile acilitating the fow o legitimate visi-tors and commerce. The majority o unding or borderand transportation security ($24.6 billion, or 92 percent,in 2010) is in DHS, largely or the U.S. Customs andBorder Protection (CBP), the Transportation Security

Administration (TSA), and the U.S Coast Guard. OtherDHS bureaus and other Federal Departments, such asthe Departments o State and Justice, also play a signi-cant role. The Presidents 2010 request would increase

unding or border and transportation security activitiesby 8 percent over the 2009 level.

Funding or domestic counterterrorism containsFederal and Federally-supported eorts to identiythwart, and prosecute terrorists in the United States. Italso includes pursuit not only o the individuals directlyinvolved in terrorist activity, but also their sources o sup

port: the people and organizations that knowingly undthe terrorists and those that provide them with logisticaassistance. In todays world, preventing and interdictingterrorist activity within the United States is a priority orlaw enorcement at all levels o government. The largestcontributors to the domestic counterterrorism goal arelaw enorcement organizations: DOJ (largely or the FBIand DHS (largely or ICE), account or 52 and 46 percento unding or 2010, respectively.

Protect the American People, Our CriticalInrastructure, and Ke Resources

Critical inrastructure includes the assets, systems

and networks, whether physical or virtual, so vital to theUnited States that their incapacitation or destructionwould have a debilitating eect on security, national eco-nomic security, public health or saety, or any combinationthereo. Key resources are publicly or privately controlledresources essential to the minimal operations o the economy and government whose disruption or destructioncould have signicant consequences across multiple di-mensions, including national monuments and icons.

Eorts to protect the American people include deending against catastrophic threats through researchdevelopment, and deployment o technologies, systemsand medical measures to detect and counter the threato chemical, biological, radiological, and nuclear (CBRN)weapons. Funding encompasses activities to protectagainst, detect, deter, or mitigate the possible terroristuse o CBRN weapons through detection systems andprocedures, improving decontamination techniques, and

T 33. ProTecT THe american PeoPle, our criTicalinFraSTrucTure, and key reSourceS

(budget authority in millions o dollars)

Agency 2008Enacted

2008Supplemental/

Emergency

2009Enacted

2009Supplemental/

Emergency

2010Request

Department o Agriculture 2553 2697 3105Department o Commerce 1572 2030 110 2104Department o Deense 16,8811 6577 18,8527 3650 18,7597

Department o Energy 1,6665 1,7215 1,7862Department o Health and Human Services 2,2007 2,5106 500 3,8611Department o Homeland Security 4,8925 5,3609 5000 3,9705Department o Justice 4586 183 6660 29 6300Department o Veterans Aairs 2361 2282 2709National Aeronautics and Space Administration 2052 2218 2204National Science Foundation 3651 10 3772 294 3855Social Security Administration 1730 2134 2282Other Agencies 6813 80 7348 690 7469

Tt, Ptt th a Pp, o ct istt, k rss ......... ............. .............. .............. ............. .. 28,172.6 684.9 31,359.8 1,027.3 31,380.2


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the development o medical countermeasures, such asvaccines, drugs and diagnostics to protect the public romthe threat o a CBRN attack or other public health emer-gency. The agencies with the most signicant resourcesto help develop and eld technologies to counter CBRNthreats are: DOD ($5.0 billion, or 56 percent, o the 2010total); HHS, largely or research at the National Institutes

o Health (NIH) and or advanced development o medi-cal countermeasures ($2.3 billion, or 26 percent, o the2010 total); and DHS ($1.5 billion, or 12 percent, o the2010 total). The Presidents 2010 request maintains und-ing or activities to deend against catastrophic threats.In addition to the 2010 request, DHS will have access to2009 resources or the deployment o new radiation portalmonitor equipment at ports o entry once successul test-ing and evaluation is completed.

Protecting the Nations critical inrastructure and keyresources (CI/KR) is a complex challenge or two reasons:(1) the diversity o inrastructure and (2) the high levelo private ownership (85 percent) o the Nations criti-cal inrastructure and key assets. Eorts to protect CI/

KR include uniying disparate eorts to protect criticalinrastructure across the Federal Government, and withState, local, and private stakeholders; accurately assess-ing CI/KR and prioritizing protective action based on risk;and reducing threats and vulnerabilities in cyberspace.DOD continues to report the largest share o unding inthis category or 2010 ($13.7 billion, or 60 percent), whichincludes programs ocusing on physical security and im-proving the militarys ability to prevent or mitigate theconsequences o attacks against departmental personneland acilities. DHS has overall responsibility or prioritiz-

ing and executing inrastructure protection activities atthe national level and accounts or $4.5 billion (20 per-cent) o 2010 unding. Another 25 agencies also reportunding to protect their own assets and work with Stateslocalities, and the private sector to reduce vulnerabilitiesin their areas o expertise.

The Presidents 2010 request increases unding or ac

tivities to protect the Nations people, critical inrastructure and key assets by $20.3 million. Funding in scalyear 2009 included a number o one-time non-recurringunding increases. When compared to 2008, the 2010 request represents a $3.2 billion (11 percent) increase overthe two-year period.

Respond To and Recover From Incidents

The ability to respond to and recover rom incidents requires eorts to bolster capabilities nationwide to preventand protect against terrorist attacks, and also minimizethe damage rom attacks through eective response andrecovery. This includes programs that help to plan, equip

train, and practice the response capabilities o many di-erent response units (including rst responders, such aspolice ocers, reghters, emergency medical providerspublic works personnel, and emergency management o-cials) that are instrumental in the preparedness to mobilize without warning or an emergency. Building thiscapability encompasses a broad range o agency incidentmanagement activities, as well as grants and other assis-tance to States and localities or rst responder preparedness capabilities. Response to natural disasters and othermajor incidents, including catastrophic natural events

T 34. reSPond To and recover From incidenTS Funding(budget authority in millions o dollars)

Agency 2008 Enacted

2008Supplemental/

Emergency2009

Enacted

2009Supplemental/

Emergency2010

Request

Department o Agriculture 542 552 574Department o Commerce 461 513 531Department o Deense 4933 5607 5436Department o Education 06 04 04Department o Energy 1608 1662 1706Department o Health and Human Services 2,0999 2,1163 2,2427Department o Homeland Security 2,4254 600 3,2100 2100 2,9806Department o Housing and Urban Development 19 48 49Department o the Interior 29 37 39Department o Justice 98 97 88Department o Labor 69 148 176Department o State 123 170 243Department o Transportation 177 188 193

Department o the Treasury 383 401 362Department o Veterans Aairs 728 764 982Environmental Protection Agency 582 702 706Executive Oce o the President 95 84 52General Services Administration 30 30 30Oce o Personnel Management 17 07 08Social Security Administration 110 12 06District o Columbia 34 390 150Federal Communications Commission 23 23 30Intelligence Community Management Account 456 328 155National Archives and Records Administration 11 26 17Securities and Exchange Commission 21 20 20

Tt, rsp T r F its ........................ 5,580.8 60.0 6,507.6 210.0 6,378.9


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such as Hurricane Katrina and chemical or oil spills,do not directly all within the denition o a homelandsecurity activity or unding purposes, as dened by sec-tion 889 o the Homeland Security Act o 2002. However,preparing or terrorism-related threats includes manyactivities that also support preparedness or catastrophicnatural and man-made disasters. Additionally, lessons

learned rom the response to Hurricane Katrina havebeen used to revise and strengthen catastrophic re-sponse planning. The agencies with the most signicantparticipation in this eort are: HHS ($2.2 billion, or 35percent, o the 2010 total); and DHS ($3.0 billion, or 47percent, o the 2010 total). Twenty-three other agenciesinclude emergency preparedness and response unding.The Presidents 2010 request would decrease unding by$128.7 million (2 percent) below the 2009 level, largelydue to reductions in state and local grant programs thatwere not awarded based on a risk methodology and weresubject to earmarking or non-risk based projects.

Continue to Strengthen the Homeland

Securit Foundation

Preventing and disrupting terrorist attacks; protectingthe American people, critical inrastructure, and key re-sources; and responding to and recovering rom incidentsthat do occur are enduring homeland security responsi-bilities. For the long-term ulllment o these responsibil-ities it is necessary to continue to strengthen the princi-ples, systems, structures, and institutions that cut acrossthe homeland security enterprise and support our activi-ties to secure the Nation. Long-term success across sev-eral cross-cutting areas is essential to protect the UnitedStates. While these areas are not quantiable in terms obudget gures, they are important elements in the man-agement and budgeting processes. As the Administrationsets priorities and determines unding or new and exist-ing homeland security programs, consideration must begiven to areas such as the assessment and management orisk, which underlie the ull spectrum o homeland secu-rity activities. This would include decisions about when,where, and how to invest resources in capabilities or as-sets that eliminate, control, or mitigate risks. Likewise,research and development initiatives promote the ap-plication o science and technology to homeland securityactivities, and can drive improvements in processes andeciencies to reduce the vulnerability o the nation.

Non-Federal Expenditures3

State and local governments and private-sector rmsalso have devoted resources o their own to the task odeending against terrorist threats. Some o the addi-tional spending has been o a one-time nature, such as in-

vestment in new security equipment and inrastructure;some additional spending has been ongoing, such as hir-ing more personnel, and increasing overtime or existing

3 OMB does not collect detailed homeland security expenditure data rom State, local, or

private entities directly.

security personnel. In many cases, own-source spendinghas supplemented the resources provided by the FederalGovernment.

Many governments and businesses, though not all,place a high priority on, and provide additional resourc-es, or security. A 2004 survey conducted by the National

Association o Counties ound, that as a result o th

homeland security process o intergovernmental planningand unding, three out o our counties believed they werebetter prepared to respond to terrorist threats. Moreoveralmost 40 percent o the surveyed counties had appropri-ated their own unds to assist with homeland security.Own-source resources supplemented unds provided byStates and the Federal Government. However, the samesurvey revealed that 54 percent o counties had not usedany o their own unds.4 The surveys ndings were basedon the responses rom 471 counties (15 percent) nation-wide, out o 3,140 counties or equivalents.5

A recent study conducted by the Heritage Foundationone o the ew organizations to compile homeland securityspending estimates rom states and localities, provides

data on state and local spending in support o home-land security activities.6 The report surveyed 43 juris-dictions that are eligible or DHS Urban Areas SecurityInitiative (UASI) grant unds due to the risk o a terroristattack.7 These jurisdictions are home to approximately145 million people or 47 percent o the total United Statespopulation. According to the report, the 2007 homelandsecurity budgets or the jurisdictions examined (which in-clude 26 states and the District o Columbia, 50 primarycities, and 35 primary counties) totaled $37 billion, whilethe same entities received slightly more than $2 billionin ederal homeland security grants.8 The report urtherstates that rom 2000 - 2007, these states and localitiesspent $220 billion on homeland security activities, whichincludes increases o three to six percent a year or lawenorcement and re services budgets, and received over$10 billion in ederal grants. Caliornia, the most popu-lous state, is also the largest recipient o ederal home-land security unds, having received almost $1.5 billionrom 2000 - 2007, while spending over $45 billion in Stateand local unding. Over the same time period, the top tenmost populous states (including Caliornia) spent $148billion on state and local homeland security related ac-tivities.

4 Source: National Association o Counties, Homeland Security Funding2003 State

Homeland Security Grants Programs I and II.5 The National Association o Counties conducted a survey through its various state as

sociations (48), responses were received rom 471 counties in 26 states.

6 Source: Matt A. Mayer, An Analysis o Federal, State, and Local Homeland Security Bud-

gets, A Report o the Heritage Center or Data Analysis, CDA09-01, March 9, 2009, at http://

www.heritage.org/Research/HomelandSecurity/upload/CDA_09_01.pd. Figures cited in this re-

port have not been independently veried by the Oce o Management and Budget.

7 The Heritage Foundation reports methodology in selecting the states, cities, and counties

to include in the report is as ollows: the state had to possess a designated UASI jurisdiction and

the city and county had to belong to a designated UASI jurisdiction that had received at least

$15 million rom 2003 to 2007 rom the DHS.

8 The Heritage Foundation reports budget data or homeland security included primary

law enorcement agencies, re departments, homeland security oces, and emergency manage-

ment agencies. In some cases, state and local emergency management agency budget data was

embedded in the re department budget data and was not separately noted in its own category


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There is also a diversity o responses in the businessescommunity. A 2003 survey o 199 corporate security di-rectors conducted by the Conerence Board showed that

just over hal o the companies reported that they hadpermanently increased security spending post-September11, 2001.9 About 15 percent o the companies surveyedhad increased their security spending by 20 percent or

more.10 Large increases in spending were especially evi-dent in critical industries, such as transportation, energy,nancial services, media and telecommunications, inor-mation technology, and healthcare. However, about one-third o the surveyed companies reported that they hadnot increased their security spending ater September11th.11 Given the diculty o obtaining survey resultsthat are representative o the universe o States, locali-ties, and businesses, it is likely that there will be a widerange o estimates o non-Federal security spending orcritical inrastructure protection.

9 Source: Thomas E. Cavanagh and Meredith Whiting, 2003 Corporate Security Man-agement: Organization and Spending Since 9/11, The Conerence Board. R-1333-03-RR. July

2003. This report reerences sample size o 199 corporate security directors, o which 96 were in

critical industries, while the remaining 103 were in non-critical industries. In the report, the

Conerence Board states that it ollowed the DHS usage o critical industries, dened as the ol-

lowing: transportation; energy and utilities; nancial services; media and telecommunications;

inormation technology; and healthcare.

10 The Conerence Board survey cites the sample size or this statistic was 192 corporate

security directors.

11 The Conerence Board survey cites the sample size or this statistic was 199 corporate

security directors.

Additional Tables

The tables in the Federal expenditures section abovepresent data based on the Presidents policy or the 2010Budget. The tables below present additional policy andbaseline data, as directed by the Homeland Security Acto 2002.

An appendix o account-level unding estimates iavailable on theAnalytical Perspectives CD ROM.

T 35. diScreTionary Fee-Funded Homeland SecuriTy acTiviTieS by agency(budget authority in millions o dollars)

Agency 2008Enacted

2008Supplemental/

Emergency

2009Enacted

2009Supplemental/

Emergency

2010Request

Department o Energy 157 157 15Department o Homeland Security 2,5320 3,4110 3,315Department o State 1,6365 1,6700 1,653General Services Administration 3600 1510 184Social Security Administration 1840 2146 228Federal Communications Commission 23 23 3Securities and Exchange Commission 134 140 15

Tt, dst H St F-F atts ................................ 4,743.8 5,478.6 5,414.


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T 36. mandaTory Homeland SecuriTy Funding by agency(budget authority in millions o dollars)

Agency 2008 Enacted

2008Supplemental/

Emergency2009

Enacted

2009Supplemental/

Emergency2010

Request

Department o Agriculture 2201 1371 1626Department o Commerce 194 167 79 167

Department o Energy 130 130 130Department o Health and Human Services 143 144 244Department o Homeland Security 2,6122 2,4151 2,3979Department o Labor 80 81 81

Tt, H St mt Ps .......................... 2,887.0 2,604.3 7.9 2,622.7

T 37. baSeline eSTimaTeS -- ToTal Homeland SecuriTy Funding by agency(budget authority in millions o dollars)

Agency2009

Enacted

Baseline

2010 2011 2012 2013 2014

Department o Agriculture 507 538 557 575 598 619Department o Commerce 259 263 268 272 278 286Department o Deense 19,779 19,976 20,254 20,594 20,968 21,340Department o Education 32 32 33 33 34 35Department o Energy 1,939 1,960 1,988 2,024 2,063 2,102Department o Health and Human Services 4,627 4,696 4,769 4,863 4,964 5,063Department o Homeland Security 36,643 35,535 36,595 37,582 38,610 39,687Department o Housing and Urban Development 5 5 5 5 5 5Department o the Interior 52 53 54 57 59 61Department o Justice 3,688 3,738 3,842 3,957 4,075 4,198Department o Labor 48 48 49 50 51 51Department o State 1,809 1,827 1,852 1,883 1,918 1,953Department o Transportation 222 229 238 247 254 265Department o the Treasury 134 137 140 145 149 153Department o Veterans Aairs 305 309 316 321 330 338

Corps o Engineers 42 42 43 44 45 45Environmental Protection Agency 158 161 163 168 170 175Executive Oce o the President 19 19 19 20 21 21General Services Administration 159 160 163 165 168 171National Aeronautics and Space Administration 221 223 226 230 234 237National Science Foundation 406 410 415 423 430 438Oce o Personnel Management 2 2 2 2 2 2Social Security Administration 215 229 231 234 236 238District o Columbia 39 39 40 41 41 42Federal Communications Commission 2 2 2 2 2 2Intelligence Community Management Account 33 33 34 34 35 36National Archives and Records Administration 21 21 22 22 22 23Nuclear Regulatory Commission 73 74 77 78 80 83Securities and Exchange Commission 14 14 14 15 15 15Smithsonian Institution 93 96 100 105 108 112United States Holocaust Memorial Museum 9 9 9 9 9 10

Tt, H St bt atht ............. .............. ............. .............. ...... 71,555 70,880 72,520 74,200 75,974 77,806Less Department o 19,779 19,976 20,254 20,594 20,968 21,340

n-ds H St ba, bSh .................................... 51,776 50,904 52,266 53,606 55,006 56,466

Less Fee-Funded Homeland Security 5,508 5,542 5,617 5,713 5,813 5,916Less Mandatory Homeland Security 2,604 2,623 2,883 2,987 3,094 3,208

nt n-ds, dst H St ba, bSh .... 43,664 42,739 43,766 44,906 46,099 47,342Plus BioShield 1,264

nt n-ds, dst H St ba, bSh ..... 43,664 44,003 43,766 44,906 46,099 47,342

ots ltts ..............................................................................................

Department o Transportation Obligations Limitation 126 127 129 131 133 137


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T 39. baSeline eSTimaTeSHomeland SecuriTy Funding by budgeT FuncTion(budget authority in millions o dollars)

Budget Function 2009Enacted

Baseline

2010 2011 2012 2013 2014

National Deense 24,387 24,616 24,987 25,434 25,922 26,408International Aairs 1,809 1,827 1,852 1,883 1,918 1,953General Science Space and Technology 1,508 1,523 1,544 1,570 1,598 1,626Energy 137 138 141 143 146 150Natural Resources and the Environment 332 337 342 352 358 368Agriculture 475 506 524 541 563 584Commerce and Housing Credit 178 181 184 188 192 196Transportation 10,168 10,409 10,693 10,985 11,288 11,599Community and Regional Development 4,231 4,274 4,340 4,416 4,494 4,578Education, Training, Employment and Social Services 171 174 179 185 190 196Health 6,399 4,705 4,778 4,873 4,974 5,073Medicare 25 25 26 26 27 27Income Security 14 14 15 15 15 15Social Security 215 229 231 234 236 238Veterans Benets and Services 305 309 316 321 330 338Administration o Justice 19,751 20,161 20,892 21,534 22,198 22,906General Government 1,450 1,452 1,476 1,500 1,525 1,551

Tt, H St bt atht . .............. ............. .............. ............. .............. ........ 71,555 70,880 72,520 74,200 75,974 77,806

Less National Deense, DoD 19,779 19,976 20,254 20,594 20,968 21,340

n-ds, dst H St ba, bsh ............................ 51,776 50,904 52,266 53,606 55,006 56,466

Less Fee-Funded Homeland Security Programs 5,508 5,542 5,617 5,713 5,813 5,916Less Mandatory Homeland Security Programs 2,604 2,623 2,883 2,987 3,094 3,208

nt n-ds, dst H St ba, bsh ..................... 43,664 42,739 43,766 44,906 46,099 47,342Plus BioShield 1,264

nt n-ds, dst H St ba, bSh ...................... 43,664 44,003 43,766 44,906 46,099 47,342

ots ltts

Department o Transportation Obligations Limitation 126 127 129 131 133 137

T 38. Homeland SecuriTy Funding by budgeT FuncTion(budget authority in millions o dollars)

Budget Function2008

Actual2009

Enacted2010

Request

National Deense 22,111 24,387 24,340International Aairs 1,720 1,809 1,768General Science Space and Technology 1,323 1,508 1,513

Energy 125 137 127Natural Resources and the Environment 279 332 323Agriculture 543 475 542Commerce and Housing Credit 159 178 203Transportation 9,695 10,168 11,263Community and Regional Development 3,506 4,231 3,657Education, Training, Employment and Social Services 164 171 174Health 4,320 6,399 4,550Medicare 14 25 27Income Security 11 14 14Social Security 184 215 229Veterans Benets and Services 307 305 369Administration o Justice 19,540 19,786 20,562General Government 1,215 1,450 1,455

Tt, H St bt atht ............................................................................ 65,216 71,590 71,116Less National Deense, DoD 18,032 19,779 19,303

n-ds H St ba. ....................................................................................... 47,184 51,811 51,813Less Fee-Funded Homeland Security Programs 4,729 5,448 5,383Less Mandatory Homeland Security Programs 2,960 2,604 2,623

nt n-ds, dst H St ba. ....................................................... 39,495 43,759 43,807


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23

Federal statistical programs produce key inormationto inorm public and private decision makers about arange o topics o interest, including the economy, the pop-ulation, agriculture, crime, education, energy, the envi-ronment, health, science, and transportation. The abilityo governments, businesses, and citizens to make appro-priate decisions about budgets, employment, investments,taxes, and a host o other important matters depends crit-ically on the ready availability o relevant, accurate, andtimely Federal statistics.

The Federal statistical community remains on alert oropportunities to improve these measures o our Nationsperormance. For example, during 2008, Federal statisti-cal agencies: (1) continued development o a health care

satellite account that will provide a means to better mea-sure the costs o various health treatments and the sourc-es o changes in health care costs (Bureau o Economic

Analysis); (2) released the rst multiyear estimates romthe 20052007 American Community Survey giving com-munities with populations between 20,000 and 65,000their rst statistical portrait since the 2000 census ona wide range o key socioeconomic and housing topics(Census Bureau); (3) published the rst-ever estimateso both workplace injury and illness rates by occupation,gender, and age category and labor orce estimates orpersons with disabilities (Bureau o Labor Statistics); (4)developed a new Business R&D and Innovation Surveythat provides the rst nationally representative U.S. busi-ness data on innovation activities (Division o ScienceResources Statistics/National Science Foundation); (5)ully deployed new electronic reporting sotware withimproved unctionality, usability, and perormance thathelped increase the percentage o establishments report-ing electronically to 28.6 or the 2007 Census, comparedto 10.1 in 2002 (Census Bureau); (6) provided estimates othe macroeconomic impact o increasing ood assistanceprogram benets to the Secretary o Agriculture and theCongress during the development o the recent economicstimulus legislation (Economic Research Service); (7) com-pleted a business process analysis o statistical publica-tions in preparation or tabulating and disseminating datarom the Social Security Administrations (SSAs) majoradministrative data les (Oce o Research, Evaluation,and Statistics, SSA); (8) released the 2007 Census o

Agriculture providing a comprehensive summary o thenumber o arms by size and type, inventory and val-ues or crops and livestock, and operator characteristics(National Agricultural Statistics Service); (9) published2008 preliminary estimates o electronic medical recorduse by oce-based physicians (National Center or HealthStatistics); and (10) completed the revised structure othe Standard Occupational Classication or 2010 (the

interagency Standard Occupational Classication PolicyCommittee, chaired by the Bureau o Labor Statistics).

For Federal statistical programs to eectively ben-et their wide range o users, the underlying data sys-tems must be credible. In order to oster this credibilityFederal statistical programs seek to adhere to high quality standards and to maintain integrity and eciency inthe production o data. As the collectors and providers othese basic statistics, the responsible agencies act as datastewardsbalancing public and private decision makersneeds or inormation with legal and ethical obligations tominimize reporting burden, respect respondents privacyand protect the condentiality o the data provided to theGovernment. This chapter presents highlights o princi

pal statistical agencies 2010 budget proposals.

Highlights o 2010 Program Budget Proposals

The programs that provide essential statistical inormation or use by governments, businesses, researchersand the public are carried out by more than 80 agenciesspread across every department and several independentagencies. Excluding cyclical unding or the DecennialCensus, nearly 40 percent o the total budget or theseprograms provides resources or 13 agencies or units thathave statistical activities as their principal mission. (SeeTable 41.) The remaining unding supports work in morethan 70 agencies or units that carry out statistical activities in conjunction with other missions such as providingservices, conducting research, or implementing regula-tions. More comprehensive budget and program inorma-tion about the Federal statistical system will be available in OMBs annual report,Statistical Programs o theUnited States Government, Fiscal Year 2010, when it ispublished later this year. The ollowing highlights elabo-rate on the Administrations proposals to support the programs o the principal Federal statistical agencies.

Bureau o Economic Analysis (BEA): Funding isrequested to continue BEAs core programs, and to: (1expand BEAs internal research capacity to allow quickresponse and adaptation to current and uture changesin the rapidly evolving service sector (which includes nance, insurance, and real estate), where once tolerablegaps in data now pose signicant risks to the Nationseconomic indicators; (2) invest in the personnel, data, andinormation technology required to produce new and ex-panded GDP-related statistics that uniquely measure therole o innovation, retirement income developments, andenergy price pressures on U.S. economic growth as parto an ongoing plan to produce a comprehensive set o realtime statistics that are relevant to the most pressing is-sues acing policy makers today; and (3) reexamine and

4. STRENGTHENING FEDERAL STATISTICS


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redesign surveys o multi-national corporations to maxi-mize their eciency and improve their useulness in ad-dressing current needs while restoring the coverage anddetail o multi-national corporation data that BEA hadcollected until 2008 budget constraints required program-matic cuts.

Bureau o Justice Statistics (BJS): Funding isrequested or the improvement o BJS criminal vic-timization statistics derived rom the National Crime

Victimization Survey (NCVS), and maintenance o BJSother core statistical programs, including: (1) cybercrimedata on the incidence, magnitude, and consequences tohouseholds and businesses o electronic and computercrime; (2) law enorcement data rom more than 3,000 lo-cal agencies on the organization and administration o po-lice and sheris departments; (3) nationally representa-tive prosecution data on resources, policies, and practiceso local prosecutors; (4) court and sentencing statistics,including Federal and State case processing data; and(5) data on correctional populations and acilities rom

Federal, State, and local governments, including inorma-tion about prisoner re-entry and recidivism. Within undssought or the NCVS, BJS will also seek to improve theuseulness o the survey by addressing recommendationso the 2008 National Research Council report,SurveyingVictims: Options or Conducting the National CrimeVictimization Survey.

Bureau o Labor Statistics (BLS): Funding is re-quested to support ongoing BLS programs to measure theeconomy, and to: (1) continue the process, begun in 2009,o updating continuously the housing and geographicarea samples in the Consumer Price Index (CPI), whichwill improve the accuracy and timeliness o the CPI; (2)complete the modernization o the computing systemsor monthly processing o the Producer Price Index andU.S. Import and Export Price Indexes, which will stabilizethe operating environment; (3) publish the rst nationalSurvey o Occupational Injuries and Illnesses estimateso workplace injuries and illnesses incurred by State andlocal government workers; and (4) begin development oa new data series on green-collar jobs that will measureemployment and wages or businesses whose primary ac-tivities can be dened as green, and produce inorma-tion on the occupations involved, in whole or in part, ingreen economic activities.

Bureau o Transportation Statistics (BTS):Funding is requested to support the development andimprovement o transportation system perormance mea-sures and or the maintenance o BTS core statistical pro-grams, including: (1) production o the improved nal dataproducts rom the Commodity Flow Survey; (2) improve-ment o the National Census o Ferry Operators used toallocate resources or erry operations and inrastructure;(3) production o transportation data or enhancing liv-able communities; (4) release o monthly statistics on thecommodities and modes o transportation used in interna-tional trade with the United States major trading part-

ners; (5) production o a core set o transportation perormance indicators including the Transportation ServicesIndex; and (6) collection, analysis, and dissemination oairline perormance data.

Census Bureau: Funding is requested or the CensusBureaus ongoing economic and demographic programs

and or a re-engineered 2010 Census. For the 2010 Censusprogram, unding is requested to conduct the enumera-tion o the population. Specically, in 2010 the CensusBureau will carry out the major 2010 Census operationsincluding mail out, receipt, and processing o returnedcensus orms, and visit households that do not return acensus orm to collect the necessary inormation. Othermajor operations include Group Quarters EnumerationUpdate/Leave Final Address Review, Update/Enumerate(in which enumerators both update their address regis-ters and census maps and enumerate the housing unitin a single visit), Military Enumeration, conducting census operations in Puerto Rico and the Island Areas, andnumerous other operations. The Census Bureau wil

also conduct coverage ollow-up operations and coveragemeasurement eld operations. The Census Bureau wilcontinue to support these operations through a networko 494 local census oces, 12 regional census centers, aPuerto Rico Area Oce, as well as at headquarters. Inaddition, the Census Bureau will continue data collectionor the American Community Survey, and reinstate theCommunity Address Updating System. For the CensusBureaus other economic and demographic programsunding is requested to: (1) continue to release data orthe 2007 Economic Census and conduct more than 100annual, quarterly, and monthly surveys that provide keynational economic statistics; (2) begin planning or the2012 Census o Governments; (3) operate the Survey oIncome and Program Participation at the traditional sample size and incorporate improvements; and (4) expandthe Local Employment Dynamics program, which develops new inormation about local labor market conditionsat low cost, with no added respondent burden.

Economic Research Service (ERS): Funding isrequested to continue ERS core programs, and to supportresearch to develop analytical tools and assessments othe economic implications o how environmental servicesmarkets are designed. Given that agriculture playsa major role in domestic cap-and-trade proposals oraddressing climate change, the research will emphasizedesign elements o carbon oset markets that will per-mit capture o key policy variables critical to providingappropriate guidance or policy makers.

Energy Inormation Administration (EIAFunding is requested to: (1) maintain critical energydata coverage, analysis, and orecasting operations; (2)improve energy end use and eciency data by increas-ing the sample size and scope o data collected or theResidential Buildings Energy Consumption Survey andthe Commercial Buildings Energy Consumption Survey(3) address energy data scope and quality issues including


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4. STRENGTHENING FEDERAL STATISTICS 25

collecting export data or products such as diesel; improv-ing the quality, timeliness, and access to integrated StateEnergy Data products; improving the accuracy/timelinesso data on U.S. oil production; providing analyses o re-neries; and improving electricity data by restoring the

Annual Electric Industry Financial Report (EIA-412); (4)address the role and impact o nancial markets on short-

term energy prices and price volatility; (5) incorporateethanol and other biouels into EIAs monthly and weeklyliquid uel balances; and (6) continue development andtesting o the next generation National Energy Model,which will improve EIAs ability to assess and orecastsupply, demand, and technology trends aecting U.S. andworld energy markets.

National Agricultural Statistics Service (NASS):Funding is requested to continue NASS core programs,and to: (1) complete reinstatement o the NASS ChemicalUse Program (Fruit Chemical Use was reinstated in2009); and (2) provide a data series on bio-energy pro-duction and utilization. Within the currently available

Census o Agriculture unding, NASS will be able to con-duct the Census o Horticulture Specialties ollow-onstudy that will provide more in-depth inormation on thehorticulture industry than is available rom the quin-quennial Census o Agriculture.

National Center or Education Statistics (NCES):Funding is requested to continue NCES core pro-grams, and to: (1) conduct the National Assessment oEducational Progress, including 2010 national U.S. histo-ry, civics, and geography assessments at grades 4, 8, and12; analysis o a 2009 high school transcript study; andpreparation or 2011 Trial Urban District Assessments in17 districts; (2) continue a new teacher longitudinal studyto ollow teachers who were in the 20072008 Schools andStang Survey as rst-year teachers; (3) provide techni-cal assistance to State education agencies to improve theuse o State longitudinal data systems; (4) prepare or theProgramme or the International Assessment o AdultCompetencies, an international assessment scheduledor 2011; (5) support uture data collections examiningparticipation o preschool children in nonparental educa-tion and care arrangements, and (6) provide State-leveldata or a small number o States or the Early ChildhoodLongitudinal Study, Kindergarten Class o 20102011.

National Center or Health Statistics (NCHS):Funding is requested to continue data collection, analysis,and dissemination activities or key national health datasystems, including the National Vital Statistics System,National Health Interview Survey, National Health andNutrition Examination Survey (NHANES), and NationalHealth Care Surveys, and to: (1) continue providing time-ly, accurate estimates o high-priority health measures;(2) enhance the quality and usability o data access toolsthrough improved tutorials; (3) use birth and death datacollected by the States or tracking priority health initia-

tives in prevention, cancer control, out-o-wedlock birthsand teenage pregnancy; (4) continue providing NHANESdata on diet and nutrition, blood pressure, chronic dis-eases, and other health indicators; and (5) provide inor-mation annually on the health status o the U.S. civiliannon-institutionalized population through condentialhousehold interviews conducted by the National Health

Interview Survey.

Ofce o Research, Evaluation, and Statistics(ORES), SSA: Funding is requested to continue OREScore programs, and to: (1) urther modernize ORES pro-cesses or developing and disseminating data rom SSAsmajor administrative data les or statistical purposes(2) support outside surveys and linkage o SSA admin-istrative data to surveys; (3) create a new public use leo administrative data on earnings histories and benetsor a sample o Social Security Numbers; (4) strengthenmicrosimulation models that estimate the distributionaeects o alternative Social Security programs; (5) be-gin development o a topical module or the redesign o

the Survey o Income and Program Participation (SIPP)to address Social Securitys data needs or microsimula-tion models, program evaluation, and analysis; and (6)evaluate data rom the 19901993 and 1996 SIPP panelsmatched to SSA and IRS administrative data.

Science Resources Statistics Division (SRS), NSF:Funding is requested to implement ongoing programs onthe science and engineering enterprise, and to: (1) continue redesign and improvement activities or a broadrange o surveys, particularly the 2010 sample rameredesign or the National Survey o College Graduatesand the suite o research and development surveys; (2)support the Science o Science and Innovation Policy pro-grams eorts to develop the data, tools, and knowledgeneeded or a new science o science policy by enhancingthe comparability, scope, and availability o internationaldata; (3) develop a pilot data collection on postdocs basedon easibility activities in 20062009; (4) develop an innovation module or the Higher Education Research andDevelopment survey; and (5) continue development workon the Microbusiness R&D and Innovation survey.

Statistics o Income Division (SOI), IRS: Fundingis requested to continue SOIs core programs, and to: (1)continue to modernize tax data collection systems, par-ticularly to more eciently assimilate into SOI systemsdata captured rom the electronic ling o tax and inor-mation returns; (2) examine means to better mask indi-

vidual records to minimize the risk o reidentication inthe Individual Public Use cross-section le; (3) undertakea easibility study to develop an Individual Public Usepanel data le; (4) develop statistical techniques to iden-tiy outliers and edit data in IRS administrative population les; and (5) develop a process or providing relevantstatistics needed or the tax-related provisions o the

American Recovery and Reinvestment Act o 2009.


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T 41. 20082010 budgeT auTHoriTy For PrinciPal STaTiSTical agencieS1(in millions o dollars)

2008Actual

Estimate

2009 2010

Bureau o Economic Analysis 78 87 99 Bureau o Justice Statistics2 41 52 67

Bureau o Labor Statistics 544 597 611

Bureau o Transportation Statistics 27 27 28

Census Bureau3 1,467 4,169 7,405

Salaries and Expenses3 233 264 289 Periodic Censuses and Programs 1,234 3,905 7,116

Economic Research Service 77 80 82

Energy Inormation Administration 95 111 133

National Agricultural Statistics Service4 162 152 162

National Center or Education Statistics5 208 254 265

Statistics5 104 115 126Assessment 98 130 130National Assessment Governing Board 6 9 9

National Center or Health Statistics6 114 125 138

Oce o Research, Evaluation, and Statistics, SSA 26 29 26

Science Resources Statistics Division, NSF 36 45 41

Statistics o Income Division, IRS 36 42 43

1 Refects any cancellations2 Includes unds or management and administrative costs o $6, $7, and $7 million in 2008, 2009, 2010, respectively that were previously

displayed separately3 Salaries and Expenses unds include discretionary and mandatory unds For the Periodic Censuses and Programs account, the 2008

actual includes $207 million in supplemental unds and 2009 includes $1 billion in American Recovery and Reinvestment Act unding4 Includes unds or the periodic Census o Agriculture o $52, $37, and $37 million in 2008, 2009, and 2010 respectively 2008 was the

peak year o unding or the 2007 Census o Agriculture data collection and processing 2009 unding was used to summarize and publish the2007 Census o Agriculture, as well as conduct a ollow-on study on Farm and Ranch Irrigation 2010 unding will be used to continue plannedollow-on studies and preparations or the 2012 Census o Agriculture

5 Includes unds or salaries and expenses o $16, $16, and $17 million in 2008, 2009, and 2010, respectively, that are refected in theInstitute o Education Sciences (IES) budget In addition, NCES manages the IES grant program or the State Longitudinal Data Systemswhich is unded at $48, $65 plus $250, and $65 million in 2008, 2009, and 2010, respectively

6 All unds rom the Public Health Service Evaluation Fund Administrative costs or NCHS that previously were displayed as part o theNCHS budget line are now refected in two consolidated CDC-wide budget lines or management and administrative costs


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27

In the past, Federal unding or scientic research hasyielded innovations that have improved the landscape o

American lietechnologies like the Internet, digital pho-tography, bar codes, Global Positioning System technol-ogy, laser surgery, and chemotherapy. Today, the UnitedStates aces a new set o challenges, and science and tech-nology can be a powerul ally in addressing them.

The Presidents 2010 Budget proposes $148 billion orFederal research and development (R&D). This invest-ment reinorces the Administrations commitment to sci-ence, technology, and innovation that will help the coun-try make progress toward national goals o a prosperouseconomy, a clean energy uture, a healthy American peo-ple, and a sae and secure Nation.

Already in this Administration, the President hassigned into law the 2009 Omnibus Appropriations Act (P.L.111-8) and the American Recovery and Reinvestment Act

(P.L. 111-5). Both boosted the budgets o key science agen-cies not only or their potential contributions to economicrecovery, but also because science and technology can helpreorient the U.S. economy through strategic investmentsin clean energy, broadband communications, health careinormation technology, and education. These laws arecritical down payments in doubling Federal investmentsin key science agencies, meeting a commitment to invest$150 billion during the next 10 years in a clean energy uture, and restoring Americas capabilities or understanding the dimensions o climate change. The 2010 Budgetbuilds on these early accomplishments with continuedinvestments in R&D.

In general, the Budgets priorities align with the con

clusions in the report rom the National Science andTechnology Summit held in August 2008.

5. RESEARCH AND DEVELOPMENT

I. PRIORITIES FOR FEDERAL RESEARCH AND DEVELOPMENT

The Budget provides support or promising, but ex-ploratory and high-risk, research proposals that couldundamentally improve our understanding o nature,revolutionize elds o science, and lead to radically newtechnologies.

Investing in the Sciences or a ProsperousAmerica

Federally supported basic research, aimed at under-standing many eatures o naturerom the size o theuniverse to the nature o subatomic particles, rom thechemical reactions that support a living cell to interac-tions that sustain ecosystemshas been an essential ea-ture o American lie and helped to drive our economicsuccess or over 50 years. While the outcomes o specicprojects are never predictable, basic research has been areliable source o new knowledge that has ueled impor-tant developments in elds ranging rom telecommunica-tions to medicine, yielding positive rates o economic re-turn and creating entirely new industries with high-tech,high-wage jobs.

The President plans to double Federal investmentor basic research in key agencies, the National ScienceFoundation (NSF), the Department o Energys (DOEs)Oce o Science, and the laboratories o the Departmento Commerces (DOCs) National Institute o Standardsand Technology, building on down payments in theRecovery Act.

The Budget proposes $12.6 billion in 2010 or thesethree agencies. This level is an increase o 6-percent abovethe 2009 enacted level o $11.9 billion, which itsel was an

11-percent increase rom the 2008 enacted level o $10.7billion. The Recovery Act provided an additional $5.2 billion or these agencies. These increases in research unding will help the United States to remain prosperous.

To increase the impacts o these investments, the2010 Budget also emphasizes support or researchers atthe beginning o their careers to sustain and expand theNationss scientic and technical workorce, including aplan to triple the number o NSFs Graduate ResearchFellowships by 2013.

A Clean Energ Future

The Administration envisions a United States thatcan lead the world in the research, development, demonstration and deployment o clean energy technologyInvestments in clean energy R&D will drive a new energyeconomy that reduces dependence on oil, creates green

jobs, and reduces the impact o climate change.The 2010 Budget builds upon substantial clean energy

R&D investments in the Recovery Act to orge a comprehensive approach to transorming our energy supply andslowing global climate change through cutting-edge sci-ence and technology. R&D unding will support renew-able energy and energy eciency technologies such asadvanced batteries, solid-state lighting, solar, biomassgeothermal, and wind power. The 2010 Budget also supports the development and testing o carbon capture andstorage technologies that could reduce carbon emissionsrom the use o ossil uels and basic research to supporttransormational discoveries and accelerate solutions inthe development o clean energy.


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Health Lives or All Americans

Federal R&D investments in health result in knowl-edge and technologies that promote longer, healthier livesor all Americans. The Administration is committed tounding biomedical and health research and to policies toincrease the impact o these investments on health out-comes. The 2010 Budget will emphasize research to pro-mote healthy living and disease prevention.

The 2010 Budget proposes $30.8 billion or NIH, anincrease o $443 million above the 2009 enacted level onearly $30.4 billion. This level includes more than $6 bil-lion to support cancer research, which is central to thePresidents multi-year plan to double this area o research.

A Sae and Secure America

New developments in science and technology oer hopeo predicting and preventing destabilizing or paralyzingnatural and manmade threats, as well as minimizing theirimpacts and recovering rom them as quickly as possible.

The 2010 Budget sustains the Department o Deenses(DODs) critical role in supporting technological advanc-es with $3.2 billion or the Deense Advanced ResearchProjects Agency or its support o longer-term breakthrough research. The Budget also proposes $1.8 billionor DOD basic research, within a total DOD R&D invest-ment o $79.7 billion. The Budget maintains scientic andtechnological preeminence or our Armed Forces.

The Budget accelerates the development o new medicines, vaccines, and production capabilities or biodeense by investing in countermeasures development. TheBudget also invests in the technological capabilities nec-essary to monitor nuclear nonprolieration complianceand to prevent weapons o mass destruction rom entering the country.

The Budget also invests in the science and technologyneeded to combat natural and manmade threats to ourNations ood supply, including $132 million in the U.SDepartment o Agriculture or research associated withthe saety o the U.S. ood supply.

R&D Funding in the American Recovery and Reinvestment Act of 2009

The American Recovery and Reinvestment Act o 2009 (P.L. 111-5) provided Federal R&D unding to spur new discoveriesin energy, medicine, climate and technologies or the uture.

Within the Department o Health and Human Services, the National Institutes o Health (NIH) received more than $10billion or basic biomedical research and laboratory renovation and construction. In addition, $1 billion was included or

comparative eectiveness research at NIH and the Agency or Healthcare Research and Quality.

The Recovery Act included a $5.2 billion investment in key science agencies, including: $3 billion at NSF or basic research,education and human resources, research acilities construction, and research instrumentation; $1.6 billion at DOEs Oceo Science or energy rontier research collaborations, and inrastructure improvements at the national laboratories; and$580 million at DOCs National Institute o Standards and Technology (NIST) or standards research, advanced measure-ment equipment, and construction o NIST research acilities. This investment by itsel is an almost 50-percent increaseor these programs over the 2008 enacted level and represents a signicant down payment toward the Presidents plan todouble the unding or basic research in these agencies.

The National Aeronautics and Space Administration received $1 billion or activities such as acceleration o earth scienceclimate research missions, and development o the next generation air transportation system. The National Oceanic and

Atmospheric Administration received $170 million or climate modeling, and $660 million that includes support or main-tenance and construction o research vessels and acilities. The U.S. Geological Survey received $140 million or acilityrenovation and construction and or seismic and volcanic monitoring systems.

R&D is the collection o eorts directed towards gaininggreater knowledge or understanding and applying knowl-edge toward the production o useul materials, devices,and methods. R&D investments can be characterizedas basic research, applied research, development, R&Dequipment, or R&D acilities. The Oce o Managementand Budget has used those or similar categories in its col-lection o R&D data since 1949.

Federal R&D Funding

Basic research is systematic study directed towarda uller knowledge or understanding o the undamen-

tal aspects o phenomena and o observable acts with-out specic applications towards processes or productsin mind. Basic research, however, may include activitieswith broad applications in mind.

Applied research is systematic study to gain knowl-edge or understanding necessary to determine the meansby which a recognized and specic need may be met.

Development is systematic application o knowledgeor understanding, directed toward the production o use-ul materials, devices, and systems or methods, includingdesign, development, and improvement o prototypes andnew processes to meet speciic requirements.

II. FEDERAL R&D DATA


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5. RESEARCH AND DEVELOPMENT 29

Research and development equipment includes ac-quisition or design and production o movable equipment,such as spectrometers, research satellites, detectors, andother instruments. At a minimum, this category shouldinclude programs devoted to the purchase or constructiono R&D equipment.

Research and development acilities include the

acquisition, design, and construction o, or major repairsor alterations to, all physical acilities or use in R&D ac-tivities. Facilities include land, buildings, and xed capi-tal equipment, regardless o whether the acilities are tobe used by the Government or by a private organization,

and regardless o where title to the property may restThis category includes such xed acilities as reactorswind tunnels, and particle accelerators.

There are more than 20 Federal agencies that undR&D in the United States. The nature o the R&D thatthese agencies und depends on the mission o eachagency and on the role o R&D in accomplishing it. Table

5-1 shows agency-by-agency spending on basic and ap-plied research, development, and R&D equipment andacilities.

A number o research investments are being addressedthrough multi-agency research activities coordinatedthrough the National Science and Technology Council(NSTC) and other interagency orums. Many o the chal-lenges simply cannot be addressed by a single agency.

Moreover, innovation oten arises rom combining thetools, techniques, and insights rom multiple agencies.Table 5-2 shows details o three such interagency eorts:networking and inormation technology R&D, nanotech-nology R&D, and climate change R&D.

Networking and Inormation Technology R&D:The Budget provides $3.9 billion or the multi-agencyNetworking and Inormation Technology Research andDevelopment (NITRD) Program, which plans and coor-dinates agency research eorts in cyber security, high-end computing systems, advanced networking, sotwaredevelopment, high-condence systems, inormation man-agement, and other inormation technologies. In 2008,the NITRD agencies addressed the recommendations con-tained in the Presidents Council o Advisors on Scienceand Technology NITRD Program Review by establishinga robust strategic planning activity scheduled to concludein 2009. The NITRD Subcommittee also published theFederal Plan or Advanced Networking R&D in 2008,and has continued to address cyber security research un-der the R&D-related components o the ComprehensiveNational Cyber Security Initiative.

The 2010 Budget retains the important ocus on invest-ment in high-end computing research or both nationalsecurity and large-scale scientic applications, particu-larly in advanced scalable simulations. The 2010 Budgetalso emphasizes oundations or assured computing andsecure hardware, sotware and network design and engi-neering to address the goal o making Internet communi-cations more secure and reliable. Reports and general in-ormation about NITRD are available at www.nitrd.gov/.

Nanotechnology R&D: The Budget provides $1.6billion or the multi-agency National NanotechnologyInitiative (NNI). The NNI ocuses on R&D that createsmaterials, devices, and systems that exploit the unda-mentally distinct properties o matter as it is manipulat-ed at the nanoscale (roughly 1 to 100 nanometers). Theresults o NNI-supported R&D can enable breakthroughsin biomedical detection and treatment, manuacturing at

or near the nanoscale, environmental monitoring and pro-tection, energy conversion and storage, and more powerul electronic devices, among many others.

Guided by the NNI Strategic Plan, participating agen-cies will continue to support nanoscience and nanotech

nology development through investigator-led researchmultidisciplinary centers o excellence; education andtraining; and inrastructure and standards developmentincluding user acilities and networks that are broadlyavailable to support research and innovation. In additionconsistent with the NNI Strategy or Nanotechnology-Related Environmental Health, and Saety Researchagencies continue to maintain a ocus on the responsibledevelopment o nanotechnology, with attention to the human and environmental health impacts, as well as ethi-cal, legal, and other societal issues. Reports and generainormation about the NNI are available at www.nano

gov/.Climate Change R&D: The U.S. Climate Change

Science Program (CCSP) coordinates climate researchamong the 13 departments and agencies that participatein the CCSP. The 2010 Budget supports research activities including the development o an integrated earth sys-tem analysis capability; a ocus toward creating a high-quality record o the state o the atmosphere and oceansince 1979; development o an end-to-end hydrologicprojection and application capability; enhanced carboncycle research on high latitude systems; quantication oclimate orcing and eedbacks by aerosols, non-carbon di-oxide greenhouse gases, water vapor, and clouds; assess-ment o abrupt change in a warming climate; examinationo the easibility o development o an abrupt change earlywarning system; understanding climate change impactson ecosystem unctions; and rening ecological orecasting. Reports and general inormation about the CCSP areavailable on the programs website: www.climatescience

gov/.The Climate Change Technology Program (CCTP) pro-

vides strategic direction, planning, and analysis to helpcoordinate and prioritize activities within the portolio oederally unded climate change technology R&D. Reportsand general inormation about the CCTP are available onthe programs website: www.climatetechnology.gov/.

III. MULTI-AGENCy R&D ACTIVITIES


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T 51. Federal reSearcH and develoPmenT SPending(Budget authority, dollar amounts in millions)

2008 Actual 2009 Estimate1 2010 Proposed

b aDeense 80,278 81,916 79,687 Health and Human Services 29,265 41,518 30,936

NASA 11,182 11,326 11,439 Energy 9,807 13,067 10,740 National Science Foundation 4,580 7,757 5,312 Agriculture 2,336 2,597 2,272 Commerce 1,160 1,703 1,330 Veterans Aairs 960 1,020 1,160 Homeland Security 995 1,096 1,125 Transportation 875 913 939 Interior 683 766 730 Environmental Protection Agency 551 580 619 Other 1,074 1,141 1,331

ToTal ..................................................................................................................................... 143,746 165,400 147,620

bs rsh

Deense 1,599 1,825 1,796 Health and Human Services 15,739 25,035 16,739

NASA 2,182 1,844 1,891Energy 3,461 4,425 3,813 National Science Foundation 3,704 6,045 4,477 Agriculture 879 888 903 Commerce 98 147 125 Veterans Aairs 384 408 464 Homeland Security 247 268 222 Transportation 0 0 0Interior 43 47 51Environmental Protection Agency 95 125 164 Other 182 189 239

SubToTal ..................................................................................................................... 28,613 41,246 30,884

app rshDeense 4,855 5,174 4,236 Health and Human Services 13,349 14,813 14,027 NASA 561 1,044 937

Energy 3,180 3,810 3,093 National Science Foundation 420 400 423 Agriculture 1,146 1,221 1,130 Commerce 835 986 895 Veterans Aairs 520 552 628 Homeland Security 382 413 476 Transportation 667 672 694 Interior 554 644 607 Environmental Protection Agency 377 370 370 Other 567 587 623

SubToTal ..................................................................................................................... 27,413 30,686 28,139

dpt

Deense 73,615 74,714 73,603 Health and Human Services 20 20 20 NASA 6,090 6,244 6,246

Energy 2,281 2,945 2,614 National Science Foundation 0 0 0Agriculture 158 165 189 Commerce 70 83 97 Veterans Aairs 56 60 68 Homeland Security 366 415 427 Transportation 189 220 223 Interior 62 67 70 Environmental Protection Agency 79 85 85 Other 268 277 412

SubToTal ..................................................................................................................... 83,254 85,295 84,054


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5. RESEARCH AND DEVELOPMENT 31

T 51. Federal reSearcH and develoPmenT SPending ct(Budget authority, dollar amounts in millions)


Fts eqpt

Deense 209 203 52 Health and Human Services 157 1,650 150

NASA 2,349 2,194 2,365 Energy 885 1,887 1,220 National Science Foundation 456 1,312 412 Agriculture 153 323 50 Commerce 157 487 213 Veterans Aairs 0 0 0Homeland Security 0 0 0Transportation 19 21 22 Interior 24 8 2 Environmental Protection Agency 0 0 0Other 57 88 57

SubToTal ..................................................................................................................... 4,466 8,173 4,543 1Amounts or 2009 include unding rom PL 1115, the American Recovery and Reinvestment Act o 2009

T 52. agency deTail oF SelecTed inTeragency r&d eFForTS(Budget authority, dollar amounts in millions)


nt it Th r&d

Deense 1,096 1,281 1,141National Science Foundation 947 1,344 1,111Health and Human Services2 956 981 995 Energy 409 595 485 Commerce 84 291 111National Aeronautics and Space Administration 69 87 73 Environmental Protection Agency 6 6 6National Archives and Records Administration 5 5 5

ToTal ................................................................................................................. 3,572 4,590 3,927

nt nth ittNational Science Foundation 409 505 423 Deense 460 464 379 Energy 240 357 347 Health and Human Services3 311 319 338 Commerce (NIST) 86 96 92 Environmental Protection Agency 12 16 18 National Aeronautics and Space Administration 17 17 17 Homeland Security 3 8 12 Agriculture 10 9 8 Transportation 1 3 3

ToTal ................................................................................................................. 1,549 1,794 1,637

ct ch S P

National Aeronautics and Space Administration 1,084 1,323 1,071National Science Foundation 207 315 300

Commerce 272 422 297 Energy 128 233 165 Interior (USGS) 34 45 63 Agriculture 65 56 59 US Agency or International Development 14 17 36 Environmental Protection Agency 17 18 21Smithsonian Institution 6 6 7National Institutes o Health 4 4 4Transportation 1 2 3

ToTal ................................................................................................................. 1,832 2,441 2,026 1 Amounts or 2009 include unding rom PL 1115, the American Recovery and Reinvestment Act o 20092Includes unds rom osetting collections or the Agency or Healthcare Research and Quality3Includes unds rom both NIH and the National Institute o Occupational Saety and Health


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33

Investment spending is spending that yields long-term benets. Its purpose may be to improve the e-ciency o internal Federal agency operations or to in-crease the Nations overall stock o capital or economicgrowth. The spending can take the orm o direct Federalspending or o grants to State and local governments.It can be or physical capital, which yields a stream oservices over a period o years, or or research and devel-opment or education and training, which are intangiblebut also increase income in the uture or provide otherlong-term benets.

Most presentations in the Federal budget combine in vestment spending with spending or current use. Thichapter ocuses solely on Federal and ederally nancedinvestment.

In this chapter, investment is discussed in the ollow-ing sections:

a description o the size and composition o Federalinvestment spending; and

a presentation o trends in the stock o ederally nanced physical capital, research and developmentand education.

6. FEDERAL INVESTMENT

PART I: DESCRIPTION OF FEDERAL INVESTMENT

For almost sixty years, the Federal budget has includeda chapter on Federal investmentdened as those out-lays that yield long-term benetsseparately rom out-lays or current use. In recent years the discussion othe composition o investment has displayed estimates obudget authority as well as outlays.

The classication o spending between investment andcurrent outlays is a matter o judgment. The budget hashistorically employed a relatively broad classication,encompassing physical investment, research, develop-ment, education, and training. The budget urther clas-sies investments into those that are grants to State andlocal governments, such as grants or highways or edu-cation, and all other investments, called direct Federalprograms in this analysis. This direct Federal categoryconsists primarily o spending or assets owned by theFederal Government, such as deense weapons systemsand general purpose oce buildings, but also includesgrants to private organizations and individuals or invest-ment, such as capital grants to Amtrak or higher educa-tion loans directly to individuals.

Presentations or particular purposes could adopt di-erent denitions o investment:

To suit the purposes o a traditional balance sheet,investment might include only those physical assetsowned by the Federal Government, excluding capitalnanced through grants and intangible assets suchas research and education.

Focusing on the role o investment in improving na-tional productivity and enhancing economic growthwould exclude items such as national deense assets,the direct benets o which enhance national secu-rity rather than economic growth.

Concern with the eciency o Federal operationswould conne the coverage to investments that re-duce costs or improve the eectiveness o internaFederal agency operations, such as computer systems.

A social investment perspective might broaden thecoverage o investment beyond what is included inthis chapter to include programs such as childhoodimmunization, maternal health, certain nutritionprograms, and substance abuse treatment, which

are designed in part to prevent more costly healthproblems in uture years.

The relatively broad denition o investment used inthis section provides consistency over timehistoricalgures on investment outlays back to 1940 can be oundin the separate Historical Tables volume. Table 62 athe end o this section allows disaggregation o the datato ocus on those investment outlays that best suit a par-ticular purpose.

In addition to this basic issue o denition, there aretwo technical problems in the classication o investmentdata involving the treatment o grants to State and localgovernments and the classication o spending that couldbe shown in more than one category.

First, or some grants to State and local governments itis the recipient jurisdiction, not the Federal Governmentthat ultimately determines whether the money is usedto nance investment or current purposes. This analysis classies all o the outlays in the category where therecipient jurisdictions are expected to spend most o themoney. Hence, the community development block grantsare classied as physical investment, although some maybe spent or current purposes. General purpose scal assistance is classied as current spending, although somemay be spent by recipient jurisdictions on investment.


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Second, some spending could be classied in more thanone category o investment. For example, outlays or con-struction o research acilities nance the acquisition ophysical assets, but they also contribute to research anddevelopment. To avoid double counting, the outlays areclassied in the category that is most commonly recog-nized as investment. Consequently, outlays or the con-

duct o research and development do not include outlaysor research acilities, because these outlays are includedin the category or physical investment. Similarly, spend-ing or physical investment and research and develop-ment related to education and training is included in thecategories o physical assets and the conduct o researchand development.

When direct loans and loan guarantees are used tound investment, the subsidy value is included as in-

vestment. The subsidies are classied according to theirprogram purpose, such as construction or education andtraining. For more inormation about the treatment oFederal credit programs, reer to Chapter 7, Credit andInsurance, in this volume.

This section presents spending or gross investment,without adjusting or depreciation.

Composition o Federal Investment Outlas

Major Federal Investment

The composition o major Federal investment outlays issummarized in Table 61. They include major public physical investment, the conduct o research and development

and the conduct o education and training. Deense andnondeense investment outlays were $459.7 billion in 2008They are estimated to increase to $522.5 billion in 2009and $596.3 billion in 2010. Roughly 15 percent o investment outlays in 2010 are due to P.L. 111-5, the AmericanRecovery and Reinvestment Act o 2009 (Recovery Act).

Major Federal investment outlays will comprise anestimated 16.6 percent o total Federal outlays in 2010and 4.0 percent o the Nations gross domestic productGreater detail on Federal investment is available in Table62 at the end o this section. That table includes bothbudget authority and outlays.

Physical investment. Outlays or major public physi-cal capital investment (hereater reerred to as physica

investment outlays) are estimated to be $307.7 billionin 2010. Physical investment outlays are or construc

Table 61. comPoSiTion oF Federal inveSTmenT ouTlayS(In billions o dollars)

Federal InvestmentActual Estimate

2008 2009 2010

Major public physical capital investment:

Direct Federal:

National deense 1263 1557 1566

Nondeense 348 539 506

Subtotal, direct major public physical capital investment 1611 2095 2072

Grants to State and local governments 727 883 1005

Subtotal, major public physical capital investment 2338 2978 3077

Conduct o research and development:


Nondeense 553 622 657

Subtotal, conduct o research and development 1349 1445 1493

Conduct o education and training:

Grants to State and local governments 546 653 986

Direct Federal 364 149 407

Subtotal, conduct o education and training 910 802 1393

Tt, j F stt ts .................................................................................... 459.7 522.5 596.3

memorandum

Major Federal investment outlays:


Nondeense 2538 2845 3562

Total, major Federal investment outlays 4597 5225 5963

Miscellaneous physical investment:

Commodity inventories -01 02 *

Other physical investment (direct) 30 72 48

Total, miscellaneous physical investment 29 74 47

Total, Federal investment outlays, including miscellaneous physical investment 4626 5298 6011

* $50 million or less


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6. FEDERAL INVESTMENT 35

tion and rehabilitation, the purchase o major equip-ment, and the purchase or sale o land and structures.

Approximately two-thirds o these outlays are or directphysical investment by the Federal Government, with theremainder being grants to State and local governmentsor physical investment.

Direct physical investment outlays by the Federal

Government are primarily or national deense. Deenseoutlays or physical investment are estimated to be $156.6billion in 2010. Almost all o these outlays, or an estimated$140.7 billion, are or the procurement o weapons and oth-er deense equipment, and the remainder is primarily orconstruction on military bases, amily housing or militarypersonnel, and Department o Energy deense acilities.

Outlays or direct physical investment or nondeensepurposes are estimated to be $50.6 billion in 2010. Theseoutlays include $29.7 billion or construction and reha-bilitation. This amount includes unds or water, power,and natural resources projects o the Corps o Engineers,the Bureau o Reclamation within the Department o theInterior, and the Tennessee Valley Authority; construc-

tion and rehabilitation o veterans hospitals and IndianHealth Service hospitals and clinics; acilities or spaceand science programs; Postal Service acilities; the pro-posed National Inrastructure Bank; energy conserva-tion projects in the Department o Energy; constructionor the administration o justice programs (largely inCustoms and Border Protection within the Departmento Homeland Security); construction o oce buildings bythe General Services Administration; and constructionor embassy security. Outlays or the acquisition o ma-

jor equipment are estimated to be $20.4 billion in 2010.The largest amounts are or the air trac control system;weather and climate monitoring in the National Oceanicand Atmospheric Administration; law enorcement activi-ties, largely in the Department o Homeland Security andthe Federal Bureau o Investigation; and inormation sys-tems in the Department o Veterans Aairs.

Grants to State and local governments or physicalinvestment are estimated to be $100.5 billion in 2010.Nearly three-quarters o these outlays, or $72.4 billion,are to assist States and localities with transportation in-rastructure, primarily highways. Other major grants orphysical investment und sewage treatment plants, com-munity and regional development, and public housing.Roughly one-th o the outlays or physical investmentgrants in 2010 are due to the Recovery Act, mostly orground transportation.

Conduct o research and development. Outlays orthe conduct o research and development are estimatedto be $149.3 billion in 2010. These outlays are devotedto increasing basic scientic knowledge and promotingresearch and development. They increase the Nationssecurity, improve the productivity o capital and labor orboth public and private purposes, and enhance the qual-ity o lie. More than hal o these outlays, an estimated

$83.5 billion, are or national deense. Physical invest-ment or research and development acilities and equip-ment is included in the physical investment category.

Nondeense outlays or the conduct o research anddevelopment are estimated to be $65.7 billion in 2010.These are largely or the National Aeronautics andSpace Administration, the National Science Foundation

the National Institutes o Health, and the Departmento Energy.

A more complete and detailed discussion o researchand development unding can be ound in Chapter 5,Research and Development, in this volume.

Conduct o education and training. Outlays or the con-duct o education and training are estimated to be $139.3billion in 2010. These outlays add to the stock o humancapital by developing a more skilled and productive labororce. Grants to State and local governments or this cate-gory are estimated to be $98.6 billion in 2010, nearly three-quarters o the total. They include educ

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