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SENT: BY: 2-24-98 ; 18:02 ; SCI & TECH POLICY- 62878;# 3/10 FISCAL YEAR 1999 RESEARCH AND DEVELOPMENT BUDGET: OVERVIEW President Clinton has submitted to Congress the first balanced budget request in 30 years. FY99 is also the sixth budget year in a row that the President has proposed increased investments in research and development to a total of $78.2 billion. The FY99 budget continues the important R&D trends established by this Administration. It boosts funding for basic research to $17 billion, an increase of 8% ($1.2 billion) over FY98. It provides $16.4 billion for applied research, an increase of 5% ($848 million) over FY98. Civilian R&D now constitutes 48% of total R&D, and this budget increases our emphasis on university-based research and on scientific user facilities that serve all of Amcrican science and technology. The impact of these substantial increases in R&D investments on America's research productivity is amplified by the Administration's concurrent focus on improving cost effectiveness by reducing administrative burdens on researchers in universities and Federal laboratories. 21st Century Research Fund The centerpiece of the President's R&D proposal is the 21st Century Research Fund. The $31 billion Research Fund is deficit-neutral. It provides for increases in most of the Federal government's civilian research programs, which will grow at an overall rate of 8% in FY99, and climb by 32% over the next five years. Highlights of the R&D Budget Increases in R&D funding enable our major S&T agencies to focus more intensely on the President's goals for science and technology: promote long-term economic growth that creates jobs; sustain a healthy, educated citizenry; harness information technology; improve environmental quality; enhance national security and global stability; and maintain world leadership in science, engineering, and mathematics. For example: National Institutes of Health (NIH). The budget reflects an unprecedented commitment to biomedical research with the largest increase ever for NIH, which is up 8% ($1.15 billion) to $14.8 billion. This funding will support expanded research on cancer, diabetes, brain disorders, drug demand reduction, genetic medicine, disease prevention strategies, and the development of an AIDS vaccine. National Science Foundation (NSF). NSF, which supports much of the research that trains the next generation of America's scientists and engineers, increases by 10% ($344 million) to $3.8 billion. The increase is the largest ever for NSF, and includes more than a 16% boost for computer science research. Department of Energy (DoE). The budget provides $7.2 billion in R&D funding for DoE -- an 11% ($697 million) increase over FY98. The budget includes resources for basic research, for constructing the Spallation Neutron Source, for the international partnership on the Large Hadron Collider, for DoE research under the Climate Change Technology Initiative, and for maintaining the safety and reliability of our nuclear deterrent without nuclear testing. Fiscal Year 1999 Research and Development Budget 1