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Budget Update

President Obama’s Fiscal Year 2013 Budget Request

On February 13, the President released his $3.8 trillion budget for FY 2013.  The budget promises $3 trillion in deficit cuts over 10 years, mostly through $1.5 trillion in new taxes and $800 billion in savings counted from the end of the Iraq and Afghanistan wars.  The President proposes those savings would be pumped back into the economy in the form of a $350 billion short-term stimulus spending aimed at new transportation projects and assisting local governments hire new teachers.   The Budget Request also includes the new “Buffett Rule” that requires those making over $1 million should pay no less that 30% of their income in taxes.

Below are various highlights from the President’s FY 2013 Budget Request.

Department of Health and Human Services

The Budget Request provides $76.4 billion, or $300 million above the 2012 funding level for HHS.  The Budget maintains investments in the Affordable Care Act and Head Start and achieves savings through consolidation of environmental health and substance abuse prevention grant programs.

Health Resources and Services Administration- Provides $8.4 billion, an increase of $228 million above FY 2012.  Priorities in the FY 2013 HRSA budget include reducing barriers to care that contributes to disparities in health care; supporting medical, dental, mental and behavioral health care providers who bring their skills to areas with limited access to health care; and assisting  states and communities identify and address unmet service needs and workforce gaps in the health care system.

Center for Disease Control and Prevention- The budget provides $5.068 billion in funding for the CDC which is a $664 million decrease from FY 2012.  The Budget request increases support for core programs, such as domestic HIV/AIDS prevention; food safety; surveillance for healthcare associated infections (HAI); health statistics; global polio eradication; and improving the efficiency of state laboratories.

The National Institutes of Health- Provides $30.9 billion for NIH, the same as in FY 2012 with a priority of investing in innovative biomedical and behavioral research.  NIH will look to support a total of 35,888 research project grants, including 9,415 new and competing awards in FY 2013. Other institute funding levels include:

·         $639.1 million for the National Center for Advancing Translational Sciences, an increase of $64.3 million over the FY 2012 level.


·         $50,000,000 for the Cures Acceleration Network, an increase of $40 million over FY 2012.  


·         $165,000,000 for the National Children’s study, a decrease of $28.1 million decrease.  The budget also states that funding will support the continuation of the Vanguard Study and the beginning of the main study.  NIH is evaluating alternative sampling approaches that will reduce costs by building on existing infrastructure, and streamlining administrative components.


Substance Abuse and Mental Health Services Administration- SAMHSA is funded at $3.4 billion, of which $105 million is funded through the Prevention Fund, a decrease of $142 million below FY 2012. Included in the budget is $460 million for prevention services targeting early risk factors that can improve behavioral health outcomes for children and young adults.  $140 million will be used in support of behavioral health services for homeless individuals and families with mental and substance abuse disorders.

AIDS/HIV Prevention- the HHS budget includes $3.3 billion for discretionary prevention and treatment activities across the Department to expand access to affordable health care, prevention, and treatment services and align activities with the National HIV/AIDS Strategy.

Food and Drug Administration- the Request includes $4.49 billion for FDA, of which $2.5 billion will be appropriated and the remaining funds coming from significant increases in user fees paid by various regulated industries.

Department of Energy

The FY 2013 Budget Request provides $27.2 billion in discretionary funds, a 3.2% increase above the 2012 enacted level. This request includes increased funding for priority areas such as clean energy, research and development to spur innovation, and advanced manufacturing.  The Office of Science receives $5 billion in FY 2013, about $100 million more than last year which increases funding for both research and cutting-edge facilities and maintains the President’s commitment to double funding for three key science agencies.  The budget proposes $11.9 billion for R&D, an increase of $884 million or 8% over FY2012, including:

  • $350 million for the Advanced Research Projects Agency – Energy (ARPA-E) within DOE to support transformational discoveries and to accelerate solutions in the development of clean energy technology.
  • $12 million for DOE, in collaboration with the Environmental Protection Agency (EPA) and the U.S. Geological Survey (USGS), to conduct a research initiative to understand and minimize the potential environmental, health, and safety impacts of natural gas and oil production from hydraulic fracturing.
  • $4.7 billion for R&D in DOE’s Defense portfolio in support of the nuclear stockpile, nuclear nonproliferation, and the Navy’s nuclear propulsion.

Department of Education

The Budget requests $69.8 billion in overall discretionary spending, an increase of $1.72 billion (+2.5%). Including the following:

·         For the Elementary and Secondary Education Act, the Budget once again proposes to restructure programs based on the Administration’s ESEA reauthorization. The budget consolidates 38 programs into nine new funding streams.

·         $80 million for STEM teacher and leader training and professional development, funded through a set aside from the Effective Teachers and Leaders program.

·         $1 billion for Race to the Top: College Affordability and Completion fund.

·         $30 million for Hawkins Centers of Excellence.

·         $398 million for the Department of Education’s R&D portfolio. 

·         $8 billion over 3 years for a community college initiative, jointly administered by the Departments of Education and Labor, that would improve access to job training across the Nation and support State and community college partnerships with businesses to build the skills of American workers. Increased investment in community colleges will help ensure our country has one of the most skilled workforces in the world.

National Science Foundation

The President’s FY 2013 budget contains $7.4 billion for NSF, an increase of $340 million, or 5% over the FY 2012 funding level.  There are savings of $66 million through program terminations and reductions in lower-priority programs. The proposal contains $3.2 billion for the core fundamental research grant programs, including $63 million for the second year of an interdisciplinary research and education initiative that changes the way the agency solicits and funds innovative cross-disciplinary proposals that may not have fared well under the standard peer review process.

To encourage interdisciplinary research for a future bio-economy, the budget provides:

  • $30 million for innovative proposals at the interface of biology, mathematics, the physical sciences, and engineering.
  • $106 million, an increase of $28 million above the FY 2012 level, for the second year of a cyber-infrastructure initiative to accelerate the pace of discovery in all research disciplines.
  • $149 million to strengthen long-term competitiveness of American manufacturing, an increase of $39 million above the FY 2012 level, for basic research targeted at developing new manufacturing technologies in partnership with other Federal agencies and the private sector. This advanced manufacturing research is part of a larger $257 million research initiative aimed at transforming static systems, processes, and infrastructure into adaptive, pervasive “smart” systems with embedded computational intelligence that can sense, adapt, and react. This larger research initiative also provides $28 million for NSF’s contribution to the National Robotics Initiative, which will accelerate the development and use of robots in the United States.
  • $459 million, an increase of $55 over the FY 2012 level, for two agency-wide science and engineering workforce development programs: the graduate research fellowship program and the faculty early career development program. These two programs recognize and support the best and brightest scientists and engineers at the formative stages of their careers.
  • $49 million for a new effort within NSF to integrate and leverage STEM education research to improve learning in science and engineering disciplines and to capitalize on the scientific assets across NSF to enhance outcomes in learning and education programs.
  • $20 million for the second year of a teacher training research and development program for undergraduate teachers, designed to transform the way science, engineering, and math are taught to undergraduate students. Competitive proposals will target the teaching of all undergraduate courses and the teaching practices of all faculty members in a department for all, or most, of the relevant departments at an institution. This program will support research on how to achieve widespread sustainable implementation of improved STEM undergraduate teaching practices and student outcomes at major universities, particularly for future K-12 STEM teachers.
  • $61 million, an increase of 56 percent over FY 2012 is proposed for Transforming Undergraduate Education in STEM program. This increase will provide targeted research and development funds to design, test, and implement more effective educational materials, curriculum, and methods to improve undergraduate learning and completion rates in STEM for a diverse population. 

National Institute on Standards and Technology

 $860 million for is included for NIST, an increase of $100 million over FY 2012.  Most of this is for NIST laboratories as part of the President’s Plan for Science and Innovation.


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