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FY 2007 Budget Outlook Update

Congressional action on Fiscal Year 2007 (FY 07) funding got off to a promising start this summer when the House of Representatives finished 11 of the 12 annual appropriations bills by the end of June. However, the Senate, which traditionally takes up the bills after the House, was slower to act. The Senate had voted on only one funding measure before adjourning for the August recess. Given the press of other legislative priorities and the upcoming mid-term elections, it is likely that Congress will need to return for a lame duck session to complete action on this "must pass" legislation.

The current status of House and Senate action on biomedical research funding is provided below.

More Information on the FY2007 budget

NIH

The Labor, Health and Human Services and Education funding bill was the only one that the full House of Representatives did not take up before its August recess. The delay was due to concerns about a controversial amendment that would raise the minimum wage. The FY 07 funding bill is disappointing for researchers because the House Appropriations Committee accepted the administration’s no-growth budget request. On the Senate side, NIH's champions on the Senate Appropriations Subcommittee on Labor-HHS-Ed bill recommended an additional $220 million in FY 07, which would provide an increase of less than 1% over FY 06.The bill faces opposition from moderates in both chambers who have expressed dissatisfaction with cuts to vital health and education programs in the bill.

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NSF

The administration requested $6.02 billion for the National Science Foundation (NSF) in FY 07, as part of its Competitiveness Initiative, and appropriators in both the House and Senate funded the NSF at that level. The measure has passed the House but has yet to be voted on by the Senate. The increase to $6 billion would represent an 8% increase in NSF's budget and is the first step towards doubling the agency's budget over the next ten years.

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NASA

Despite significant controversy over NASA spending priorities, appropriators in both chambers approved an increase for the agency that would bring its total budget to approximately $16.8 billion in FY 07. While the overall increase is good news for the agency, the Human Systems Research and Technology development program is still expected to be cut by 56% to $276 million in FY 07. This cut is particularly ill-timed because of NASA's increased focus planning for human space exploration.

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Veterans Affairs Medical and Prosthetic Research

Appropriators in both the House of Representatives and the Senate were able to restore proposed cuts to VA medical and prosthetic research, allocating $412 million for the program. This brings funding for the program back to last year’s level but provides no increase over FY 06.

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