"The Bush Administration requested $137.2 billion in federal research and development (R&D) funding for FY2007. This sum represents a 2.6% increase over the estimated $133.7 billion that was approved in FY2006. As in the recent past, the FY2007 increase over the FY2006 estimated funding levels is due to significant funding increases in the Department of Defense (DOD) and the National Aeronautics and Space Administration's (NASA's) space vehicles development program. The centerpiece of the President's proposed FY2007 R&D budget is the American Competitiveness Initiative (ACI). The President proposed this initiative in response to growing concerns about America's ability to compete in the technological global market place. Over the next 10 years, the $136 billion initiative would commit $50 billion for research, science education, and the modernization of research infrastructure. The remaining $86 billion would finance a revised permanent R&D tax incentive over the next 10 years. The most recent federal research tax credit expired on December 31, 2005. In his budget request, the President asked Congress to pass a permanent Research and Experimental Federal tax credit."
CRS Report for Congress, RL33345