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Government Affairs Home > Washington Highlights > Government Affairs Home > Washington Highlights > February 8, 2002

President's Budget Provides Increase for NIH; Cuts for Health Professions, AHRQ, CDC

February 8, 2002 - President Bush Feb. 4 released his budget request for FY 2003. The $2.13 trillion spending plan includes significant increases for defense and homeland security as well as revitalizing the economy. With regard to discretionary health programs, the Administration proposes $27.3 billion for the National Institutes of Health, an increase of $3.7 billion (15.7 percent) over the previous year as the final step in the doubling of the NIH budget between FYs 1999 and 2003. At the same time, the budget request cuts funding for the health professions education programs by 75 percent to $94 million, the Centers for Disease Control and Prevention by 14.8 percent to $5.77 billion, and the Agency for Healthcare Research and Quality by 16 percent to $252 million. The Administration calls for increases of 5 percent for the National Science Foundation and 10 percent for the VA medical research program.

National Institutes of Health (NIH): The Administration's FY 2003 budget request includes $27.3 billion for the NIH, an increase of $3.7 billion (15.7 percent). This equals the AAMC-supported recommendation of the Ad Hoc Group for Medical Research Funding and serves as the fifth step in the five-year plan to double the NIH budget from FY 1999 to FY 2003. The budget request allows for increases of approximately 9 percent for each institute and center, with the exception of NIAID and NCI which receive increases of 57.3 percent and 12.2 percent due to large increases in bioterrorism and cancer research.

NIH leadership anticipates that the President's request will enable the agency to make 38,038 research project grants (RPGs), the highest annual total ever awarded. This total includes 9,854 competing RPGs, an increase of 477 over FY 2002.

The budget includes $240 million for extramural construction awards, an increase of $140 million (140 percent). Of this total, $150 million will be targeted toward the building and infrastructure improvement of high-containment research facilities (biosafety level 3 and 4 laboratories), and $77 million is requested for extramural construction in the National Center for Research Resources (NCRR). The overall NCRR budget is proposed to be $1.09 billion, an increase of $79 million (6.9 percent). The Administration requested $633 million for buildings and facilities, an increase of $307 million (94.2 percent). This increase will be targeted at the John Edward Porter Neuroscience Building, continued construction of the NIH Clinical Center, increases in physical security on the NIH's Bethesda campus, and construction of high-containment laboratories on the Bethesda campus and at Fort Detrick to support bioterrorism research.

In addition to the bioterrorism-related construction funding, the Administration requested $977 million for basic and applied research related to bioterrorism at NIH and $250 million for anticipated government procurement of anthrax vaccines.

Proposed funding for the extramural clinical research and pediatric research loan repayment programs is doubled to a total of $56 million in FY 2003, providing for approximately 550 contracts, 15-20 percent of which areexpected to be awarded to pediatric researchers. The budget also proposes to reduce the cap on NIH extramural research salaries back to Executive Level II.

Centers for Disease Control and Prevention (CDC): The President's budget includes a program level of $5.77 billion for the CDC, a decrease of $1 billion (14.8 percent). This includes:

  • .637 for bioterrorism, a decrease of $661 million (28.8 percent). (The decrease is attributed to the major one-time purchase of vaccines in FY 2002);
  • $345 million for infectious disease control, a decrease of $10 million (2.8 percent);
  • $631 million for immunization, the same level as FY 2002;
  • $130 million for the National Center for Health Statistics, a decrease of $1 million (0.8 percent); and
  • $184 million to construct, repair and secure facilities. This includes $64 million through the buildings and facilities line item, a decrease of $186 million (74.4 percent), and $120 million as part of the bioterrorism initiative.

Agency for Healthcare Research and Quality (AHRQ): The president's budget cuts funding for AHRQ by $48 million (16 percent) to $252 million. All funds are transferred to AHRQ from other Public Health Service agencies, not directly appropriated. Included in the Administration's proposed funding is $60 million for reducing medical errors, $53.3 million for the Medical Expenditure Panel Survey (MEPS), and $10 million for a new program, Health Coverage Data Improvement, which is designed to enhance information collected by the Census Bureau's Current Population Survey to develop plans to expand coverage to the uninsured.

Health Resources and Services Administration (HRSA): The FY 2003 budget request includes $6 billion for HRSA, a decrease of $394 million (6.2 percent) below FY 2002. Within HRSA, $60 million is designated for a new Educational Incentives for Curriculum Development and Training Program which is charged with developing new curricula to improve bioterrorism preparedness of the health care workforce. Additionally, $518 million in bioterrorism funding is designated for hospitals, including $235 million for hospital preparedness and $283 million for hospital infrastructure.

Health professions and nursing education: The Administration proposes $94.5 million for the health professions programs, a $283.5 million (75 percent) decrease. All Title VII programs are eliminated except for $10 million for the Scholarships for Disadvantaged Students program and $1 million for Workforce Information and Analysis. The Administration's total of $110 million also includes $15 million for the Nurse Education Loan Repayment Program.

Other HRSA programs: Community health centers receive an increase of $114 million (8.5 percent), lifting their budget to $1.45 billion. The Ryan White AIDS programs receive level funding at $1.9 billion in the administration's budget. For Rural Health Outreach Grants, the administration proposes a $13.6 million (26 percent) decrease to $37.9 million. Telehealth programs were cut in the proposed budget from $39 million to $5.6 million, an 86 percent cut.

National Health Service Corps (NHSC): The President's budget includes $191.5 million for the NHSC, an increase of $44 million (29.8 percent). This includes $142.9 million for recruitment (scholarships and loan repayment), an increase of $43.9 million (44.3 percent), and $48.6 million for field operations, an increase of $100,000 (0.2 percent).

VA Appropriations: The Administration's FY 2003 budget includes an appropriation of $23.54 billion for VA Medical Care, an increase of $2.21 billion (10.3 percent) over FY 2002. The budget request also includes an appropriation of $409 million for VA Medical and Prosthetics Research, an increase of $38 million (10.2 percent). However, $15 million of the increase is attributed to a new accounting procedure that requires agencies to account for certain personnel benefits.

National Science Foundation (NSF): The Administration's FY 2003 budget includes $5.04 billion for the NSF, an increase of $241 million (5.0 percent) over FY 2002. This includes $3.78 billion for NSF Research, an increase of $185 million (5.1 percent).

Department of Education: The President's budget request does not propose spending increases for most student aid programs. Under the proposal, the maximum Pell Grant award remains at $4,000 and level funding is proposed for Supplemental Educational Opportunity Grants and Perkins Loans. Additionally, the President called for Congress to rescind over 1,500 earmarked projects from the FY 2002 Labor-HHS-Education appropriations bill to cover an expected $1.3 billion shortfall in the Pell Grant program. Within the Department of Education, The President has requested $110 million for the National Institute on Disability and Rehabilitation Research (NIDRR), the same level as FY 2002.

Information:

For NIH:

Dave Moore, Senior Associate Vice President
AAMC Government Relations
dbmoore@aamc.org
(202) 828-0525

For NIH, CDC, NHSC, VA, NSF, or DoE:

Jonathan Fishburn, Director, Research, Education and Veterans' Legislative Affairs
AAMC Office of Governmental Relations
jfishburn@aamc.org
(202) 828-0525

For AHRQ or HRSA:

Erica Froyd, Director, Public Health and Research Legislative Affairs
AAMC Office of Governmental Relations
efroyd@aamc.org
(202) 828-0525

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