The American Innovation Act would authorize multi-year funding for basic science across five major federal science bodies: the National Science Foundation, the Department of Energy Office of Science, the Department of Defense science and technology programs, the National Institute of Standards and Technology, and NASA’s Science Mission Directorate. The bill lays out explicit annual appropriations from FY2026 through FY2035, with a mechanism to carry the same funding level into FY2036 and beyond, increased by the Consumer Price Index (CPI) if applicable.
It also directs that these funds remain available until expended and provides definitions to clarify the agencies covered. Finally, the bill exempts these appropriations from sequestration and from PAYGO scoring, signaling a durable, long-run investment in basic science.
This is a budgetary, not a policy, lever designed to stabilize and expand the United States’ foundational research infrastructure.
At a Glance
What It Does
Authorizes multi-year basic-science funding across NSF, DOE Office of Science, DoD S&T programs, NIST, and NASA SMD with fixed FY2026–FY2035 totals and CPI-based increases for FY2036+.
Who It Affects
Researchers and institutions funded by NSF, DOE Office of Science, DoD S&T programs, NIST, and NASA SMD; federal agencies managing large-scale research portfolios; universities and national labs.
Why It Matters
Signals a durable, growth-focused commitment to foundational science that supports innovation ecosystems, technology development, and national competitiveness.
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What This Bill Actually Does
The bill creates a concrete, year-by-year funding path for several major federal science programs. For each agency—NSF, DOE Office of Science, DoD S&T programs, NIST, and NASA’s Science Mission Directorate—it specifies exact dollar amounts for FY2026 through FY2035.
For FY2036 and each subsequent year, the dollar amount is the prior year’s figure increased by the CPI, if the CPI indicates an increase. The funds are appropriated from the Treasury and remain available until expended.
The definitions section clarifies what is included in each agency’s budget category, ensuring consistent accounting across years. There are also provisions to exempt these appropriations from sequestration orders and PAYGO budgeting rules, reinforcing a long-term investment posture.
Taken together, the bill aims to provide stable, predictably growing financing for basic science to underpin American innovation and competitiveness.
The Five Things You Need to Know
The bill sets explicit annual funding levels for NSF, DOE Office of Science, DoD S&T programs, NIST, and NASA SMD from FY2026 through FY2035.
From FY2036 onward, funding for each agency increases automatically by CPI based on the previous year’s amount.
Funds are available until expended, ensuring ongoing project support and avoiding “use-it-or-lose-it” dynamics.
Definitions are included to standardize how each agency is counted for budgeting purposes.
The appropriations are exempt from sequestration and PAYGO scoring, indicating a durable, long-term investment stance.
Section-by-Section Breakdown
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NSF funding levels
This subsection lists fixed annual appropriations for the National Science Foundation for FY2026 through FY2035, with explicit dollar figures for each year (e.g., FY2026: $9,735,000,000; FY2027: $10,447,000,000; ...; FY2035: $18,279,000,000). For FY2036 and subsequent years, the amount is the prior year’s figure increased by the CPI increase (if any) published by the Bureau of Labor Statistics. This mechanism creates a long-range, inflation-adjusted growth path for basic research funding through NSF.
DOE Office of Science funding
This subsection sets fixed annual appropriations for the Department of Energy’s Office of Science for FY2026 through FY2035 (e.g., FY2026: $8,854,000,000; FY2027: $9,501,000,000; ...; FY2035: $16,624,000,000). Like NSF, FY2036 and later years use the prior year’s amount adjusted by CPI. The structure ensures sustained federal support for energy-related basic research and discovery through the DOE Office of Science.
DoD science and technology funding
This subsection provides annual appropriations for the DoD science and technology programs from FY2026 through FY2035 (e.g., FY2026: $23,109,000,000; FY2027: $24,799,000,000; ...; FY2035: $43,392,000,000). From FY2036 onward, funding escalates with the prior year’s amount by CPI, maintaining a growth path for defense-related basic research and technology development.
NIST S&T funding
This subsection allocates annual appropriations for the National Institute of Standards and Technology’s scientific and technical research and services from FY2026 to FY2035 (e.g., FY2026: $1,244,000,000; FY2027: $1,335,000,000; ...; FY2035: $2,335,000,000). In FY2036 and later years, the amount is the prior year plus CPI growth. The provision underscores federal investment in measurement science, standards, and related research.
NASA SMD funding
This subsection outlines year-by-year funding for NASA’s Science Mission Directorate from FY2026 through FY2035 (e.g., FY2026: $7,880,000,000; FY2027: $8,457,000,000; ...; FY2035: $14,796,000,000). FY2036 and beyond follow the same CPI-based escalation rule. The language supports fundamental space science and exploration through sustained federal investment.
Availability of funds
Amounts appropriated under subsection (a) remain available until expended. This ensures multi-year projects and large research programs can proceed without annual funding shortfalls interrupting or delaying milestones.
Definitions
This section defines the relevant budgeting terms and agency scopes, including what constitutes the National Science Foundation, the Office of Science at the Department of Energy, the Department of Defense science and technology programs, the National Institute of Standards and Technology scientific and technical research and services, and the NASA Science Mission Directorate. These definitions ensure consistent interpretation across years and budget cycles.
Sequestration exemption
The bill amends sequestration rules to insert the American Innovation Act appropriations as exempt, ensuring that automatic spending reductions do not apply to these funds. This helps maintain the intended growth path for base science programs during sequestration orders.
Budgetary effects
This section clarifies that the budgetary effects of the bill are not to be entered on PAYGO scorecards in the usual sense, and likewise are not counted for the Senate PAYGO scorecard. The intent is to preserve the multi-year investment stream without triggering standard PAYGO accounting.
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Explore Science in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- University and college researchers who rely on NSF grants will gain predictable, inflation-adjusted support for basic research and training of graduate students.
- DOE national laboratories and university partnerships funding will sustain foundational energy and materials science research across multiple disciplines.
- NASA scientists and collaborators will benefit from stable funding for space science missions and exploration programs.
- DoD science and technology programs will maintain long-term research pipelines for defense-relevant technologies and capabilities.
- STEM students and emerging researchers will see expanded opportunities through continued grant support and program funding.
- Industry sectors that depend on foundational research—semiconductors, materials, biotech, and computation—will gain from a steadier pipeline of discoveries.
Who Bears the Cost
- Federal budgetary outlays necessary to sustain current and rising program levels will fall on taxpayers and general revenue sources.
- Management and oversight costs rise with multi-year, inflation-indexed funding, requiring sustained federal budgeting capacity and accountability.
- Potential opportunity costs if gains in basic science crowd out investments in other non-science federal programs.
- Deficits and debt dynamics depend on broader fiscal policy; this bill shifts long-term outlays toward science funding.
Key Issues
The Core Tension
The central dilemma is balancing durable, inflation-adjusted funding for broad, basic-science programs with the need for fiscal control and accountability. On one hand, CPI-indexed growth supports continuity and long-range planning; on the other hand, it risks misalignment with evolving scientific priorities, cost pressures, and competing national priorities, especially if inflation spikes or if cost growth outpaces program needs.
The bill’s core design uses CPI indexing to grow funding over time, which creates a straightforward, inflation-responsive path for basic science. However, CPI-based growth assumes that inflation aligns with the research funding needs of the agencies, which may not always hold true given the specialized and project-specific costs of research.
The approach also places additional pressures on annual budget cycles and may complicate budgeting if CPI runs high while program demands shift toward expensive, long-duration projects. The exemption from sequestration and PAYGO reduces immediate fiscal discipline signals, but it also relies on future Congresses to maintain discipline in appropriations.
Implementation will hinge on how agencies allocate these fixed, inflation-adjusted totals across subprograms, and how these tallies interact with existing mandatory or civilian budgeting practices.
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