The "American Innovation Act" allocates increasing funds to key federal agencies for scientific research and technological development from 2026 to 2035, exempting these funds from budget sequestration and PAYGO rules.
Bill Foster
Representative
IL-11
The American Innovation Act allocates significant funding to key federal agencies to boost innovation. It increases funding for the National Science Foundation, Department of Energy, Department of Defense, National Institute of Standards and Technology, and NASA's Science Mission Directorate, with yearly budget increases based on the Consumer Price Index. These funds are protected from budget sequestration and will not affect PAYGO scorecards.
Decade of Dollars: American Innovation Act Locks In Billions for Science & Tech Research Through 2035
The American Innovation Act lays out a significant, long-term financial commitment to boost scientific and technological research across key federal agencies. Starting in fiscal year 2026, the bill allocates substantial funding increases through 2035 for the National Science Foundation (NSF), the Department of Energy’s Office of Science, Department of Defense (DOD) Science and Technology Programs, the National Institute of Standards and Technology (NIST), and NASA's Science Mission Directorate. The core purpose is to fuel American innovation by providing robust, predictable funding for research and development.
A Surge in Science Spending
This isn't a minor budget tweak; it's a major investment plan. For example, the NSF's funding is set to start at $9.7 billion in 2026 and climb to over $18.2 billion by 2035. Similar multi-billion dollar increases are scheduled for the other agencies, covering everything from fundamental scientific discovery (NSF, DOE) and space exploration (NASA) to industrial standards (NIST) and defense technology (DOD). The breadth of agencies involved suggests an effort to bolster innovation across multiple sectors critical to economic growth and national security.
Funding Built to Last
The bill includes specific mechanisms designed to protect this funding stream. Appropriations are scheduled to increase annually over the ten-year period, and after 2035, they'll be adjusted based on the Consumer Price Index (CPI), helping the funding keep pace with inflation. Furthermore, the allocated money is designated as 'available until spent,' giving agencies flexibility in managing long-term projects. Critically, the legislation explicitly exempts these funds from 'sequestration' – automatic, across-the-board budget cuts that can disrupt research – and states the costs won't count against 'PAYGO' rules, meaning Congress doesn't need to find immediate offsetting savings elsewhere for this spending. These provisions signal an intent to make this funding reliable and less subject to annual budget negotiations.
Potential Real-World Impacts
What does this mean beyond the agency budgets? Increased funding for NSF and DOE could accelerate university research, potentially leading to breakthroughs in areas like clean energy, advanced computing, or medicine. More resources for NIST might translate into better measurement science supporting U.S. manufacturing competitiveness. Enhanced DOD S&T funding could spur advancements in defense capabilities, while NASA's boost supports further space exploration and earth science. However, this substantial investment comes from taxpayer dollars, and ensuring these billions translate into tangible progress will require careful oversight. The challenge lies in channeling these resources effectively to drive genuine innovation rather than simply funding ongoing operations.