In the United States, the federal budget for each fiscal year comprises four stages: agency budgeting, review by the Office of Management and Budget (OMB) within the White House (responsible for budget preparation directly to the President), congressional appropriations, and budget execution. The first three stages involve budget formulation, typically commencing in the spring preceding the fiscal year.
On August 17, 2023, Shalanda D. Young, Director of the Office of Management and Budget, and Arati Prabhakar, Director of the Office of Science and Technology Policy, signed the memorandum on multi-agency R&D priority areas for the fiscal year 2025 (from October 1, 2024, to September 30, 2025), abbreviated as the memorandum. This memorandum serves as the blueprint for the U.S. federal government's research and development plans, reflecting the nation's direction and priorities for technological innovation in the upcoming year. It strategically outlines the focus areas for R&D budgets across various federal agencies. This analysis delves into the relevant contents of the memorandum.
The memorandum for the fiscal year 2025 federal budget outlines seven key aspects, detailed as follows:
(1) Advancing Trusted Artificial Intelligence (AI) Technologies:
Implication: Federal agencies in the U.S. place a high emphasis on the security and reliability of AI technologies.
In recent years, many U.S. federal agencies have developed their AI plans and established offices within their departments focused on AI development. For instance, the U.S. Department of Energy's Office of Artificial Intelligence and Technology established the Artificial Intelligence Advancement Committee (AIAC) in April 2022, and the U.S. Patent and Trademark Office (USPTO) formed the AI and Emerging Technologies Working Group. Simultaneously, the White House, Congress, and a range of federal agencies, including the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and National Institute of Standards and Technology (NIST), have proposed a series of initiatives, laws, and policies related to AI.
The prioritization of AI in the memorandum, listed as the first item, underscores its special status. The memorandum not only links AI technology with national aspirations but also emphasizes trustworthy AI technology. Previously, in October 2022, the White House Office of Science and Technology Policy (OSTP) released the "Blueprint for AI Rights Act: Enabling Automated Systems to Serve the American People." This document outlines five principles to "guide the design, use, and deployment of automated systems, protecting the American people in the age of AI." These principles involve the security and effectiveness of the technology, preventing algorithmic discrimination, protecting data privacy, and human involvement in decision-making.
These initiatives and the memorandum indicate a heightened demand for the security and reliability of AI technology, building upon the momentum of accelerating AI development. The implication here is whether China should also consider deep-seated issues in the field of AI technology, such as security, reliability, and privacy protection. China's strengths lie in technological research and market application, but its underlying technologies are relatively weak. It is suggested that China should timely optimize and adjust the focus and direction of AI technology research and development to ensure its position of strength in the new round of technological competition.
(2) Leading the World in Maintaining Global Security and Stability Amid Significant Geopolitical Shifts:
Implication: U.S. federal agencies place particular emphasis on leadership in security and risk areas.
The memorandum emphasizes continuously strengthening its leadership in security and risk areas amid significant geopolitical shifts and evolving risks. These risks include risks in critical and emerging technology fields (such as microelectronics, biotechnology, quantum information science, advanced materials, high-performance computing, and nuclear energy), new national security risks (such as those related to biosecurity, biosafety, and nuclear weapons), building design safety, the security and resilience of critical infrastructure, the impact of autonomous systems and AI on national security, etc. This indicates that while the United States maintains an absolute advantage in many high-tech fields as the world's top superpower, it is also facing increasing global security and risks, actively expanding its technological research and development in relevant areas. China, as a developing major power, faces even greater security and risk challenges. We need to carefully examine the problems we still face in more security and risk areas, and take proactive measures to prepare and deploy early.
By reconstructing America's infrastructure and improving its relationship with nature, ensuring environmental justice, and addressing global challenges in response to the climate crisis
The United States and the world are facing profound climate crises, with the window to avoid the most disastrous impacts of climate change rapidly shrinking. Institutional research and development programs should drive the achievement of government climate goals, including utilizing the power of nature, rebuilding and updating America's infrastructure, strengthening and protecting community health, reducing household energy costs, preserving biodiversity, and creating high-paying jobs in the United States. These investments should promote economic and environmental justice, fairness, and public health by reducing vulnerability and enhancing resilience to climate change.
Support research and development efforts to help the country achieve net-zero greenhouse gas emissions by 2050, including priorities identified in the Net Zero Game Changer Initiative, the Ocean Climate Action Plan, and the ten-year strategic plan of the U.S. Global Change Research Program, as well as investments to improve the nation's capacity to measure and monitor greenhouse gas emissions and removals.
Address gaps in climate observation, monitoring, modeling, and research before the Sixth National Climate Assessment, including in regions outside the United States; anticipate risks and opportunities for future generations, including those beyond 2100; and promote and leverage local knowledge and social science research to achieve climate goals.
Advance the development of actionable climate services consistent with the Federal Framework and Action Plan through coordination with the U.S. Global Change Research Program to support communities, governments, and businesses in enhancing resilience and taking action.
Fund research to improve analysis of policy choices and technologies (such as ecosystem services) that are difficult to monetize or quantify, track natural assets through emerging national environmental and economic statistical systems, support the National Nature Assessment, and make recommendations in a nature-based solutions roadmap.
Revelation: Federal agencies in the United States have begun to restructure infrastructure to address climate change
Compared to developing countries like ours, Western developed countries such as the United States also face profound climate crises and have recognized that the opportunity and window to avoid the catastrophic impacts of climate change are rapidly diminishing. The memo proposes that strong measures must be taken to promote the government's climate goals, including harnessing the power of nature and rebuilding and updating relevant infrastructure. These measures will promote sustainable development of economic and environmental justice by reducing vulnerability and enhancing resilience to climate change. The revelation for us is that the determination and actions of the United States in addressing climate change are clear and unwavering. China should recognize this clearly and not misjudge the situation or miss opportunities. Therefore, we should actively strengthen cooperation with the United States in addressing climate change, alleviate the tension of the Sino-US technological cold war, promote technological exchange and cooperation in relevant fields, and jointly promote the building of a community with a shared future for mankind.
(Four) Bringing better health outcomes to everyone
The current health situation in the United States is unacceptable. Science, technology, and innovation must pave the way for reversing this trend.
Through strong and stable support, help the United States achieve its goal of ending known cancers through initiatives like the Cancer Moonshot, including efforts in prevention, early detection, new therapies, and care and support.
Enhance the ability to mitigate current and emerging health threats, including addressing antimicrobial resistance issues and identifying and eliminating outbreaks before they become epidemics.
Support the physical and mental health of all Americans, including high-risk communities such as veterans, caregivers, healthcare professionals, youth, and LGBTQI+ communities.
Make progress in disease prevention, improving public health, health equity, and innovation.
Make progress in improving clinical trials, enhancing nutrition, promoting treatment for rare diseases, mitigating neurodegeneration, and addressing other high-demand areas.
Reduce the cumulative impact of environmental burdens by preventing exposure to harmful chemicals such as lead and per- and polyfluoroalkyl substances, mitigating the health impacts of climate change, particularly on communities disproportionately burdened, and promoting environmental justice.
Revelation: Federal agencies in the United States place great emphasis on health and equity issues
The memo argues that the current health situation in the United States is unacceptable. Efforts must be made through science, technology, and innovation. The research priorities proposed in the memo include the Cancer Moonshot, disease prevention, infectious disease control, treatment of difficult diseases, and the physical and mental health of special populations. In contrast to China, health issues have always been a key concern in the process of building a Healthy China. These research directions proposed by the United States (especially the treatment of difficult diseases and the health of special populations) need to be carefully considered and learned from. The memo also specifically addressed issues of health equity. In August 2023, the National Academy of Sciences, Engineering, and Medicine released a report titled "Toward Equitable Innovation in Health and Medicine," highlighting the inequalities revealed during the COVID-19 pandemic, such as unfair distribution of vaccines and treatments. These issues exist to varying degrees in China as well, warranting our attention.
(V) Reducing Barriers and Inequities
Institutions should engage in research and apply technological advancements to improve inequalities and create opportunities to strengthen American values.
Insight: Emphasis on Public and Community Engagement by US Federal Agencies
The memo underscores the promotion of technological progress to address inequalities, particularly by supporting innovation and talent development in various fields across the United States. It also calls for increased research and development efforts in regulation, citizen processes, and expanded public and community involvement. In February 2023, President Biden signed an executive order directing federal agencies to eliminate bias in the design and use of new technologies, including artificial intelligence, and protect the public from algorithmic discrimination. In contrast, China may not face as prominent issues in this regard, possibly due to insufficient attention. China's grassroots scientific and technological issues often simplify their connection with public education, diluting the "last mile" of scientific research and innovation to the public and communities.
(VI) Supporting Research and Industrial Innovation to Establish National Future Economic Competitiveness from the Bottom Up and Inside Out
Global competition is intensifying, and the pandemic has exposed the fragility of global supply chains. In this environment, institutions should focus on using science and technology to improve living standards and enhance supply chain resilience.
Insight: US Federal Agencies Begin to Focus on Supply Chain and Industrial Innovation
Previously, R&D by US federal agencies mainly focused on basic research and defense. Technological innovation was often left to businesses or the market. However, this memo points out that global competition is intensifying, and the COVID-19 pandemic has severely exposed the vulnerability of global supply chains. As a result, institutions should focus on using technology to improve living standards and enhance supply chain resilience. In recent years, the reshaping of the US supply chain system has covered a wide range of industrial upgrades and technological innovation factors, in a sense also considered a significant investment in the US technology sector to ensure continued leadership in future great-power competition. This indicates that the US federal government has begun to pay attention to supporting supply chain and industrial chain development from the perspective of technological research and development. The memo proposes to support applied research, experimental development, pre-commercialization, and standards-related work to promote the adoption of a wide range of new technologies. This clearly delineates the boundary between government and the market, with federal agencies vigorously supporting R&D related to supply and industrial chains, while also defining it as occurring before commercialization.
(VII) Strengthening, Advancing, and Leveraging America's Outstanding Research to Achieve National Great Ambitions
Basic and applied research are the cornerstones of America's innovation capabilities. Budgets should continue to improve America's rich and complex research system to make it increasingly effective in addressing today's greatest challenges.
Insight: US Views Basic and Applied Research as Closely Linked to National Spirit
The memo suggests that basic and applied research are the cornerstones of America's innovation capabilities. Federal budgets should continue to improve America's complex research system, making it increasingly effective in addressing contemporary challenges. The memo emphasizes supporting and enhancing both basic and applied research, which are not only symbols of American innovation but also objects of envy worldwide. This closely ties research and innovation enterprises to America's national aspirations and spirit.
The memo also proposes assisting emerging research institutions in effectively competing for federal funding, supporting industrial and academic sectors in identifying and addressing research security challenges, and providing the public with free, immediate, and fair access to federally funded research results. Notably, it highlights research security. In December 2021, the American Physical Society released a survey report titled "Impact of US Research Security Policies: Advantages of Open Science and International Collaboration vs. US Security," suggesting that current US research security policies could significantly affect the United States' efforts to build an international talent pool in STEM (science, technology, engineering, and mathematics). Over 80% of non-US physics graduate students and early-career professionals are considering or have already considered employment outside the United States, with the ease of obtaining citizenship and the welcoming environment for foreign talent being key factors influencing their decisions. The memo also emphasizes the importance of providing support not only for research and development in priority areas but also for capacity building and public services. Compared to China, where government science and technology agencies primarily oversee the coordination and management of R&D projects, with related services mainly handled by market entities, there is a need for continuous strengthening and improvement in this regard in the future.
