OMB R&D Priorities for Agency FY 2027 Budgets

It’s a bit ironic to be delving into the FY 2027 budget while FY 2026 remains unsettled. Nonetheless, last week OMB issued a memorandum to agencies on FY 2027 Administration Research and Development (R&D) Priorities and Cross-Cutting Actions, and it is worth a look. OMB typically releases such as memo each year, directing multi-agency focus areas and funding for certain R&D priorities.  

For FY 2027, OMB outlines five critical R&D priorities to build a sound federal science and technology ecosystem. In particular, the Trump Administration is pushing for the success of these five R&D areas to enhance areas of national security, U.S. energy dominance, health and biotechnology, and continued space supremacy.

According to the memo, “In a world where American dominance is not guaranteed and our adversaries pursue whole-of-nation approaches to S&T competition, federally funded R&D must focus on targeted, transformational investments in areas such as artificial intelligence (Al), quantum science, nuclear energy, biotechnology, national security technologies, and ambitious space exploration.”

Artificial Intelligence

It comes as no surprise that AI is listed as a FY 2027 budget priority given the Trump Administration’s push for global AI dominance and the technology’s growing use among all walks of applications. The memo underlines AI applications specifically in nuclear fission and fusion for energy production, quantum information science, advanced space analytics, remote sensing and navigation, autonomous systems, and enhanced methodologies for AI evaluation and measurement.

Areas of AI R&D which the memo points out include AI architectural advancements, high-performance AI techniques and systems, AI adversarial robustness and security, and the interpretability, controllability and steerability of AI systems.

For more information and analysis on the current state of the federal AI market, refer to Deltek’s Federal Artificial Intelligence Market, 2026-2028 report which provides the budget, initiatives and policies impacting federal AI.

Quantum Information S&T

The memo directs agencies to expand the understanding of end user applications and technology enablement through investments in testbeds and advanced manufacturing of next-generation quantum devices.

A few weeks ago, Meritalk reported on a speech by Office of Science and Technology Policy Director, Michael Kratsios, who outlined the administration’s five point plan to advance quantum technology. These five points include growing the domestic quantum workforce, commercializing quantum technologies, providing incentives to the environments producing component technologies, developing good relationships with international allies, and protecting development of sensitive research and applications from adversaries.

Semiconductors and Microelectronics

Investments in semiconductors and microelectronics will directly influence the success of the first two R&D priorities. The memo advises agencies to make investments ensuring government access to secure and reliable microelectronic technologies. Such investments should be in underlying materials, devices, designs and software with a focus on fabrication and characterization of tools and facilities.

Advanced Communication Networks

R&D must advance U.S. leadership in wireless networks that are 5G, 6G and beyond, particularly in areas such as space-based communication networks. Research should include AI techniques for wireless systems, new approaches to spectrum sharing, and the incorporation of AI to enhance design security and privacy.

Future Computing Technologies

The foundation of accelerating the evolution of novel technologies is advanced computing. Thus, the memo supports investments priorities in testbeds, computing infrastructure, experimental systems and prototypes. The memo also touts efforts to excel development public-private partnerships through consortia or centers of excellence.

To move these R&D goals forward, the memo instructs agencies to increase interagency and public-private collaboration. In doing so, agencies should consider initiatives that relieve regulatory burdens in federal technology transfers to increase partnership participation. Moreover, agencies are asked to prioritize investment in publicly accessible databases and other research-sharing platforms to create a research infrastructure that succeeds in data that is discoverable, accessible and useable. The memo also instructs agencies to prioritize efforts that expand autonomous experimentation facilities to accelerate R&D efforts.