The federal budget plays a significant role in research and development (R&D) policy in the United States. Over 60 percent of R&D conducted at U.S. colleges and universities is funded by the federal government, and new initiatives and programs in the federal budget help to guide the direction of future R&D. The first Monday of February each year marks the release of the President's Budget Request and the start of public discussion on the priorities contained within. This session will take a first look at these priorities for fiscal year 2012 and their potential and intended effect on R&D, both domestically and abroad.