In 1995, the National Academy of Sciences, National Academy of Engineering, Institute of Medicine, and National Research Council issued a report entitled Allocating Federal Funds for Science and Technology, which recommended tracking of federal investments in the creation of new knowledge and technologieswhat the report referred to as the federal science and technology (FS&T) budget.Observations on the President’s Fiscal Year 2001 Federal Science and Technology Budget, the third annual report, identifies potential impacts of the President’s proposed FS&T budget. This report does not make recommendations about specific spending levels, but rather identifies aspects of the proposed budget as they affect the health of the nation’s research enterprise.