As a new Congress begins to deal with the federal budget, it is useful to review the budget setting process in the United States as it applies to research and development (R&D). The federal R&D budget process is a complex, often confusing, procedure characterized by a series of lengthy and frequently contentious negotiations between Congress, the Executive Office of the President, and numerous cabinet-level departments and federal agencies, all attempting to respond to an abundance of expectations and conflicting demands. Here we focus on the parts of the federal budget that deal with science and technology R&D funding in particular.