According to the National Science Foundation's (NSF) latest data, federal research and development (R&D) obligations to U.S. colleges and universities failed to keep pace with inflation between FY 2003 and FY 2007, the latest year for which data were available. "Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions: FY 2007" found that R&D obligations increased 11.1 percent over the period, while inflation rose 12.7 percent.
NSF annually surveys the 19 federal agencies that account for almost all federal R&D obligations, defined as "the amounts for orders, placed, contracts awarded, services received, and similar transactions during a given period, regardless of when the funds were appropriated and when future payment of money is required." This differs from expenditures, which are actual outlays of money spent.