It appears we will be facing a difficult year for  medical research
funding. The 2 % increase for the NIH won't even keep up with inflation,
and much of that will be going to a "Biodefence research center."

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ADMINISTRATION NEWS

Bush Signs Omnibus Spending Bill, Including Funding for Health Programs

 President Bush on Wednesday signed a $388 billion, fiscal year 2005
omnibus appropriations bill (HR 4818) that includes funds for HHS and
other federal departments, as well as many federal agencies, the
AP/Contra Costa Times reports (Fram, AP/Contra Costa Times, 12/9).
Congress passed the legislation on Nov. 20, but lawmakers did not send
the bill to Bush until Tuesday, after they removed a provision that would
have allowed the chairs of the House and Senate appropriations committees
and their staffs to review income tax returns (CongressDaily, 12/6).  The
658-page bill represents a "near freeze" on domestic appropriations for
FY 2005 and "anticipates still tighter limits" for FY 2006, the Wall
Street Journal reports (Rogers, Wall Street Journal, 12/7).

Health-Related Provisions

Summaries of some of the health-related provisions in the bill -- most of
which do not include a 0.8% across-the-board budget reduction included in
the legislation -- appear below.  The HHS budget for FY 2005 will
increase by about 2.7% from FY 2004.

The CDC budget will increase by about $138 million, or 2%, from FY 2004,
with $27 million for nutrition and exercise programs and additional funds
for a cancer registry, an environmental health laboratory and
preparations for a flu pandemic.  In addition, CDC will receive $1.6
billion for antiterrorism efforts, although the budget for a grant
program to help hospitals prepare for terrorist attacks will decrease by
$20 million.

The NIH budget for FY 2005 will increase by $575 million, or 2%, from $28
billion in FY 2004.  The National Institute of Allergy and Infectious
Diseases will receive "much" of the additional funds to build a new
biodefense research center, according to the Washington Post.  In
addition, a separate public health emergency account administered by the
HHS secretary will provide NIH with $47 million to respond to
radiological and chemical attacks.

The FDA budget for FY 2005 will increase by $76 million from FY 2004 to
$1.46 billion.  The legislation also includes a provision under which
federal, state or local agencies cannot force physicians, hospitals,
health insurers, HMOs or other health care entities to provide abortion
services or referrals.The bill did not include a provision to return
unspent federal SCHIP funds to states (Washington Post, 12/7).  Maternal
and child programs will receive $896 million, a 0.7% increase from FY
2004.

Health care programs for veterans will receive $30.3 billion, a $1.9
billion increase from FY 2004 (AP/Contra Costa Times, 12/9).

The National Science Foundation budget for FY 2005 will decrease by $105
million, or 1.88%, from FY 2004 to $5.5 billion (Washington Post, 12/7).

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