Since the end of FY03, the annual growth of NIH appropriations has declined in real terms based on two measures of inflation. In nominal terms, the NIH budget has increased 2% annually from $27.2 billion in FY03 to $30.9 billion in FY11. Adjusting for purchasing power based on the Biomedical Research and Development Price Index (BRDPI), the budget declined 2% annually from $23 billion in FY03 to $19.6 billion in FY11 in 1998 dollars. However, BRDPI is autocorrelated because it includes hikes in payroll and overhead driven by the institutions who receive grant money.

Using the Consumer Price Index (CPI), the budget fell 1% annually from $24.1 billion to $22.4 billion in FY11 in 1998 dollars. FY12 uses enacted budget. Sources: NIH, U.S. Department of Labor