This update from the excellent resouce provided by AAAS on R&D funding is worth a read. An excerpt:

“The funding outlook for the federal research and development (R&D) portfolio looks just a little brighter going into the August congressional recess than it did a month ago, and brighter still than when the fiscal year (FY) 2006 budget request was released in February. Because of Senate-proposed increases for biomedical R&D at the National Institutes of Health (NIH) and congressional agreement on modest increases for environmental research in July, the federal R&D investment appears headed toward modest increases next year despite tough budget conditions.”