Federal funds continue to underwrite about 50 of the national research and development (R&D) enterprise, and the nature of this support continues to be of special interest to policymakers. This report provides data on trends within functional areas and noteworthy shifts among areas. It is based on an annual National Science Foundation survey. Federal R&D priorities, identified in order of financial expenditures are: (1) national defense; (2) space; (3) health; (4) energy; (5) environment; (6) science and technology base; (7) transportation and communication; (8) natural resources; (9) agriculture; (10) social services; (11) education; (12) housing; (13) economics; (14) international cooperation; and (15) crime prevention. The 1979 federal budget presented in January 1978 reflected greater austerity in regard to R&D programs than did the three previous ones in which overall R&D growth exceeded inflation each year. R&D programs emphasized were those that met direct federal needs, general social and economic needs, or the need to accelerate private R&D efforts because of overriding national interest. (BB)