Congressional appropriations are largely stalled, with the exception of defense spending:
Congress has made little progress on the federal government’s budget for fiscal year (FY) 2009, which begins October 1, leaving federal funding for research and development (R&D) in limbo... The federal investment in basic and applied research totals $58.2 billion at the start of FY 2009, a small $244 million or 0.4 percent increase due to large research increases in the finalized DOD [Dept. of Defense], DHS [Dept. of Homeland Security], and VA {Veterans Administration] budgets offset by cuts in research funding for agencies such as NSF, DOE Office of Science, and NIH that received supplemental 2008 appropriations in June but lose those funds in the CR. After adjusting for inflation, the federal investment in research could decline for the fifth year in a row in 2009.
It's all going to defense R&D:
This could potentially still be turned around in this year's appropriations bills, but that looks unlikely to happen. The flat budgets are already starting to hit home. Because NIH spending on fellowships this past year was kept at FY2007 levels, my NIH postdoctoral fellowship funds are no longer is enough to pay for my health insurance costs, which, like everything else, have become more expensive.