The R&D funding request for nanotechnology would target advances in manufacturing, materials, information technologies and medicine.

Other high-tech research provisions in the budget proposal released Monday (Feb. 7) included $132 billion for military and civilian R&D, including $5.6 billion for the National Science Foundation (NSF).

NSF would oversee cybersecurity research as part of a $94 million budget request to defend the nation's IT infrastructure from cyber attacks.

Overall government spending for IT would increase by 7 percent to $65.1 billion in 2006 under the request, led by a 24.7 percent increase for the Department of Homeland Security.

The budget request also includes tax breaks for industry like a permanent extension of the R&D tax credit.