The release of the new U.S. federal budget heralds a decrease in funding after inflation is taken into account.

With inflation predicted at 4 percent over the 2012-2014 period, the new budget for research and development of $142.8 billion would see a small decline in overall funding.

Current R&D funding includes cyber security, health and supercomputer funding. High performance computing is being increasingly developed in Europe and China, with the new federal budget looking to capitalise and maintain the countries current position of leadership.

John Holdren, Director of the White House Office of Science and Technology Policy, said: “we have to admit a decline in real terms over this period".

The overall reduction in R&D funding comes at a time when China is set to overtake the U.S. as the number one spender on R&D, within the next 10 years.

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Number of U.S. computing majors increases dramatically