Just in! U.S. government scales back spending budget for quantum information technology for the first time
In December 2018, the National Quantum Initiative (NQI) Act became U.S. law to accelerate U.S. leadership in quantum information science and technology. in January 2023, NQI released its third annual report recognizing annual highlights from across the federal quantum information science and technology (QIS) research and development ecosystem, as well as from the National Institute of Standards and Technology (NIST), the National Science Foundation (NSF), the U.S. Department of Energy (DOE), the Department of Defense (DOD), the National Aeronautics and Space Administration (NASA), the National Security Agency (NSA), and the Intelligence Advanced Research Projects Activity (IARPA) for their substantial ongoing efforts. In addition, the report provides a brief summary of agency efforts and progress on cross-cutting QIS policy themes.
Notably, NQI has reduced its annual budget for the first time.

The following excerpt is from the Annual Report's "Budgeted Expenditures."
Since FY 2019, the U.S. QIS R&D budget has roughly doubled, driven by the NQI program, and QIS R&D is also required by the Multi-Agency R&D Priorities Memorandum for the FY 2023 budget, as well as the recent National Security Memorandum-10 (NSM-10) and the Chip and Science Act of 2022.
The figure below shows the overall federal budget for QIS R&D activities for agencies including NIST, NSF, DOE, DOD, the Department of Homeland Security (DHS), and the National Aeronautics and Space Administration (NASA).Much of the growth in the QIS R&D budget has gone to NQI activities, such as the Quantum Consortium established by NIST, NSF's Quantum Leap Challenge Institute (QLCI), DOE's National QIS Research Center, and the coordination and enhancement of many agencies' core QIS programs. The continued growth of U.S. QIS R&D will enable U.S. university, industry, and government researchers to explore the quantum frontier, advance QIS technologies, and develop the workforce needed to continue U.S. leadership in the field and related industries in the future.

U.S. R&D budgets for QIS since the beginning of the NQI Act. Bar heights represent the total budget for each fiscal year (FY 2019-2021 actual expenditures, FY 2022 estimated expenditures, and FY 2023 requested budget). The portion of each bar labeled NQI identifies the funds allocated to NQI Act authorized activities; these additional funds are above the baseline budget for QIS R&D activities.
The budget allocations for the five different National QIS Components (PCAs) are discussed below.
Quantum Sensing and Metrology (QSENS) refers to the use of quantum mechanics to enhance sensor and measurement science. This includes the use of superposition and entanglement, non-classical optical states, new metrology regimes or models, and advances in accuracy and precision achieved through quantum control, for example, using atomic clocks.
Quantum computing (QCOMP) activities include the development of quantum bits and entanglement gates, quantum algorithms and software, digital and analog quantum simulators using programmable quantum devices, quantum computers and prototypes, and hybrid digital-analog computing, and quantum-classical computing systems.
Quantum networks (QNET) include efforts to create and use entangled quantum states, distributed at a distance and shared by multiple parties, for new information technology applications and basic science; for example, networking medium-scale quantum computers (modules) to enhance computational capabilities beyond classical ones.
Quantum Information Systems for Advancing the Basic Sciences (QADV) includes fundamental work that invokes quantum devices and quantum information systems theory to extend fundamental knowledge in other disciplines; for example, to improve understanding in biology, chemistry, computing, cosmology, energy science, engineering, materials, nuclear matter, and other aspects of the basic sciences.
Quantum Technologies (QT) lists several topics: working with end users to deploy quantum technologies in the field and develop use cases; fundamental R&D in QIS engineering support technologies, such as infrastructure and manufacturing technologies for electronics, photonics, and cryogenics; and efforts to understand and mitigate the risks posed by quantum technologies, e.g., quantum-resistant cryptography.

The U.S. QIS R&D budget is allocated by NQI Program Component Area (PCA). These are FY 2019-2021 actual expenditures, FY 2022 estimated expenditures, and FY 2023 requested budgets, respectively.
The chart above shows the budget allocation by NQIS PCA for FY 2019 through FY 2023, using the "tiered" bar chart for each year. The final breakdown of the budget data presented here shows the QIS R&D budgets for each agency.

QIS R&D budgets for the three agencies highlighted in the NQI bill, showing actual spending for FY 2019-2021, estimated spending for FY 2022, and the requested budget for FY 2023.
The chart above shows the total QIS R&D budgets for the three agencies highlighted in the NQI Act: NIST, NSF, and DOE.In summary, these budget charts show the U.S. government's investment in QIS R&D. These data show increased and sustained investment in QIS R&D across the federal government and each PCA, consistent with each agency's mission and coordinated federal program to accelerate quantum R&D. Budget data are provided directly to OMB by the agencies as part of the QIS cross-cutting reporting process on a routine basis to enable coordinated monitoring and implementation of the NQI program.
Full Report:
https://www.quantum.gov/wp-content/uploads/2023/01/NQI-Annual-Report-FY2023.pdf