The Department of Energy (DOE) and its predecessors have conducted research and development (R&D) in geothermal energy since 1971. To develop the technology needed to harness the Nation's vast geothermal resources, DOE's Office of Geothermal Technologies oversees a network of national laboratories, industrial contractors, universities, and their subcontractors. The following mission and goal statements guide the overall activities of the Office. The goals are: (1) Reduce the levelized cost of generating geothermal power to 3-5 cents per kWh by 2007; (2) Double the number of States with geothermal electric power facilities to eight by 2006; and (3) Supply the electrical power or heat energy needs of 7 million homes and businesses in the United States by 2010. This Federal Geothermal Program Research Update reviews the accomplishments of DOE's Geothermal Program for Federal Fiscal Year (FY) 2003. The information contained in this Research Update illustrates how the mission and goals of the Office of Geothermal Technologies are reflected in each R&D activity. The Geothermal Program, from its guiding principles to the most detailed research activities, is focused on expanding the use of geothermal energy. balanced strategy for the Geothermal Program.