Many of the unique properties that arise from manipulating materials at the atomic scale—the astoundingly high surface areas, surface energies, and reactivities—are the same properties that raise a flag as to their environmental liability. Recent scientific data show engineered nanomaterials indeed can find their way into living organisms, penetrate through tissues and cell walls, and lead to cell damage. Some particles that are nontoxic at the micron size can be highly toxic at the nanoscale.

As far as the Department of Defense is concerned, many nanoscale materials are of significant military interest. In fact, approximately $300 million, or about one-third of the National Nanotechnology Initiative's Federal program budget, was spent on military uses and applications. On the other hand, defense spending towards studies of the health effects upon warfighters and government laboratory workers exposed to new nanoengineered nanomaterials and the impact of nanomaterial releases upon the environmental and range sustainability has been small; less than one percent of its budget went towards environmental and health studies related to defense applications of nanomaterials.

The use of nanomaterials in laboratories, in defense and commercial applications is expected to rapidly increase in the near future, and there is a long list of questions that needs to be answered now. This paper outlines some of the more serious issues that need immediate attention and describes the steps the Department of Defense, the U.S. Environmental Protection Agency, and other Federal agencies, are taking to prevent damage to human health and the environment and a huge national debt due to uncontrolled releases and unregulated uses of engineered nanomaterials.