By considering risk in the early stages of a technology, costs of identifying important health and environmental impacts after a technology has widely diffused can be avoided. Nanotechnology, involving materials and objects less than 100 nm in size, is an important case in point. In this paper we analyze the research priorities discussed by various interest groups concerned with the environmental risks of nanotechnology, evaluate the distribution of federal environmental nanotechnology R&D funding, and discuss research in this field. Overall federal environmental R&D funding to date is limited and focuses more on the positive environmental applications of nanotechnology than on basic knowledge/research, tools for nanoenvironmental research, or the potential risks of nanotechnology. The situation began to change in 2004 when a significant increase occurred in federal R&D funding for the environmental implications of engineered nanomaterials. Though literature exits on the exposure, transport, and toxicity of incidental nanoparticles, little work has been published on the environmental risks of engineered nanoparticles.