> Meanwhile some people have been writing and testing small, auditable and usable open source crypto, more or less for "free".

With all due respect that is complete bullshit. I do not care that you put quotes around free. Writing "free" will never be considered to include sums in the hundreds of thousands of dollars. More importantly blatant lies like this muddy the debate and set outrageous expectations. The Nacl project gives the following description of funding:

  NaCl was initiated by the CACE (Computer Aided Cryptography Engineering)
  project funded by the European Commission\'s Seventh Framework Programme
  (FP7), contract number ICT-  2008-216499. CACE activities were organized
  into several  Work Packages (WPs). NaCl was  the main task of  CACE WP2,
  \"Accelerating Secure  Networking,\" led  by Tanja Lange  (at Technische
  Universiteit Eindhoven)  and Daniel  J. Bernstein (at the  University of
  Illinois at  Chicago, currently visiting Eindhoven). CACE  nished at the
  end of 2010 but NaCl is a continuing project.

  ...Many  of  the  algorithms  used  in  NaCl  were  developed as part of
  Daniel  J. Bernstein\'s   High-Speed  Cryptography  project   funded  by 
  the  U.S. National  Science  Foundation, grant  number  ITR-0716498. 

I found the funding information for ITR-0716498. djb is listed as the PI for the project.[^1] I could only find the high level funding of ICT-2008-216499.[^2] (wtf EU?) CACE WP2 is only one component of the project. I would love it if someone with better knowledge of EU funding can find the funding for the WP2 line item. The figures are:

  NSF ITR-0716498 funding: (USD)     400,000.00
  EU  2008-216499 funding: (EUR)   4,733,078.00 ***NEED WP2 line item***

The tweetnacl implementation lists two more funding sources. As above it was easy to locate the NSF funding but I totally struck out for the nwo funding:

  NSF 1018836 funding: (USD)        $436,203.00[^3] 
  NWO grant 639.073.005 funding:    ???????????

Don't get me wrong, I have a lot of respect for djb and I think he and his coworkers deserve every fractional euro/dollar of funding that they received but they did not work for free. Most importantly they should not be expected to work for free.

[^1]: http://www.nsf.gov/awardsearch/showAward?AWD_ID=0716498

[^2]: http://cordis.europa.eu/projects/rcn/85344_en.html

[^3]: http://www.nsf.gov/awardsearch/showAward?AWD_ID=1018836

NB: This is the nwo funding site: http://www.nwo.nl/en/funding I think the english version may have a reduced set of features. I can not find the this grant information on the site.