Cuts to Federal R&D Funding Undermine U.S. National Security

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The deep and broad-based reductions in federal research and development (R&D) funding proposed in the President's Budget Request for fiscal year 2026 (FY 2026) risk shrinking the pool of breakthrough discoveries that fuel innovation and long-term economic growth.

  1. The president's FY 2026 budget proposal, released in May, requests a 22 percent cut to federal R&D funding, including a 36 percent decrease to non-defense R&D funding. The National Science Foundation (NSF) faces the steepest cuts at 56 percent, followed by the National Institutes of Health (NIH) at 43 percent and Department of Energy (DOE) at 31 percent. The Department of Defense’s R&D budget faces a 6 percent cut, which would be offset by provisions in the recently passed budget reconciliation bill. 

  2. Increasing overall defense spending while cutting non-defense R&D funding overlooks the fundamental connection between R&D and national security. Federally funded R&D not only provides considerable economic benefits but also lays the groundwork for transformative future industries. Agencies like the NSF, NIH, and DOE drive innovation vital to both economic and national security—from wireless communications and supercomputers to biothreat countermeasures and nuclear security. 

  3. Despite the president's request, the responsibility for these funding decisions lies with Congress. Some congressional committees are proposing less severe cuts; others are pushing back on cuts altogether, recognizing that the U.S. R&D enterprise has long been a strategic advantage. As other nations increase their R&D funding against a backdrop of global competition for critical technologies, now is not the time for the United States to end its strategic commitment to advancing science. 

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Chris Borges
Senior Program Manager and Associate Fellow, Economics Program and Scholl Chair in International Business