Public R&D Funding Is a Strategic Asset—And It’s at Risk

As other nations bolster their R&D systems, now is not the time for the United States to end its strategic commitment to advancing science and technology. 

1. The U.S. federal research and development (R&D) enterprise is an essential component of the U.S. innovation ecosystem, powering advances in fields such as medicine, agriculture, computing, and energy. However, the president’s fiscal year 2026 budget proposal requests a 22 percent cut to federal R&D funding, including a 36 percent decrease in nondefense R&D funding.
2. These proposed cuts are concerning, given the unique role of federally funded R&D. While private companies tend to focus on applied R&D with clear commercial goals, the federal government plays a critical role in supporting basic research—advances in science that increase fundamental knowledge of the world. This kind of early-stage research is harder to directly commercialize, which deters private investment, yet it is vital to the U.S. innovation ecosystem as it provides a foundation of scientific knowledge private firms can build upon.
3. Although the U.S. federal R&D enterprise certainly has room for reform, deep and broad-based funding reductions risk stifling innovation, weakening talent pipelines, and ultimately shrinking the pool of breakthrough discoveries that fuel long-term economic growth and national security.