Public R&D Funding is a Strategic Asset—And it's at Risk

Analysis by Chris Borges

Published July 23, 2025

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.

1. The U.S. federal research and development (R&D) enterprise is a foundational component of the U.S. innovation ecosystem, powering advances in fields including medicine, clean energy, GPS, and the internet. The President's Fiscal Year 2026 budget proposal, released in May 2025, requestsa 22 percent cut to federal R&D funding, including a 36 percent decrease to nondefense R&D funding.

2. While private companies tend to focus on applied research and experimental development with clear commercial goals, the federal government plays a critical role in supportingbasic research-advances in science that increasefundamental knowledge of the world. This kind of early-stage research is harder to directly commercialize, which deters private investment, yet is vital to the U.S. innovation ecosystem as it provides a foundation of scientific knowledge private firms can build upon.

3. While the U.S. federal R&D enterprise has roomfor reform, deep and broad-based funding reductions-including a 33 percent cutto basic research-risk stifling innovation, weakening talent pipelines, and shrinking the pool of breakthrough discoveries that fuel long-term economic growth and national security.

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Newsletter by Chris Borges - July 17, 2025