Recommended Research Funding

FY 2026 Recommended Funding

The federal government is viewed as the primary driver of U.S. science and technology advancements.1 Federal investments in fundamental research have led to remarkable progress in the biological and biomedical sciences - an increasingly multidisciplinary team-based effort. These collaborative research efforts have enabled investigators to respond to pressing scientific challenges. Basic research was the groundwork for the speed – months instead of years – that led to the development of COVID-19 vaccines and also supports pre-clinical research involving the use of animal studies to achieve medical progress.

A major contributing factor to the success of team science is the mobilization of core facilities and shared research resources (SRRs) including the scientific technology and expertise infrastructure within research organizations. SRRs and cores work across different scientific disciplines and deliver unbiased research data in support of scientific rigor and transparency. They are essential training grounds for the next generation of skills-based scientists from diverse backgrounds.  

Despite Congress’ bipartisan support for investing in science, federal funding for research has not kept pace with scientific opportunity, posing a threat to our nation’s ability to remain a science superpower and maintain our competitiveness and security. We face the real threat of losing our edge in industries such as biotechnology if we do not continue to prioritize increasing investments in science, shared resource facilities, including core facilities, and building a robust and representative workforce that reflects the talents of all contributors. 

Additionally, facilities and administrative costs, also referred to as F&A or “indirect costs,” are essential to conduct research, which the federal government recognizes by paying its portion of these costs to support the research infrastructure such as state-of-the art research labs, data processing, hazardous waste disposal, and regulatory compliance at universities where federal research is conducted. Universities also contribute their own funds towards research on their campus, a total of $27.7 billion in fiscal year (FY) 2023 where $6.8 billion was not reimbursed by the government. Universities are paying a growing amount in real dollars toward research conducted at their facilities mainly due to a cap on government reimbursement set by the Office of Management and Budget, so universities bear the burden of subsidizing costs. For example, the National Institutes of Health (NIH) percent of total funding toward F&A cost reimbursements have remained unchanged at 27-28 percent of total funding for over two decades.2 

The U.S. spends less on research and development (R&D) than many countries. If the U.S. is to be prepared to respond to future threats, our scientific leadership must progress. According to a 2023 analysis from Science Is Us, more than 67 million workers in the U.S. are professionals in science, technology, engineering, and math (STEM) fields and direct STEM economic activity accounted for 40.5 percent of U.S gross domestic product in 2021.3

The federal government should commit to robust, predictable, and sustained funding increases for science agencies. FASEB’s fiscal year (FY) 2026 funding recommendations are as follows: 

NIH is the nation’s largest public funder of biomedical research in the world providing competitive grants to support the work of 300,000 scientists at universities, medical centers, independent research institutions, and companies nationwide. NIH funded investigators across the U.S. can also attract partners and investors to take innovation to market through the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. Federally funded researchers drive robust economic activity directly and indirectly in their communities while also supporting the pharmaceutical industry through the development of new knowledge.4

The biomedical discoveries, innovations, and treatments supported by NIH funding are possible because of scientific research with animals which provide in-depth knowledge of entire biological systems and complex disorders affecting multiple organs. As required by the Food and Drug Administration, animal research is also essential during the preclinical stage of drug development to determine the safety and efficacy of potential drugs and therapies prior to human clinical trials.

NIH-funded investigators recently demonstrated the effective ability to harness animal research and maximize  public-private partnerships by collaborating with industry to develop a messenger RNA (mRNA) vaccine which was quickly adapted for COVID-19.5 However, this technology also holds much promise for gene therapy, fighting cancer, and infectious diseases, including flu, by telling the body’s cell to produce proteins that train the immune system to defend the body.6 The agency also accelerated the development and commercialization of COVID testing through the Radx initiative.7, 8 NIH and researchers supported by the agency learned crucial lessons in supporting science, improving response efforts when a pandemic pathogen emerges, and moving research from findings to the clinic due to its response to COVID-19. These lessons will improve cross-sector initiatives to inform future public health research responses.9

There is also the need to keep pace with the persistently increasing costs of research. Scientists are still fighting the rising costs of doing research. Items such as reagents, gloves, pipette tips, microscopes, and other supplies needed to conduct science have grown by double digits.10 Labor costs have also grown, placing additional pressure on researchers who struggle to fund their work. The consequences are challenges to addressing important research topics that could make a tangible contribution to human health and include impacting an academic career since an institution is unlikely to keep a researcher on their faculty that cannot secure federal funding.

Despite the recent swift rebound in the U.S. economy, in 2025, economic growth is likely to decelerate with U.S. real Gross Domestic Product cooling from 3 percent to closer to 2 percent. Our nation also faces a significantly widening gap in life expectancy between men and women.  Life expectancy for men fell to 73, nearly six years less than for women and the largest gap since 1996, due to the opioid epidemic and COVID-19 impacting men more.11,12 Younger people are also seeing a decreased life expectancy due to several factors such as suicide, obesity, smoking, violence, and poverty, leading to poor health earlier in life.

Congress must continue to increase biomedical research funding and improve efforts to diversify the scientific workforce by training those from groups underrepresented in health-related research. This broadens the diversity of thought in research topics and taps talent otherwise lost to our society, which desperately needs more STEM professionals.

In FY 2023, NIH saw a 21.3 percent success rate compared to the FY 2022 rate of 20.7 percent or a mere 0.6 percent increase. NIH received 2,688 fewer research project grants (RPG) applications and made 259 fewer awards in FY 2023 compared to the previous fiscal year. A low success rate does not encourage scientists to remain in research.13 Success rates are calculated by dividing the number of awards made in a fiscal year by the number of applications received.

Our nation is confronting public health threats, especially given global warming, land use, and international travel, that requires an even closer understanding of One Health – the collaborative, multisector, and transdisciplinary intersection of biological science, earth sciences, and ecology – to optimize health outcomes. More – not less – research will be needed to address infectious diseases, long COVID, and the over 10,000 rare diseases with zero or few treatment options while still making progress on more common diseases.14 NIH will also continue its cross collaboration across its instituties and centers and deepen its work with local communities through its new CARE for Health program to solve specific health needs by integrating research with routine clinical care.15 

In the U.S., we must also continue to address the needs of a growing aging population and the serious disease of obesity.16,17 NIH-funded research is developing therapies for a whole spectrum of age-related disorders.18 Obesity impacts 42 percent of the U.S. population and increases the likelihood of developing costly medical conditions such as diabetes, cancer, and heart disease and is a substantial obstacle to military recruitment.19 20 Additionally, historically underrepresented communities populations experience a higher prevalence of these diseases.21

Our recommendation of at least $51.3 billion is $4.2 billion (9 percent) above the FY 2024 level. With that funding level, NIH will have the resources needed to accelerate progress across all areas of medical science, including regenerative medicine, cancer immunotherapy, and neurological health.22,23,24 The agency will also be able to continue its commitment to supporting and growing the next generation of our biomedical research enterprise.25 

FASEB FY 2026 Recommendation: at least $51.3 billion for NIH. Funding for ARPA-H should supplement rather than supplant the NIH budget as intended by ARPA-H's authorization.

With a mandate to support fundamental research across all fields of science, engineering, and mathematics, the NSF is the cornerstone of our nation’s scientific and innovation enterprise while also advancing our security and economic interests. Through the recently created Directorate for Technology, Innovation and Partnerships (TIP), it will be better able to collaborate with other stakeholders to translate fundamental research into commercially viable products and services enhancing our competitiveness on the global stage. However, NSF must have enough funds to enable steady, sustained increases across the entire agency. To achieve this goal, Congress should find a way to fulfill the authorization levels in the CHIPS and Science Act of 2022 (P.L. 117-167) which would double NSF’s budget over a 5-year period.26

In FY 2024, NSF received $9.06 billion which was a decrease of $470.01 million or 5 percent below the FY 2023 base appropriations. According to the NSF spend plan, $182.82 million was cut from the biological sciences division within its total research and related activities account, which is now down to $7.2 billion from the previous level of $9.2 billion.27

Among federal science agencies, NSF has the unique capacity to:  
  • Support multi-disciplinary research: By leveraging its portfolio across the sciences, NSF funds cutting-edge research at the interface of the physical, biological, and social sciences to tackle challenges in creative ways, including biodiversity loss, global heating, and One Health where multiple disciplines work at the local, national and global levels to attain optimal health for all living things and the environment.28   
  • Organize and lead research partnerships at speed and scale: NSF coordinates and leads interagency research endeavors, including partnerships with NIH and DOE SC. These collaborations advance public health and clean energy, the development of responsible and equitable artificial intelligence utilizing its national AI research institutes, semiconductors, and other national priorities under NSF’s 10 big ideas that include harnessing the data revolution and convergence research.29,30 Through the regional innovation engines awards which serve as regional science and technology development centers enriching local communities, NSF  has nearly 500 partners covering the entire country and includes academia, industry, small business, nonprofits, investors, federal agencies, and state, local, and tribal governments.31,32
  • Train the next generation of scientists from diverse backgrounds: NSF plays a key role in creating educational pathways and supporting the accessibility of scientific education, training scientists from diverse backgrounds to promote scientific excellence, advancing AI, and promoting national security by supporting increased research security. Businesses have learned that increased inclusivity means there will be an increase in creativity and problem solving, which is crucial in scientific discovery too. It can even increase productivity when hiring is based on the best talent rather than if a person looks like a typical researcher.33 The Eddie Bernice Johnson Inclusion across the Nation of Communities of Learners of Underrepresented Discovers in Engineering and Science (INCLUDES) Initiative is another way to broaden participation in STEM careers of groups that have been historically excluded. There is also the Established Program to Stimulate Competitive Research (EPSCOR) program which continues to recruit talented individuals nationwide both by geography and type of institution.34 Experienced scientists not only mentor the next generation, but some also start new businesses as entrepreneurs.
There is also a pressing need to expand our scientific enterprise across all disciplines as well as diversify the STEM workforce. Our country needs to cultivate the talent of our domestic workforce while continuing our ability to attract and retain international professionals (26 percent) compared to U.S. born (24 percent). One way is to increase the percentage of grants NSF is able to fund. Recent data demonstrates that NSF was able to fund only 26 percent of the high-quality research proposals that were submitted which is a drop from its FY 2020 funding rate of 28 percent.35,36,37 While the trend in NSF awards is improving, there are still deserving proposals that do not receive funding, leaving a rich portfolio of  unfunded research opportunities to explore that could lead to the next breakthrough to revolutionize our economy.38

Meanwhile, according to the National Science Board’s Science & Engineering (S&E) Indicators 2024 report, China is the top overall producer of S&E publications and international patents.39 Additionally, over the past decade, China has significantly increased its share of global science, technology and innovation capabilities.40  Six countries combined produced more than 50 percent of the worldwide peer-reviewed S&E publications in 2022: China (27 percent), the United States (14 percent), India (6 percent), Germany (3 percent), the United Kingdom (3 percent), and Japan (3 percent) (Figure 18).41

Our recommendation of at least $16.7 billion for NSF is $7.65 billion (84 percent) above the FY 2024 enacted level.42 This will allow NSF to further attract highly qualified early-career researchers, fund more high-quality research proposals, and increase NSF’s average award size.43

FASEB FY 2026 Recommendation: at least $16.7 billion for NSF.

The DOE Office of Science (DOE SC)’s mission is the delivery of scientific discoveries and major scientific tools such as its three world-leading supercomputers, to transform our understanding of nature and advance the energy and national and economic security of the country. It is also the nation’s largest supporter of physical sciences and supports a total of more than 29,000 PhDs, postdoctoral associates, graduate students, and other scientific personnel at over 310 universities. More than 39,500 users engage with its facilities, supporting research spanning all 50 states and Puerto Rico, Guam, and Washington, DC. It has also produced over 100 Nobel prize winning scientists.44 The facilities and personnel supported by DOE SC operate at the intersection of basic and applied sciences and include critical fields such as biological sciences and high-performance computing. Transformative innovations and technologies can be traced to its work, including solar cells, superconductors, and nanotechnology.45,46

Agencies like NIH, NSF, and DOE SC work in concert to advance research in key areas including artificial intelligence and genomics.47,48 The Office of Science is in charge of 10 of the 17 DOE National Labs.49 National labs, our largest collection of world-class scientific facilities, were integral to the creation of the National Virtual Biotechnology Laboratory and the COVID-19 High Performance Computing Consortium at time when the country was in crisis. They also deliver inventions, are integral to our national security, and serve as regional engines of economic growth for states and communities across the nation.

For the U.S. to remain at the forefront of science and technology, Congress must consistently sustain and upgrade major scientific facilities that support core research in areas such as bioscience, scientific computing, materials and chemical science, climate science, fusion energy, high energy, and nuclear physics to keep up with global competitiveness.50 Pursuant to the bipartisan support for the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 (P.L. 117-167), Congress agreed on authorization levels for the Office of Science for five years beginning in FY 2023. For FY 2024, the law authorized $9.5 billion.51 FY 2025 funding for DOE SC has not yet been finalized by Congress, but is likely to be far short of the funds needed to continue critical facilities upgrades and support pathbreaking research in emerging areas such as quantum science and artificial intelligence, while also expanding and maintaining a skilled and regionally inclusive workforce of researchers, scientists, and professionals.

FASEB FY 2026 Recommendation: at least $9.5 billion for DOE SC, $1.3 million (15 percent) about the FY 2024 enacted level.

Our agricultural system faces unprecedented challenges, including the growing global population, the depletion of valuable resources such as water and healthy soil, erosion, fuel demands, rising fertilizer costs, and training an agricultural workforce to fill an array of occupations with varying education and experience that can meet these challenges. 

Agricultural research is key to ensuring food security, economic stability, sustainable development, and a robust middle class. However, public funding for U.S. agricultural research has declined by nearly one-third in the past two decades.52 At the same time, China has stepped up its spending in this area to more than $10 billion a year – more than double what the U.S. spends.53 The U.S. Department of Agriculture’s National Institute of Food and Agriculture (NIFA) is the lead federal agency providing extramural funding for food and agricultural sciences. NIFA funds an interdisciplinary research portfolio that brings pioneering science to address complex problems through the Agriculture and Food Research Initiative (AFRI), our nation’s flagship competitive grants program for fundamental and applied research, extension, and education in support of all topics across the food and agriculture enterprise. 

AFRI funds play a pivotal role in advancing food and agriculture knowledge, innovation, and technology – all critical for the economic health of our farmers and ranchers. AFRI supports rural communities, protects finite natural resources, enhances productivity while reducing operational costs, and maintains the overall health and safety of our food supply while preserving our country’s global competitiveness. Established by the Farm Bill in 2008, AFRI funding, while not keeping pace with the cost of doing research, has resulted in numerous advances, including new wheat cultivars and novel ways to combat invasive species.54,55

Despite AFRI’s progress – and the need for scientifically informed solutions – the program is appropriated at about 65 percent of its authorization level of $700 million, leaving hundreds of innovative proposals unfunded. Data from the U.S. Economic Research Service indicates that for every $1 in public investment, U.S. food and agriculture R&D has returned $20 to the American economy.56

AFRI’s FY 2021 requests for applications included 52 programs. A total of 2,815 competitive grant applications, requesting $2,499,066,796, were received, and reviewed through a competitive peer review process. Awards totaling $475,582,119 ($405,370,503 in FY 2021 funds, $70,211,616 in FY 2022 funds) were made to 722 highly ranked applications distributed across the program. 

An additional 1,030 proposals were recommended for funding – rated as Outstanding, High Priority, or Medium Priority – by review panels and could have been supported, had there been more federal funding available. The success rate for AFRI applications in FY 2021, calculated in terms of number of proposals funded divided by the number of proposals submitted for review, was 25 percent.57

AFRI should be funded at $500 million to fulfill its mission as the leading competitive grants program for agricultural sciences.

FASEB FY 2026 Recommendation: at least $500 million for AFRI, $54.8 million (12 percent) about the enacted FY 2024 level.

The VA Medical and Prosthetic Research Program improves veterans’ lives through innovations in basic, translational, and rehabilitation research and vital health services. Although focused on veterans’ health, all Americans benefit from VA’s collaboration with university partners, non-profits, and private industry to advance research on health care and prevention strategies. The research program also enables the VA to recruit and retain a cadre of outstanding physician-scientists to care for our nation’s veterans. The VA Office of Research and Development (ORD) continues to prioritize research focused on the needs of disabled Veterans including precision oncology, prosthetics, mental health, and suicide prevention as well as other disease areas.  

Despite recent increases in appropriations, several areas of VA research remain underfunded, including post-deployment mental health, substance abuse, and the long-term effects of hazardous materials exposure. These conditions are common among service members. ORD is also implementing an enhanced review process that requires stringent justification and multiple levels of authorization for proposals involving the use of animals in research. This research must be directly related to combat-related illness or injury. 

FASEB’s recommendation of $1.05 billion for VA research would support meaningful growth above inflation, allowing for rapid translation of findings to improve patient care and the development of innovative treatments for veterans. VA also needs more resources, especially computing, as it has now reached a milestone in health research by enrolling over one million veterans in the Million Veteran Program (MVP) to help advance the care of present and future veterans through understanding the impact of genetics on health. In addition, this funding level would facilitate new investments in VA’s IT infrastructure to address the collection and use of big data.

FASEB FY 2026 Recommendation: at least $1.05 billion for the VA Medical and Prosthetic Research Program, $107 million (11 percent) above the enacted FY 2024 level.