Since the 1950s, Over Half of R&D Expenditures at U.S. Colleges and Universities Have Been Funded by the Federal Government
Fiscal year | Federal government | State and local government | Institution funds | Business | Nonprofit organizations | All other sources |
---|---|---|---|---|---|---|
1953 | 54 | 15 | 14 | 7 | NA | 10 |
1954 | 55 | 14 | 13 | 8 | NA | 10 |
1955 | 54 | 15 | 13 | 8 | NA | 10 |
1956 | 57 | 14 | 12 | 8 | NA | 9 |
1957 | 56 | 15 | 12 | 8 | NA | 9 |
1958 | 56 | 15 | 12 | 9 | NA | 9 |
1959 | 58 | 14 | 11 | 7 | NA | 9 |
1960 | 63 | 13 | 10 | 6 | NA | 8 |
1961 | 66 | 12 | 9 | 5 | NA | 8 |
1962 | 68 | 12 | 9 | 4 | NA | 7 |
1963 | 70 | 11 | 8 | 4 | NA | 7 |
1964 | 72 | 10 | 8 | 3 | NA | 7 |
1965 | 73 | 10 | 8 | 3 | NA | 6 |
1966 | 74 | 9 | 9 | 2 | NA | 6 |
1967 | 73 | 9 | 9 | 2 | NA | 6 |
1968 | 73 | 8 | 10 | 3 | NA | 6 |
1969 | 72 | 9 | 10 | 3 | NA | 7 |
1970 | 71 | 9 | 10 | 3 | NA | 7 |
1971 | 69 | 10 | 11 | 3 | NA | 7 |
1972 | 68 | 10 | 12 | 3 | NA | 7 |
1973 | 69 | 10 | 11 | 3 | NA | 7 |
1974 | 67 | 10 | 12 | 3 | NA | 7 |
1975 | 67 | 10 | 12 | 3 | NA | 8 |
1976 | 67 | 10 | 12 | 3 | NA | 8 |
1977 | 67 | 9 | 13 | 3 | NA | 8 |
1978 | 66 | 9 | 13 | 4 | NA | 8 |
1979 | 67 | 9 | 14 | 4 | NA | 7 |
1980 | 68 | 8 | 14 | 4 | NA | 7 |
1981 | 67 | 8 | 15 | 4 | NA | 6 |
1982 | 65 | 8 | 15 | 5 | NA | 7 |
1983 | 63 | 8 | 17 | 5 | NA | 7 |
1984 | 63 | 8 | 16 | 6 | NA | 7 |
1985 | 63 | 8 | 17 | 6 | NA | 7 |
1986 | 61 | 8 | 17 | 6 | NA | 7 |
1987 | 60 | 8 | 18 | 7 | NA | 7 |
1988 | 61 | 8 | 17 | 6 | NA | 7 |
1989 | 60 | 8 | 18 | 7 | NA | 7 |
1990 | 59 | 8 | 18 | 7 | NA | 7 |
1991 | 58 | 8 | 19 | 7 | NA | 7 |
1992 | 59 | 8 | 19 | 7 | NA | 7 |
1993 | 60 | 8 | 18 | 7 | NA | 7 |
1994 | 60 | 7 | 18 | 7 | NA | 7 |
1995 | 60 | 8 | 18 | 7 | NA | 7 |
1996 | 60 | 8 | 18 | 7 | NA | 7 |
1997 | 59 | 8 | 19 | 7 | NA | 7 |
1998 | 59 | 8 | 19 | 7 | NA | 7 |
1999 | 58 | 7 | 20 | 7 | NA | 7 |
2000 | 58 | 7 | 20 | 7 | NA | 7 |
2001 | 59 | 7 | 20 | 7 | NA | 7 |
2002 | 60 | 7 | 20 | 6 | NA | 7 |
2003 | 62 | 7 | 19 | 5 | NA | 7 |
2004 | 64 | 7 | 18 | 5 | NA | 6 |
2005 | 64 | 6 | 18 | 5 | NA | 7 |
2006 | 64 | 6 | 19 | 5 | NA | 7 |
2007 | 62 | 6 | 19 | 5 | NA | 7 |
2008 | 61 | 7 | 20 | 5 | NA | 7 |
2009 | 60 | 7 | 20 | 6 | NA | 8 |
2010 | 61 | 6 | 19 | 5 | 6 | 2 |
2011 | 62 | 6 | 19 | 5 | 6 | 2 |
2012 | 61 | 6 | 21 | 5 | 6 | 1 |
2013 | 59 | 6 | 22 | 5 | 6 | 2 |
2014 | 57 | 6 | 23 | 6 | 6 | 3 |
2015 | 55 | 6 | 24 | 6 | 6 | 3 |
2016 | 54 | 6 | 25 | 6 | 6 | 3 |
2017 | 54 | 6 | 25 | 6 | 7 | 3 |
2018 | 53 | 5 | 26 | 6 | 7 | 3 |
2019 | 53 | 5 | 25 | 6 | 7 | 3 |
2020 | 53 | 5 | 25 | 6 | 7 | 3 |
2021 | 55 | 5 | 25 | 6 | 6 | 3 |
2022 | 55 | 5 | 25 | 6 | 6 | 3 |
2023 | 55 | 5 | 25 | 6 | 6 | 3 |
Prior to FY 2010, nonprofit funding was included under all other sources.
National Center for Science and Engineering Statistics, Higher Education Research and Development Survey.
R&D expenditures at academic institutions are funded by six primary sources: the federal government, state and local governments, businesses, nonprofit organizations, the universities themselves, and all other sources. Total academic R&D expenditures increased from $255 million in FY 1953 to $109 billion in FY 2023, and federal funding of academic R&D increased from $138 million to $60 billion, all in current dollars. The federal share fluctuated over the years—for example, increasing due to national defense and space flight R&D spending in the 1960s—but accounted for over 50% of the total for the entire period.
Universities’ own R&D funding increased during this period as well, from $35 million in FY 1953 to $28 billion in FY 2023. As a share of total expenditures, institution funds have represented 25% since 2016.
Information on higher education R&D funded by nonprofits is available only from FY 2010 onward, with expenditures increasing from $4 billion to $7 billion in FY 2023. Prior to FY 2010, nonprofit funding was included under all other sources. Nonprofit organizations have funded between 6% and 7% of higher education R&D since FY 2010, whereas all other sources—such as gifts from donors for research or support from foreign governments or universities—funded around 3% annually over the past decade.
See the full set of data tables at https://ncses.nsf.gov/surveys/higher-education-research-development/2023#data.
NCSES has reviewed this product for unauthorized disclosure of confidential information and approved its release (NCSES-DRN25-032).
Suggested citation: National Center for Science and Engineering Statistics (NCSES). 2025. Since the 1950s, Over Half of R&D Expenditures at U.S. Colleges and Universities Have Been Funded by the Federal Government. NSF 25-345. Alexandria, VA: U.S. National Science Foundation. Available at https://ncses.nsf.gov/pubs/nsf25345.
Note
1 “The Global Research and Development Landscape and Implications for the Department of Defense.” Congressional Research Service, 28 June 2021, www.congress.gov/crs-product/R45403.