Large cuts to government-funded research and development can endanger American innovation – and the vital productivity gains it supports.
The Trump administration has already canceled at least US$1.8 billion in research grants previously awarded by the National Institutes of Health, which supports biomedical and health research. Its preliminary budget request for the 2026 fiscal year proposed slashing federal funding for scientific and health research, cutting the NIH budget by another $18 billion – nearly a 40% reduction. The National Science Foundation, which funds much of the basic scientific research conducted at universities, would see its budget slashed by $5 billion – cutting it by more than half.
