Funding for Basic Research | Betting On America

Center for Strategic & International Studies (CSIS)
Center for Strategic & International Studies (CSIS)Apr 3, 2026

Why It Matters

Sustaining robust basic‑research funding safeguards America’s innovation pipeline and long‑term economic competitiveness, while reforms to overhead rules ensure taxpayer dollars are used efficiently.

Key Takeaways

  • Basic research funding is at historic low relative to GDP
  • Proponents urge doubling down on NSF, DARPA, NIH investments
  • Private capital often cannot fund early-stage, non‑commercializable research
  • Standardizing NIH indirect cost rates could improve funding efficiency
  • Recent Senate push seeks larger NIH appropriation despite proposed cuts

Summary

The discussion centers on the United States’ dwindling investment in basic research at its leading universities, with lawmakers questioning recent funding cuts and debating how to sustain the scientific enterprise.

Panelists note that the share of Gross Domestic Product devoted to basic research is at an all‑time low—roughly one‑third of the levels seen in the 1950s—prompting calls to boost budgets for the National Science Foundation, DARPA and the National Institutes of Health. They argue that many early‑stage discoveries lack immediate commercial appeal, leaving the private sector unable to fill the gap.

A key point raised is the inconsistency in NIH indirect‑cost rates, which vary widely among institutions and hinder efficient allocation. The conversation also references a recent proposal from the Office of Management and Budget to slash NIH funding by 40 percent, countered by several senators advocating for a larger appropriation.

If Congress embraces the “double‑down” approach while standardizing overhead policies, the U.S. could preserve its innovation pipeline, maintain global competitiveness, and generate long‑term economic growth.

Original Description

Time to Double Down on Basic Research?
“It’s a time to double down on basic research as part of adapting to this period of change but we need to make sure it’s smart, focused, and that the return on investment for taxpayers is strong.”
- Senator David McCormick (R-PA) Member, Joint Economic Committee

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