Snapshot: Federal Higher Ed R&D Spending by Agency

Federal funding for university research and development has fallen off for the first time since 1974. Two agencies accounted for the decline.

According to the latest Higher Education Research and Development (HERD) Survey from the National Science Foundation, the United States Department of Health and Human Services cut higher ed R&D funding by more than $1.1 billion in fiscal year 2012 (July 1, 2011 through June 30, 2012).

HHS is the single largest source of funding for higher ed R&D, making up nearly one-third (33.29 percent) of the total $65.78 billion invested in higher ed R&D last year counting all sources (federal, state and local governments; businesses; nonprofits; and educational institutions themselves).

HHS higher ed R&D spending in 2012 was about $21.89 billion, a decline of 4.7 percent from 2011's expenditures of $22.98 billion.

NASA also saw a substantial percentage decline in higher ed R&D investment for the second year running, though its contribution is historically much smaller than that of HHS. NASA spent $1.33 billion in 2012, a 6.5 percent decline from the previous year.

Other federal agencies increased their university R&D funding in 2012:

  • The National Science Foundation's expenditures grew 2.6 percent to $5.27 billion;
  • The Department of Defense grew 2 percent to $4.92 billion;
  • The Department of Energy increased expenditures by 4.6 percent, topping $1.95 billion;
  • The Department of Agriculture's expenditures grew 8.7 percent, reaching 1.09 billion; and
  • All other federal agencies totaled $3.66 billion, an overall increase of 3.9 percent.

pie chart: Federal Higher Ed R&D Spending by Agency

Those increases, however, were not enough to compensate for the declines at HHS and NASA. The result was that overall federal spending decreased by 1.6 percent to $40.13 billion. The decline was a slight one but significant for the fact that it was the first decline in federal higher ed R&D spending constant dollars since 1974.

According to NSF: "After adjusting for inflation, higher education R&D declined by 1 percent in FY 2012. This represents the first constant-dollar decline since FY 1974 and ends a period of modest growth in higher education R&D during FYs 2009-11, when R&D expenditures increased an average of 5 percent each year."

About the Author

David Nagel is the former editorial director of 1105 Media's Education Group and editor-in-chief of THE Journal, STEAM Universe, and Spaces4Learning. A 30-year publishing veteran, Nagel has led or contributed to dozens of technology, art, marketing, media, and business publications.

He can be reached at [email protected]. You can also connect with him on LinkedIn at https://www.linkedin.com/in/davidrnagel/ .


Featured

  • hand touching glowing connected dots

    Registration Now Open for Tech Tactics in Education: Thriving in the Age of AI

    Tech Tactics in Education has officially opened registration for its May 7 virtual conference on "Thriving in the Age of AI." The annual event, brought to you by the producers of Campus Technology and THE Journal, offers hands-on learning and interactive discussions on the most critical technology issues and practices across K–12 and higher education.

  • glowing shield hovers above a digital cloud platform with abstract data streams and cloud icons in the background

    Google to Acquire Cloud Security Firm Wiz

    Google has announced it will acquire cloud security startup Wiz. If completed, the acquisition — an all-cash deal valued at $32 billion — would mark the largest in Google's history.

  •  laptop on a clean desk with digital padlock icon on the screen

    Study: Data Privacy a Top Concern as Orgs Scale Up AI Agents

    As organizations race to integrate AI agents into their cloud operations and business workflows, they face a crucial reality: while enthusiasm is high, major adoption barriers remain, according to a new Cloudera report. Chief among them is the challenge of safeguarding sensitive data.

  • From the Kuali Days 2025 Conference: A CEO's View of Planning for AI

    How can a company serving higher education navigate the changes AI brings to ed tech? What will customers expect? CT talks with Kuali CEO Joel Dehlin, who shared his company's AI strategies with attendees at Kuali Days 2025 in Anaheim.