Cuts that let air out of the economy's tires

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The Conversation

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Scientists across the nation are reeling due to the Trump administration's cancellation of nearly $2 billion in government grants for research and development. But a much bigger assault, with serious economic repercussions, could be coming: The proposed 2026 draft budget calls for cutting $18 billion just from the National Institutes of Health and many billions more from other research powerhouses.

Andrew Fieldhouse, a Texas A&M University economist, has been studying the long-term economic benefits of government-funded R&D with a colleague at the Federal Reserve Bank of Dallas. He explains how federally funded research directly impacts the economy. "Everything from the Apollo space program to the Human Genome Project has fueled innovation," he writes. "We also found that federal R&D spending has played a significant role in boosting U.S. productivity and spurring economic growth over the past 75 years."

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Emily Schwartz Greco

Philanthropy + Nonprofits Editor

Research can make everyone better off. Emilija Manevska/Moment via Getty Images

Federal R&D funding boosts productivity for the whole economy − making big cuts to such government spending unwise

Andrew Fieldhouse, Texas A&M University

Government R&D encompasses all innovative work the government directly pays for, regardless of who does it.

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