Federal funding is a major source of support for the science and engineering (S&E) activities of the nation’s institutions of higher education (IHEs). This week’s edition of Useful Stats shows that in 2019 (the most recent year for which data is available), the vast majority — 87.6 percent or $33.4 billion— of that federal support came from only three agencies: the Department of Health and Human Services (HHS), the National Science Foundation (NSF), and the Department of Defense (DoD).

New fiscal year (FY) 2021 Higher Education Research & Development (HERD) survey data released by the National Science Foundation (NSF) reveals a $3.4 billion (4%) increase in research and development (R&D) spending by institutions of higher education ($86.5 to $89.9 billion), driven almost entirely by a decades high federal government R&D funding increase of $3 billion.

A previous Digest article gave a broad overview of the most recent survey of Higher Education Research and Development (HERD) for FY 2021 (the most recent data available), including a breakdown of what field of studies receive the most R&D funding.

In fiscal year (FY) 2023, federal obligations for science and engineering (S&E) to universities and colleges totaled $49 billion—$29 billion more than FY 2000, and a 10% increase from the prior year. The growth is less rapid when adjusted for inflation (2017 USD), with just over $40 billion in real obligations in FY 2023, a 5% increase over the year prior and $12.6 billion (or 46%) increase over the FY 2000 value.