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

By Andrew Fieldhouse, Visiting Assistant Professor of Finance, Texas A&M University

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…

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