NIH funding yields significant economic benefits

A recent analysis from the charity United for Medical Research (UMR) indicates that each dollar allocated for research by the National Institutes of Health (NIH) generates $2.56 in economic output, a multiplying effect that amplifies the organization’s influence as the largest governmental source of biomedical research funding globally.

In the fiscal year 2024, the analysis revealed that the organization dispensed over $36.9 billion to researchers, facilitating more than 408,000 positions and producing over $94.5 billion in new economic output across the country. The funding bolsters a diverse array of institutions in states nationwide, encompassing academic research facilities, private corporations, startups, and advocacy groups.

The 2025 update highlighted that NIH-funded research has enhanced patient welfare; stimulated job creation both directly and indirectly; supported the acquisition of research-related products and services; and spawned spin-off enterprises that generate tax income and draw innovation-driven businesses. This updated report emerges amidst rising apprehensions regarding prospective funding levels for the federal agency.

By fostering foundational scientific research, the NIH aids the U.S. in sustaining its status as a frontrunner in the global life sciences, medical technology, and biopharmaceutical sectors. According to UMR, a coalition comprising prominent industry associations and research facilities, including Harvard University, forty-six percent of all fundamental research in the country is executed at academic research institutions, with the majority of that funding coming from the federal government.

At Harvard, NIH financing assisted in the creation of an AI instrument known as Clinical Histopathology Imaging Evaluation Foundation, or CHIEF, which has made remarkable advancements in cancer diagnosis and treatment direction. Additional NIH-funded initiatives include establishing a method to repair previously untreatable eye damage; developing a new category of antibiotics to tackle drug-resistant infections; discovering new methods to combat depression; and enhancing our comprehension of neurodegenerative conditions, among various other projects.

The UMR results emerge following a 2023 report illustrating the considerable economic effects of research funding in rural areas. In the seven most rural states of the nation, NIH funding averages a return of $2.30 for every dollar spent and supports an average of 2,300 jobs and $353 million in new economic activity per state.

This research also brought noteworthy regional advantages. West Virginia has the highest overdose rate in the country and has faced multiple outbreaks of HIV and hepatitis C in recent years, issues that intersect due to their association with hypodermic needles and other drug paraphernalia. Judith Feinberg, a researcher at West Virginia University, has utilized NIH funding to merge care for substance use disorders and infectious diseases within local health facilities.

“NIH research occurs everywhere,” stated UMR President Caitlin Leach. “Whether you’re from a red state or a blue state, there are tangible economic advantages for your state because researchers receive NIH grants. The fact that NIH research funding saves lives and boosts local economies throughout the United States is a very impactful message.”

Indeed, NIH funding has historically been a bipartisan objective. The agency’s budget has expanded by over $17 billion since fiscal year 2015. UMR cautioned that a limited NIH budget for fiscal year 2025 and beyond could impair the agency’s efficacy and potentially jeopardize the nation’s leadership in biomedical innovation, along with its role as a center for training future generations of scientists, doctors, entrepreneurs, and educators.