US Government Shifts R&D Funding Focus to Individual Scientists, Bypassing Large Universities

The US government plans to give money to individual scientists directly, instead of large universities and established institutions like Harvard, Stanford and MIT for science and research, especially in the AI era. The Trump administration has sent a memo to federal departments and agencies, outlining the roadmap to revitalize American research and development (R&D). According to a White House press release, the overhaul plan was laid out in a report titled ‘Science: A New Golden Age’ published by Assistant to the President and Director of the White House Office of Science and Technology Policy (OSTP) Michael Kratsios. The directives will help shape a roughly $200 billion annual federal research and development budget across the government for the rest of President Donald Trump’s second term. In both report and memo, the White House Office of Science and Technology Policy argues that individual scientists can accelerate technological discovery to defeat China. “American scientific progress was the beating heart of the 20th century. After World War II, we adapted to a new world by reinventing our scientific institutions, and we must do so again today. This report lays a policy foundation that frees American scientists to do their most groundbreaking work, revives the national pursuit of ambitious scientific missions, and positions the United States to lead the AI-driven scientific revolution that will define the next century,” said Director Kratsios.

What this may mean for Harvard, Stanford, MIT and other US universities

The Trump administration said it wants to give more support to programs that fund individual researchers instead of colleges and universities. The report further points to programs such as the National Science Foundation's graduate fellowships and the National Institutes of Health's awards for innovative scientists as examples to follow. It also says that some universities could face challenges under a proposed Office of Management and Budget rule. The proposal would give political appointees more control over research grants and make sure funding matches the administration's priorities. As per a Wall Street Journal report, the new guidance may hurt large universities that rely on federal research funding. The White House has given federal R&D agencies “to submit an action plan within 90 days outlining implementation of these priority practices, while incorporating the budget guidance into their FY2028 submissions to the Office of Management and Budget”.

4 key recommendations made in the federal report

The report organizes its recommendations to government, industry, academia, and philanthropy around four key pillars:

Revitalize America’s Science and Technology Enterprise

The R&D enterprise should refocus support on individual scientists rather than legacy institutions, diversify funding mechanisms beyond slow consensus peer review, create agile new research organizations such as X-Labs and expanded ARPA-like entities, and establish metascience units to institutionalize continuous improvement.

Secure U.S. Dominance in Critical and Emerging Technologies

Federal R&D should prioritize national mission-driven scientific initiatives that unite government, industry, academia, and philanthropy around ambitious goals. These include the Genesis Mission to double the productivity of American research through AI; the Quantum Computer for Application Development and Discovery Science (QC-ADDS); commercial fusion power demonstration by the mid-2030s; crewed lunar return and lunar base development; and next-generation semiconductor technologies.

Launch a New Golden Age Powered by AI for Science

The Federal government should fully fund and scale the Genesis Mission as the flagship national AI-for-science initiative to dramatically accelerate discovery; develop domain-specific scientific foundation models and high-value datasets, invest in AI-enabled verification infrastructure and autonomous laboratories; and begin transitioning toward AI-native scientific institutions better suited to an era of machine-augmented research.

Ensure That Science and Technology Better the Lives of All Americans

Federal agencies should integrate hands-on technical training and apprenticeships into STEM education, open scientific careers to skilled craftspeople and practitioners, build dense regional innovation clusters that link research with advanced manufacturing, and ensure that the economic returns of discovery reach every region and community in the country.