Federal Research Oversight

Federal investments in research and development (R&D) are necessary to help drive emerging technologies that will power future industries, spur innovation across the economy, and sustain the United States’ global leadership in science and technology.  

Since the 1950s, the federal government has appropriated an increasing amount of money for R&D, reaching about $201.9 billion in FY 2025. But the government could improve its oversight of these funds.   

For instance: 

• Expanding public access to federal research. The results of government-funded research are often behind expensive paywalls. This makes it harder for others to read and build on it. In 2022, the Office of Science and Technology Policy told agencies to make new federally funded research immediately public for free. But without subscription revenue, publishers need to charge fees to make research publications accessible. Agencies can cover these fees, which could cost the government up to $1 billion a year, but most agencies aren't ready for these costs. 

• Incentivizing innovation. The Bayh-Dole Act of 1980 allows recipients of federal research funding, such as universities, small businesses, and nonprofits, to own and profit from their inventions if the recipients meet certain requirements. For example, they must disclose their inventions to the government and report annually on commercialization efforts. However, many recipients faced challenges in complying with these reporting requirements.  

• Reducing overlap. The Department of Homeland Security (DHS) uses Federally Funded Research and Development Centers to work on projects that DHS or contractors can't do as effectively. Since 2004, DHS has committed over $3 billion to projects at these centers, which are run by non-profit organizations. DHS reviews proposed research and development projects, including center projects, to check if they overlap—i.e., unnecessarily pursue the same goals. But 5 agencies within DHS could be funding research and development projects that may not be checked for overlap. 

• Protecting U.S. research from foreign theft. Federal agencies can award funds to foreign organizations or individuals to encourage scientific advancements. But some applicants may try to exploit U.S.-funded research—including in ways that jeopardize U.S. national security. While there are safeguards around these funds, not all agencies use the same tools to vet applicants. Also, agencies use available lists to determine which universities, companies, and other organizations are excluded from U.S. funding—and they could use more guidance on determining whether an organization is foreign-owned.  

• Biomedical research. Federal agencies’ contributions to drug development are not well documented, making it hard to evaluate the impact of federal funding on innovation. Recipients of agency funds do not always disclose agency support fully or correctly when applying for patents. Some agencies have not developed training that would improve how researchers disclose federal support.  

• Assistance for small businesses. Since 1982, federal agencies have given over $46 billion to small businesses to help them develop and market new technologies (such as robotic vacuum cleaners and personal genetic testing kits). Several federal agencies work with small businesses on R&D. However, most of these agencies have not implemented a required pilot program that could help small businesses bring their technologies to the market.