U-M federal research funding fuels innovation, economic growth

ANN ARBOR—Federal grants awarded to University of Michigan researchers help to drive innovation and economic growth, supporting thousands of jobs and generating millions in research-related spending across the United States.  

According to the university's latest research expenditure report, U-M spent more than $332 million last year on goods and services needed to support federally funded projects. These expenditures benefited vendors in more than 700 U.S. counties, with Michigan-based companies receiving $97.7 million. Businesses in Washtenaw County accounted for the largest share, receiving $66.7 million to supply materials, equipment and services for U-M research. 

Federal research funding at U-M also plays a critical role in training the next generation of scientists and engineers. In 2024, federal grants supported 16,152 individuals, including faculty, staff and students. Students made up nearly 44% of the research workforce, with the National Science Foundation funding more than 61% of student researchers. 

The National Institutes of Health grants played a key role in employing postgraduate researchers, ensuring a strong pipeline of talent for the nation's research enterprise.  

U-M's research spending reaches across Michigan, benefiting businesses all over the state. Businesses in all 13 Michigan Congressional districts receiving direct research-related funding from U-M. Michigan's 6th congressional district in southeast Michigan saw the greatest economic benefit, with over $71 million in research spending. 

The economic impact reports are based on data that U-M supplies to IRIS, a national consortium of 32 research universities that are organized around an institutional review board-approved data repository. IRIS is based at U-M's Institute for Social Research.

"IRIS reports pull back the curtain on the resources and expertise that universities need—with support and partnership from federal agencies—to fuel discovery and innovation," said IRIS executive director Jason Owen-Smith, professor of sociology and associate vice president for research-institutional capabilities and research intelligence. "Whether by purchasing equipment, hiring contractors or training early career researchers, universities are a source of everyday economic and social benefits to communities in every congressional district in the country."

Federal agencies such as the NIH, Department of Energy, NASA and Department of Defense fund U-M research that leads to life-saving medical treatments, energy solutions, advanced space exploration and cutting-edge defense technologies. U-M reported a record $2.04 billion in research volume during fiscal year 2024, including $1.17 billion in federally sponsored research expenditures. 

"Research universities like ours are not only engines of discovery – they're also engines of economic vitality," said Arthur Lupia, interim vice president for research and innovation. "Every federal dollar invested in U-M research generates ripple effects across the country, creating jobs, supporting businesses and preparing the skilled workforce our nation needs to stay competitive. 

"This impact is a powerful reminder that research is not an expense—it's an investment in our shared future."