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Since World War II, U.S. research funding has led to discoveries that fueled economic gains. Now cutbacks are seen as putting that legacy in jeopardy.

March 31, 2025, 11:35 a.m. ET
President Trump’s tariffs could drive up prices. His efforts to reduce the federal work force could increase unemployment. But ask economists which of the administration’s policies they are most concerned about and many point to cuts to federal support for scientific research.
The Trump administration in recent weeks has canceled or frozen billions of dollars in federal grants made to researchers through the National Institutes of Health, and has moved to sharply curtail funding for academic medical centers and other institutions. It has also, through the initiative called the Department of Government Efficiency, tried to fire hundreds of workers at the National Science Foundation, an independent federal agency. And it has revoked the visas of hundreds of foreign-born students.
To economists, the policies threaten to undermine U.S. competitiveness in emerging areas like artificial intelligence, and to leave Americans as a whole poorer, less healthy and less productive in the decades ahead.
“Universities are tremendously important engines of innovation,” said Sabrina Howell, a New York University professor who has studied the role of the federal government in supporting innovation. “This is really killing the goose that lays the golden egg.”
Scientists have warned that the United States risks losing its status as a leader in cutting-edge research and its reputation as a magnet for top scientific minds from around the world.
Already, labs across the country have begun laying off workers and canceling projects — in some cases stopping clinical trials that were already underway — and top universities including Harvard and the University of Pennsylvania have announced hiring freezes. France and other countries have begun recruiting American scientists, promising a more welcoming environment.