State Agencies Boost R&D Spending 4%
State government agencies increased research and development expenditures by 4% in fiscal year 2025, according to new national survey data.
Updated on Nov. 5, 2026 in Government
State government agencies increased their research and development expenditures 4% from fiscal year 2024 to fiscal year 2025, the National Center for Science and Engineering Statistics reported. The largest 20 agencies accounted for 58% ($2.0 billion) of all agency R&D spending.
Why it matters
The figures show how states direct public research funding, with health-related R&D representing the largest share of agency spending among the biggest funders. Tracking these expenditures helps policymakers and the public understand where state dollars support scientific work.
The National Center for Science and Engineering Statistics census recorded a 4% rise in state agency R&D spending, with 554 of 589 surveyed agencies responding. The data does not explain what drove the increase, and legislative appropriations to universities and private organizations are excluded from the totals.
The players
National Center for Science and Engineering Statistics
The federal statistical agency within the National Science Foundation that collects and publishes data on science and engineering resources and activity in the United States.
U.S. Census Bureau
The federal agency responsible for collecting data under an interagency agreement for this state government R&D survey.
The details
All 50 states, the District of Columbia and Puerto Rico participated in the FY 2025 survey, which the Census Bureau collected for the National Center for Science and Engineering Statistics. Among the 20 largest agencies, 13 funded health-related R&D totaling $1.2 billion, or 79% of a nearly $1.5 billion total, while the California Energy Commission alone accounted for 52% ($344 million) of state energy-related R&D.
Timeline
- 1 July 2024: Fiscal year 2025 began for most states.
- 30 June 2025: Fiscal year 2025 ended for most states.
- 5 November 2026: Publication of FY 2025 state government R&D data.
Big Picture
The FY 2025 results extend the National Center for Science and Engineering Statistics' recurring state government R&D survey, adding the most recent year-over-year comparison of agency-level research spending.
Readers interested in how state tax dollars fund research can review agency-level figures that show which sectors, such as health and energy, receive the largest shares. The data also indicates that a small group of large agencies accounts for most of the spending.
The takeaway
Looking at which agencies lead R&D funding helps explain where state research priorities are concentrated. Checking agency-level data can clarify how public research dollars are distributed.
Further reading
Explore more on government budgeting and public research funding decisions across the country.
More information
Review the full state government R&D data tables published by the National Center for Science and Engineering Statistics.
Source note: This article includes information reported by Nsf.
