Economic Benefits of Basic Research

How much does funding the NIH cost Americans?

The NIH budget is about $48 billion annually. Spread across all 340 million Americans, that amounts to roughly 39 cents per day per person—less than the cost of a cup of coffee each week.

How NIH strengthens the economy.

For every dollar spent on NIH-based research, an estimated $2.56 is generated for the economy through economic stimulus¹. Some estimates are as high as $8 returned over an 8-year period^2,3. Investments in basic research pay for themselves by stimulating economic growth and making America the leader in science worldwide.

How NIH research improves your life.

In addition to stimulating the economy, basic science also provides public health, shared by you and everyone you know. NIH guides research through its research programs and the grants it oversees to universities and medical centers to improve our health. Since 1950, Americans have gained nearly 12 years in life expectancy. Few investments in history have delivered benefits on that scale. However, we have far to go, as we currently rank 55^th in the world with an average life expectancy of 79 years, while Hong Kong has 85 years⁴.

What will funding the NIH provide in the future?

Live longer, healthier, more productive lives.

• More cancer cures.  Cancer deaths have decreased by a third over the past 30 years⁵.
• Drugs and vaccines to combat pandemics.
• Further improvements in obesity control will improve health and save lives.
• Improved fundamental understanding of brain health, depression, dementia, autoimmune diseases, and more.

Curb health care spending

• Alzheimer’s disease and related dementia alone cost the US $360 billion in 2024 and are projected to reach $1 trillion by 2050⁶. Recent strides in Alzheimer’s drugs have begun to slow the onset of the disease, and future advances will save many billions of dollars.
• Obesity and related diseases cost the U.S. about $425.5 billion annually, due to absenteeism, higher medical bills, disability payments, and workers’ compensation⁷. New treatments—particularly obesity-reducing medications such as GLP-1 agonists—could significantly lower these costs, saving the country trillions over the next decade.

Support the U.S. economy, jobs, and small businesses.

• NIH sets aside over $1.4 billion every year to specifically support small businesses and startup companies⁸.
• In FY 2024, NIH research funding supported more than 407,000 jobs and generated more than $94 billion in economic activity⁹.
• NIH funding contributed to research for over 99% of FDA-approved drugs between 2010 and 2019¹⁰.

Maintain global leadership.

• The U.S. biomedical effort, anchored by the NIH, has long set the global standard for scientific discovery and innovation. However, as other nations ramp up research and development investments, America’s global share is steadily declining. In 2000, the U.S. accounted for nearly 40% of global research and development spending; by 2017, that figure had dropped to just 25%¹¹. China is rapidly closing the gap and is projected to match or exceed U.S. spending. In 2024 alone, China committed $52 billion to research and development, while the U.S. reduced its total investment by 2.7%, with recent proposals suggesting 50% cuts. To sustain its leadership and competitiveness on the world stage, the U.S. must continue to prioritize strong, consistent funding for the NIH.

How NIH protects America from bioterrorism.

• The security of the US requires us to be ready to combat any attempt to use biological weapons against us. We need to be prepared to counter any pathogen, whether it is a new virus that infects humans or an engineered pathogen.
• To meet this challenge, we need programs that detect such pathogens, develop rapid vaccines, and prepare antibiotics in advance.

Why continued investment matters. 

Weighing the economic trade-offs between financial contributions and benefits is not simple and may depend on your private circumstances. However, one way to consider this from a personal perspective is to ask yourself how much it would be worth in different situations that might arise in your life.

• How much would it be worth to live 6 years longer?
• How much would it be worth to spend 2 more years with your mother or father?
• How much would it be worth to have your child survive cancer?
• How much would it be worth to avoid Alzheimer’s disease?

See this video on how basic research can impact lives, using Type I diabetes as an example.