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HBCUs Receive Less Than 1% of Federal R&D Funding Despite Representing 3% of Universities

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Historically Black colleges and universities received just 0.91% of federal research and development funding in fiscal year 2023, despite representing 3.2% of all four-year degree-granting institutions in the United States, according to a new report from the Center for American Progress and the Thurgood Marshall College Fund.

A student conducts research at Southern University and A&M College in Baton Rouge, Louisiana, February 27, 2023.A student conducts research at Southern University and A&M College in Baton Rouge, Louisiana, February 27, 2023. Getty/Naville J. Oubre IIIThe analysis, released Wednesday, found that HBCUs have consistently received less than 1% of federal R&D expenditures since 2018, with their share averaging just 0.87% over that period. The last time HBCUs received more than 1% of federal R&D funding was in 2017.

"For 188 years, our nation's historically Black colleges and universities have been centers of academic excellence and innovation," said TMCF President & CEO Dr. Harry L. Williams. "There is a unique opportunity to expand the capacity and financial strength at HBCUs while also strengthening the overall research capacity of our nation."

The findings come as the Trump administration has frozen or terminated thousands of federal grants deemed related to diversity, equity and inclusion efforts, affecting an estimated $3.3 billion to $3.7 billion in funding to universities nationwide. Several HBCU programs have been impacted, including initiatives in semiconductor workforce development, STEM degree completion, and biomedical research.

The report highlighted particularly low funding rates from the two largest federal R&D funders. The Department of Health and Human Services, which accounts for 55.5% of federal R&D funding, awarded only 0.54% of its funds to HBCUs in 2023. The Department of Defense, responsible for 15.2% of federal R&D spending, allocated just 0.40% to HBCUs.Dr. Harry L. WilliamsDr. Harry L. Williams

Of the 43 federal agencies that distributed R&D funding to higher education institutions in 2023, 17 agencies—representing 40% of all funding agencies—allocated no money to HBCUs whatsoever.

By contrast, the 69 universities in the Association of American Universities received $37.8 billion, or 63% of all federal R&D funds in 2023, despite representing just 2.5% of four-year institutions. No HBCUs currently have research production levels sufficient for AAU membership.

The funding disparities have significant implications for both economic mobility and national competitiveness, researchers argue. HBCUs enroll 76% Black students compared to 13% of postsecondary students overall, and about 70% of HBCU undergraduates receive need-based Pell Grants.

While enrolling 8.5% of Black undergraduate students, HBCUs produce almost 18% of Black STEM bachelor's degree recipients. STEM workers earn more than 50% more than non-STEM workers on average—$64,000 annually compared to $40,000.

The report also noted innovation achievements at HBCUs, such as Morgan State University's record-setting 13 patents awarded in 2023 for innovations including cybersecurity tools, stormwater management systems, and cancer detection imaging.

Beyond funding disparities, HBCUs face structural challenges in accessing federal R&D opportunities. A 2024 survey found HBCUs average $96 million in deferred maintenance expenses alone, while many lack the sponsored research office infrastructure that major universities use to identify and apply for grants.

Additionally, while contracts represented 24% of externally financed R&D spending at non-HBCUs in 2023, only 9% of HBCU external R&D funding came through contracts, which provide more sustainable long-term partnerships with federal agencies.

The report calls for the Trump administration to set measurable benchmarks requiring HBCUs to receive proportional federal R&D funding by the end of the current term. It also recommends Congress pass legislation creating broader HBCU capacity-building investments, potentially through an endowment fund similar to the existing Tribal College Endowment Fund.

Additional recommendations include simplifying application processes, increasing technical assistance, diversifying review committees, and creating more opportunities for earlier-stage research needs such as planning and seed grants.

President Trump issued an executive order in April reestablishing the White House Initiative on HBCUs and directing agencies to strengthen HBCU participation in federal programs. However, the administration's broader actions targeting diversity programs have created uncertainty about future support for HBCU-focused initiatives.

The report argues that addressing these funding disparities is essential for maintaining U.S. global competitiveness, particularly as diverse research teams have been shown to produce better problem-solving and innovation outcomes.