U-M Tops $2.16 Billion in Research as New Initiatives Take Hold

The University of Michigan closed fiscal year 2025 with another historic milestone: a record $2.16 billion in research expenditures. This is only the second time in school history that the total has crossed the $2 billion mark.

The university’s Office of the Vice President for Research released its annual report this week, highlighting rising federal, private-sector, and internal support. Even amid national uncertainty about federal research budgets, U-M leaders say the work happening across its three campuses continues to deliver substantial benefits for Michigan residents and the wider world.

The university reported more than 100 programs ranked in the top 10 nationally, with this year being the second time in the school’s history that Michigan has surpassed $2 billion in annual research expenditures at $2.16 billion.”

Arthur Lupia, vice president for research and innovation, underscored what the number means beyond prestige, stating, “2.16 billion. That’s a big number. But what’s more important is what it means. It means when families want access to life-saving clinical trials, they can look to Michigan… when people around our state want access to advances in automotive or AI, they can look to Michigan… that number means that so much is possible and so much is happening.”

Federal and Non-Federal Funding

Federal agencies remain U-M’s largest external funders, contributing $1.25 billion in FY25. The National Institutes of Health alone supported $807 million across more than 2,800 active projects. Other major federal agency totals include:

• Department of Defense: $100M supporting 414 projects
• Department of Energy: $60M supporting 362 projects
• Department of Transportation: $14M supporting 60 projects
• NASA: $32M supporting 416 projects
• NOAA: $17M supporting 54 projects
• National Science Foundation: $142M supporting 1,081 projects

Non-federal funding also rose significantly. Corporations, foundations, and philanthropic partners contributed a record $213 million, reflecting a growing appetite for collaboration with U-M researchers on innovation and technology.

Innovation Partnerships Fuel Startup Growth

Innovation Partnerships, U-M’s unit for commercializing research, had a standout year. In FY25, it facilitated 31 new startup companies and recorded 673 invention reports, each representing a potential new product, treatment, or service.

Research Strength Across the University

Several academic units reported major gains:

• Medical School: $946 million (6.3% increase)
• College of Engineering: nearly $369 million
• College of Literature, Science, and the Arts: nearly $244 million

These investments support work ranging from cancer therapies and chronic pain research to child online safety and new sustainable technologies.

Preparing for a Changing Future

Lupia noted that current expenditures reflect grants awarded several years ago and that the national funding climate is tightening, saying, “If you look at the newspapers, you know there’s uncertainty, and you know that there’s questions… we are focused on conducting research that helps the nation and improves quality of life for families across the state [and] nation.”