A new analysis shows federal biomedical research funding continues to drive billions of dollars in economic activity, even as fewer projects are being funded nationwide.
In Virginia, more than $600 million in funding from the National Institutes of Health supported 6,843 jobs and generated roughly $1.7 billion in economic activity in 2025, according to a report from United for Medical Research, a national nonprofit research organization.
But the report also found a sharp drop in the number of grants awarded. Nationwide, 5,564 fewer grants were funded compared to 2024, and success rates for applications for funding fell to about 17%, the lowest level in nearly 30 years.
In Virginia, more than 1,000 jobs were lost from the previous year, though overall economic activity remained roughly the same.
The decline is not necessarily due to less spending. Instead, the report found NIH shifted how funding is distributed by increasing the use of multi-year awards.
That means the full amount of a grant is obligated upfront, rather than spread out over several years. As a result, fewer total grants were awarded.
“While this enabled the agency to spend its budget quickly, it also resulted in a substantial reduction in total awards funded. This is because the funds allocated for the remaining years of the multi-year funding awards were set aside and reserved, making them unavailable for other new awards,” the report said.
Caitlin Leach, president of the research organization, said she’s concerned about whether policy changes could slow how quickly funding reaches researchers.
“It's important that NIH funding is not delayed, as it is spent each fiscal year.” Leach said.
The change comes alongside a broader overhaul of the grant review process.
NIH has moved away from strict funding cutoffs, where grants were typically funded based on a set score threshold. It now considers peer review, in which multiple scientists assess the quality and potential of proposals, alongside research priorities, budgets and other factors when making funding decisions.
The agency said the goal is to reduce bias in the review process and broaden the range of research considered for funding.
Kenneth Fridley, vice president for research and economic development at Old Dominion University, said NIH funding is critical to the school’s research mission.
“Recently, the agency has announced changes to review schedules and submission policies, potentially affecting when and how awards are distributed during the year,” said Fridley in a statement sent to WHRO.
ODU declined WHRO’s interview request and did not answer whether it had received fewer grants.
Leach with the research group said shifts in how federal funding is distributed could have ripple effects on local economies that depend on a steady flow of research dollars.
“Everywhere the NIH grants are received, in Virginia and elsewhere all across the country, we see a strong job creation and new economic activity,” Leach said.
She said it may take time to fully understand how the changes will affect funding access as the new policies continue to take shape.
