Defense Facility Research Outlays Rose 16 Percent in 2025

Federal R&D spending shifted as Department of Defense projects saw gains while civilian facility performance fell.

Updated on Sept. 24, 2026 in Economic Indicators

Isometric editorial illustration of a laboratory centrifuge and metallic specimen container on a clean laboratory bench, representing federal R&D infrastructure. — Federal defense research and development outlays rose by 16 percent in fiscal year 2025, while civilian federal facility activity declined by 14 percent. AI Illustration. Upload story photo >

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Research and development performance in federal facilities showed divergent trends throughout fiscal year 2025. Department of Defense operations saw a 16 percent increase in R&D activity, while civilian federal facilities reported a 14 percent decrease.

Why it matters

Understanding how federal R&D resources are deployed provides insight into the priorities driving government spending and economic activity. Because these figures reflect actual cash disbursements rather than mere budget authorizations, they reveal the real-world scale of scientific and technical operations.

Federal R&D performance data for fiscal year 2025 shows a 16 percent increase in activity for the Department of Defense against a 14 percent decline for civilian facilities. These totals represent actual disbursements of cash, checks, and electronic transfers.

The players

Department of Defense

The federal department responsible for managing military-related research and development outlays.

The details

Federal facilities measure research performance based on outlays, which are the actual disbursements made to execute previously authorized financial obligations. The reported data specifically tracks internal costs associated with performing R&D within these facilities, intentionally excluding transfers to other agencies to isolate direct operational activity.

Fiscal year 2025 marked the period for these recorded R&D performance levels.

Money Landscape

The federal R&D landscape is currently defined by shifting institutional priorities as tracked by the NSF federal R&D performance report. These 2025 figures represent a notable divergence in fiscal allocation between military and civilian research sectors.

Changes in federal R&D outlays can influence local economies where government-funded projects create specialized jobs and research opportunities. Households should consider how federal budget reallocations may impact specific sectors of the economy when planning for long-term career or industry stability.

The takeaway

The latest data highlights a significant shift in where federal research capital is being disbursed. Tracking these outlays can help individuals understand the shifting geography of government-funded innovation and its potential impact on industry growth.