Reduced DoD Reimbursements Risk Undermining University Defense Research

Impact of Policy Changes on University-Based Defense Research

As China ramps up its investment in modernizing its military and developing dual-use technologies, the United States could inadvertently weaken its long-standing advantage in defense research through policy changes at the Department of Defense. This shift might significantly impact the university-based research infrastructure that is crucial for maintaining the military's technological edge.

The importance of these investments is highlighted by recent events, such as the interception of Iranian missiles using air defense systems rooted in decades of research led by universities. This success underscores the critical role such research plays in national security.

A newly announced policy imposes a 15 percent cap on facilities and administrative (F&A) reimbursements for defense research conducted by universities. These reimbursements are essential for covering operating costs of secure labs, energy-intensive test facilities, and cybersecurity measures, all of which are vital for sustaining research and innovation.

Since the collaboration model established during World War II, which brings together government, industry, and academia, significant breakthroughs have shaped modern security technologies such as radar, GPS, and artificial intelligence. Nearly half of the Department of Defense’s basic research funding is directed to colleges and universities, making them indispensable to the nation's defense strategy.

Curtailing federal support for university research facilities could potentially allow strategic competitors, especially China, to close the gap in military technological capabilities. China has been rapidly enhancing its dual-use research infrastructure and recruiting American-trained scientists, which amplifies the risk of the US losing its strategic edge.

General Dan Caine, Chairman of the Joint Chiefs, recently stated, “Our systems need to be built for the war of the future, not the war of the past, and this means using technology and innovation at the tactical edge.” This technological edge is primarily developed in the very university labs that are now threatened by reduced funding.

Universities currently absorb the initial costs of defense research projects, with the government providing partial reimbursement. If these reimbursements decrease, it could degrade the infrastructure necessary for the United States to maintain superiority across all domains of warfare.

Across the nation, federal F&A reimbursements support university facilities that are integral to the defense research ecosystem. For example, Penn State University is pioneering cold spray technology, which promises cost savings for the US Navy. Meanwhile, the University of Notre Dame is making strides in low-power antennas crucial for secure military communications.

Other institutions like North Carolina State University and the University of Florida are working on critical technologies such as high-efficiency semiconductor chips and collaborative research initiatives with the Air Force, respectively. Auburn University has also established a radiation hardening test facility to bolster military microelectronics.

These advancements demonstrate the strategic importance of academic institutions in defense research. The proposed reduction in funding is not merely a budgetary adjustment but a potential setback in maintaining competitive military capabilities.

The average American contributes about seven cents a day to federal university defense research, a minimal investment considering the significant economic returns it generates. According to The Science Coalition, each dollar invested in academic research produces up to $10 in economic impact.

In an era where adversaries are intensifying their investments in defense technologies, the United States should reinforce its innovation partnerships, not diminish them. Effective leadership within the DoD and the broader administration is crucial to ensure that cost-containment measures do not compromise long-term defense readiness.

The essential question remains whether the US can afford to neglect investment in defense research amidst 21st-century challenges. Utilizing outdated technologies risks losing the strategic advantage and potentially emboldens adversaries.