On September 23, 2025, the White House Office of Management and Budget (OMB) and the Office of Science and Technology Policy (OSTP) released their Fiscal Year (FY) 2027 Administration Research and Development Budget Priorities and Crosscutting Actions memo. Though federal FY26 begins October 1, 2025, this guidance is issued now to direct agency planning well in advance. USC has significant research strengths aligned with these priorities, presenting opportunities for future collaboration and funding.
Five R&D Budgetary Priorities
The memorandum outlines five primary research and development priorities that will shape federal investments in FY27. These areas emphasize U.S. leadership in technology, energy, national security, health, and space exploration. Together, they highlight the Administration’s commitment to advancing innovation while reinforcing economic growth, security, and global competitiveness.
1. Ensure Unrivaled American Leadership in Critical & Emerging Technologies:
The Administration calls for expanded research in artificial intelligence, quantum science, semiconductors, advanced communications (5G, 6G, space-based networks), future computing technologies, and advanced manufacturing methods such as robotics and additive manufacturing.
2. Unleash American Energy Dominance & Explore New Frontiers:
Investments will prioritize fossil fuels, advanced nuclear fission and fusion, geothermal, hydropower, and critical minerals. Additional focus areas include research into the Arctic, Antarctic, and emerging technologies for deep-sea exploration.
3. Strengthen American Security:
Federal R&D will advance military capabilities such as hypersonics, unmanned systems, resilient space systems, and modernized deterrence. The “Golden Dome” missile defense system is highlighted, alongside initiatives to improve preparedness for cyber threats, natural disasters, supply chain vulnerabilities, and post-quantum cryptography.
4. Strengthen and Safeguard American Health & Biotechnology:
Research will address chronic diseases, neurodegenerative conditions, cancer, and rare diseases. Additional emphasis is placed on biosafety, biosecurity, and expanding domestic biomanufacturing capacity.
5. Assure America’s Continued Space Dominance:
Priorities include human exploration of the Moon and Mars, propulsion and nuclear power systems, biotechnologies for space applications, and expanded public-private partnerships to accelerate discovery.
Five Crosscutting Actions
In addition to the budgetary priorities, the Administration identifies five crosscutting actions that underpin and enable progress across all research domains. These actions focus on raising the quality of U.S. science, developing the future workforce, expanding access to infrastructure, fostering collaboration, and ensuring federal resources target the highest-value efforts.
1. Implement and Support Gold Standard Science:
Encourage replication studies, rigorous research standards, and the creation of open databases.
2. Build the S&T Workforce of the Future:
Expand high-quality STEM pathways at all levels and incorporate AI-enabled teaching and learning tools.
3. Expand and Make Accessible Research Infrastructure:
Provide broader access to specialized facilities, tools, and data-sharing platforms for all researchers.
4. Revitalize and Strengthen America’s S&T Ecosystem:
Foster collaboration among government, academia, nonprofits, and industry, while protecting R&D from theft or exploitation.
5. Focus on High-Value Research Efforts:
Prioritize research aligned with agency missions and streamline programs for maximum impact.
Action Steps for USC Researchers
USC researchers are encouraged to review the full FY27 memo, which provides detailed descriptions of the Administration’s technology and topic areas. As proposals are developed, investigators should consider how their projects align with the newly released federal funding priorities. Cross-disciplinary collaborations in fields such as artificial intelligence, health, energy, and space may offer particular advantages in positioning for competitive opportunities. To maximize alignment and proposal strength, faculty should engage with their assigned DCG Officers early in the process to explore strategies, identify potential sponsors, and ensure proposals are responsive to emerging federal priorities.