Penn State's research enterprise reached a new milestone in fiscal year 2024-25 with $1.44 billion in total research expenditures, the largest in the University's history. The amount - which is an 8% increase, or $110 million, over the previous year - reflects the combined external and internal investments in critical research areas, such as artificial intelligence, national defense, energy resilience, agriculture and public health.
The record investment has enabled Penn State to develop artificial intelligence to improve health care outcomes, support farmers with safer and more affordable pest management tools, produce leading-edge communications equipment for the U.S. military and train the next generation of scientists to study the role of microbiomes in human health and agriculture, among many other advancements.
"This year's growth is not just about numbers, it's about the strategic and careful way that Penn State invests its research dollars to maximize benefits for humanity," said Penn State President Neeli Bendapudi. "In addition to supporting the direct costs of conducting research, we also are modernizing our research facilities so our faculty and student researchers can work at the cutting edge and investing in our support operations so that our researchers' discoveries are efficiently translated into applications that benefit society. I am grateful to Penn State's faculty, staff and students for their commitment to improving lives through research."
Research expenditures are commonly understood as indicators of a university's commitment to innovation, and its ability to compete nationally and internationally for resources to support this work.
"Every research-intensive college at Penn State saw an increase in research expenditures this year, which speaks to the strength and breadth of our enterprise," said Andrew Read, senior vice president for research. "For the first time, Penn State's research surpassed the $1 billion mark, not including the Applied Research Laboratory. This shows that when we invest strategically, we elevate areas of excellence across the institution. Importantly, the outcomes of this critical work directly impact the communities we serve."
This past fiscal year, from July 1, 2024, to June 30, 2025, Penn State's expenditures from federal funding totaled $922.6 million, a $70 million increase over the last fiscal year and led by the Department of Defense ($416.5 million), Department of Health and Human Services ($216.6 million) and U.S. National Science Foundation ($93 million). The funding supports priority research areas such as:
National Security and Defense Innovation: The Applied Research Lab (ARL) reported $415 million in expenditures, primarily funded by the U.S. Navy, supporting advanced sensor systems, such as those that detect potential threats; autonomous platforms, such as drones that can operate independently; and secure communications.
Artificial Intelligence and Robotics: Penn State's College of Engineering and College of Information Sciences and Technology are leading federally funded projects to develop AI-enabled systems for defense, health care and agriculture, including robotic prosthetics and AI-driven pest management.
Health and Biomedical Research: The College of Medicine's expenditures totaled nearly $196 million, including major National Institutes of Health (NIH) grants to study tobacco-related harm, infectious disease modeling and community health disparities.
Energy Resilience: With $45.4 million from the Department of Energy, Penn State researchers are advancing new energy technologies, including grid resilience to improve the reliability and affordability of energy.
Federal investments also support high-impact, long-term initiatives such as:
AI for Health Equity: At Penn State Harrisburg, researchers collaborating with the University of Texas Health Science Center used a NIH grant to work towards establishing a lab using AI and machine learning to improve health care access and outcomes. The lab will develop interpretable, human-centered models and train students in health-focused AI research.
Crop Pest Management: A U.S. Department of Agriculture grant supported the development of new pest management tools for mushroom crops - a critical Pennsylvania industry. The project also includes outreach to growers and policymakers.
In addition to federal support, Penn State invested a record $322.2 million in internal research infrastructure and strategic initiatives. This funding supports new investments such as the launch of the University's National Security Institute, expanding Penn State's role as a trusted federal partner in national defense. Industry, foundations and other sponsors contributed $134.9 million.
The Commonwealth of Pennsylvania contributed $64.4 million, including $26.5 million in appropriations for agricultural research as Penn State's College of Agricultural Sciences continues to lead in research related to food and nutrition and rural health.
"This year's level of investment is a vote of confidence in Penn State's responsible ability to steward resources for the greater good - but it's also fragile," Read said. "Without sustained federal and state support, the momentum we've built to have an impact nationwide could stall. We must continue to advocate for research as a national priority."
To raise awareness, Penn State launched a campaign in support of continued federal research funding.
