flation adjusted) grew by 20 percent over the decade. Nevertheless, the Federal share of academic 

 research support, which peaked in 1966 at 74 percent, declined steadily to a 1991 share of under 

 60 percent, as other sources of support grew faster than the Federal contribution. 



By 1990, many states experienced the beginnings of the economic downturn that continues to 

 constrain the Federal, state, and private sector resources available for academic research and 

 higher education. Sustaining or increasing Federal obligations for academic research now faces 

 more intense competition from other legitimate claims. Meanwhile, other sources of support for 

 the RIUs are also undergoing financial stress. Tuition has risen to such an extent that additional 

 large increases appear to be unlikely. State and local funding of higher education has been cut, 

 and declining interest rates reduce endowment income. 



Approximately 50 percent of Federally funded basic research is conducted in universities. 

 The Federal government spent $8.1 billion at the RIUs for all types of research in 1990. Total 

 Federal research funding to all academic institutions in that year was about $9 billion. Federal 

 support to research at RIUs comprised an average of about 1 2 percent of RIU total operating ex- 

 penditures, and about 58 percent of their total research spending. 



The superiority of the U.S higher education system is internationally acknowledged and the 

 linking of research with education is one of its defining strengths. Though most Federal support 

 of RIUs goes for research, that support also contributes to education through direct involvement 

 of students in research, and by helping to maintain high quality research capabilities of the facul- 

 ty and institution. Education, including higher education, is primarily the responsibility of state 

 and local governments. However, recently the Federal government has been increasing its sup- 

 port for improving science, engineering, and mathematics education at all levels. 



In addition to providing direct support to universities, the Federal government plays a major 

 role in financial aid to students at all academic institutions, including RIUs. About half of the un- 

 dergraduates in U.S. universities and colleges, including two year institutions, receive some form 

 of financial aid and of these about 75 percent have some form of Federal aid. Among the students 

 receiving aid, full-time students and minority students are more likely than others to receive 

 Federal aid (about 80 percent and 85 percent of aid recipients in these groups, respectively). 

 About 70 percent of full-time graduate students receive financial aid; 46 percent of these receive 

 some form of aid from the Federal government. Federal financial aid in FY 1991 was $4.2 billion 

 for Guaranteed Student Loans and $6.0 billion for Student Financial Assistance. 



Nature of the Relationship 



From its relationship with RIUs, the Federal government expects specific contributions to the 

 execution of agency missions such as improved health, defense, environmental protection, 

 agricultural productivity, and space exploration. The government also expects contributions to 

 the quality of national life, including coherent and rigorous undergraduate education, the 

 widespread appreciation of scientific knowledge, and the encouragement of full potential for all 

 Americans. 



