Virginia Tech research continues upward trajectory amid uncertain federal funding landscape
Senior Vice President for Research and Innovation Dan Sui reported to the Board of Visitors that the university's research enterprise remains on track to reach $600 million in externally sponsored research expenditures by 2029.
Virginia Tech’s research enterprise continues to grow with externally sponsored research expenditures surpassing key milestones ahead of schedule even as federal funding uncertainty poses new challenges.
The university exceeded its $410 million target for externally sponsored research expenditures two years early in fiscal year 2023, according to the National Science Foundation’s Higher Education Research and Development survey, which tracks research activity across U.S. universities. The university has established a new goal of $600 million by fiscal year 2029 and remains on track to meet it.
“While we’ve experienced strong growth, the federal funding environment is increasingly unpredictable,” said Dan Sui, senior vice president for research and innovation, who provided an update to the Virginia Tech Board of Visitors at its November quarterly meeting. “Proposed reductions in national research budgets could affect our growth over time, making other sources of funding more important. Still, the performance of our faculty is steadfast and a testament to the resilience of the Hokie Nation.”
Externally sponsored research expenditures are considered the best measure of a university’s research activity because they represent competitive funding secured from federal agencies, industry, and nonprofit organizations. About 75 percent of Virginia Tech’s research funding comes from federal sources.
Expenditures, awards, and proposals show mixed trends
Such funding supports all parts of Virginia Tech’s land-grant mission — research, instruction, and outreach. Over the past several years, expenditures have increased steadily, reflecting strong partnerships between faculty and sponsors.
Research expenditures remain broadly distributed across the university. About one-third come from the College of Engineering, another third from other colleges with the College of Science and the College of Agriculture and Life Sciences representing the largest shares, and the remainder from Virginia Tech’s research institutes. Among those, the Fralin Biomedical Research Institute at VTC now represents the largest share.
Early data from the first quarter of fiscal year 2026 shows a slight decline in expenditures following multiple years of expansion. Award activity is also slightly down in the first quarter, potentially reflecting ongoing federal budget uncertainty, but proposal volume has surged, reaching nearly $2.5 billion in proposed work during fiscal year 2025 and $777 million in the first quarter of fiscal year 2026 — both all-time highs.
“The increase in proposals may reflect national trends, as researchers respond to tighter funding competition. If proposal activity continues rising while funding availability contracts, we could see lower success rates and researcher fatigue,” Sui said.
Spotlight on the Virginia Tech National Security Institute
The Virginia Tech National Security Institute continues to emerge as a major driver of sponsored research and workforce development, contributing to the growth of Virginia Tech's research enterprise. Officially chartered in 2021, the institute is built upon the foundation of the Ted and Karyn Hume Center for National Security and Technology and collectively engages more than 500 faculty, staff, and undergraduate and graduate students in research and over 600 students in other forms of workforce development across Blacksburg and the greater Washington, D.C., area.
Under the leadership of Executive Director Eric Paterson, the Virginia Tech National Security Institute has become a trusted partner to federal agencies and industry. Its researchers lead programs in secure communications, quantum sensing, autonomous systems, space technologies, artificial intelligence, and cybersecurity.
Equally important is the institute's commitment to workforce development. Rooted in the Hume Center’s mission, the institute provides scholarships, experiential learning, and career development programs to prepare the next generation of the national security workforce.
Even in an uncertain funding environment, the institute continues to innovate, enabling it to deliver on the university’s land-grant mission and support national security and homeland security communities.
“Our investments in people and partnerships ensure that we remain a national leader in research and workforce development, while positioning the university for long-term success,” said Sui. “The Virginia Tech National Security Institute serves as a prime example of the type of resiliency and drive that resonates throughout the entire Virginia Tech research ecosystem.”
