If you’re in Australia and curious about how the U.S. National Institutes of Health (NIH) is funded, you’re not alone. The NIH is the world’s largest public funder of biomedical research, supporting projects and collaborations that often include Australian researchers and institutions. But where does all that funding come from?
The Main Source: U.S. Federal Government
The federal government of the United States provides almost all of the NIH’s financing. Through the annual Departments of Labor, Health and Human Services, and Education, and Related Agencies (LHHS) Appropriations Act3, the U.S. Congress provides funding to the NIH annually. On a far bigger scale, this procedure is comparable to how the federal government of Australia pays national research organizations like the NHMRC.
How the Funding Is Used
- Extramural Research:
For research done outside of the NIH, universities, hospitals, and research institutions—including those in Australia—receive grants, contracts, and awards totaling around 83% of the NIH’s budget. - Intramural Research:
Around 11% supports research at NIH-operated facilities in the U.S. - Administration and Infrastructure:
The remaining budget covers administration, facilities, and operational costs.
Additional Funding Streams
While the vast majority of NIH funding is from annual discretionary appropriations, the agency also receives smaller amounts from other U.S. government sources, such as the Department of the Interior and mandatory funds for specific initiatives like diabetes research or the Cancer Moonshot program.
Why Does This Matter in Australia?
Australian researchers and institutions often collaborate with NIH-funded projects or receive NIH grants. Understanding that NIH funding is primarily U.S. taxpayer money allocated by Congress helps explain the scale, priorities, and international reach of the research supported by the NIH.
The NIH is almost entirely funded by the U.S. federal government through annual congressional appropriations, with most of its budget supporting research grants and projects around the world-including many with Australian involvement.