NIH Funding Drives $94.58 Billion in Economic Activity, Supporting Over 400,000 Jobs in 2024

The National Institutes of Health (NIH) continues to be a powerhouse for economic growth and biomedical innovation, according to a new report released by United for Medical Research (UMR). The annual analysis reveals that NIH funding generated $94.58 billion in economic activity across the United States in 2024, marking a $1.68 billion increase from the previous year.

Economic Impact and Job Creation

NIH grants have proven to be a significant driver of economic activity, with every dollar of research funding yielding $2.56 in economic output. This represents an improvement from the 2023 figure of $2.46, demonstrating the increasing efficiency of NIH investments.

The impact of NIH funding extends beyond pure economic metrics, supporting more than 400,000 jobs across all 50 states and Washington, D.C. California led the pack with over 55,000 supported jobs, followed by Texas and New York, each boasting more than 30,000 positions. Pennsylvania and North Carolina also saw substantial benefits, with over 21,000 jobs each tied to NIH funding.

Caitlin Leach, president of UMR, emphasized the multifaceted benefits of NIH investments, stating, "There is no better investment than one that saves lives, supports local economies and drives America's global leadership in biomedical innovation."

Funding Allocation and Budget Growth

In 2024, the NIH's total budget reached $47.35 billion, representing a substantial increase of $17 billion since 2015. Approximately 78% of this budget, amounting to $36.94 billion, was channeled directly into local economies through research grants.

The economic analysis, conducted by Dr. Ronald Horst of Inforum using the Bureau of Economic Analysis' Regional Input-Output Modeling System, highlights how NIH funding ripples through communities. Researchers utilize these funds to purchase supplies and equipment, while also spending their salaries at local businesses, creating a multiplier effect on economic activity.

Challenges and Concerns

Despite the positive economic indicators, the report comes at a turbulent time for the NIH and other federal health agencies. Recent departures of key NIH leaders, including former Director Francis Collins, M.D., Ph.D., coupled with mass layoffs at the Department of Health and Human Services, have raised concerns about the future stability of biomedical research funding.

UMR has expressed apprehension about recent actions that could lead to reductions in funded research, including clinical trials. Leach warned, "Such moves jeopardize lives, local communities and U.S. industries."

The importance of NIH research for the biotech industry cannot be overstated. A 2023 analysis found that NIH funding contributed to the approval of 354 drugs between 2010 and 2019, underscoring the critical role of government-funded research in pharmaceutical innovation.

As the biomedical research landscape continues to evolve, the economic impact of NIH funding remains a crucial factor in driving innovation, supporting jobs, and maintaining the United States' position as a global leader in life sciences.