UC Davis pulled in $953 million in external research awards during fiscal year 2025-26, a total that held nearly steady even as the mix of who's paying for that research shifted dramatically. Federal agencies still supplied the biggest share of the money, but industry funding surged while state support was cut by half.
The university's total was down just $8 million, or 0.8%, from the $961 million it received the previous fiscal year, according to UC Davis. As the Sacramento Business Journal reported, the latest figures show federal and industry funding climbing even as state dollars pulled back sharply. Federal sources remained the largest single contributor, providing $496 million, up $46 million, or 10%, from the year before.
Industry funding told a different story entirely. Contributions from private companies jumped to $143 million, a $53 million increase, or 59%, making industry the second-leading funding source.
State Support Gets Cut in Half
While federal and industry dollars grew, California's contribution collapsed. The state provided just $105 million in research funding for the year, a drop of $104 million, or 50%, from the previous fiscal year.
The shift reflects a longer-running trend. A separate university report notes that the combined share of UC Davis research funding coming from federal and state government sources has slid from about 76% in 1998 to roughly 66% today, with industry now supplying about 15% of the total. For comparison, UC Davis received roughly $247.7 million in total research support in an earlier year cited in that same report, with federal sources then accounting for about 57% of the total — illustrating how much the overall funding base has grown even as its composition has changed.
Medical School Sets a Record
The School of Medicine had its best year yet, bringing in $439 million in research awards, up 32% from the prior year and a new record for the school. Other campus units also posted strong totals: the College of Agricultural and Environmental Sciences received $134 million, while the College of Biological Sciences took in $77 million.
Beyond the dollar figures, UC Davis researchers generated a wave of new intellectual property. Faculty and staff submitted 201 invention disclosures during the year, while the university's Technology Transfer Office filed 197 patents and other intellectual property applications and executed 32 license and option agreements.
Federal Pressure Looms Over Research Labs
The funding shifts come against a backdrop of federal uncertainty that has rattled research universities nationwide. According to The Aggie, UC Davis officials said federal funding shifts have affected grants tied to cancer and Alzheimer's disease research, food production and safety, renewable energy, and basic science. The same report quotes UC Davis Vice Chancellor Simon J. Atkinson saying that while only a small number of NIH grants had been terminated at that point, the National Institutes of Health had been very slow to release new awards.
The Aggie's report also notes that private foundations have tried to step in to support affected research but simply don't have the resources to replace federal dollars, with one source quoted saying nobody has enough money to replace the federal government's funding. Separately, UC Davis Chancellor Gary May has warned that a proposed 15% cap on NIH reimbursement for facilities and administration costs would be devastating for the campus, estimating it would equate to a $70 million loss in research funding if it had applied in 2025, according to a statement from the UC Davis Chancellor's Office.
Seen against that backdrop, this year's industry funding surge and record medical school total suggest UC Davis has so far managed to offset some turbulence in its traditional government funding streams. Still, the halving of state support and the slower pace of new federal awards point to a funding landscape that looks very different than it did even a few years ago, when the university posted $845.5 million in grants and contracts for 2018-19, a total $1.2 million below the previous record, with the federal government alone providing $473 million that year.
