The University of Michigan announced several new research initiatives for fiscal year 2025, aimed at fostering interdisciplinary collaboration and increasing the university’s competitiveness for various funding sources. These efforts are part of a broader strategy to enhance U-M’s social and economic impact through research.
Among the programs introduced by the Office of the Vice President for Research are Impact Institutes, which provide seed funding to launch and grow interdisciplinary centers, and Building Better Futures, a grant program supporting innovative scholarship on complex societal issues. These initiatives complement existing efforts such as Innovation Partnerships and Bold Challenges in positioning researchers for future opportunities.
The university reported a record $2.16 billion in research expenditures for FY25, placing it among the top institutions nationally. Arthur Lupia, vice president for research and innovation at U-M, stated: “Michigan’s research expenditures are more than just a number. They represent U-M’s leadership in improving health, advancing technologies and serving as a trusted partner for the most important challenges of our time. Across all three campuses, our researchers and staff demonstrate determination, innovation and a commitment to public service that makes a real difference for our state, nation and world.”
Federal funding comprised $1.25 billion of this total in FY25—mainly from agencies such as the National Institutes of Health and National Science Foundation—but is expected to decline in 2026 due to national reductions in federal support.
In response to changing funding landscapes, U-M has focused on diversifying its sources by growing internal investments and expanding partnerships across disciplines. Internally sponsored expenditures reached $699 million—a 5.3% increase over 2024—supporting projects ranging from cancer treatment development to online safety initiatives for children.
Nonfederal support also grew substantially; corporate, foundation, and philanthropic contributions hit $213 million. This reflects increased collaboration with private-sector partners on cross-disciplinary projects.
Innovation Partnerships played a key role in commercializing university research by facilitating the creation of 31 new startups and recording 673 invention reports during FY25.
U-M’s strategic vision “Look to Michigan” expanded under President Domenico Grasso this year with advanced technology added as a core pillar alongside education, health, civic engagement, and sustainability. The AI Institutes at Michigan were launched to harness expertise in artificial intelligence; meanwhile an Office of National Laboratories was established to bolster ties with Department of Energy national labs.
President Grasso commented: “Our research community brings together world-class expertise and a shared commitment to public service. Through interdisciplinary collaboration and purposeful investment, U-M continues to drive progress in a rapidly changing research environment. When communities, industries and partners seek innovative solutions to the most pressing challenges, they continue to look to Michigan.”
