When the biomedical research landscape is discussed, the focus often falls on the overall funding trends and flagship initiatives of the National Institutes of Health (NIH). What’s often overlooked, however, is how the first Trump administration (2018–2021) ushered in an unprecedented push for growth in NIH funding—particularly in non-basic research areas, significantly benefiting the broader life sciences industry.

While the Obama administration set the stage for innovative programs, and the Biden administration has focused on equity and foundational infrastructure (like ARPA-H), the Trump administration’s era stands out as a period of rapid funding increases that catalyzed translational and clinical-stage research, creating a surge of economic opportunities and accelerating biotech innovation.

The Trump Administration NIH Budgets: The Largest Growth Period in a Decade

The NIH budget grew steadily across the 2010s, but it was under the Trump administration that the largest increases were implemented in a relatively short time. Let’s look at the data:

Obama Administrations (2009–2017):

NIH budgets rose slowly in real terms, growing from ~$40.5 billion (FY 2009, adjusted for inflation) to ~$41.79 billion (FY 2017). This marked a ~3.2% real growth over eight years. Focus leaned heavily toward basic research, global disease programs (HIV, Zika, Ebola), and large, exploratory initiatives like the Cancer Moonshot and Precision Medicine Initiative.

Trump Administration (2018–2021):

NIH budgets grew from ~$42.22 billion (FY 2018, adjusted for inflation) to ~$45.24 billion (FY 2021). This marked a +7% real growth in just four years, a pace more than double Obama’s. The additional funding allotted under Trump reflected bipartisan support for the critical role of medical research but also an administration-wide focus on steering research funding toward real-world applications like drug development, pandemic readiness, and translational science.

A Shift from Basic to Translational and Clinical Research

Under the Trump administration, NIH saw a notable shift away from basic research (the foundation of scientific discovery) toward applied research and clinical translation, resulting in impactful outcomes for the life sciences and biotech industries. Here’s what changed:

Basic Research Declines as a % of Total Budget:

Under Obama, NIH consistently directed 50-55% of funding to basic research. However, between FY 2018 and FY 2021, basic research funding dropped to ~47-50% of the total NIH budget. This strategic pivot aligned funds toward applied fields with the potential for near-term impact, especially translational research (e.g., facilitating the movement of discoveries from the lab bench to the bedside).

Increased Focus on Translational and Clinical Research:

Funding for translational research climbed to 20-25% of NIH’s budget under Trump, up from historical averages of 15-20%. Clinical research (trials and studies on human populations) saw unprecedented growth, reaching 20-25% of budgets by 2021—double its share during earlier eras. Flagship initiatives like HEAL (Helping to End Addiction Long-term), targeting the opioid epidemic, and COVID-19 vaccine R&D were direct beneficiaries of this shift.

Industry Impact: Catalyzing the Life Sciences Sector

This pivot toward non-basic research wasn’t just a bureaucratic budget reshuffling—it had real, tangible benefits for the life sciences industry, which thrives at the intersection of translational research and clinical trials. Here’s how:

Operation Warp Speed (OWS):

Possibly the Trump’s administration most influential initiative, OWS accelerated COVID-19 vaccine and therapeutic development through massive public-private partnerships. NIH and BARDA funding fueled the biotech industry, providing resources and support for companies like Moderna, Pfizer-BioNTech, Regeneron, and Johnson & Johnson to deliver life-saving solutions in record time. These partnerships not only highlighted the strength of U.S. biomedical infrastructure but also spurred job creation and economic growth in the biotech-pharma sector.

HEAL Initiative:

The HEAL Initiative directed funding to non-basic research aimed at drug development and testing for non-addictive pain management and opioid addiction treatments. This fostered collaboration between NIH, industry, and academia, opening new markets for innovation in pain therapeutics.

Expanded Support for Translational Science:

NIH’s focus on applied research under the Trump administration injected momentum into areas like oncology, rare diseases, and immunology. Industry stakeholders benefited from grants and collaborations supporting late-stage innovation—helping to bridge the notorious “valley of death” between lab breakthroughs and market-ready treatments.

How the Trump administration NIH Agenda Differed from the Obama and Biden administrations

The emphasis on increasing NIH funding under all three administrations demonstrates strong bipartisan recognition of the value of biomedical research. However, the philosophy behind the funding allocations significantly evolved:

Metric	Obama 2009–2017	Trump 2018–2021	Biden 2022–2024
Total Budget Growth	Slow and steady (+3.2% real)	Accelerated (+7% real)	Positive but constrained (+3%)
Basic Research Focus	~50-55% of total budget	~47-50%	~40-45%
Translational/Clinical	~15-20%	~20-25%	~25-30%
Key Priorities	Basic research, Zika/Ebola, Precision Medicine	HEAL, COVID-19 R&D, translational science	ARPA-H, equity in trials, pandemic readiness

Under Obama, the focus was on global health and groundbreaking exploratory projects—prioritizing long-term discovery. Biden’s agenda has moved toward systems-building (e.g., ARPA-H) and health equity. Trump’s administration, however, directly fueled near-term innovation pipelines, creating fertile ground for biotech commercialization.

The Legacy of Trump-Era NIH Growth

While each administration’s NIH budget increases have left their mark, the first Trump administration’s targeted focus on non-basic research stands out. By directing resources toward applied and translational science, his administration created a strong bridge between public research efforts and the private sector, fostering partnerships that fast-tracked medical solutions. They supported the U.S. biotech and pharmaceutical industries, which benefited from increased funding for late-stage innovation. And, proved the value of public-private collaboration during emergencies like the COVID-19 pandemic. This surge not only benefited patients but also showed how research funding could create economic returns through job growth, innovation pipelines, and new therapeutic markets.

What’s Next?

As the life sciences industry continues to grow, future administrations will have to balance priorities across basic, translational, and clinical research while addressing challenges like inflation and competing policy initiatives. The first Trump era demonstrates how focused investment in non-basic research can energize the biotech sector—and continues to serve as a benchmark for leveraging federal research to drive real-world impact.