Published
July 21, 2026
The U.S. is in a global race to lead in artificial intelligence, quantum computing, advanced energy, semiconductors, biotechnology, commercial space, and other next-generation technologies, but proposed changes to the rules of the road for federal grants could create uncertainty for those advancements.
Why it matters: Many breakthrough technologies begin as ideas that are too early, too uncertain, or too capital-intensive for private investment alone. Federal research grants, loans, cooperative agreements, and other forms of financial assistance can help bridge that gap, turning high-risk research into real-world innovation, new industries, and stronger U.S. competitiveness.
The lesson: While federal grants are not a substitute for private investment, they are a catalyst. When structured well, they help de-risk early-stage work, attract private capital, and accelerate commercialization.
The big picture:
Federal officials are considering changes to the rules governing Federal financial assistance. The U.S. Chamber supports the goal of making these programs more efficient, accountable, and promote sustained economic growth. But modernization must be done carefully.
Rules that look narrow on paper can have broad consequences in practice. If changes create uncertainty, inconsistent requirements, unclear enforcement standards, or increased compliance risk, they could make Federal partnerships less predictable and less attractive.
That matters because advanced research does not happen on short timelines. Companies and institutions commit people, capital, facilities, intellectual property, and years of effort based on the rules in place when agreements are made.
What the government should do:
If the government decides to move forward with changes, any final rule should provide clarity, protect existing commitments, and ensure the system remains practical for the businesses and research institutions that help turn ideas into innovations.
While the government is right to focus on accountability and effectiveness, accountability and innovation are not competing goals. The strongest Federal financial assistance framework will do both: protect public resources while giving innovators the confidence to participate, invest, and build in America.
The bottom line
The U.S. cannot afford to slow its own innovation engine while global competitors are moving aggressively to lead in critical technologies. A modernized Federal grants framework should support early-stage discovery, unlock private investment, protect existing commitments, and help ensure the next generation of breakthrough technologies is developed, scaled, and commercialized in America.
About the authors
Jordan Crenshaw
Crenshaw is Senior Vice President of the Chamber Technology Engagement Center (C_TEC).
Brad Watts
Brad Watts is the Senior Vice President at the U.S. Chamber of Commerce's Global Innovation Policy Center (GIPC). He works with U.S. Chamber members to foster a political, legal, and economic environment where innovators and creators can invest in the next big thing for the benefit of Americans and the world.
