California Backs $23 Billion Research Bond as Federal Grants Freeze
March 13, 2026 · 2 min read
Jared Klein
The University of California is sponsoring Senate Bill 895, legislation that would place a $23 billion bond for scientific research on California's November 2026 ballot — the largest state-level research investment in U.S. history.
The move comes as UC campuses absorb more than $1 billion in federal grant disruptions. At UCLA alone, $584 million in federal research funding was frozen. Across the 10-campus system, $230 million remains suspended or terminated.
Why the State Is Stepping In
The Trump administration has proposed cutting NIH by 40%, the National Science Foundation by nearly 60%, and the CDC by 44%. UC receives $5.7 billion annually in federal research funding — money that supports 55,000 California jobs and generates roughly $14 billion in state economic activity.
"University research has been under sustained attack over the past year," UC President James Milliken said in the March 5 announcement.
SB 895 would establish the California Foundation for Science and Health Research, distributing competitive grants, low-interest loans, and research facility upgrades. Priority areas include biomedicine, climate science, wildfire prevention, pandemic preparedness, agriculture, and artificial intelligence.
A Drug Discount Provision With Teeth
The bond includes an unusual consumer protection clause: Californians would receive discounts on pharmaceuticals developed with bond-funded research dollars. The state could also recover licensing and royalty fees from commercially successful inventions.
The bill has bipartisan backing from 31 state legislators, plus endorsements from UAW Region 6 and the Union of American Physicians and Dentists. It needs two-thirds approval in both chambers before reaching the ballot.
For California-based researchers watching federal funding erode, this bond could create the most significant alternative funding stream in a generation. In-depth analysis of how this affects grant planning is available on the Granted blog.