Research and development spending by academic institutions totaled $89.9 billion in FY 2021, an increase of $3.4 billion (4.0%) from FY 2020 (table 1). R&D expenditures funded from federal sources accounted for $3.0 billion of the total increase. Federally funded R&D expenditures had not increased by $3 billion or more since FY 2011, when the American Recovery and Reinvestment Act of 2009 supplemented the flow of R&D support dollars. University-funded R&D expenditures were 2.1% greater ($459 million) than in FY 2020 due largely to several institutions' improved accounting of internally funded R&D through new financial systems and reorganizations. Universities reported $149 million more in R&D expenditures funded from state and local governments, an increase of 3.2% from FY 2020. R&D expenditures funded by nonprofit organizations (-2.6%, -$150 million) and businesses (-1.3%, -$68 million) decreased, while R&D funded by all other sources was virtually flat (0.2% increase, $6 million increase). The data discussed in this report are from the Higher Education Research and Development (HERD) Survey, sponsored by the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF). For more information on the survey, see "Data Sources, Limitations, and Availability." [Data Sources, Limitations, and Availability is a section within this report.]