There has been great concern about the relationship between the federal government and universities with regard to improving funding for research and scholarly activity. Faculty members at Historically Black Colleges and Universities (HBCUs) have been instrumental in advancing research and development on behalf of society. The purpose of this study was to examine faculty members' perceptions of institutional research environments using primary data on satisfaction with recovered facilities and administrative costs returned to colleges, departments, and faculty members. This study's findings may enable administrators and government entities to adopt policies that will be mutually beneficial to all HBCUs, government entities, and the public at large, thus reaffirming better intergovernmental relations. This study showed that among faculty, professors and assistant professors are most dissatisfied with recovered F&A costs returned to colleges and departments. In addition, there are differences among academic ranks relating to perceptions of F&A returned to faculty members.