The US government wants to win the global AI race. It also keeps shooting itself in the foot. The National Science Foundation, the federal agency most directly responsible for funding foundational AI research, has experienced dramatic slowdowns under the Trump administration, with over 1,600 active grants canceled and critical staff terminated across divisions focused on STEM and AI.
The self-inflicted wound
Staff terminations compounded the damage. Key personnel within divisions focused on foundational AI research and STEM education were let go, hollowing out institutional expertise that took decades to build.
The timing makes this especially jarring. On January 23, 2025, Trump signed Executive Order 14179, explicitly designed to eliminate barriers to American AI dominance. The order laid out an aggressive deregulatory agenda meant to clear the path for US companies and researchers to lead globally.
Then on July 23, 2025, the administration released its AI Action Plan, titled “Winning the Race: America’s AI Action Plan.” The document called for enhanced support for innovation, infrastructure investment, and deeper global engagement on AI. By June 2026, another executive order mandated voluntary review of advanced AI models, though even that was accompanied by anxiety about whether the US was staying competitive.
