IBM CEO Arvind Krishna has urged the Trump administration to increase, rather than cut, federal funding for AI and related technologies. In a recent interview with TechCrunch, Krishna emphasized IBM's firm stance on the importance of bolstering federal R&D investments. "We have been an extremely strong advocate—both the company and I personally—for increasing federally funded R&D," Krishna stated. "This is a position we hold unequivocally, and we strongly believe in it." Despite their advocacy, IBM and the broader tech community are facing significant challenges. President Trump and his cabinet have proposed deep cuts to federal grant-making and scientific research programs, aligning with a set of priorities different from those of previous administrations. These cuts have particularly targeted the Directorate for Technology, Innovation, and Partnerships (TIP), a key office for AI research housed within the National Science Foundation (NSF). The proposed budget for fiscal year 2026 includes a dramatic reduction in NSF funding, with the administration aiming to eliminate what it deems "wasteful" and "woke" spending. This would put billions of dollars allocated to AI R&D projects at risk, along with funding from other critical agencies such as the National Institutes of Health (NIH) and the Department of Energy (DOE). Additionally, the Trump administration has threatened to repeal the CHIPS Act, a law enacted under the Biden administration to enhance domestic semiconductor production. Specialized chips crucial for AI development are among the technologies that stand to lose support. Early March saw substantial cuts to the office responsible for administering CHIPS Act funds, further complicating the situation. Industry groups like the Software and Information Industry Association have raised concerns about these reductions, sending letters to White House AI "czar" David Sacks and Commerce Secretary Howard Lutnick. They argue that such cuts could jeopardize America's global leadership in AI. Data from the U.S. Joint Economic Committee supports this view, showing that federally funded research generates annual returns of 25-40%, rivaling the top-quartile venture capital funds, which yield 15-27%. "We believe that federal R&D funding is currently at historic lows in terms of its GDP percentage," Krishna explained. "More federally funded R&D has a highly positive impact on the economy, economic growth, the competitiveness of the United States, and the development of essential technologies for our future." IBM itself has felt the repercussions of these budget cuts. The company disclosed during its Q1 earnings call in April that 15 federal contracts, totaling $100 million in future payments, had been canceled. Federal contracts account for between 5% and just under 10% of IBM’s consulting practice, illustrating the significant role these funds play in sustaining tech innovation and development. Despite the immediate setbacks, Krishna remains optimistic about the future. He expressed confidence that the government will reverse course and boost R&D spending within a year. "In a year’s time, I expect federally funded R&D for AI, quantum computing, and semiconductors to be in as good or better shape than it is today," Krishna said. This optimism reflects a broader sentiment within the tech industry that the long-term benefits of robust R&D funding outweigh the short-term financial costs. As the landscape continues to evolve, the push for continued investment in AI and related fields remains a critical priority for leaders like Krishna and for the sustained technological leadership of the United States.