In response to a request by the Committee on Science and Technology, United States House of Representatives, this report analyzes how scientific research is funded at research universities in the United States, with a particular focus on how federal funding for research fits into the total finances of these institutions. Major sections of the document deal with: (1) operating revenues and expenditures; (2) revenues for research and development in science and engineering; (3) indirect costs for research and development; (4) costs relating to university physical plants; (5) research capabilities under alternative levels of federal funding; and (6) objectives, scope, and methodology of the study. It was determined that although federal research support has increased, it did so at a much slower rate than most other research revenue sources. Industrial support for research has more than doubled since 1975, but still represents less than 6 percent of research and development revenues. In addition, it was found that university revenues and expenditures have increased faster than the rate of inflation over the past 10 years, increased tuition represented the fastest growing component of the educational and general revenue category, and federal support to universities decreased in general and physical plant revenues. (TW)