Dairy science research will be required to address complex issues of producing more milk and milk products with fewer resources while maintaining the stewardship of the natural resources. Unfortunately, research funding for agriculture are far less when compared with other federal research programs and are not keeping pace with investments made by emerging countries. The expectation is that the agricultural private sector will make up the difference in research funding; however, advancements made by the industry depend significantly on government investments in research. Further, the grand challenges facing the dairy industry will require a trans-disciplinary approach, which will require many partners and bringing scientists together from diverse backgrounds. The USDA has a unique but effective system of funding agricultural research, and the funding streams broadly classify into: (1) USDA Agricultural Research Service, (2) capacity-building funds through land-grant institutions, (3) and competitive grants programs administered by the National Institute of Food and Agriculture. A recent report evaluated the effectiveness of capacity-building funding through USDA and one of the main advantages identified was the financial leveraging of government funds, and that much of the leveraging was at the local level. A program that was authorized in the 2014 Farm Bill, the Foundation for Food and Agriculture Research, relies on leveraging financial support from non-federal sources, and maybe a model for future funding. Although, the US dairy industry competes in a global market many of the challenges faced by dairy producers are regional. Some repetition across dairy research programs is needed, but with contracted funding and improved technology in telecommunications, programs need to invest their resources more strategically. Institutions could prioritize financial support to develop core research areas and rely more on collaborations. Investing in both foundational and innovative dairy science research is essential to keep the American dairy industry competitive in this global economy.