Should the Government Fund a Manhattan Project for Quantum Computing?

As quantum computing develops, we should ask whether it would benefit from an influx of government funding analogous to the Manhattan Project.

Written by Yuval Boger
Published on Feb. 19, 2025
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The proposal for government funding of a large-scale, fault-tolerant quantum computer — akin to the Manhattan Project — has sparked debate due to quantum computing’s transformative potential. As the race for technological supremacy accelerates, proponents argue that substantial federal investment is necessary to overcome technical hurdles, drive innovation and ensure national security. Critics, however, highlight inefficiencies in government funding, the risks of bureaucracy and the potential for more effective market-driven solutions. This article explores the arguments for and against a government-led quantum initiative, weighing the societal and economic implications.

What Would a Quantum Computing Manhattan Project Look Like?

The Manhattan Project, which was a government-led R&D initiative to build nuclear weapons during World War II, involved allocating massive amounts of funding and other resources toward research. A similar project for developing quantum computing capabilities could help to strengthen national security and spur growth in the area. It may also result in stagnation as private companies rely on a slower and less efficient system to fund development.

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The State of Play in Quantum Computing

Quantum computing promises to revolutionize computation by harnessing quantum superposition and entanglement, enabling faster problem-solving in complex domains. Achieving a large-scale, fault-tolerant quantum computer remains a significant challenge, however. Given the potential societal impact of quantum advancements, the key question is whether the government should take a proactive role in funding such efforts to ensure public benefits and national competitiveness.

 

Pros of Government Funding for Quantum

Government-funded quantum research and development offers several benefits.

Advancing National Innovation

Governments have historically played a crucial role in advancing scientific and technological breakthroughs. Federal investment in research and development has led to transformative innovations, from the space program to semiconductor technology. A well-funded quantum initiative could provide a similar boost, fostering innovation and securing the US as a leader in quantum research. A fault-tolerant quantum computer could revolutionize fields like drug discovery, materials science and AI, vaulting the US to the forefront of the global quantum race.

Economic Impact and Job Creation

A government-led quantum initiative would stimulate economic growth, creating jobs in quantum hardware, software and infrastructure development. Past investments in R&D, such as those in the internet and GPS, have generated billions in economic value. Quantum computing could drive a new wave of tech startups, venture capital investments and job creation, with spillover effects into fields like cybersecurity and logistics.

Addressing Market Failures

The private sector often hesitates to fund projects with high risk and long development timelines, as seen in fusion energy and space exploration. Quantum computing requires long-term, high-cost investments that may not yield immediate commercial returns, making it an ideal candidate for government intervention. Federal funding could ensure that crucial advancements in quantum algorithms, hardware stability and quantum networking continue, even when private-sector returns remain uncertain.

Enhancing National Security

Quantum computing has critical implications for national security, particularly in cryptography and secure communications. The ability of quantum computers to break current public-key encryption standards poses a threat to global cybersecurity. Governments must invest in quantum-resistant encryption and lead efforts in developing post-quantum cryptographic standards. Additionally, competing nations, including China and Russia, are investing heavily in quantum research. A strong, U.S.-government-backed quantum program would ensure national security interests are safeguarded.

Public Advocacy and Societal Benefits

Public funding of quantum computing ensures that its benefits extend beyond corporate profits. Fields like climate modeling, personalized medicine and financial risk analysis stand to gain significantly. If left to the private sector, quantum breakthroughs may remain proprietary rather than being widely accessible for scientific and humanitarian applications. By mobilizing public support, policymakers can ensure that quantum advancements serve societal well-being rather than being exclusively profit-driven.

 

Arguments Against Government Funding

Despite the benefits, government funding is not without drawbacks.

Stagnation of Federal R&D Funding

Although federal R&D funding played a key role in past technological revolutions, it has experienced fluctuations over the last decade. A large-scale quantum initiative would require sustained investment over decades, raising concerns about the government’s ability to maintain long-term financial commitments. In a climate of budget constraints, prioritizing quantum computing over other urgent needs like infrastructure, healthcare and education could face political resistance.

Bureaucratic Inefficiencies and Delays

Government projects may often be hampered by bureaucracy, inefficiency and slow decision-making. Large-scale federal initiatives may experience cost overruns, delays and inefficiencies. A private-sector-driven quantum initiative may yield results more quickly and efficiently, without the bureaucratic red tape that often plagues government-led R&D. 

Risks of Dependency on Government Funding

Over-reliance on government funding can discourage private-sector investment. If companies expect the government to lead quantum research, they may reduce their own R&D spending, slowing the pace of commercial innovation. Government-funded projects can also become entangled in political cycles, where funding priorities shift with administrations, leaving projects in limbo.

Market-Driven Solutions May Be More Effective

Private sector companies, including Google, IBM, Microsoft, and well-funded startups, are already making significant strides in quantum computing. These companies are investing billions in developing scalable quantum systems. A market-driven approach allows for faster iteration, competition and commercial viability, whereas government-funded efforts might lag behind due to slow procurement and regulatory compliance.

The Challenge of Choosing the Right Approach

Quantum computing is still a nascent technology, with multiple competing architectures, including superconducting qubits, trapped ions, neutral atoms and photonic qubits. A government-led initiative may commit to the wrong approach, leading to wasted resources. By contrast, a diverse, private-sector ecosystem fosters competition among different architectures, increasing the chances of identifying the most scalable and cost-effective ones.

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Recommendations for Funding Quantum Research

To maximize the potential of quantum computing while mitigating risks, public-sector officials should accelerate a hybrid approach that balances government investment with private-sector innovation:

Fund Early-Stage Research

Support foundational quantum R&D through federal grants, universities, and public-private partnerships. Indeed, the Department of Energy and DARPA are providing significant research funding today.

Build National Quantum Infrastructure

Develop quantum computing facilities, cloud-based platforms and quantum networking capabilities. For example, the National Quantum Initiative, a federal program that coordinates and accelerates quantum research, development and commercialization across the US, is a significant commitment.

Set Security Standards

Establish post-quantum cryptographic protocols and cybersecurity policies to protect national security. NIST has been hard at work to establish standardization of post-quantum cryptography (PQC) to prepare for future quantum computers that could break today’s encryption.

Encourage Private-Sector Investment 

Provide tax incentives, funding matches, and workforce development programs, such as those provided by Illinois, providing co-investment funds for companies that choose to open facilities in the region.

Ensure Agile, Accountable Funding

Use milestone-based and competitive grants to prevent bureaucratic slowdowns, releasing funding in phases linked to clear, measurable goals (such as achieving a specified qubit coherence time or demonstrating error-correction breakthroughs). This approach incentivizes researchers to meet rigorous benchmarks while minimizing the risk of indefinite funding for underperforming initiatives.

Strengthen Global Collaboration

Continue to coordinate with international allies on research and security norms, deepening relationships with allied nations that have established quantum initiatives, such as Canada’s quantum hubs or the European Union’s research programs.

By strategically investing in quantum technology while fostering market-driven progress, the US can maintain leadership in the quantum era.

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