the recent drama about science funding to me highlights one of the main problems with our grant-based distribution system: which is that it is unsurprisingly very frail to fast-moving changes in government and society at large.
science as an apparatus often works on timescales that are decades, not 4 year political cycles. so rapid pendulum swings are particularly dangerous to the pursuit of science as a whole. you could just as easily describe a scenario where the pendulum has swung left instead of right and a bunch of right-leaning research gets cut and people lose their jobs, we lose progress etc.
these days i'm pretty in favor of a system where funding is guaranteed and investigators are allowed absolute academic freedom. think something along the lines of each principle investigator gets $Xmillion to study their research topic in perpetuity without fear of reprisals or sudden funding cuts.
i naively think this would solve a LOT of the issues in academia currently, which already in the absence of the recent Trump shake-ups has devolved into a metric chasing, paper-mill, grant funding behemoth whose sole purpose is to churn out papers of dubious quality, game metrics, and bring in research funding to the university. the modern professor's job is not to advance our understanding of the natural world, but to generate positive KPIs and bring in as much revenue as possible to the university in the form of overhead costs (66% of all the federal funding we bring in at my institution goes directly to the school). it's a business, and that's not what basic science research is supposed to be in my opinion.