Federal budget woes continue to be felt on college campuses, with across-the-board cuts putting a squeeze on academic research dollars.

In a report released Friday, Moody’s Investors Services says the vast majority of research universities have seen funding reductions or delays in starting projects because of federal cuts known as sequestration.

So far this year, Moody’s finds research funding was cut by 5 percent due to sequestration and will continue to drop further in the coming years.

The investment agency says universities that have recently built up their research capacity will struggle to cover the cost.

On average, colleges and universities rely on federal sources for 68 percent of research funding.

Last year, the University of Massachusetts system spent nearly $600 million on research. University officials estimate the university could see a 4 percent reduction so they're trying to mitigate any cuts by increasing philanthropy.