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This article reports that the Canadian Federal government has prudently invested substantial new resources in research operations and infrastructure, thereby bringing the level of research support in Canada on par with that of most other G8 countries and enabling a world-class research enterprise. Much of this renewed commitment to research, however, is in the form of "co-funded" programs. In Canada, co-funding schemes typically require an equal or greater match of funds from an independent partner, either local, provincial, or foreign governments. Genome Canada, the primary Canadian funding agency for genome-scale projects, has winnowed its latest round of team applications solely on the basis of the perceived financial suitability of the co-funding source. In general, grants are best awarded solely on the basis of scientific peer review, and funded in full without matches, strings, or contingencies that depend on outside agents. By eschewing scientific excellence as the primary consideration, co-funded programs imperil scientific credibility and fail to engage the breadth and depth of national scientific expertise.