Throughout its history UTIG has received financial support from a diverse variety of sources. While the State of Texas provides funding for the core operating expenses, the majority of UTIG's support has always come from contracts and grants. Federal agencies, principally the National Science Foundation and the Office of Naval Research, together with a large number of industry sponsors (oil and oil service companies) support most of the research activities at UTIG.

 Since 1995 gifts from Advanced Microdevices, BP, Gale White, the Palisades Geophysical Institute, Paradigm Geophysical Corporation, Schlumberger Technology Corporation, the Shell Oil Company Foundation, and the Vetlesen Foundation have provided seed money for new initiative, essential computational equipment and software, and fellowship support for graduate students and postdoctoral research scientists. Gifts from individuals have also helped establish such fellowships.