<p>Existing literature underscores the unequal distribution of research funding across universities of varying prestige, yet the mechanisms through which university prestige influences funding success remain underexplored. Specifically, do Principal Investigators (PIs) from universities of differing prestige levels face divergent probabilities of funding success? Is this disparity solely attributable to differences in research capabilities, or does university prestige independently confer advantages, even among PIs with comparable qualifications? This study addresses these questions by analyzing unique application data from the National Natural Science Foundation of China, employing a combination of baseline regression models, matching methods, and panel data techniques. The results indicate that university prestige significantly increases the likelihood of funding success, even when controlling for the applicant’s research background. Furthermore, among awarded grants, the prestige of the PI’s affiliated university positively influences both academic productivity and scientific impact. Early-career affiliation with prestigious universities is also strongly linked to higher academic output and sustained funding acquisition, suggesting a “richer-get-richer” dynamic. By elucidating the mechanisms behind funding decisions, this study contributes to the theoretical understanding of research funding allocation and provides empirical insights for optimizing funding policy.</p>