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Yes, they do.

(1) Many grants have a mentorship / training / giving-back component. This is one of the merit-based criteria NSF reviews on.

(2) Research grants have overhead which feeds back into general budgets. At elite schools, this is about 2/3 of the money. A typical split might be 1/3 to the department, 1/3 to the school, and 1/3 to the project. It's kind of a financial scam. Nominally, these cover buildings and admin time. Practically, these feed into general budgets which do include labs and teaching. Corruptly, a lot of the money gets funnelled in creative ways to improve professor's lives through fancy faculty clubs, get-aways, and in some cases, creative (but legal) embezzlement with money ending in people's pockets.



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