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University system warns $250 million in federal research funding at risk after stop‑work orders, indirect‑cost cap proposals
Summary
Chancellors told the study committee that about $250 million in federal grants flow to the University System annually; recent stop‑work orders totaling about $9.5 million and proposed caps on indirect cost recovery could cut several million more and threaten research jobs and university partnerships with industry
University System leaders told the Public Higher Education Study Committee that federal actions and proposed policy changes threaten research funding that supports campus jobs, industry partnerships and regional economic development.
Chancellor Catherine Provencher told the committee the university system receives about $250 million a year in federal grants. She said the system had received roughly $9.5 million in stop‑work orders from federal agencies and that a proposal to cap indirect cost (facilities and administrative) recovery at 15 percent—down from negotiated rates that average about 30–32 percent at the system—could reduce research support by another roughly $5 million a year.
Why it matters: federal research grants underwrite faculty lines, graduate support and industry‑partnered projects. The committee was told that local economic development projects, such as Durham’s West Edge development, rely in part on the region’s research designations and the university’s ability to attract federal and industry funding.
Provencher said the stop‑work orders were not related to diversity, equity and inclusion policy but stemmed from federal cuts and administrative actions at agencies that fund research. She flagged indirect cost rates—negotiated with federal sponsors—as a particular risk, noting that lowering those rates would force institutions to choose between covering research costs from other funds or reducing the scope of sponsored projects.
Keene State President Melinda Treadwell and Representative Wayne Burton described local economic impacts of research programs, including partnerships in precision optics and advanced manufacturing. Representative Rick Ladd asked for details; Provencher provided the $250 million figure and described the $9.5 million in current stop‑work orders and the potential $5 million impact from an indirect‑cost cap.
Ending: Committee members asked chancellors to provide more complete, auditable figures on research awards, stop‑work orders and the fiscal exposure from any federal policy changes. The chancellors agreed to return with detailed numbers at a future meeting.
