Federal grant outlook: TSU told to plan for constrained awards, pivot to industry partnerships

Tennessee State University Board of Trustees · November 22, 2025

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Summary

TSU’s federal funding update described year-over-year declines in awards and indirect-cost recoveries; trustees were urged to increase industry collaborations, translation and commercialization to adapt to shifting federal priorities and funding models.

University research leaders warned trustees Nov. 21 that federal funding for research has been volatile and that TSU should prepare for constrained awards and changes to indirect-cost policies.

Dr. Quincy Quick presented a year-over-year comparison showing fewer awards and lower indirect-cost recoveries: he cited a roughly 57% reduction in IDC-related cost requests and a 40% drop in total awards year-over-year, while submissions fell by only about 14–15%. Quick said some of the worst-case scenarios have eased after a continuing resolution and recent appropriations action, and he noted an estimated additional federal set-aside of $360 million that includes roughly $60 million for 1890/HBCU scholarship programs, which could benefit TSU’s USDA-linked research capacity.

Quick flagged ongoing debates about indirect-cost methodologies and a proposed alternative (a FAIR model) being discussed by major higher-education associations; he cautioned that future changes could advantage larger institutions and require strategic shifts for smaller and emerging research universities.

He recommended several institutional responses: expand industry partnerships and contract research, increase applied/translation research and commercialization efforts, and align with state economic-development programs (e.g., IRIS, REV) that require academic–industry collaboration. Quick said TSU is engaged with local innovation partners and has active conversations with state economic-development officials.

Why it matters: Federal research funding and indirect-cost recovery substantially affect grants revenue, research capacity and faculty-student research opportunities. Trustees were told to expect continued uncertainty while the university pursues diversified funding sources and partnerships.

What’s next: The Office of Research will continue to track federal appropriations and partner with administration on industry alignment and capacity-building initiatives.