Federal funding cuts, restraining orders leave University of Iowa researchers in limbo

Research funding at the University of Iowa is in limbo as the shakeup in the federal government continues. On Feb. 11, a federal judge issued a nationwide temporary restraining order prohibiting the National Institutes of Health (NIH) from enacting funding cuts, citing “immediate and irreparable injury” to American medical colleges. Concerning its grants, the NIH had proposed a 15% reimbursement rate on facilities and administration (F&A) expenses. Considered indirect research expenses, F&A funds typically cover costs such as the maintenance of research laboratories, hazardous waste disposal, safeguarding patient safety procedures, ensuring national security protections, the hiring of research assistants and more. “Simply put, the federal government provides reimbursement for real costs that are incurred in the process of safely and securely conducting high-impact research. This research has tangible benefits for the lives of Iowans,” Lois Geist, UI interim vice president for research, wrote in a campus statement Feb. 10. The university initially moved to pause NIH grant application submissions, general expenses and the hiring of graduate research assistants “unless (RAs) are already budgeted as a direct cost on a funded project,” but retracted that guidance following the judge’s restraining order. Nonetheless, the university urged researchers to keep in touch with the Division of Sponsored Programs on upcoming submission deadlines. “Please recognize that this is a very fluid situation, and we request and appreciate your patience,” Ms. Geist wrote. Last year marked a significant milestone for the university, which celebrated 45 years of continuous NIH funding for its hematology training program. To date, the program has trained more than 141 people who have pursued careers in academic medical centers, the NIH, American Red Cross and private industry, according to the university.

The tenuous state of federal funding

Precipitating the change with NIH funding was a presidential order Jan. 27 to freeze all federal funds, citing a need to review whether spending aligned with recent executive orders regarding issues like climate change and diversity, equity and inclusion, which the administration has taken aim at. The memo from the Office of Management and Budget, OMB Memorandum 25-13, caused widespread confusion and concern among organizations and agencies that depend on federal funding. According to the Associated Press, lawsuits initiated by nonprofit groups prompted U.S. District Judge Loren L. AliKhan to block the order, mere minutes before it took effect. The OMB’s memo was later rescinded, and a “404 Page Not Found” message has since taken its place. However, the disbursement of federal funds is still facing uncertainty.

Federal funding ‘strongest supporter of the institution’

Prior to the new development with the NIH, in fiscal year 2024 the University of Iowa saw $638 million in external funding in support of research, scholarship, and creative activities, a 22% increase over the previous year’s $561 million. In addition to funding from the NIH, there was a significant uptick in contributions from other federal sources such as the National Science Foundation and the Department of Education, the university reported. “Federal funding remains the strongest supporter of the institution, totaling $315 million in FY 2024, or 39% of all external funding,” according to the university’s website. The university secured $18 million in research funding from the NSF, marking a 56% increase over previous years. Among the newly funded projects is a $1.2 million initiative led by Octav Chipara, a professor in the department of computer science, aimed at advancing personalized hearing aid technology. The Department of Defense also awarded $18 million to UI researchers, including $1.7 million from the Minerva Research Institute to study the global spread of propaganda, disinformation, and manipulative content on social media. That project is led by Brian Ekdale, an associate professor in the School of Journalism and Mass Communication. Mr. Ekdale was one of 11 university-based faculty teams in the nation to receive funding from the DOD under its Minerva Research Institute in 2023. The award supports basic research in social and behavioral sciences on topics relevant to U.S. national security.