An Update From President Gold on Federal Funding (Feb. 17)

Last week, I shared an update on a sudden federal policy change that could have cut $27 million annually from the University of Nebraska’s research funding—until a court intervened.

The National Institutes of Health issued a directive capping the reimbursement rate for facilities and administrative (F&A) costs at 15% of total awards—far below the rates universities negotiate. The financial impact on Nebraska researchers would have been significant, but for now, a temporary restraining order has put the policy on hold nationwide. A court hearing on this matter is scheduled for February 21, and we are closely monitoring developments.

We continue to closely monitor federal actions that could affect the University of Nebraska—including all recent executive orders, new federal directives, and policy changes that are still taking shape.

The Administration’s Department of Government Efficiency is driving significant shifts across federal agencies as it moves to reduce the federal workforce. As part of these efforts, termination notices were issued late last week to employees within the U.S. Department of Agriculture (USDA), impacting areas such as animal and plant health inspection, predator management on rangelands, farmland conservation, agricultural research, and fire suppression and management.

These workforce reductions will likely carry implications for Nebraska, directly affecting agencies and programs that the University collaborates with—including the U.S. Meat Animal Research Center in Clay Center, the Natural Resources Conservation Service, the USDA Animal and Plant Health Inspection Service Wildlife Service, the U.S. Geological Survey’s Nebraska Cooperative Fish and Wildlife Research Unit, and the National Forest Service. The work undertaken through these partnerships is essential to Nebraska’s producers and communities, supporting vital research, conservation efforts, and resource management.

USDA is but one federal agency undergoing cuts that will have an impact on the University of Nebraska. Cuts are also being experienced by the Centers for Disease Control, National Institutes of Health, Department of Veterans Affairs, Department of Education, Small Business Administration, and more.

Our team is actively engaging with Nebraska’s federal and state policymakers to ensure they understand the impact of these developments on our University, our state, and the people we serve, as well as how they may create changes in our ability to serve students, conduct research, and drive economic growth. We are also in ongoing discussions with our national higher education associations and peer institutions across the country, working together to navigate this rapidly changing landscape.

If your work is directly impacted by these or other federal actions, we encourage you to notify your campus office of sponsored programs. A clear understanding of these impacts allows us to effectively respond on behalf of the University and provide concrete examples to policymakers.

At the state level, I will be testifying before the Nebraska Legislature’s Appropriations Committee on February 25 in support of the University’s biennial budget request. We are seeking a modest but essential 3.5% increase in state funding for each year of the next biennium. This request, carefully reviewed and passed by our Board of Regents last August, reflects our commitment to careful financial management while ensuring we can meet the rising costs that affect every corner of our campuses.

As I noted last week when we announced the findings of our latest economic impact study, the University of Nebraska is a powerful driver of our state’s economy, workforce, and future. With a $6.4 billion annual economic impact and 1 in 7 Nebraskans holding a University of Nebraska degree, our contributions are significant. For every $1 the state invests in the University of Nebraska, we generate $10 in economic activity—an extraordinary return on current and future investment.

There is clear evidence that NU is a catalyst for growth, impacting every county, industry, and Nebraskan. Each of you—our faculty, staff, and students—are the driving force behind our success. We deeply appreciate your work, and we remain steadfast in advocating for our University and our future.

Thank you for all you do for the University of Nebraska. We will continue to share updates as we work through the upcoming weeks together—or when new federal or state developments arise.

Sincerely,

Jeffrey P. Gold, M.D.

President, University of Nebraska System