{"id":3092,"date":"2025-10-10T00:49:04","date_gmt":"2025-10-10T00:49:04","guid":{"rendered":"https:\/\/tmbglobal.news\/index.php\/2025\/10\/10\/researchers-worry-about-grant-funding-cuts-for-ann-arbor-economy\/"},"modified":"2025-10-10T00:49:11","modified_gmt":"2025-10-10T00:49:11","slug":"researchers-worry-about-grant-funding-cuts-for-ann-arbor-economy","status":"publish","type":"post","link":"https:\/\/tmbglobal.news\/index.php\/2025\/10\/10\/researchers-worry-about-grant-funding-cuts-for-ann-arbor-economy\/","title":{"rendered":"Researchers worry about grant funding cuts for Ann Arbor economy"},"content":{"rendered":"<p><\/p>\n<div>\n<p>President Donald Trump\u2019s administration\u2019s proposed<a href=\"https:\/\/www.whitehouse.gov\/wp-content\/uploads\/2025\/05\/Fiscal-Year-2026-Discretionary-Budget-Request.pdf\"> budget<\/a> for the 2026 fiscal year, which is currently the center of a <a href=\"https:\/\/abcnews.go.com\/Politics\/live-updates\/government-shutdown-live-updates\/?id=126242587\">government shutdown<\/a>, will cut research grants for numerous universities, including the University of Michigan.\u00a0<\/p>\n<p>Detailed in a<a href=\"https:\/\/www.hhs.gov\/sites\/default\/files\/fy-2026-budget-in-brief.pdf\"> brief<\/a> from the<a href=\"https:\/\/www.hhs.gov\/\"> U.S. Department of Health and Human Services<\/a>, the proposed budget includes<a href=\"https:\/\/www.cnn.com\/2025\/05\/30\/health\/hhs-budget-nih-cuts\"> a 40% decrease<\/a> in <a href=\"https:\/\/www.cdc.gov\/\">Centers for Disease Control<\/a> and Prevention funding and a more than <a href=\"https:\/\/www.nytimes.com\/interactive\/2025\/05\/22\/upshot\/nsf-grants-trump-cuts.html\">50% decrease<\/a> in National Science Foundation funding. These cuts could impact<a href=\"https:\/\/www.michigandaily.com\/news\/research\/researchers-warn-federal-grant-cuts-threaten-nuclear-energy-progress-at-umich\/\"> nuclear<\/a> research,<a href=\"https:\/\/www.michigandaily.com\/news\/government\/2026-budget-cuts-to-noaa-could-halt-federal-funding-to-great-lakes-research\/\"> studies on the Great Lakes<\/a>, the<a href=\"https:\/\/www.michigandaily.com\/news\/research\/umichs-ovpr-cuts-block-funding-for-arts-and-humanities\/\"> arts and humanities<\/a> and more, but could also harm the broader Ann Arbor economy.<\/p>\n<p>In an interview with The Michigan Daily, Jason Owen-Smith, sociology professor and executive director of the<a href=\"https:\/\/iris.isr.umich.edu\/\"> Institute for Research on Innovation and Science<\/a>, said academic research was historically funded by the federal government and warned redirection of federal funds could have widespread consequences for the University and the Ann Arbor community.\u00a0<\/p>\n<p>\u201cThe way the federal government seems to be thinking about research does appear to be changing, which has created some uncertainty,\u201d Owen-Smith said. \u201cThis is making itself known in decreases in funding and in changes in grants, which may make this environment less hospitable to the kinds of businesses that are supported by our research. That\u2019s going to have ripple effects that are negative rather than positive.\u201d<\/p>\n<aside class=\"scaip scaip-1    \">\n\t\t<\/aside>\n<p>Owen-Smith said researchers will better understand impacts of the cuts at the end of the University\u2019s fiscal year in June 2026.\u00a0<\/p>\n<p>\u201cSo where we\u2019ll start to feel the effects of these policy changes is in the grants that we didn\u2019t get or that were delayed this year,\u201d Owen-Smith said. \u201cWe\u2019ll start to see the effects in this fiscal year. What we don\u2019t know yet is whether those effects will be concentrated in specific areas.\u201d<\/p>\n<p>LSA junior Josie Anderson, who participated in the<a href=\"https:\/\/lsa.umich.edu\/urop\"> Undergraduate Research Opportunity Program<\/a> during her freshman year before becoming a program peer facilitator, says she noticed changes in the availability of UROP opportunities since grant cuts were introduced.<\/p>\n<p>\u201cI\u2019ve heard of lots of different scenarios where federal funding cuts have impacted UROP projects and mentors aren\u2019t able to get the funding that they need,\u201d Anderson said. \u201cI was talking with another peer facilitator who had a student interview for (a project)\u2026 but the mentor had to say, \u2018I unfortunately can\u2019t take you anymore due to financial issues with the lab and funding being cut.\u2019\u201d<\/p>\n<p>In an interview with The Daily, Brian Jacob, professor of economics, public policy and education at the Ford School of Public Policy, said that understanding indirect costs is important to understanding the secondary stakes of grant loss. Indirect costs, which typically range from <a href=\"https:\/\/www.congress.gov\/crs-product\/R48540\">30% to 70%<\/a> as of May 2025, are costs not directly tied to a project but essential to it, such as research facility maintenance or printing costs. Jacob said new 15%<a href=\"https:\/\/grants.nih.gov\/grants\/guide\/notice-files\/NOT-OD-25-068.html#_ftnref2\"> caps<\/a> on indirect cost provisions within research grants announced in February would deplete a large source of revenue for the University across programs.<\/p>\n<aside class=\"scaip scaip-2    \">\n\t\t<\/aside>\n<p>\u201cSo if instead of providing 50-55% indirect (provisions), the federal government provided 15% indirect (provisions) \u2014that would be tens of millions, maybe hundreds of millions of dollars in revenue that wasn\u2019t coming in,\u201d Jacob said. \u201cThat would mean reducing the staff in that new institute, or the events that a new cultural center could put on. Less money into the University of Michigan means less money into the Ann Arbor economy.\u201d<\/p>\n<p>Jacob also said he anticipates declines in research funding will affect local businesses.<\/p>\n<p>\u201cOftentimes, research projects will have funding for workshops or conferences or other events that bring in people even outside of the immediate research team,\u201d Jacobs said. \u201cThat often generates business with restaurants or other local retail stores in the area.\u201d<\/p>\n<p>One potentially-impacted local business is<a href=\"https:\/\/m36coffeeroasters.com\/?srsltid=AfmBOoopH7tKH31RwO5PJJ2ryqG46M6_yFeURjJx6Ovwv3MR-t0iitf4\"> M-36 Coffee Roasters<\/a>, located on South University Avenue. In an interview with The Daily, co-owner Lisa Tuveson said the vast majority of the cafe\u2019s customers are related to the University in some way and that they anticipate changes in business due to fewer research staff members.<\/p>\n<p>\u201cI\u2019d say 90-95% of our customers are somehow related to (the University of) Michigan,\u201d Tuveson said. \u201cWe have people who have labs and their lab people come in, so we\u2019 ll be affected as less people are working in those positions. \u2026 It\u2019s hard to combat it, because if you don\u2019t have the money to spend, you don\u2019t have the money to spend.\u201d<\/p>\n<aside class=\"scaip scaip-3    \">\n\t\t<\/aside>\n<p>Tuveson also said outside of the impacts federal funding cuts will have on local businesses, Tuveson believes research is vital to shaping the future.\u00a0<\/p>\n<p>\u201cThere\u2019s a reason there\u2019s research,\u201d Tuveson said. \u201cIt\u2019s for the future. So to me, it\u2019s the last thing you should pull \u2014 there\u2019s other things that can go first.\u201d<\/p>\n<p><em>Daily Staff Reporter Anuttara Lath and Daily Contributor Hailey Nichols can be reached at <\/em><a href=\"https:\/\/www.michigandaily.com\/news\/research\/researchers-worry-about-impacts-of-grant-funding-cuts-on-ann-arbor-economy\/mailto:anuttara@umich.edu\"><em>anuttara@umich.edu<\/em><\/a><em>\u00a0 and <\/em><a href=\"https:\/\/www.michigandaily.com\/news\/research\/researchers-worry-about-impacts-of-grant-funding-cuts-on-ann-arbor-economy\/mailto:haileyni@umich.edu\"><em>haileyni@umich.edu<\/em><\/a><em>.<\/em><\/p>\n<aside>\n\t\t<\/aside>\n<p><h3 class=\"jp-relatedposts-headline\"><em>Related articles<\/em><\/h3>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>President Donald Trump\u2019s administration\u2019s proposed budget for the 2026 fiscal year, which is currently the center of a government shutdown, will cut research grants for numerous universities, including the University of Michigan.\u00a0 Detailed in a brief from the U.S. Department of Health and Human Services, the proposed budget includes a 40% decrease in Centers for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3093,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[242,243,886,3204,2333,1140,1732,3203],"class_list":{"0":"post-3092","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-ann","9":"tag-arbor","10":"tag-cuts","11":"tag-economy","12":"tag-funding","13":"tag-grant","14":"tag-researchers","15":"tag-worry"},"_links":{"self":[{"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/posts\/3092","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/comments?post=3092"}],"version-history":[{"count":1,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/posts\/3092\/revisions"}],"predecessor-version":[{"id":3094,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/posts\/3092\/revisions\/3094"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/media\/3093"}],"wp:attachment":[{"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/media?parent=3092"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/categories?post=3092"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tmbglobal.news\/index.php\/wp-json\/wp\/v2\/tags?post=3092"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}