The University of North Carolina Wilmington is currently receiving $39.5 million in 139 active federal grants, representing funding from over 20 federal agencies, including the National Institutes of Health (NIH), according to information provided by the University.
The Trump administration recently issued an effective cut to “indirect costs” funding for NIH grants. Unlike the “direct costs,” which cover researcher salaries and laboratory supplies, “indirect costs” cover other administrative and facility costs. The administration has dismissed indirect costs as “overhead,” but many institutions have argued they are critical, according to the Associated Press.
Indirect costs make up a varying percentage of a grant, depending on the project details. Based on an analysis conducted by WHQR, across all federal grants received by UNCW, indirect costs make up roughly 26% of funding received — which is on par with the historical nationwide average. With a 15% flat rate, indirect funding would be cut nearly in half.
In early February, the Trump administration announced that there would be a cap on the indirect rate at 15% across all National Institutes of Health federal grants. This is problematic for universities because these indirect payments include lab equipment, staffing (like graduate assistants or grant administrators), utility bills, and the disposal of hazardous waste materials.
Through a public records request through UNCW, WHQR has calculated the potential impact for the 12 active NIH grants, totaling $2.9 million. WHQR’s analysis shows that if the 15% cap were enacted, UNCW would have to find $637,249 to cover the loss. While UNCW declined an interview, realistic options would likely be discontinuing all or parts of the grant or finding other funding sources through the state, philanthropic organizations, or other UNCW fees or donations.
UNCW researchers are currently working with NIH grants associated with researching various cancers, brain injuries, genetics, and drugs such as opioids and alcohol.
Preparing for effective cuts to NIH funding
On Wednesday, a federal judge issued a preliminary injunction pausing the new 15% policy while lawsuits filed by nearly two dozen states, as well as universities and other research institutes, move forward. Litigation will take time, so the issue is far from settled.
North Carolina’s auditor, Republican Dave Boliek, recently sent out a memorandum to finance leaders of UNC System schools, writing that they should plan on the 15% cap to indirect costs. He recommended that universities that receive NIH funding “take extreme care in reporting upcoming financial statements. If you have not already begun preparations for the policy update, the time to do so is now.”
UNCW Provost Dr. James Winebrake sent an emailed statement through spokesperson Sydney Bouchelle. He declined interview requests to discuss the issue.
“We are aware there are questions about the impact that federal executive actions may have on our operations – particularly around funded research, grants, and educational programs. This continues to be an evolving situation that UNCW is monitoring closely. Given the complexities, we are still assessing any impacts to UNCW research activities. We are working closely with our Office of General Counsel, among other UNCW offices, and also remain in communication with the UNC System Office," he wrote.
WHQR also contacted Faculty Senate leader Dr. Colleen Reilley and didn’t hear back. WHQR also spoke to UNCW researchers, who declined to comment for fear of reprisal by the university.
However, UNC’s Faculty leader Dr. Beth Moracco told WUNC that the Trump administration’s executive orders from January, which could have future impacts on grants, including from NIH and the National Science Foundation, sent the “research community into a state of confusion, concern and anxiety.”
Given the wide-reaching and, at times, chaotic attempts to reduce federal spending by the Trump administration and Elon Musk’s quasi-governmental DOGE, many researchers are concerned about future impacts to other federal grant programs.
For example, if the 15% indirect cost cap were extended beyond NIH to all federal agencies, UNCW would have to come up with $3.4 million to cover the difference.
Broader picture of federal grant funding in UNCW
The UNC System, consisting of 16 public universities, brings in over $1 billion in federal funding annually. According to WUNC, the bulk goes to UNC Chapel Hill ($800 million) and NC State University ($416 million).
UNCW receives the most funding from the National Science Foundation at $14.2 million from 45 different grants, followed by NOAA at $5.78 million from 26 grants. (*Note: You can find all of UNCW’s active grants at the bottom of this report. The award includes both direct and indirect costs, but the indirect costs are separated from the total.)
The largest three individual awards to UNCW were a $1.97 million U.S. Department of the Interior grant to study physical-biological processes at Frying Pan Schoals, $1.95 million from the U.S. Department of Justice to study the National Treatment Court Resource Center, and $1.3 million from the National Oceanic Atmospheric Administration (NOAA) to provide data and modeling around coastal resiliency. While these are the top awards, twenty of UNCW’s federal grants are over half a million dollars.
WUNC has reported that UNC System leaders, like President Peter Hans, are staying silent on the impacts of the potential cuts on their faculty’s research. However, the outlet reports that some universities consistently inform their staff of what’s to come. UNC Chapel Hill's Vice Chancellor for Research consistently emails updates on the status of federal funding; NC State University created a website to house updates on federal grants and stop work orders.
While Duke University is a private institution and not a part of the UNC System, its administrators have consistently emailed its faculty and staff about what’s at stake. In mid-February, Duke’s leadership, which included the president, provost, dean of Duke’s School of Medicine, and CEO of the University Health System, informed the community that the 15% policy would “drastically reduce a critical source of support for biomedical research. This abrupt shift in policy would significantly slow or halt discovery in critical areas such as cancer, Alzheimer’s, infectious diseases, and pediatric health, eliminating roughly $194 million in annual research funding from NIH at Duke alone.”
Active Grants Uncw by Ben Schachtman on Scribd
