This post was originally published on April 12, 2025 by Grants Works for its Federal Grant Insights newsletter on LinkedIn.
Why Do Universities Receive Federal Grants?
Universities, particularly top research universities such as Columbia, Johns Hopkins University, University of Pittsburgh, UCLA, and many others receive federal and non-federal grants to fund medical and scientific research and non-research projects.
Those grants are typically awarded to the university or to one or more of the university’s nonprofit subsidiaries—such as a research corporation. Grants may also be awarded to a university’s medical center or other health facility.
The grants may fund expenses such as a percentage of a principal investigator’s salary and fringe benefits, a percentage of any co-investigators’ personnel costs, and other expenses such as graduate students’ stipends and tuition waivers, and facilities and administrative (F&A) expenses.
The Cancellation of $400 Million in Grants and Contracts to Columbia University
On March 7, 2025, Columbia University received a letter from four federal agencies noting that they were cancelling $400 million in federal grants and contracts because of the university’s “continued inaction in the face of persistent harassment of Jewish students.”
A press release from the U.S. Department of Education noted that Columbia U has more than $5 billion in federal grant commitments—and that a federal Joint Task Force to Combat Anti-Semitism would conduct a “comprehensive review of the university’s federal contracts and grants in light of ongoing investigations under Title VI of the Civil Rights Act.
The press release also noted that universities must comply with all federal anti-discrimination laws if they are to receive federal funding.
The university was asked to complete and document compliance within one week with requirements that included:
- Enforce existing disciplinary policies with the feds noting that “meaningful discipline means expulsion or multi-year suspension.”
- Abolish the University Judicial Board and centralize all disciplinary processed under Columbia’s Office of the President—empowering the Office to suspend or expel students.
- Ban all masks intended to conceal identify with exceptions for religious or health reasons.
- Create a plan to hold all student groups accountable.
- Establish a formal definition of antisemitism, and
- Put its Middle East, South Asian, and African Studies (MESAAS) department under academic receivership for a minimum of five years.
Columbia conceded, met the deadline, and as described in a March 21, 2025 New York Times article, it was a “remarkable concession to the Trump administration that stunned and dismayed many members of the faculty.”
Columbia University was also required to put its Middle East, South Asian, and African Studies (MESASA) department under academic receivership for a minimum of five years.
Harvard, UPenn, Brown and Other Universities’ Funding Paused
Other universities that face “inquiries” include Cornell, Harvard, Boise State, Towson, Cal State, Stanford, University of Michigan, University of Pennsylvania, MIT and over 40 others. Examples of the reasons why federal funding has been paused for universities include:
- University of Pennsylvania was informed that $175 million in federal funding would be canceled because it allowed a transgender woman to participate on a women’s swim team.
- On March 31st, Reuters reported that $9 billion in federal contracts and grants awarded to Harvard were under review, specifically $255.6 million in contracts, and $8.7 billion in multi-year grants.
- Brown University – $510 million in federal funding have been or have been threatened to be halted because of the “relentless antisemitism on campus.”
- Princeton University – $210 million in federal funding would be suspended as part of an ongoing investigation into claims of antisemitic harassment on campus.
- $1 billion in federal funding to Cornell University is reportedly under review due to allegations of antisemitism and accusations of racial discrimination stemming from their efforts to promote diversity. The university confirmed it received more than 75 stop-work orders from the Defense Department.
University Layoffs and Hiring Freezes Increase
According to US New and World Report, higher education has been a “steady job generator since the pandemic, with private colleges and universities adding 35,000 jobs nationwide in 2024 alone.”
However, there has been a recent increase in universities announcing layoffs or hiring freezes due to funding cuts from USAID, NIH and other federal awarding agencies as well the overall uncertainty of federal grant funding.
On March 14, 2025, Johns Hopkins University announced layoffs of over 2,200 employees and a hiring freeze due a loss of federal funding from USAID. Hiring freezes have also been announced by Emory University, MIT, University of Pittsburgh, University of Vermont, University of Dayton, Oklahoma State, and Utah State.
How to learn more
For additional details about the federal funding cut threats lobbed against universities and a summary of the threats, investigations, and frozen federal funding endured by multiple institutions in the state of Maine, watch Federal Grants Explained, a nonpartisan podcast that connects federal grant policy with the impact on federal grantees and grant-funded projects.
With the increase of federal investigations, it goes without saying that complying with the federal grant terms and conditions should continue to be a top priority for federal grantees.
Grants Works is a federal grant consulting and training firm based in Atlanta, GA. We are federal grant administrators, grant accountants, and grant writers who have obtained or managed over $300 million in federal grants from 20+ federal agencies as a recipient, subrecipient, and pass-through entity.
We are experienced federal grant specialists who have supported our nonprofit, university, for profit, and local government clients as they find, obtain, manage, and comply with federal and other government grants.
Federal GrantIQ Training Series is a three-module, self-paced training program designed to help grant professionals, accountants and other finance professionals, fundraisers, and consultants understand the fundamentals of federal grants, stay compliant, and protect funding. The program is certified by NASBA, CFRE, and GPCI.
