TSU expects to lose $14M in grant funds due to federal spending cuts
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Tennessee State University could lose at least $14.4 million in grant funding due to the Trump administration's aggressive spending cuts, university leaders told board members this week.
Why it matters: Losing grant funding would further complicate TSU's efforts to recover from a crushing financial crisis.
The big picture: Unexpected grant freezes and cuts have put universities around the country on edge. Decisions on millions in previously allocated grant funds have been in flux for weeks. It is still unclear which grants may survive.
- Court battles challenging some proposed cuts are ongoing, further underscoring the uncertainty.
- Many universities have instituted hiring freezes until the scope of the changes is clear.
Zoom in: The confusing back-and-forth nature of the federal cuts has created an unpredictable obstacle course for TSU leaders. The historically Black university is trying to reestablish financial stability after a funding shortfall last year put it on the brink of insolvency.
Catch up quick: In February, 70 TSU grants from the USDA totaling $45 million were suspended, financial consultant Jim Grady told the university board's finance committee during a regularly scheduled meeting on Wednesday. As of March 3, about half of that total had been restored.
- This week, Grady said, TSU learned that a grant with $14.4 million in unspent funds would not be revived.
State of play: University leaders are meeting daily to game out scenarios. As much as $115 million in federal grant funding at TSU could be in jeopardy if cuts or spending freezes continue, Grady said.
By the numbers: TSU uses federal grants to cover full salaries for 62 employees. Another 112 employees get more than half of their pay via grants.
- Some graduate and undergraduate students are likely to feel blowback as the cuts trickle down.
What they're saying: "This is going to impact our people," Grady said.
- Leaders told board members they were trying to identify other pockets of funding that could make up for chopped grant dollars.
What's next: The full TSU board will have its quarterly meeting Friday morning.
