Potential changes to how the National Institutes of Health funds medical research could sap hundreds of millions of dollars from the Triangle's economy, prompting widespread concern from leaders in the area.

• But so far, the changes have been stopped by a U.S. District Court judge after 22 states — including North Carolina — sued.

Why it matters: Last Friday, the NIH issued a memo that said the agency would begin capping how much it grants for "indirect costs" at 15%, down from an average of 28%, as part of an effort to cut government spending, CBS News reported.

• A cut that deep could lead to significant funding reductions for some of the region's largest employers, like UNC-Chapel Hill and Duke University.

Zoom in: Indirect costs — which come in addition to the direct payments for research — include expenses like paying for facility maintenance, administration costs and shared lab staffing.

• UNC's negotiated indirect cost rate was 55% for example, and both UNC ($531 million in 2024), Duke ($580 million) and RTI International ($397 million) receive hundreds of millions of dollars in NIH funding every year.

Driving the news: The temporary restraining order on the changes initially only applied to research institutions in states that joined the lawsuit, which included the top five states for NIH funding: Massachusetts, California, New York, Maryland and North Carolina. It was expanded to include the rest of the country Tuesday, per The New York Times.

• "This attempt to slash funding for research awards that have already been granted violates the law and would cost North Carolina's public universities hundreds of millions of dollars every year going forward," N.C. Attorney General Jeff Jackson said in a statement.
• The win comes as a bill filed in the N.C. General Assembly last week would bar Jackson from challenging any executive orders from the President, WRAL reported.

What they're saying: Holden Thorp, a former chancellor at UNC-Chapel Hill, told The News & Observer the funding cut would cause "massive layoffs across the Triangle if this (rule) holds."

The other side: The U.S. should have the best medical research in the world, the NIH said in a memo. It is therefore "vital to ensure that as many funds as possible go towards direct scientific research costs" rather than administrative overhead costs, the memo continued.

What's next: A court hearing on the NIH's potential cuts is set for Feb. 21.

Keep reading for more on what other higher education officials are saying about the potential cuts

Over two-thirds of U.S. metros ended 2024 with higher unemployment compared to a year prior, per recent Labor Department data.

Why it matters: The big national unemployment picture is one thing. The hiring climate in specific cities is sometimes another.

Driving the news: The unemployment rate was higher in December 2024 compared to December 2023 in 266 of 389 metro areas, according to the latest U.S. Bureau of Labor Statistics data.

• Put another way, nearly 70% of metros ended 2024 with higher unemployment compared to how they began the year.
• Unemployment dropped in 95 metros and held steady in 28 others.

Zoom in: With a 2.6% increase, Asheville had the second largest jump in unemployment, in part driven by Hurricane Helene.

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🔍 Plan ahead with these events.

Luxury Outdoor Warehouse Liquidation Sale at VIRIDIEN Patio + Fireplace now through Feb 16: $10M in Luxury Outdoor Furniture and everything must go. Clearing showrooms for new 2025 collections. Shop early for the best deals. First come, first served.

Hosting an event? Email [email protected].

💸 Biomilq, a Bill Gates-backed startup in Research Triangle Park trying to create lab-made breast milk, has filed for bankruptcy. (Triangle Business Journal 🔒)

🗳️Gov. Josh Stein is suing N.C. House Speaker Destin Hall and Senate Leader Phil Berger over laws that stripped powers from the office of governor. (Associated Press)

Speaker Hall introduced legislation that would give the State Treasurer the ability to invest state funds in cryptocurrency. (WRAL)

🚑 Roland Bragg — whom Fort Bragg in Fayetteville is now named after — received honors from the Army for once stealing a Nazi ambulance in battle to transport four U.S. soldiers to an allied hospital. (News & Observer 🔒)

🏀 The owners of the Charlotte Hornets are trying to help bring the WNBA back to Charlotte. (Axios)

Instead of an NHL All-Star Game, top stars from four nations will face off for a midseason international tournament starting today in Boston and Montreal.

Why it matters: The 4 Nations Face-Off is meant to herald the NHL's return to the Winter Olympics — but, indirectly, the tournament is also a natural experiment with a potential solution to other leagues' All-Star Game problem.

• Across North American pro sports, fans have never cared less about All-Star contests, and many top athletes don't extend themselves due to injury concerns.

State of play: Teams from the U.S., Canada, Finland and Sweden are treating the tournament as a warm-up for Milano Cortina 2026, the first Winter Olympics since 2014 in which NHL players will compete.

• All four teams will play three games. The two teams with the best records will then play a one-game final at Boston's TD Garden on Feb. 20.

Zoom in: The Carolina Hurricanes' Sebastian Aho and Mikko Rantanen will both represent Finland.

• Jaccob Slavin will be on the U.S. roster, and Seth Jarvis will represent Canada.

What they're saying: The 4 Nations Face-Off is "not even comparable" with All-Star Games, Team USA alternate captain Charlie McAvoy told Boston TV station WCVB.

• "Those are just skills competitions. This is the real deal," McAvoy said.

Keep reading