Everything you need to know about NIH cuts (+ how they could cause ‘massive layoffs’ in NC)
The Trump administration attempted to cut hundreds of millions of dollars in medical research funding, but a federal judge has temporarily blocked the move after 22 states, including North Carolina, sued to stop the change.
The National Institutes of Health announced Friday that it would limit indirect funding for research projects to 15%, The News & Observer reported, which could lead to nationwide layoffs.
Here’s what to know about this.
What do NIH grants do?
Most NIH grants consist of both “direct” payments for conducting medical studies and “indirect” payments for administrative costs like building maintenance, shared lab staff and legal compliance.
The government and research institutions negotiate indirect rates, which historically added around 27% to award totals, though major institutions have often received 50% or more to support indirect expenses. (For example, UNC-Chapel Hill had negotiated an indirect cost rate of 55%.)
Why is the NIH rate change important?
A universal shift to 15% rates would mean thousands of dollars less per grant — and millions less cumulatively.
North Carolina has received $17.7 billion in funding from the NIH since fiscal year 2015, and nearly three quarters of that money has gone to state universities and colleges, The N&O previously reported.
Duke and UNC-Chapel Hill are the largest beneficiaries of NIH funding in the state, receiving $5.6 billion and $4.9 billion, respectively, since 2015.
There are currently more than 2,600 active grants at universities in the Triangle, including funding for HIV, heart and lung disease in rural areas and the prevention of future pandemics, WUNC reported.
What would NIH funding cuts do in North Carolina?
NIH funding cuts would mean universities would have to find ways to make cutbacks and could result in “massive layoffs” across the Triangle, UNC-Chapel Hill Chancellor Holden Thorp told The N&O.
Duke is the largest employer in Durham County, and UNC is the largest in Orange County.
“Either you cut the people who are administering this and take a huge risk that you’re going to have some massive compliance problem,” Thorp said. “Or you have to cut other programs in the university in order to preserve your ability to take the direct cost of the research grants.”
The funding cuts could also lead to other consequences, such as shutting down clinical trials and closing labs, North Carolina Governor Josh Stein told The N&O in an interview Tuesday.
“For the federal government to unilaterally change the terms of existing contracts has the potential to cost the state hundreds of millions of dollars, which could mean halting clinical trials, disrupting research, closing labs, laying off scientists,” Stein said.
“It could be a real blow to the economy here and to the long-term health and wellbeing of Americans. I mean, there’s cutting edge cancer research being done, vaccine research being done, research that will make a difference in people’s life and wellbeing for decades into the future.”
UNC System President Peter Hans issued a statement Monday detailing how critical the federal funding is for state employees.
“Federal investments in university biomedical research contribute mightily to North Carolina’s economy and quality of life, funding life-saving discoveries and supporting thousands of jobs,” Hans said. “I urge patience while the issue is addressed, and I’m hopeful this will ultimately produce a healthy conversation about the benefits of university research to America’s competitiveness while ensuring accountability to the taxpayers.”
NIH funding lawsuit and pause
On Monday, Feb. 10, North Carolina Attorney General Jeff Jackson joined 21 other Democratic attorneys general to sue the Trump administration and the NIH for what they called an “unlawful” funding cut.
“Effectively halting research to cure and treat human disease will directly impact the well-being of the Plaintiff states’ citizens, who are the beneficiaries of research creating treatments, such as modern gene editing, vaccines such as flu vaccines, and cures for diseases like cancer, infectious diseases, and addiction,” the lawsuit stated.
A federal judge ordered a temporary restraining order against the funding cut for the 22 states involved in the lawsuit, Stat News reported. The same judge issued a nationwide temporary pause on NIH plans to slash funding late Monday, Feb. 10 night in response to another lawsuit.
The pause is expected to remain in place until the court decides to reverse it, meaning the funding cuts aren’t in place yet.
A hearing has been set for Friday, Feb. 21 for both cases.
Why did Trump propose NIH funding cuts?
“Contrary to the hysteria, redirecting billions of allocated NIH spending away from administrative bloat means there will be more money and resources available for legitimate scientific research, not less,” White House spokesperson Kush Desai told Fox News.
Opponents argue this move is in violation of the law and will cause “irreparable damage.”
“The Trump Administration is attempting to steal critical funds promised to scientific research institutions funded by the NIH, despite an explicit legal prohibition against this action,” said Rosa DeLauro, ranking Member of the House Appropriations Committee (which oversees federal discretionary spending), in a press release.
“They are causing irreparable damage to ongoing research to develop cures and treatments for cancer ... and other diseases and conditions affecting American families.”
Which NC organizations get NIH funding?
Though universities get a majority of North Carolina’s NIH funding, there are many places that get grants from the government.
Since 2024, Research Triangle Institute, which employs 6,000 staff in 90 countries, has received the third-most funding from the NIH of any North Carolina entity, getting nearly $397 million.
PPD Development LP, a pharmaceutical contract research organization based in Wilmington, and Rho Federal Systems Division, a pharmaceutical company based in Durham, have also received $56 million and $30 million, respectively, in federal funding from the NIH since 2024.
Here’s a list of North Carolina organizations that received NIH funding in 2024 and 2025:
- 21MedTech LLC
- 3-C Institute for Social Development
- Adamas nanotechnologies, Inc.
- Aegiscn, LLC
- Affinergy, LLC
- Aimmax Therapeutics, Inc.
- Allucent Government Services (US) LLC
- Altis Biosystems, Inc.
- Amalgent Therapeutics, Inc.
- Amissa, Inc.
- Anelleo, Inc.
- Appalachian State University
- Ascent Bio-Nano Technologies, Inc.
- Attagene, Inc.
- Baebies, Inc.
- Bedrock Therapeutics, Inc.
- Bioaesthetics Corporation
- Biokier, Inc.
- Biomedinnovations, Inc.
- Calla Health Foundation
- Carolinas Medical Center
- Cell Microsystems, Inc.
- Civatech Oncology, Inc.
- Collaborations Pharmaceuticals, Inc.
- Couplet Care, LLC
- Cytex Therapeutics Inc.
- Davidson College
- Deep Creek Pharma, LLC
- Digital Health Navigation Solutions, LLC
- Dignify Therapeutics, LLC
- Dnali Data Technologies, Inc.
- Duke University
- East Carolina University
- Eclipse Life Sciences, Inc.
- Enfuego Therapeutics Inc.
- Epicypher, Inc.
- Equiti Foods, LLC
- Eydis Bio, Inc.
- Family Health International
- Fayetteville State University
- Focal Medical, Inc.
- Foresightcares Inc.
- Gateway Bio, Inc.
- Geneventiv Therapeutics, Inc.
- Glycan Therapeutics Corporation
- Gradient Health Inc
- Gramercy Research Group, LLC
- Health Decisions Inc
- Helixomer, Inc.
- High Point University
- Inhalon Biopharma, Inc.
- Innovation Research And Training, Inc.
- Insoma Bio, Inc.
- Integrated Laboratory Systems, LLC
- International Cannabinoid Res Society
- International Mammalian Genome Society
- Laderx LLC
- Lamassu Bio Inc
- Lamassu Pharma Inc.
- Leading Edge Pharmtox, LLC
- Lumbee Land Development, Inc.
- Metabolon, Inc.
- Mucommune, LLC
- Nanodiagnostic Technology, LLC
- NC State Department of Health & Human Services
- Neurogt, Inc.
- North Carolina Agri & Tech St Univ
- North Carolina Central University
- North Carolina State University Raleigh
- Oncurie Inc.
- One Cow Standing, LLC
- Opus Genetics Inc.
- Parion Sciences, Inc.
- Phase, Inc.
- Plakous Therapeutics, Inc.
- PPD Development LP
- Predictive, LLC
- Prevention Strategies, LLC
- Pulvinar Neuro LLC
- Qatch Technologies, LLC
- Quadridox, Inc.
- Ramona Optics, Inc.
- Reactive Biosciences Inc.
- Redbud Labs, Inc.
- Research Triangle Institute
- Rho Federal Systems Division, Inc.
- Sciome, LLC
- Scion Neurostim, Llc
- Scitovation, Llc
- Sorbenta Inc
- Southeast Clinical Oncol Res Consortium
- T3D Therapeutics, Inc.
- Theia Imaging LLC
- Transchromix, LLC
- Triangle Biotechnology, Inc.
- Tripill Biotechnology, Corp.
- University Of North Carolina At Chapel Hill
- University Of North Carolina At Pembroke
- University Of North Carolina Charlotte
- University Of North Carolina Greensboro
- University Of North Carolina Wilmington
- Vindhya Data Science Inc.
- Vortant Technologies, LLC
- Wake Forest University
- Wake Forest University Health Sciences
- Winston-salem State University
- Xilis, Inc.
- Adamas Nanotechnologies, Inc.
- Baebies, Inc.
- Data Driven Bioscience Inc
- Duke University
- East Carolina University
- Family Health International
- International Mammalian Genome Society
- mHealth Systems, Inc
- Mucommune, LLC
- North Carolina Central University
- North Carolina State University Raleigh
- Ramona Optics, Inc.
- Research Triangle Institute
- University Of North Carolina At Chapel Hill
- University Of North Carolina Charlotte
- University Of North Carolina Greensboro
- Vast Therapeutics, Inc.
- Wake Forest University Health Sciences
Reporting by The News & Observer’s Brian Gordon and David Raynor contributed to this story.
This story was originally published February 11, 2025 at 4:58 PM.
