Duke Faces Major Funding Shortfalls Amid NIH Controversies

DURHAM, N.C. — Duke University is grappling with significant financial losses this year, having lost hundreds of millions in federal research funding due to ongoing conflicts between the courts and the Trump administration over National Institutes of Health (NIH) policies.

Duke typically receives around $1.2 billion in research grants annually, with approximately $580 million of that coming from the NIH. However, the School of Medicine reported a 20% decrease in NIH awards this fiscal year, with only 832 acknowledgments as of March 2025.

Mary Klotman, executive vice president for health affairs and dean of the School of Medicine, expressed concern during a June 26 address. She stated, “Most of the time, that’s a point of pride, a marker of success, but it’s also a point of challenge when that fundamental model is changing.”

The first quarter of 2025 saw Duke averaging $18 million less in federal awards monthly compared to the same months in 2024, with May’s funding dropping to about $43 million.

Geeta Swamy, executive vice dean for clinical sciences and research administration, highlighted the impact of increased grant terminations and delays in funding approvals. “Some of those delays are due to changes in priorities of the current administration, but some are also due to staffing reductions in the federal government,” she noted during a webinar.

Compounding the issue, Duke was caught in a wave of confusion at the start of the year as the Trump administration ordered federal agencies to reassess their funding allocations. This led to frozen grants until a review of priorities was completed. Although federal judges halted the freeze, the process caused significant disruptions, including delayed grant reviews and halted funding opportunities.

By June 26, 28 NIH grants awarded to Duke had been canceled, amounting to approximately $96.4 million in undisbursed funds. The NIH has since been instructed not to cancel further research opportunities, but overall funding levels remain low, with proposed cuts to the NIH budget looming.

Among the canceled grants, many were related to diversity, equity, and inclusion initiatives. The most notable cancellation involved the ACTIV-6 grant, originally budgeted for over $170 million to evaluate COVID-19 treatments, which was later reinstated after legal intervention.

It was reported that 15 of the canceled grants had keywords linked to DEI topics. Some research projects unrelated to DEI but containing similar language were also flagged for termination.

Swamy warned that the School of Medicine is heavily reliant on federal funding, referring to it as having many “eggs in one basket.” In response to the decline in funding, the school plans to cut discretionary spending by about 20% and has reduced its Ph.D. program’s target class size.

This financial crisis has led to staffing reductions, as illustrated by the story of a former research associate named Meghan, who was laid off due to budget pressures and faced difficulties finding new opportunities amid a hiring freeze.

To address these funding challenges, the School is expanding its bridge funding program to include philanthropic donations and is seeking industry partnerships to diversify its research portfolio. These initiatives aim to maintain research momentum despite the ongoing financial strain.

While Duke Health has not disclosed updates on these measures, the impacts of the funding crisis continue to resonate across campus.