Area Research, Health Organizations Sweat and Fret Over Looming NIH Funding Cuts
Kansas City Business Journal | Grace Mayer
On Thursday, another visible sign of federal changes creeping into the region emerged: The National Institutes of Health canceled funds for four programs at the University of Kansas, a local outlet reported.
It has been weeks since an order from the Trump administration threatened to cut funding from the NIH to research institutions and universities. In the latest development, 16 states (not including Kansas or Missouri) sued the administration Friday to restore funds. A federal judge issued a permanent block to the order on Friday.
The order, announced in February, spotlighted millions of dollars at risk for metro-area universities and health care and research organizations. In the meantime, an atmosphere of terror has reverberated through the institutions as local leaders weigh uncertainty about what’s ahead and fear of speaking out.
How this is transpiring in the metro isn’t clear yet. The Kansas City Business Journal contacted more than a dozen local life sciences, research and health care companies, organizations and executives for interviews. Six declined to provide comment, two agreed to speak to KCBJ on the condition of remaining anonymous, and the rest did not respond.
BioNexus CEO Dennis Ridenour and his team have spent the past few weeks checking in with research heads at their stakeholder institutions, which include the University of Missouri-Kansas City, KU, Kansas State University, Children’s Mercy Kansas City, University Health and Saint Luke’s Health System, among others listed online. The nonprofit focuses on developing the region as a hub for life sciences, animal and human health, and biologics.
“Certainly, all of our stakeholder institutions are concerned,” Ridenour said. “They're watching. They can point to either grants that have been directly impacted or grants that could be impacted.”
Impacting research
Although Ridenour didn’t provide organization names, several area institutions already received NIH funding this year, including the University of Kansas Medical Center, Children’s Mercy and the Stowers Institute for Medical Research. Their combined funding totals about $9.26 million. The proposed NIH cuts cap indirect costs at 15%, a portion that includes building maintenance, equipment, staff pay and administrative expenses.
Last year, area institutions received more than $28.2 million from NIH. In fiscal year 2024, UMKC, Kansas City University, MRIGlobal and Saint Luke’s Hospital received grants. Those funds already were distributed and can’t be withheld.
However, what’s at stake goes beyond federal dollars. Pauses to clinical trials could put human lives at risk. Local researchers and executives could lose ground on their life’s work. Early career opportunities for young scientists and researchers already have dwindled at some U.S. universities.
“No one else is funding (research) at the levels that the federal government does, and it is an integral part of the innovation ecosystem,” Ridenour said.
UMKC echoed similar sentiments. The university, which received $11.2 million in NIH funds in 2024, also recently became an R1 institution, a national designation given to universities with the highest level of research activity. That status is partly earned by spending at least $50 million on research and is thought to attract more funding.
A UMKC spokesperson said Sumeet Dua, vice chancellor for research, was not available for an interview. However, Dua issued the following written statement:
“The proposed NIH funding cuts introduce uncertainty for research institutions nationwide, including our university. While the full impact is still unclear, we remain steadfast in our commitment to advancing scientific discovery and innovation with support from various agencies, including multiple federal agencies. Our focus remains on conducting groundbreaking research that enhances society’s quality of life and enriches students’ learning experiences, and we will actively explore all possible avenues to support our mission.”
Spokespeople for KU Med, Kansas City University, the Stowers Institute, Saint Luke’s Health System and MRIGlobal declined to comment.
A Children’s Mercy spokesperson said via email that hospital leaders are actively monitoring the situation but declined to provide further comment.
A KU spokesperson did not respond to requests for comment about cuts to grants last week. A March 25 statement from KU Chancellor Douglas Girod said several of the school’s federally funded projects already had been terminated.
Watching and waiting
Nationwide, prominent universities have been targeted by cuts. The NIH terminated $250 million in grants to Columbia University, citing the school’s response to antisemitism on campus. Stanford University implemented a hiring freeze in preparation for cuts. The University of Pennsylvania also enacted a hiring freeze, curbed graduate admissions and recently saw grants cut.
These examples were brought up in conversations between Ridenour and BioNexus’ stakeholders.
“There are universities that are responding. What we have seen in our region is waiting and preparing for if these changes will be in effect long term,” Ridenour said. “It's got everyone thinking about how do we fund this work if there are long-term impacts to funding?”
The ripple effects extend beyond university and academic settings to companies in the metro.
One health care company that has received funding in the past is waiting on an $800,000 grant from the Food and Drug Administration, a local executive told KCBJ. The FDA is part of the Department of Health and Human Services, which last week saw staff laid off and was ordered by the administration to cut spending on contracts by 35%.
The executive asked to remain anonymous, citing fears of retaliation.
“I’m very concerned,” the executive said. “If we don’t get (the funding), it will shut down our clinical study.”
The cost of restarting a trial could be insurmountable for life sciences and health care companies, which already struggle to attract investors and raise money, particularly in the metro area.
A local life sciences company that has won past NIH grants also was applying for funding this year. An executive with the company asked to be anonymous for fear of speaking out.
The disruption in federal funding is exacerbating an already arduous process, the executive said. One NIH application can span more than 20 pages and require two to three resubmissions before securing funds.
That process means grant-seekers can be in a constant cycle of writing, applying and reapplying. Payback for that work can be rare: Early on in the executive’s career, one of seven grants were accepted each year.
Crucial research
BioNexus KC understands the importance of securing federal funds. The organization led the way for the region’s Tech Hubs program application, a part of the CHIPS and Science Act under the Biden administration. The application, which missed out on a first-round bid to secure as much as $75 million in the summer, aims to transform the region into a biologics and vaccine manufacturing hub.
With things ever changing at the federal level, it’s forcing institutions in the metro to evaluate other funding sources they can turn to or create, such as through industry partnerships, Ridenour said.
What’s clear is that research institutions play a key role in developing a region, said Melissa Roberts Chapman, president and regional innovation officer of KC BioHub, a part of BioNexus.
“For a long time in this country, we've seen university research as a part of our industrial policy that leads to economic development,” she said. “University research has a massive economic impact. It advances scientific discovery. It trains a new generation of scientists. For all those reasons, it's critically important.”
