Case Western Reserve University research
Credit: Case Western Reserve University

Cleveland’s Case Western Reserve and research universities like it rely on federal funding to work on cures and solutions to everything from cancer to climate change. 

That research has been threatened by recent federal cuts, including $400 million the U.S. Department of Energy is axing from its grant funding program. The DOE cuts – announced this week – mean the university could stand to immediately lose $4 million.

“When I heard the news, I thought, ‘Oh no, this is going to be bad, too,’” said J. Michael Oakes, senior vice president for research at Case Western Reserve.

The cuts to federal grants, including those by the Department of Energy, have forced Case Western Reserve to impose a hiring freeze. University officials haven’t ruled out layoffs. Oakes said Case Western Reserve also planned to use “a sliver” of this funding for the new $300 million science and engineering building being constructed.  

The way the Department of Energy plans to actually cut those millions is by reducing the amount of money universities receive to cover a project’s overhead costs, including supplies, utilities and support staff. 

Universities have been able to negotiate how much federal money they receive to cover those extra costs. Case Western Reserve’s rate is 61%, which officials said translates to about 30% of a research grant’s total budget.

Now, the DOE wants to standardize rates to 15% for all institutions. Case Western Reserve said this will be about 7% of a grant’s total budget.

The change will “improve efficiency, reduce costs and ensure proper stewardship of American taxpayer dollars,” DOE officials wrote in a news release. 

“The purpose of Department of Energy funding to colleges and universities is to support scientific research – not foot the bill for administrative costs and facility upgrades,” Energy Secretary Chris Wright said.

This DOE announcement mirrors one made by the National Institutes of Health earlier this year. Both decisions are paused as they face court challenges.   

Case Western Reserve’s Department of Energy portfolio is science-heavy 

Research is a cornerstone at Case Western Reserve. It’s one of the most active research institutions in the country. In Ohio, only Ohio State has more federally supported projects. 

The majority of Case Western Reserve’s current research portfolio is supported by the NIH. Oakes estimates only about 15% of the university’s projects are funded by the DOE, but those projects are some of the university’s most science-driven. An online federal database lists seven current projects.

The titles are complex: Theoretical and Experimental Research at the Frontiers. The Future of Low-Energy Neutrinos: Project 8 and a pipeline to new neutrino discoveries. A rapid membrane-based approach for medical isotope purification.

Tucked behind those wonky words are important developments, according to Oakes. One of the projects is contributing to a cleaner way to make steel. Another is linked to how artificial intelligence can be used in science. 

“We’d hate to say we can’t afford to do that work, which of course we think is in the national interest to support,” said Oakes. 

Research universities face uncertainty 

There are only a few ways Case Western Reserve could replace that money, said Oakes. Officials could charge students more in tuition or get new philanthropic support. The university does have a $2.1 billion endowment, though that money carries some restrictions on how it can be spent. 

Oakes said he’s worried for both current and future scientists as well as the immediate and ongoing impacts institutions themselves face.  

He said he actually thinks some of the administration’s proposals are “healthy.” He maintains he’s happy “to change and grow and do all the things that any organization should do.” Plus, he said universities could do a better job explaining the benefits of the research they conduct to the general public. 

Yet there seems to be a limit to that optimism. 

“The massive uncertainty makes it difficult for scientists, and universities, and others, to plan for the future,” he said.

This story was updated to further clarify the rate the university receives and potential sources to make up funding losses.

Higher Education Reporter
I look at who is getting to and through Ohio's colleges, along with what challenges and supports they encounter along the way. How that happens -- and how universities wield their power during that process -- impacts all Ohio residents as well as our collective future. I am a first-generation college graduate reporting for Signal in partnership with the national nonprofit news organization Open Campus.