At the start of 2025, the Trump administration pursued efforts to reduce federal spending, creating significant uncertainty for universities, including UW–Madison, that depend on federal research grants. These actions included proposed reductions to research agency budgets, pauses and reviews of some grant programs, and changes to funding priorities, which contributed to delays, grant terminations, and slower award activity across higher education.
For UW–Madison, this created increased financial uncertainty and the loss or suspension of some research funding, particularly in areas supported by major federal agencies such as the National Institutes of Health (NIH) and the National Science Foundation (NSF). However, congressional action, court challenges, and the reinstatement of some grants helped moderate the overall impact, making the reductions less severe than initially feared.
Where do things stand now with federal funding for the UW?
Navigating the federal research funding landscape remains a significant challenge for UW–Madison. The university reported a 17 percent decline in federal research funding and a 30 percent decline in new awards in 2025, driven by grant terminations, stop-work orders, and slower federal agency activity. In reaction to the funding cuts, UW–Madison instituted campuswide budget cuts and graduate student acceptance offers were adjusted.
The reduced grant activity and shifting priorities of the NIH and NSF could affect biomedical, health, and basic science research. Even so, continued congressional support for federal research investments and UW–Madison’s strong research infrastructure positions the university to remain competitive for future funding opportunities.
