Energy Department announces plan to save $405M from inefficient university research spending
Grants from the Department of Energy will no longer entirely fund university administrative costs in a move projected to save $405 million.
The department will now limit such spending to just 15 percent.
Grants from the U.S. Department of Energy will no longer entirely fund university administrative costs in a move projected to save $405 million.
The department joins the Department of Education, Department of Health and Human Services (HHS), National Institutes of Health (NIH), and National Science Foundation (NSF) as federal agencies that have cut back funding to colleges and universities since President Trump took office.
Until now, the Department of Energy has funded the “indirect costs” of scientific research, which comprise over 30 percent of $2.5 billion in annual grant funding. The department will now limit such spending to 15 percent, which will save an estimated $405 million annually.
“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 in an April 11 press release.
“With President Trump’s leadership, we are ensuring every dollar of taxpayer funding is being used efficiently to support research and innovation — saving millions for the American people,” he continued.
“This action is projected to generate over $405 million in annual cost savings for the American people, delivering on President Trump’s commitment to bring greater transparency and efficiency to federal government spending,” reads the press release.
Since President Trump took office, federal agencies have significantly shifted their focus on awarding university grants—with many of them being cut entirely.
The NIH alone has canceled many university grants, including $12.5 million to the University of Wisconsin–Madison to fund research projects such as “gender identity.”
“Research programs based on gender identity are often unscientific, have little identifiable return on investment, and do nothing to enhance the health of many Americans,” NIH said in a statement.
Additionally, HHS abolished a $350 million grant for researchers at various universities to study “transgender mice” in March.
[RELATED: NIH removes DEI requirements from grant applications]
Under the Biden administration, many federal grants, including over a quarter of NSF grants, funded projects dedicated to Diversity, Equity and Inclusion (DEI).
Sen. Ted Cruz (R-TX) released a database in February containing over $2 billion in NSF funding for “questionable projects that promoted Diversity, Equity, and Inclusion (DEI) or advanced neo-Marxist class warfare propaganda.”
Campus Reform has contacted the Department of Energy for comment. This article will be updated accordingly.
