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The Future of Commerce Podcast

U.S. scientific research funding: How tech can help higher education weather cutbacks

19 min • 21 april 2025

Federal research funding is facing a reckoning. With the Department of Defense slashing R&D investments and the National Institutes of Health capping indirect cost reimbursements at a flat 15%, universities are under financial strain—and the ripple effects are just beginning.

In this episode inspired by the article titled - U.S. scientific research funding: How tech can help higher education weather cutbacks, we examine the current state of U.S. scientific research funding, unpack the impact of recent policy shifts, and explore how higher education institutions can adapt. From ERPs to AI-driven grant forecasting, this conversation offers insight into the tools and strategies helping research programs survive—and even thrive—in a more constrained funding landscape.

Whether you’re a research leader, university administrator, or science policy observer, this episode will help you understand how the future of U.S. research may be shaped not just by budget decisions, but by the smart deployment of technology.

What You’ll Learn in This Episode:

💸 Major Shifts in U.S. Research Funding

  • DOD cuts to basic and applied research—why congressional earmarks matter
  • NIH's 15% indirect cost cap—and how it affects university budgets
  • Elimination of social science and DEI-related grants under new DOD priorities

🧪 Higher Education’s Response to Financial Pressure

  • Lawsuits, hiring freezes, rescinded grad student offers
  • Increased reliance on non-federal funding sources
  • Pressure to justify and optimize every research dollar

🧠 How Technology Offers a Path Forward

  • ERP and grants management systems: tools to track spending, manage compliance
  • Advanced analytics for scenario planning and budget forecasting
  • AI-powered tools for identifying funding opportunities, streamlining proposals, and predicting research outcomes

🔍 The Strategic Role of AI in Research Management

  • Pre-award: finding funder matches, suggesting collaborations, tailoring proposals
  • Post-award: monitoring compliance, forecasting budgets, identifying risk areas
  • Leadership-level insight: understanding institutional research health and reallocating resources effectively

Key Takeaways:

  • Budget cuts from DOD and NIH are forcing universities to rethink how they manage research.
  • Indirect cost reimbursement changes could reshape institutional planning and hiring.
  • AI, analytics, and ERP tools are no longer optional—they’re essential for research survival and growth.
  • Strategic tech investments can help institutions weather cuts while safeguarding innovation and discovery.

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