Republican lawmakers file bill to strip NCInnovation's funding

Axios

20-02-2025

More than a dozen Republicans are backing a bill that would strip funding from NCInnovation, an organization that has received $500 million from the state to invest in research at the state's universities.
Why it matters: The GOP-majority General Assembly approved NCInnovation 's funding in 2023, but since then some Republican lawmakers and groups have become disillusioned with how the organization operates and uses state funds.
Art Pope, a prominent Republican donor who sits on NCInnovation's board, has been one of the loudest critics. He's called for an audit of its financials and disagrees with how much say the board has on NCInnovation's grant funds.
Driving the new: House Bill 154, introduced by Rowan County Republican Harry Warren, seeks to dissolve the relationship between the state and NCInnovation. It would require the organization to return its money to the state's general fund.
The John Locke Foundation, a think tank co-founded by Pope, applauded the bill, saying venture capital is not one of the "core government services" and the state is facing other needs, like recovery funding for Hurricane Helene.
Between the lines: Meanwhile, the federal government also is rethinking how much it spends on scientific research. That means state-supported organizations such as NCInnovation and the N.C. Biotechnology Center could help fill in some gaps.
Catch up quick: When NC Innovation was born, lawmakers argued that research at the state's public universities needed more funding to make it through the so-called " valley of death" — the early stage when successful research struggles to attract enough funding to reach commercial applications.
This was especially true, the organization said, for universities with fewer resources than the state's most prominent research institutions, UNC and N.C. State.
In its first year with state funding, the nonprofit set up hubs at seven universities across the state: Appalachian State, Fayetteville State, UNC-Wilmington, UNC Charlotte, East Carolina, N.C. A&T and Western Carolina.
It also invested around $5 million into eight research projects, including lithium refining at UNC-Greensboro, drinking water purification at UNC Charlotte and neuro drug delivery research at A&T.
What they're saying: "If and how policymakers wish for NCInnovation to support North Carolina's world class applied research is and always has been entirely up to policymakers," NCInnovation said in a statement in response to the bill.
The organization noted that its first full grant cycle has attracted more than 150 funding requests from researchers within the UNC System, asking for $90 million.
"NCInnovation will of course continue its work on its core mission as mandated by state lawmakers in the 2023-25 budget, and the organization remains committed to working with the General Assembly," the organization added in its statement.