Universities seek contingency plans amid US funding cuts
Univeristy of Cape Town.
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UCT and Stellenbosch University are developing contingency plans to mitigate the severe impact of the Trump administration's cuts to US grant funding, which threaten billions in research support.
According to UCT Acting Deputy Vice-Chancellor for Research and Internationalisation, Professor Jeff Murugan, without intervention, they stand to lose over R437 million in research funding in the next 12 months, and R1.67 billion over the period 2025–2027 if all 'currently contracted, active US federal-funded awards are terminated'.
'On 7 February 2025, the White House issued an Executive Order signalling the termination of aid and assistance to South Africa. As an immediate consequence, grants from the US Agency for International Development (USAID) were discontinued. This abrupt action highlighted the vulnerability of UCT's US federally funded research. UCT currently holds a portfolio of 178 US federal funded awards comprising both direct awards to UCT and subawards from collaborating institutions in the US. Since February, UCT has received stop-work orders for sub-awardee grants funded by the NIH (National Institutes of Health ) which have halted 22 active projects (valued at R172 million). A further 93 multi-year projects have not received annual renewal notices (R265 million)," Murugan said last month.
He said the funding cuts were significant and carried the potential of long-term consequences for researchers, patients and participants, the broader university community, as well as medical research and healthcare across the country.
'UCT's portfolio of US federal grants supports a variety of research projects, providing salaries and project running costs for hundreds of staff as well as stipends for over a hundred postgraduate students and postdoctoral fellows. A large-scale termination of US federal funding would thus have very significant consequences, directly impacting staff, fellows, students and the university's finances.'
According to Murugan, the university was currently working to reduce reliance on US federal funding by identifying and securing alternative sources of support.
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On Monday, UCT spokesperson, Elijah Moholola said: 'UCT is in engagements with the appropriate stakeholders over the US federal funding matter. These engagements are ongoing, and some decisions are pending. In light of these ongoing discussions and pending outcomes, UCT wishes to not discuss the matter further at this time. The university has issued an update on the matter, and will issue further communication as and when there are new developments.'
Stellenbosch University (SU) spokesperson, Martin Viljoen said: 'SU confirms that, like other research-intensive universities in South Africa, it is also affected by the geopolitical funding policy changes. The University is still in the process of finalising its contingency plans towards optimally mitigating the associated risks. As such the University is not in a position to provide further comment at this stage."
The Department of Higher Education and Training did not respond to requests for comment by deadline.
A Working Group is expected to provide the Minister of Science, Technology and Innovation Dr Blade Nzimande with a final report on the implications and impact of the recent withdrawal of funding by the US government from key research and development programmes in South Africa by June 30.
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