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University of Tennessee Faces Major $37.7 Million Funding Cuts

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Aerial view of University of Tennessee campus with students.

News Summary

The University of Tennessee System is grappling with a severe financial blow as $37.7 million in federal grant funding is terminated by the Trump administration. This decision impacts 42 grants across the university system, mainly affecting the UT Institute of Agriculture. Despite unspent funds still available, the cuts could jeopardize various initiatives and programs. University officials are working on transitioning affected personnel and evaluating the broader implications for the community, including potential effects on local organizations and services.

KNOXVILLE, TN – The University of Tennessee System is facing a significant financial setback as the Trump administration has terminated around $37.7 million in federal grant funding. This decision has affected 42 grants across the university system, reducing the overall funding it initially received, which totaled more than $59 million.

The majority of these cuts came from the UT Institute of Agriculture, which lost eight grants worth $31.2 million. At this point, there is still $31.2 million in unspent funds from the terminated grants. The UT-Knoxville campus reported the highest number of terminated grants, totaling 25 grants valued at $7.1 million. From this total, $2.1 million remains unspent as well.

In addition to these cuts, the UT Health Science Center and UT Chattanooga each faced the loss of four grants, resulting in $2.6 million and $1.4 million being withdrawn, respectively. Both centers are left with unspent amounts matching their total losses. Furthermore, a single grant for the UT Institute of Public Service was terminated, which totaled $698,802, with $419,107 still unspent.

As of April 9, 2025, the university had received a total of 58 federal grants, of which 42 were terminated. Six grants are currently pending, while 10 remain active. The total amount affected by the terminations is $51.4 million.

In response to the funding cuts, university spokesperson Melissa Tindell indicated that efforts are being made to transition students and staff who were supported by the affected projects to alternative funding sources. There are also implications for 23 stop work orders across the system that have been rescinded; however, nine partial stop work orders remain in effect.

Chancellor Donde Plowman highlighted the importance of maintaining focus on the university’s core mission during this period of financial uncertainty. These funding cuts are part of broader federal reductions initiated by the Trump administration that have impacted various agencies, including the United States Agency for International Development (USAID) and the Department of Education.

The scale of these funding cuts could also extend beyond the University of Tennessee, potentially affecting other organizations throughout East Tennessee and associated projects, including AmeriCorps and programs that assist low-income seniors. Among the withdrawn funds, the U.S. Department of Agriculture (USDA) reclaimed the largest amount, totaling $26.9 million from terminated grants. Additionally, the university’s Agricultural Leaders of Tomorrow program, which had received funding from USAID for five years, has also been halted.

As the university proceeds with a comprehensive assessment of the impacts caused by these funding cuts, it is evaluating its next steps and the best course of action for affected programs and personnel. The substantial loss in federal grant funding poses serious implications for the university’s initiatives and the broader community it serves.

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