Students, faculty and staff:

News out of Washington D.C. – including legal decisions about federal actions and announcements related to the Department of Education – continues to reshape the higher education landscape in ways that could have important implications for the University of Michigan.

As a public institution that works in partnership with the federal government to conduct research that serves the nation, we have a profound responsibility to American taxpayers to ensure we are efficient in our use of federal dollars. With this in mind, I’ve asked my team to conduct a careful analysis to ensure we are providing the maximum return on investment for the state of Michigan and the nation. 

Last week I was in Washington D.C., working with others to underscore the impact our university has on the world. I’ve been in near constant communication with the Association of American Universities, the American Council on Education, the Association of Public and Land-grant Universities and colleagues at other institutions.

This week, a federal judge temporarily blocked the National Institutes of Health (NIH) from making deep cuts to research funding at universities and hospitals, after a lawsuit co-led by Michigan Attorney General Dana Nessel argued the move would devastate studies of cancer, Alzheimer’s, heart disease and other serious health conditions. 

When it comes to NIH funding, the University of Michigan is ranked third in the nation and received $734 million in the last fiscal year alone. This funding supports the research and development of new technologies that, for example, extend the life of organs waiting for transplant, advance treatments for cerebral palsy and sustain experimental genetic trials for children with brain cancer at C.S. Mott Children’s Hospital.

NIH funding covers both direct costs of research and indirect costs, which include things like salaries and equipment, heat and electricity, computer servers and more. The university’s agreement with NIH sets our indirect cost reimbursement rate at 56%. Cutting that to 15%, as the NIH sought to do, would eliminate approximately $181 million in funding annually at the university and create a significant budget shortfall.

This funding is critical, as our research efforts don’t just save lives, they help to fuel the state and national economy. Last year alone, the university generated an extraordinary 615 new invention reports. And we are speeding our ideas from the lab to the marketplace, driving the launch of 28 new startups this past fiscal year.

We must not lose focus.

At this pivotal moment, the University of Michigan can redefine the value of higher education, impactful research and lifesaving clinical care. I urge you all to train your attention on this important work. As we have done throughout our long history, we must keep exploring new ideas, reaching for the next discovery and testing our own limits.

We live in an extraordinary time, where so much remains possible.

I will continue to work with all of you to highlight our shared mission – to educate learners, advance society and find solutions to the greatest challenges facing humanity.

Sincerely, 

Santa J. Ono
President