March 13, 2025

We understand that the recent developments regarding NIH funding for Facilities & Administrative (F&A) costs and other executive orders have caused concern and uncertainty within our community. As President Price and our Duke University leadership shared today, we want to assure you that we remain committed to navigating these challenges together, guided by our core values and missions. 

Please watch this video for more context and an outline of our response. It is important to note that even without implementation of the proposed decrease in F&A rates to academic institutions, our projected F&A revenues are significantly below budget and will be further impacted by the substantial delays in NIH award decisions we are currently experiencing. NIH award activity was down in January and February compared to last year. Therefore, the School of Medicine is responding not only to the threats of a reduced NIH F&A rate, but also to the impact of the slower NIH funding we are already experiencing.

Effective immediately, the School of Medicine will implement the following financial and operational changes. The action steps are essential for our ability to operate in our current state and to better position us for the future in case there are other government funding changes. Please note: these actions do not relate to the Duke University Health System or Duke Health Integrated Practice. These immediate adjustments include the following:

• All departmental, center/institute, and administrative units (including central administration for the school, also referred to as the dean’s office of administration) will have a 10% reduction in SOM operating support for FY2026, starting July 1. 
• All staff hiring will be frozen, except for critical positions and those funded by active grants or restricted sources. Requests for exceptions and determinations regarding searches already in progress will be reviewed by a central administration labor management committee and must be approved by the Executive Vice President for Health Affairs.
• All faculty hiring will be reviewed and approved by the Executive Vice President for Health Affairs, allowing only searches that are deemed essential to our missions and highest critical priorities.
• Staff salary mid-year adjustments, including non-merit salary adjustments and position reclassifications that are not already in process, will be frozen.
• The target size of the incoming graduate (PhD) student class for the fall of 2025 has been reduced by 10%.
• Non-personnel expenses above a specified threshold level for expenses such as equipment, contracts/service agreements, and consultants will be reviewed by central administration, similar to the processes we implemented during the COVID pandemic. The school will target a 50% reduction in internally funded non-personnel costs compared to FY2024 for all discretionary funds.
• In partnership with department and unit leaders, updated guidelines regarding travel, meals, and entertainment will be implemented next week (March 17, 2025) to lower these costs by 50%. Research and education mission-essential functions will be prioritized.
• Central administration reserve commitments to departments, centers, and institutes will be deferred by a minimum of 10% for FY2025 and FY2026.
• Capital spending on new buildings, renovations, and other capital projects that are not fully funded or deemed essential will be suspended.
• The SOM will begin a process — expected to take 9-12 months — to identify new locations for the faculty and staff in the Jones Building on Research Drive and to decommission that building.

We will work with your chairs, directors, and chief administrative officers to develop efficient, timely, and transparent processes to implement these changes. We recognize that these actions will not be easy, and we appreciate your understanding and partnership. We remain committed to our core values and missions, and we are also prioritizing our people and the preservation of jobs to the fullest extent possible, while striving for maximum efficiency and encouraging new and innovative ideas in all areas of our organization.

Please rest assured that we are committed to collaborating with our colleagues across campus, North Carolina, and the nation to advocate for more sustainable funding. Duke and all research-intensive institutions are working through both current impact as well as contingency planning exercises for multiple scenarios depending on how decisions about F&As and other executive orders unfold. Our immediate action steps noted above are crucial in the short-term but are far short of the measures required in a reduced F&A scenario or other changes in federal support that could impact our missions. Our institution — joining many others — provided a written statement on the likely damage from a significant rate reduction. Our statement was referenced in court recently by lawyers representing the Association of American Universities in their lawsuit to block the NIH rate change.

Thank you for your continued dedication to advance our missions and produce lifesaving research. We will keep you updated with all critical developments.