Universities have joined forces to lobby Congress and push for a last-minute deal that would prevent federal spending cuts to research and financial aid.
As part of a 2011 agreement to raise the federal debt limit, Congress passed the Budget Control Act, which mandated that if deficits were not cut by $1.2 trillion, spending cuts equal to that amount would be enacted the next fiscal year.
Lawmakers postponed the cuts, known as sequestration, in a compromise reached at the beginning of the year that also raised taxes on top earners. The cuts are now scheduled to take effect Friday.
The uncertainty has left universities, including the UNC system, in limbo as they brace for the potential cuts.
A study conducted by the system found that sequestration would cause a reduction of almost $48 million in funding for research and aid.
Jeffrey Lieberson, spokesman for the Association of Public and Land-Grant Universities, said sequestration would cut about $10 billion from university research.
“This is just a bad way to go about this,” Lieberson said. “It would worsen our fiscal situation and create more problems.”
Lieberson said cuts to research funding would also make the economy less competitive.
“What makes this extra problematic is that the U.S. would be cutting investments while other countries such as China are increasing their research funding,” he said.