Threats of a government shutdown show potential federal impact at UNC

On Dec. 20, Provost Chris Clemens sent a mass email addressing a potential government shutdown. Although the shutdown was avoided, the email raised questions regarding what a federal standstill would mean for the University and the broader impacts of federal decisions on campus.

“It might be easy for people to kind of assume that any potential federal shutdowns would not impact everyday life on campus, but it's not entirely correct,” graduate student Megan Blackwood said.

The federal government last experienced a shutdown in December 2018. In his email, Clemens assured the university community that it is “well prepared” and has been “carefully planning” for the possibility of another shutdown. 

“If there is a short-term shutdown, which we've had in the past, we've been able to float those folks who are being supported on contracts, until we can get back up and running,” Kelly Dockham, the University’s Director of Federal Affairs, said.

Dockham said that as a public university, UNC relies more heavily on federal funding than private institutions. She said that shutdowns rarely impact students' federal aid because that funding is typically administered at the beginning of the semester, and shutdowns typically last only for days at a time, leaving scholarships unaffected. On the other hand, she said that federal contracts, such as funding for research, would be cut off immediately. This requires that the University front money owed to researchers. 

Gerald Cohen, research professor of finance and former deputy assistant secretary for macroeconomic analysis at the U.S. Department of Treasury, said that the University also depends on state funding for salaries and operational costs.

The Federal Affairs Department collaborates with leadership on campus to craft a “federal priority list.” Most of this, Dockham said, involves the appropriation of federal funding for financial aid programs like the Federal Pell Grant, and for research grants from agencies such as the National Institutes of Health  and the National Science Foundation.

Blackwood also cited supplemental education opportunity grants, FAFSA and federal work study programs as being reliant on federal funding. 

In 2025 North Carolina is estimated to receive $1,214,381,944 in federal funds for post secondary education programs, Blackwood said, adding that the state then decides how to spend it. Once allocated to UNC, the UNC Board of Governors decides where it goes.

“The money that we get from the federal government flows through the Department of Education, which would most certainly cease all operations during a shutdown,” Blackwood said.

As a graduate student and researcher herself, Blackwood cited a prevalent tension and anxiety amongst researchers working directly with federal programs and relying on their funding. With the threat of additional cuts under a new administration, the uncertainty of the future has placed a mental burden on researchers, she said. 

“There seems to be a hesitation to embrace educational ventures that may lead people to critically think about the state of things in our country, and that's a concerning place to be,” Blackwood said. 

The Department of Education oversees grants that support a variety of communities, including Historically Black Colleges and Universities, veterans and graduate students. Cohen said if there are severe cuts made to the Department of Education or a complete abolishment, he questions if changes in funding priorities could negatively impact the groups and their support.

During his campaign, President-elect Donald Trump said that he was going to "close the Department of Education," similar to statements made in the Project 2025 Policy Agenda, described on their website as a "presidential transition project."

"Federal education policy should be limited and, ultimately, the federal Department of Education should be eliminated," Department of Education chapter author Lindsay Burke wrote.

According to analysis of Project 2025 by The New York Times, "well over half" of authors and contributors were in Trump's administration, campaign or transition teams.

“We're in higher education. We're seeking facts. And it shouldn't be a situation where the seeking of that knowledge is contingent upon who's in office,” Blackwood said. 

Cohen said that, for example, if states have a different view on vaccine research, some researchers could potentially be unable to get funding depending on their location.

“These are questions that, I'm guessing, UNC researchers [and] federal liaisons are thinking about,” Cohen said.

Policy shifts under the new administration, Cohen also said, could additionally impact international students who may potentially face immigration disruptions if planning to return post-inauguration.

Dockham said decisions at the state-government level can also generate bipartisan issues for the University, like compensation for student-athletes, which is currently being deliberated over by state governments. 

“There are folks who want to make sure that we're not in a disadvantage relative to other states with how we do recruitment in athletics,” Director of State Affairs Amy McConkey said. 

Having planned for and worked through multiple government shutdowns, Cohen said they typically originate due to disagreement in the government over spending amounts.

“We should be having discussions about what things we're funding, and our willingness to pay for it, and how we're paying for the things that we're funding," Cohen said. "I will say that we are not having those discussions."

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