University system warns of uncertainty as more than $50 million in federal funds disrupted
Nearly $50 million in federal funding to Maine's public university system has been paused, withdrawn, or remains in limbo, leading to layoffs and uncertainty.
The University of Maine System announced Wednesday that the future of 42 federally funded programs remains uncertain, with some awards terminated, others paused, and some inaccessible despite the university in some cases receiving no official notice of disruption.
The grants were awarded by several federal agencies, including the U.S. Department of Agriculture and the U.S. Department of Energy, and funded various research and training projects.
The Trump administration has been criticized by members of Congress for not being transparent about the use or withdrawal of congressionally-appropriated funds. Further, since President Donald Trump's tense exchange with Gov. Janet Mills over transgender athletes, several federal agencies — including the USDA and the Department of Health and Human Services — have threatened funding cuts or temporarily frozen funds, some of which were later reinstated. The USDA eventually deemed the university system in compliance with the Trump administration's interpretation of anti-discrimination rules.
The system did not clarify the reasons for the cancellations or pauses but emphasized the operational disruptions they have caused.
Of the impacted awards, 23 grants worth more than $7 million have been formally terminated as of Wednesday, according to a news release from the university system. Nineteen are paused, with $17.1 million in outstanding funds, and 10 grants that were not yet finalized. representing more than $21 million, are also on hold or terminated.
UMS leadership has warned that further workforce reductions may be necessary if the state appropriations proposed by Mills are not approved and federal instability continues. The Board of Trustees recently approved the budget for the 2026 fiscal year with cautionary notes tied to these uncertainties.
While the state budget is still being negotiated, the Maine Senate and House of Representatives this week both approved a 6% increase for university system funding for the next two fiscal years.
Meanwhile, the federal funding changes are having 'immediate effects on UMS operations, research, and public service initiatives,' according to the news release. The programs have predominantly affected the University of Maine, the state's only top tier research institution. One prominent casualty is the Maine AgrAbility program, which provides support to farmers, fishermen, and loggers with chronic health conditions or disabilities.
The university has been unable to access its grant from the USDA's National Institute of Food and Agriculture since early April, despite receiving no notice of cancellation. Without a formal termination notice but with no access to funds, UMaine has canceled all upcoming AgrAbility trainings and client services.
The Advanced Structures and Composites Center at UMaine in Orono, which receives about 85% of its funding from federal sources, has already announced layoffs of nine employees due to the suspension of three U.S. Department of Energy awards.
In March, days after the Maine Sea Grant program was terminated by the National Oceanic and Atmospheric Administration over apparent retaliation against the state, the agency said it would 'reopen bilateral negotiations' after appeals from members of Maine's congressional delegation. The system confirmed Wednesday that funding has been restored.
Earlier this year, UMaine paused financial offers to graduate students, including paid research and teaching assistantships, even as graduate student enrollment continues to increase because of federal funding uncertainties.
However, the university is maintaining its current financial commitments to incoming graduate students for the upcoming academic year.
Last year, the university system received a total of $226.1 million in federal funds, including $137.8 million in federal student financial aid; $87.9 million in federal grants, contracts, and appropriations; and $355,000 in pandemic-related relief.
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