NEW ORLEANS - Following the announcement that Louisiana State University (LSU) President William F. Tate IV will depart to become the next president of Rutgers University effective July 1, LSU is entering a transitional phase under the interim leadership of Matt Lee who is currently serving as Vice President for Agriculture and Dean of the College of Agriculture.
The leadership change happens just when LSU is actively working to address the challenges posed by the recent federal funding withdrawals.
“Over the past few months, we have been tracking and responding to many federal actions. This is where we are in research at LSU—LSU A&M has had 16 sponsored projects terminated,” said LSU Vice President Twilley. “With support from LSU leadership, and when allowed by the funding agency, we continue to submit appeals.”
The federal funding withdrawal has reduced LSU’s allowable indirect cost rates on research grants from about 53% to 15%, causing significant financial losses.
“The most recent updates on indirect costs include the National Science Foundation temporarily pausing its planned implementation of a 15% indirect cost rate cap until a scheduled hearing on June 13,” said Twilley. “Meanwhile, the Department of Defense has announced its intention to implement a 15% cap on indirect cost rates for all new grants to universities.”
Sponsored Projects
Some of the specific sponsored projects impacted by the funding withdrawals include:
COVID-19 Research - Federal funding cuts have impacted LSU's COVID-19 research initiatives. Notably, a long COVID study at LSU has been terminated, reflecting broader reductions in support for pandemic-related research under the current administration.
Lupus Research - LSU's lupus research programs have also been affected by federal funding cuts. The termination of NIH grants has disrupted ongoing studies aimed at understanding and treating lupus, hindering progress in this critical area of health research.
Youth Suicide Prevention - Research focused on youth suicide prevention at LSU has suffered due to the withdrawal of federal funds. The cessation of support for these programs poses risks to ongoing efforts aimed at addressing mental health challenges among young populations.
LSU AgCenter's Hunger Project - A $22 million project involving the LSU AgCenter, part of the Feed the Future Climate Resilient Cereals Innovation Lab led by Kansas State University, has been paused amid a review of spending at the U.S. Agency for International Development (USAID). This initiative aimed to enhance the availability of cereal crops like rice and wheat to combat hunger.
Hiring Freeze
On March 28, President William F. Tate announced a halt on hiring across the university except to the LSU athletics department which operates an auxiliary unit, successful appeals from essential hires in research, academics, and operations, and pre-existing job offers.
Budget Reductions
Effective July 1, LSU will withhold 2% of each department's budget. Departments can earn back 0.5% by meeting specific performance benchmarks, while the remaining 1.5% will be allocated to support academic and research initiatives.
Administrative Restructuring
Tate outlined a series of initiatives under the "Plan to Accelerate and Protect LSU Student Success and Research Excellence," which includes a thorough review to identify and remove overlapping roles within the university's administrative structure.
The plan also includes efforts to consolidate certain functions to enhance efficiency and align resources with the university's core strategies while exploring the use of artificial intelligence to reduce administrative burdens and enhance productivity.
LSU Expands Online Courses
As of May 2025, LSU Online & Continuing Education (LSU OCE) has significantly expanded its offerings to meet the growing demand for flexible, accessible education. The program now encompasses over 150 fully online degrees and certificates across various disciplines, including business, healthcare, technology, and liberal arts.
This expansion has led to enrollment growth, with LSU Online experiencing a 45% increase in student numbers over the past year.
Optimistic Outlook
Despite these challenges, Twilley continues to encourage LSU staff, administrators, and students to maintain their optimism.
“I remain optimistic that LSU’s research enterprise will remain strong, particularly because LSU A&M’s total award amount as of April is $180 million, an increase of $36 million compared to this time last year. We look forward to working with LSU leadership to build on the successes of LSU’s Scholarship First Agenda and increase LSU’s impact on Louisiana and the world,” said Twilley.
