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TSU is in jeopardy of losing federal money, up to $14 million

TSU
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NASHVILLE, Tenn. (WTVF) — With federal budget cuts swirling, Tennessee State University is at risk of losing $14 million.

The funding comes from the National Institute of Food and Agriculture. TSU has a robust agriculture program, in large part because they are a land grant institution. The only other one like it in the state is the University of Tennessee-Knoxville.

"We have identified other grants we can absorb that, but in the meantime, this is going to affect our people," TSU finance director John Grady said.

Around 70 funds were frozen in February as part of the grant executive order from President Donald Trump. By March 3, $23 million had been restored. But ultimately, $14 million is in limbo.

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A slide from the presentation to the Tennessee State University Board of Trustees on March 12, 2025.

In total, the university relies on $115 million in federal grants. From that 62 employees are fully funded through those programs and 112 employees have received more than 50% of their salaries from federal grants.

Previously, The U.S. Department of Agriculture’s website shows that it had suspended a scholarship program for students who enroll at Tennessee State University and other land-grant historically Black colleges. Those grants and money were reinstated.

Grady said they were no exception to grant cuts hurting the university, but they are unique in their financial problems.

The school was veering toward a financial crisis and nearing its ability to pay its bills. However, TSU leaders came to the podium at the State Building Commission in February with the idea of using money set aside for capital funding appropriated by the state. Back in 2023, the legislature recognized that they had funded the university $544 million less over time than the other land grant university in the state — University of Tennessee-Knoxville.

Right now, the governor is recommending its normal allotment for TSU in next year's budget: $69 million. That includes the main campus, TSU McMinnville Center, TSU Cooperative Education, TSU McIntire-Stennis Forestry Research and the TSU Institute of Agriculture and Environmental Research.

The university has already made millions in cuts in hopes of getting its financial house in order. In the middle of the fall, TSU laid off more than 100 staff members. The school also eliminated 117 contracts that duplicated services, saving $3.5 million.

Those cuts are about to get deeper.

  • a cut to $18 to $20 million in scholarships
  • a $6 to $7 million cut in on non-instructional staff
  • a $5 to $6 million cut in instructional staff, which will sunset programs at the school
  • a $3 to 4 million in non-personnel cost reduction, which includes the president and cabinet members

Do you have more information about this story? You can email me at emily.west@newschannel5.com.

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