By Randy Özden, CEO of Streamlyne
Research institutions are no longer anticipating a funding crisis – it’s here. For some institutions, the impact has been catastrophic – mass layoffs, shuttered departments, and research grinding to a halt. Even institutions that are typically flush with funding are feeling the pinch. And this is far from over: as far as we know, the funding landscape will continue to be volatile for the foreseeable future. But there is always a silver lining. In this case, there are smart measures that institutions can take to become more durable and efficient – benefitting them during this period of uncertainty and beyond. In fact, institutions that make the right choices now may emerge even stronger as a result.
Before we address the lifelines available, let’s review how this situation came to pass. In February 2025, NIH implemented a sweeping 15% cap on indirect cost recovery (NOT-OD-25-068), which became effective retroactively for both new and existing awards. The result was that institutions with pre-negotiated rates of 30% to over 60% suddenly found themselves facing tens of millions of dollars in unexpected shortfalls. For example, the University of Minnesota alone is forecasting annual losses of over $100 million, and this is only one small representation of the overall picture. All across the country, similar stories are playing out, with huge implications across staffing, facilities, expenditures, and operations, let alone long-term strategic planning.
What Does This Mean for Institutions?
While grant awards are being reduced, delayed or withdrawn altogether, along with other Federal funds, institutions are left scrambling to find alternate funding sources. State support, while well-intentioned, isn’t enough on its own to cover the funding gap. And alternate funding, such as corporations and foundations, can be highly competitive and challenging to obtain. Suddenly, institutions are left confronting an urgent question: how do we stabilize research operations responsibly without losing sight of who we are as an institution?
A Pivotal Moment for Research Strategy
The 15% cap has made one thing clear: the previous model—which supported high-overhead reimbursements and expensive consulting engagements—is no longer an option. Knowing this, institutions must now operate leaner and smarter, finding new ways to maintain and grow their research volume with fewer resources.
You might assume that rethinking an entire research program, and how it runs, is too daunting of a challenge. But research administrators are incredibly resilient and accustomed to problems that would be insurmountable to others. Nationwide, leaders are adjusting systems, updating forecasts, and reallocating budgets to focus on impact, flexibility, and sustainability. In addition, they are leaning on trusted vendors that know research administration inside and out, and can replace expensive, bloated legacy eRA systems with all-in-one solutions at attainable price points.
These pivotal institution-vendor partnerships are helping to create a calm in the storm; giving institutions the tools they need to evolve in this new paradigm and become much more efficient.
Streamlyne Research: Built for Efficiency
Enter Streamlyne Research, the modern electronic research administration (eRA) platform that provides the highest value to institutions without sticker shock. Unlike other legacy systems that require costly implementations, disruptive version upgrades, and steep support plans, Streamlyne provides a comprehensive, intuitive platform that does the work of multiple modules across pre-award, award, compliance, and reporting. Add to that mix an AI module to help win funding, and you have a very compelling and robust system working to your advantage.
Although support is readily available, Streamlyne Research is designed to enable research teams and administrators to manage everything internally, without relying on add-on service plans meant to gouge customers. With cloud-native architecture and modular components, Streamlyne Research is intended to reduce operating costs, eliminate redundancy, and accelerate workflows.
Some of the advantages gained with this innovative eRA system are:
- Improved research administration processes across departments
- Significantly lower system and support costs than competitor software
- Increased transparency and accountability across the grant lifecycle
- Freed-up resources to invest in researchers and mission-critical initiatives
There are a growing number of institutions that are discovering the key benefits of Streamlyne Research, including those who have switched over from competing software systems.
FundFit AI 2.0: Smarter Grant Attainment in a Competitive Climate
Because research funding is now harder to come by, winning more—and better—grants has become essential. In the current funding environment, many institutions now need to expand their funding search beyond traditional Federal sources, and to be more proactive in their own funding efforts. That’s where Streamlyne FundFit AI 2.0 comes in.
Powered by AI, FundFit continuously scans foundation and corporate funding opportunities across thousands of sources, pairing opportunities with institutional research strengths down to the individual researcher level. It also has an abundance of open state and Federal opportunities so institutions can set their own preferences.
With FundFit, institutions can:
- Discover high-fit funding aligned with their own researchers’ capabilities
- Pinpoint collaborative grant opportunities across departments, campuses, school systems, and other institutions
- Identify alternative funders—especially foundations and corporate sponsors
This strategic advantage is what many are now calling “Moneyball” for research. Institutions aren’t just chasing more grants, they’re targeting smarter ones, and working to increase win rates by applying next-generation AI and data-driven approaches.
Looking Ahead with Clarity, Not Panic
There’s no question that the current research funding policies and the 15% cap has forced institutions to make difficult decisions. But it’s also led to an epiphany: an institution that wants to stay viable needs to find new operational efficiencies while diversifying its research funding sources.
That’s why many research institutions are now:
- Replacing outdated or standalone systems with an all-in-one platform like Streamlyne Research
- Reducing dependence on expensive outside consultants in favor of a vendor who thinks and acts like a partner
- Using AI to modernize how funding is discovered, pursued, and secured
- Prioritizing investment in tools that generate measurable impact
The result isn’t just cost savings. It could also be a pathway to regain stability, attract new talent, and become a stronger institution as a result.
Optimism Rooted in Action
It’s true that some institutions that embrace this new model aren’t yet “thriving” in the traditional sense, due to so many factors outside of their control. But they are making the best possible decisions under unprecedented conditions—and positioning themselves for success in their areas of academic research.
By adopting Streamlyne Research and FundFit, institutions are making the right choices when it comes to their endurance, not just their survival. Together, Streamlyne Research eRA and FundFit AI platforms empower research administrators to run leaner, more strategic operations and find new and unexpected funding sources. As a result, administrators and PIs can get out of reactive mode, get themselves unstuck, and start thinking positively again about what the future holds.
Let’s make sure you have the systems you need.
From pre-award and award to compliance and reporting, our platform supports the full research lifecycle in one secure, easy-to-use system. We help institutions:
- Reduce administrative burden and accelerate proposal timelines
- Integrate seamlessly with all leading HR, payroll, and financial systems
With FundFit 2.0, you don’t just wait for funding opportunities – they find you. Our AI-driven matching tool helps you win high-fit, high-value funding opportunities, giving your researchers the motivation to have a stake in their own funding outcomes, along with essential support for winning funding to propel their research forward.
Whether you’re a large R1 university or a growing independent research institute, Streamlyne adapts to your needs with scalability, affordability, and best-in-class support. We work hand-in-hand with our customers to ensure successful adoption, ongoing value, and continuous improvement.
Let’s make sure your institution has the tools it needs to compete and evolve in today’s funding landscape.
Request a demo to schedule a conversation with our team and see how we can help you overcome your own funding challenges—starting today.
