NASHVILLE, Tenn. (WSMV) – Tennessee State University is set to lose millions of dollars in federal funding, which officials said means changes for students and staff.
TSU Finance Committee members said the university is set to lose more than $14 million-worth of United States Department of Agriculture grants after a 90-day period, which means more cost cuts ahead, and the university’s fight for financial stability becoming even harder.
“We had 70 active federal grants from the USDA and the National Institute of Food and Agriculture,” TSU’s Chief Financial Officer Grady said.
Grady said that’s $45 million of federal funding suspended from TSU since February, so during a board of trustees meeting Wednesday, he broke down what this situation means for the university.
“On or around March 3, we received notice that about $23 million of the $45 million had been restored,” Grady said.
But, just moments before the meeting, Grady found out that TSU would be losing $14.4 million in federal grants.
“We’ve identified by looking at payroll records and HR data, there are about 62 employees that are fully funded on these grants, and then there’s another 112 that are funded partially on some of these grants,” Grady said.
To lessen the impact on staff and students, Grady said they’ve suspended spending for months, but ultimately some staff members will be let go and scholarships will be cut.
“It will impact some students, we have six GA’s and currently 33 undergraduate students who get scholarships, they won’t be affected this year, but they won’t be eligible for that scholarship come this fall,” Grady said.
TSU’s Finance Committee said right now, they’re searching for more ways to save jobs, scholarships, and push for financial stability.

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