Iowa State’s decades-old industrial research center loses federal funding

Despite its decades of work helping Iowa businesses and manufacturers grow and innovate, the Iowa State University-based Center for Industrial Research and Service learned last week that the federal government is halting its funding — effective immediately — “because it is no longer aligned with the priorities of the administration.”

Under the new presidential administration, the National Institute of Standards and Technology told 10 Manufacturing Extension Partnership programs that it isn’t renewing their federal contracts — pulling millions from those partners with April 1 funding renewals, like ISU’s CIRAS program, North Dakota’s “Impact Dakota” and “Manufacture Nevada” and others, according to national media reports.

“The MEP is the largest federal funding source at CIRAS, and this unexpected cut impacts the availability and affordability of our services in both the near and long term,” CIRAS Director Mike O’Donnell wrote Tuesday in an “important update on CIRAS funding.”

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CIRAS — created in 1963 as an extension of the ISU College of Engineering — serves businesses and manufacturers statewide through guidance on enterprise leadership, growth, technology and productivity. Specific assistance can range from technical management to advice on marketing or help with government contracts. CIRAS staffers engage companies by assessing their needs, educating them on best practices, helping craft a path forward and then working with the companies “for as long as it takes to embed positive change,” according to ISU.

CIRAS has administered the federal partnership network in Iowa for 20 years. In addition to the millions it has amassed over that span, CIRAS in the 2024 budget year landed $2.3 million in federal funding to support Iowa manufactures through the national network, according to ISU spokeswoman Angie Hunt.

Over the last five years — through the partnership and other programs — CIRAS and its partners have helped more than 4,600 businesses in every Iowa county, creating an economic impact of over $2.8 billion, according to the center.

Although O’Donnell conceded the cut will impact the cost of and access to its services, he also praised local funding sources in sparing the need for layoffs.

“We are fortunate to have outstanding support from the state of Iowa and Iowa State University, along with other federal funding sources,” he said. “Because of this support and our spectacular team, we expect to fulfill all our commitments and retain our staff.”

In the coming weeks, O’Donnell said his team will “look for opportunities to restore MEP funding and redefine our business model.”

Public-private partnership

Nationally, the federal manufacturing extension public-private partnership aims to give small and medium-sized manufacturers the tools and resources they need to succeed.

The national network — at least historically — has supported 51 centers in all 50 states and Puerto Rico using a funding model that covers half of each center’s budget with federal appropriations, with the balance pulled from state and local sources.

In 2024 alone, the national network reported helping manufacturers achieve $15 billion in new and retained sales, $5 billion in new client investments, $2.6 billion in cost savings and more than 108,000 new or retained jobs.

With other states’ contracts expiring in July, October, January 2026 and March 2026, these April 1 cuts are “likely the first step in cutting funding to the entire national MEP network,” according to Industry Week, a national trade publication.

“Within a year, the entire network could be defunded,” according to the publication, which shared reactions from other states, including Mississippi — with Mississippi Manufacturers Association President and Chief Executive Officer John McKay expressing surprise.

“In the letter (canceling funding), they mentioned new and emerging technologies as the priority of the administration,” McKay said in an interview. “That just reflects a misunderstanding of what MEPs do.”

The cuts affecting the ISU center come just weeks after the University of Iowa International Writing Program received a similar letter terminating its nearly $1 million in federal support — forcing it to halt several aspects of its program and curtail others.

Vanessa Miller covers higher education for The Gazette.

Comments: (319) 339-3158; vanessa.miller@thegazette.com