Wood: Region could reel from Trump cuts

Budget and staffing cuts implemented by the Trump administration could have a profound effect on the economy of the Boulder Valley and Northern Colorado, with cuts potentially affecting a wide range of industries and research initiatives.

Elon Musk, the de facto head of the Department of Government Efficiency, once boasted that he could cut the federal budget by $2 trillion. Musk has backed off of that goal but continues to push federal workforce reductions, including layoffs, buyouts and furloughs.

In late February alone, Musk directed that an email go out to all federal workers mandating that they justify their positions, with failure to respond “taken as a resignation,” though some cabinet secretaries pushed back on the initiative.

But the push to reshape and streamline the federal government continues largely unabated. Among the programs or agencies that could be affected:

• Climate science. President Donald Trump has made no secret of his disdain for climate research, and potential cutbacks would be felt severely along the Front Range, including Boulder, Jefferson and Larimer counties, where federal laboratories are based.

The National Oceanic and Atmospheric Administration, with operations in Boulder, has already been targeted, with administrators facing “severe reductions” in staffing. Similar cuts could affect a wide range of other agencies, including the National Renewable Energy Laboratory in Golden.

• Medical research. Federal funding of medical research at universities and other institutions will be slashed under a new policy implemented by the National Institutes of Health. The policy, announced in early February, reduces how much NIH pays for indirect costs at 15% in most cases, far below prior practice. Indirect costs include building maintenance, electricity and other overhead.

The University of Colorado Boulder received $60.9 million in NIH grants in fiscal year 2024, with the University of Colorado Denver at $349.6 million and Colorado State University at $54.5 million, according to the NIH website.

• Infectious disease. Significant cuts and firings have impacted the Centers for Disease Control and Prevention, which maintains a large operation in Fort Collins. CDC plays a critical role in preventing, detecting and responding to outbreaks such as the COVID-19 pandemic.

• Agricultural research. Cuts to agricultural programs are being felt nationwide, with various research programs shutting down at universities around the country. Colorado State University is one institution with programs at risk.

• Aviation. Even as aviation crashes and other mishaps make the news, the Trump administration has fired hundreds of Federal Aviation Administration workers. The FAA operates the Denver Air Route Traffic Control Center in Longmont, employing 400 workers.  

Many of the Trump administration’s proposed cuts are being challenged in the courts. Under the Constitution, Congress wields the power of the purse strings, and a president’s authority to withhold Congressionally appropriated funds is dubious.

And it remains to be seen what form any new federal budget will take, including whether Republicans can maintain unity with a razor-thin majority in the House of Representatives.

But one thing is clear: Key constituencies in Colorado will be deeply affected by the shift in governmental priorities, likely to the tune of billions of dollars.

Christopher Wood can be reached at 303-630-1942 or cwood@bizwest.com.

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