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‘It was soul-crushing’: Fed cuts hit small science labs

A science lab with lots of shelves with equipment stacked up.
Ben Noren
/
CellDrop Biosciences
CellDrop Biosciences’ lab is developing new stem cell technology to heal tendon and ligament injuries for horses and humans, but its medical trials were put on hold amid federal worker cuts.

Ben Noren swiped his keycard to enter his window-filled lab at the University of Wyoming.

“When you walk into the CellDrop laboratory, there’s many tiny syringes, vials,” he said, as he closed the door behind him.

Noreen’s company, , is trying to heal tendon and ligament injuries with stem cells in microscopic droplets.

“These are about the width of a human hair, and we can then put them into any sort of tissue to help it heal faster and more effectively,” he explained.

A man stands smiling in front of a tree. He’s wearing a puffy jacket and has blonde shoulder-length ringlets.
Caitlin Tan
/
Wyoming Public Media
Ben Noren, 33, on the University of Wyoming campus in Laramie, which is home to CellDrop’s lab.

The eager 30-something with blonde shoulder-length ringlets said the goal is eventually to help humans, but the plan is to first roll out the product for injured performance horses, which sometimes have to retire early because of ligament injuries — though the trials on that product have been put on hold.

“Kind of our worst fears came true,” Noren said.

He thought it was largely research related to climate change or diversity that would be impacted by the , but his company depends on National Science Foundation funding, and he hasn’t been able to access it as anticipated.

That’s because the person at the NSF who administers those hundreds of thousands of dollars was recently fired.

“Running a technical small business is a pretty time-consuming task, and every time a new hurdle is added, it's just kind of like, ‘Oh my god, not more things to deal with,’” Noren said. “It was soul-crushing.”

of the NSF’s staff was initially let go, making it tough for Noren to pay contractors. And he’s not alone. Grantees who get money from many federal agencies are missing payments and cutting programs.

In some cases, there have been reversals where funding and jobs are restored, including in , but small businesses are especially vulnerable to such whiplash, according to University of Denver finance professor Mac Clouse.

Federal grants play an important role in helping startups get through what’s known as the “valley of death.”

“They're too small for a bank to be interested in,” Clouse said. “Venture capital doesn't want to look at you until they can invest somewhere around a million dollars.”

The NSF helps to fill that gap. It’s currently putting about towards researchers in the Mountain West, and there are millions more coming from other agencies.

Mountain West State
Total NSF awards in 2023
Arizona
$329,091,000
Colorado
$348,222,000
Idaho
$32,042,000
Montana
$42,573,000
Nevada
$42,091,000
New Mexico
$55,831,000
Utah
$78,787,000
Wyoming
$23,017,000

Credit: National Science Foundation

The small businesses they fund help to diversify rural economies, including in Wyoming, which is trying to better insulate itself from the

“The state has to be more concerned and more aware of how important the small businesses are to the state economy,” Clouse said.

According to , Wyoming has the lowest percentage of people born in the state who stick around. Christoph Geisler, originally from the Netherlands, has lived in the Cowboy State for 20 years and said there’s just not that much opportunity, especially in the biomedical field.

“Almost everybody that I've known over the years has moved away, and it's pretty clear why,” said Geisler, adding that with federal cuts, this problem could get worse.

He runs a company, , developing new probiotics to help prevent kidney stone recurrences. It’s backed by the National Institutes of Health, which has also seen cuts.

A bald man in a white lab coat looks at a plastic disk with particles in it. There’s lab equipment in the background.
Courtesy of Chris Geisler
Christoph Geisler holds up a petri dish with the lead strain of probiotics in his lab in Laramie, Wyoming.

“How do I tell my investors what situation I am in?” said Geisler. “Should I tell them the sky's falling, when I may be OK? Or should I tell them that I'm OK, when things can change on the turn on a dime?  I don't really know how to proceed with this.”

He’s so frustrated that he says he won’t apply for federal funding until there’s more certainty.

Noren, back at the stem cell lab, questions the newly created federal Department of Government Efficiency, which is behind a lot of these cuts.

“It certainly doesn't improve efficiency in my mind because now all of the grants are being administered much more slowly than they were before,” he said.

A judge has now ordered about be reinstated, including the person Noren works with.

An agency spokesperson said this means the U.S. will remain “a global leader in scientific discovery and innovation.”

But Noren isn’t so sure. This weeks-long hiccup has left him uneasy about the future as more cuts remain on the table.

“It’s still scary,” he said.

This story was produced by the Mountain West ڱ Bureau, a collaboration between Wyoming Public Media, Nevada Public Radio (KNPR) in Las Vegas, Boise State Public Radio in Idaho, KUNR in Nevada, KUNC in Colorado and KANW in New Mexico, with support from affiliate stations across the region. Funding for the Mountain West ڱ Bureau is provided in part by the .

Leave a tip: Hanna.Merzbach@uwyo.edu
Hanna is the Mountain West ڱ Bureau reporter based in Teton County.