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Updated: July 30, 2025

MDI Bio Lab strategizes in uncertain funding and policy landscape

A person stands at a lectern with a mic. File photo / Laurie Schreiber Hermann Haller said MDI Biological Laboratory is prepared for a difficult passage through funding and policy uncertainties. He’s seen here at the campus a year ago.
By Laurie Schreiber

Uncertainties around federal funding and policies pose an “imminent threat” to the Mount Desert Island Biological Laboratory, said Hermann Haller, the nonprofit’s president.

Haller presented accomplishments and concerns during the lab’s annual meeting last week.

“So is our ship prepared for this difficult passage? I think yes,” said Haller.

‘High anxiety’

Haller said he and his team are exploring strategies to address the challenges, including discussions with other organizations, such as Jackson Laboratory and College of the Atlantic, both in Bar Harbor, about how to help worried international students and faculty.

That includes regular meetings with students to listen, discuss problems and inform them about recent developments, and to maintain close communication about their travel plans.

At the lab, there is “a high level of anxiety,” he said.

Successes 

The lab has a number of accomplishments under its belt for the past year. That includes numerous presentations at national and international meetings, 15 published manuscripts, three patent, new and renewed grants, completed and planned campus upgrades and new research collaborations such as biomedical engineering with Colby College.

Threats to funding

But Haller said “imminent threats” to the lab include uncertainties about grant funding, timelines of funding that’s been approved but not yet delivered, and limitations on reimbursements for indirect costs, also known as facilities and administrative costs, such as laboratory space, services and supplies needed to carry out research.

A 40% cut is proposed in the National Institutes of Health’s fiscal year 2026 budget. In Maine, NIH grants and contracts support 1,468 jobs and $286 million in economic activity, including at MDI Bio Lab.

In May, Haller told the U.S. Senate Appropriations Committee that loss of federal funding in biomedical research will detract from life-saving research and biomedical breakthroughs.

“We have funds approved, but is the money coming?” he said last week.

Major grants for programs such as Maine IBRE, a consortium led by MDI Bio Lab that trains future researchers, have been approved but the money is only slowly coming in, he said.

Ensuring the lab’s future will require a significant increase to its endowment, he said.

Watching developments

“We met at the beginning of the year with ideas about how to cut costs, maintain efficacy and develop budget scenarios,” he said. “So far we were able to keep all of the staff here, no layoffs.”

The lab is still writing and submitting grants to the NIH while watching developments there, he said. 

“That’s not easy because we don’t know what’s out there,” he said, adding, “So to write grants and still be optimistic about that is hard.”

Despite the uncertainty, MDI Bio Lab "is still moving and still standing,” he said.

He continued, “We are doing well. What we’re doing is only possible at the moment because of the level of support we have. But we’re worried about the future, because all academic institutions now need more philanthropic support.”

The lab’s strategic plan for 2025 through 2028, approved a year ago, includes plans to raise endoment funds totaling $45 million for expedited drug discovery, education and training, campus improvements and scientific support.

The lab has some of the funds in place, including for the modernization of one of its lab buildings. New endowment funding could “help us steer the course in a difficult time,” he said.

Earlier this month, the lab expanded its advisory group called the "president’s cabinet," to strengthen the organization’s philanthropic capabilities. 

“This group brings not only tremendous enthusiasm for our mission, but also expertise in healthcare, biotech, urban planning and nonprofit governance,” Haller said.

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