Healthbeat Atlanta: Looming cuts to NIH funding have Atlanta startup founders on edge

Looming cuts to NIH funding have Atlanta startup founders on edge

Rebecca Grapevine: March 18, 2025

Looming cuts to NIH funding have Atlanta startup founders on edge - Healthbeat


Disruptions to funding streams from the National Institutes of Health aren’t just rattling university researchers. Atlanta startups that help move scientific innovations to market – creating jobs and furthering industry and academic collaboration – are also on edge.


These are small businesses that use a tiny portion of the NIH’s budget to bridge the gap between research and consumers. They make tape to improve nerve repair, devices that reduce pain without opioids, and digital tools to help people with cognitive challenges navigate daily life, among other innovations.


The NIH awarded $700 million to Georgia universities in fiscal 2024, according to estimates from an agency reporting tool. In contrast, small businesses in the state received less than $27 million for 45 projects at 29 companies in 2024, according to the tool.

Technology transfer from labs to small businesses creates a host of economic benefits, said Stephen Susalka, CEO of AUTM, which represents technology managers who help commercialize discoveries.


“It’s a Swiss Army knife in terms of impact,” Susalka said, creating new products, new companies, and new jobs. “That just leads to economic development, right? So now you have a new tax base. You have new facilities that are purchased. Those people are buying lunch every day.”



The federal funding “can really lead to strong industry and academic collaboration,” said Maria Thacker Goethe, president and CEO of Georgia Life Sciences, a nonprofit industry group. Many startups in Atlanta have “spun off” from local universities, and they play a key role in the state’s innovation economy.


The new Trump administration has frozen some NIH funding, then restarted some of it, amid threats of further cuts to come. Healthbeat Atlanta spoke to the leaders of several startups about how the uncertainty at the NIH is affecting their work. Here are four of their stories.


MapHabit: Tech for people with dementia, autism


NIH funding that flows through the Small Business Innovation Research program has been crucial to MapHabit’s success, co-founder Matt Golden said. The tablet-based platform helps people with conditions like dementia or autism complete daily activities. It placed first in a National Institute of Aging innovation competition in 2019.


MapHabit is part of the health tech portfolio at the Advanced Technology Development Center, the state’s technology incubator at Georgia Tech. The company, which has received four NIH awards, employs 15 full-time and 15 part-time workers, many in Atlanta, Golden said.


Golden’s funds were frozen in February and then restored 24 hours later, he said. Still, proposed changes at NIH like cuts to payments for overhead costs have him worried.


“The shotgun approach is going to reverse decades of progress, unfortunately,” Golden said. “These grants have been given to us so that we can spend the time to publish… to generate the data that proves this work, and that’s essential in health care.” Cuts could mean products like his get stuck on the shelf, Golden said, before they can reach those who need them. “They’ll just basically be halfway complete,” Golden said. “That’s going to put America at a big disadvantage.”


Friendi.fi: AI technology for relationships


An abrupt loss of access to NIH funding in February sent small business founder Chantal Kerssens scrambling.

Her startup, Friendi.fi, which she runs remotely from Atlanta, receives money from the national health agency to develop and test its technology, which uses artificial intelligence to connect people with an AI friend and coach. It’s also designed to help insurers gather information about the needs of their patients. At 6 months old, the company needs the NIH awards, even when it has other sources of funding.


“We need to know what we’re up against,” Kerssens said. She called a meeting of the company’s leaders to discuss how they would cover NIH-supported salaries using funds for other expenses.


Kerssens was unable to access the company’s NIH grant funds through a federal portal for nearly two weeks, even amid reports that the funds had been restored. That lack of clear information added to her anxiety.

And she’s worried about the future of the program.


Dr. Amy Baxter: Drug-free pain relief


Dr. Amy Baxter is a pediatric emergency room doctor who left private practice to develop Buzzy, a device to reduce the pain of getting a shot that won a 2020 Tibbetts Award for SBIR achievement.

Become a Healthbeat sponsor


She lost access to her NIH funds for eight days in February. This week, operations were back on track. Baxter is working to develop tools to reduce pain without opioids, including VibraCool, a device that reduces pain with vibrations, heat, and cold, and a product to address low-back pain, the DuoTherm, as part of a federal initiative to end opioid addiction.


She is also using NIH funding to develop a tool to more accurately capture data about people’s opioid use, much of which comes from unused pills from prior prescriptions, Baxter said. This will help researchers better track whether their new inventions truly reduce opioid use.


Vivo: Testing a virtual strength program for seniors


Eric Levitan is using an SBIR award to evaluate the efficacy of a virtual strength program for older adults, Vivo.

He said receiving notice in February that NIH funding was paused was “devastating.” Though the money was unfrozen soon after, “the damage was done,” he said, and it caused his team to “rethink everything.”


Vivo, founded in 2020, weaves together workouts and community building and helps reach older adults where they are, including at senior centers, a key customer, Levitan said. Vivo employs four full-time and 35 part-time workers, 10 of whom are in Atlanta.

The company has raised over $4.1 million from angel investors, respected investors like AARP’s AgeTech Collaborative, and Techstars – and a three-year, $2.3 million award from the NIH.


Levitan teamed with Kathryn Starr, an associate professor at Duke University School of Medicine, to apply for a small business “fast track” grant to conduct a randomized control trial to see whether the Vivo program reduces blood sugar in people with prediabetes.

“Once we realized that all NIH funding may be at risk, it caused a ripple effect across our team and our research partners. …Will it change how we’re looking at R&D, how we manage funds, or [our] approach to growth?” Levitan said. “It forced us to go into contingency mode.”


A proposed NIH policy that would cut how much it pays for the “indirect” costs of research like maintaining a facility and routine bills would amount to a 25% reduction in expected payments, Levitan said. That would likely force him to stop the randomized trial, he said, though the money has been budgeted, and results are expected later this year.


What’s next for the SBIR program?


The proposed NIH policy to cut research funding is on hold due to an injunction from a federal judge, while lawsuits filed by universities and other organizations are pending. It’s not yet clear if the policy – if implemented — would apply to existing SBIR grantees, said Mark Skinner, CEO of SSTI, a national nonprofit focused on bolstering innovation.


The application process for the NIH’s small business grants is rigorous, with the applications reviewed in a two-step process that includes evaluation by industry professionals and academic scientists. In fiscal 2023, just 19% of all applications were funded, according to data from the agency. Meanwhile, Congress must this year reauthorize the SBIR program by Sept. 30, a step it typically takes every three years. That could provide an opportunity for Congress to introduce changes.


Earlier this month, U.S. Senate Small Business and Entrepreneurship Committee Chairwoman Sen. Joni Ernst, an Iowa Republican, proposed a wide-ranging reauthorization bill that would address criticisms of the program. Concerns include so-called SBIR “mills” that repeatedly apply for grants without much commercial success and security concerns over Chinese involvement in American research and business.


That may not be the final version, Skinner said, with other proposals likely to come from the House and Senate. Ernst’s bill would prevent the SBIR program from providing supplemental funds “based on the race, gender, or ethnicity of the principal investigator, founder, or key personnel of a small business concern.’’ If enacted, that could be a problem for Golden of MapHabit, who has used an NIH program designed to promote diversity among entrepreneurs to hire two Black scientists to lead clinical trials and ensure his studies enroll diverse participants.



Rebecca Grapevine is a reporter covering public health in Atlanta for Healthbeat. Contact Rebecca at rgrapevine@healthbeat.org.


November 4, 2026
CEO Note: A New Political Landscape, A Continued Commitment to Georgia Life Sciences Georgia's 2026 election results mark a historic shift in the state's political landscape, setting the stage for a new administration, new statewide leadership, and a potentially changed balance of power in the General Assembly as we approach the 2027 legislative session. At the national level, Democrats won control of both chambers of Congress , creating a new dynamic for federal policymaking. With the presidency remaining under Republican leadership, the coming years will require bipartisan cooperation to advance legislation. Changes in congressional leadership and committee oversight could significantly affect healthcare, federal research funding, FDA policy, drug pricing, and patient access. The most significant changes for our industry, however, are happening here in Georgia. Keisha Lance Bottoms' victory in the gubernatorial race marks a historic transition in state leadership, ending more than two decades of Republican control of the Governor's Office. She will also become the first Black woman elected governor in U.S. history. Democrats also swept Georgia's statewide executive offices , including lieutenant governor, attorney general, secretary of state, and the commissioners responsible for agriculture, labor, and insurance. These leadership changes create new opportunities for engagement on the policies and investments that shape Georgia's economy. In the General Assembly, Democrats made substantial gains and appear positioned to take control of the Georgia House of Representatives , pending final results in several close races. Republicans retained a narrowed majority in the State Senate. This potentially divided legislative environment will require thoughtful engagement and collaboration across party lines. We can also expect considerable turnover in the General Assembly, with dozens of new legislators beginning their terms in January. Along with a new Governor and incoming administration, this creates an important opportunity to introduce policymakers to Georgia's life sciences industry, its economic contributions, and its potential for future growth. What Does This Mean for Georgia's Life Sciences Industry? Life sciences is an economic development priority that should transcend party lines. Our industry's growth depends on a combination of sound public policy, private investment, research, workforce development, infrastructure, and a business environment that encourages innovation and commercialization. As Georgia establishes its new leadership priorities, several areas will be particularly important: Economic Development and Manufacturing: Positioning Georgia to attract and retain biopharmaceutical, biotechnology, and MedTech companies while advancing the infrastructure and capabilities needed to support scale-up manufacturing. Research and Commercialization: Strengthening connections between Georgia's research institutions, emerging companies, investors, and industry partners to move discoveries from the laboratory into commercial applications. Workforce Development: Expanding investment in technical education, apprenticeships, and industry-aligned training to prepare Georgians for the growing range of life sciences careers. Capital and Investment: Improving access to capital and supporting programs that help Georgia-based companies grow, commercialize technologies, and remain competitive. Healthcare Innovation and Patient Access: Supporting an environment that encourages medical innovation, advances research, and improves patient access to new treatments and technologies. These priorities align directly with Pathways & Partnerships: A Roadmap for Georgia's Life Sciences Sector , our ten-year strategy to position Georgia as a leading scale-up manufacturing hub in the Southeast. Georgia enters this transition with both an opportunity and a clear need to strengthen its competitiveness in life sciences. The recently released BIO/TEConomy report highlights the industry's significant contributions, including more than 42,600 jobs across over 4,200 establishments, while reinforcing the opportunity for Georgia to accelerate growth relative to other states. Our Roadmap provides a foundation for working with policymakers to turn these opportunities into sustained investment, stronger industry partnerships, and high-quality jobs throughout Georgia. GLS's Role Moving Forward For Georgia Life Sciences, this transition reinforces the importance of our role as the industry's statewide voice and convener. We will be intentional about building relationships with the incoming administration, new legislative leadership, returning legislators, and state agencies. We must ensure that policymakers understand not only the healthcare implications of our industry, but also its broader economic impact: high-quality jobs, significant research investment, advanced manufacturing, innovation, and opportunities for communities across Georgia. At the federal level, we will continue working with our national partners and Georgia's congressional delegation to advocate for policies that sustain research and innovation, support a predictable regulatory environment, strengthen American biomanufacturing, and advance patient access. With a new administration and many new legislators, we have an opportunity to establish a stronger understanding of what it takes to build and sustain a competitive life sciences ecosystem. That means bringing industry leaders to the table, communicating our priorities, identifying areas of bipartisan alignment, and advocating for policies that support long-term growth. Our industry's success requires a long-term commitment that extends beyond any election cycle or administration. The political landscape may change, but our commitment to advancing Georgia's life sciences industry remains constant. We look forward to working with leaders on both sides of the aisle to ensure Georgia continues to be a place where life sciences companies can innovate, invest, manufacture, and grow.
October 30, 2026
For Georgians living with serious and rare diseases, how quickly and predictably a new treatment moves through U.S. Food and Drug Administration (FDA) review can make a real difference. That predictability also matters to the researchers and businesses that make up Georgia’s growing life sciences sector. Both depend in large part on the Prescription Drug User Fee Act (PDUFA), a longstanding bipartisan program that Congress needs to reauthorize by 2027. How PDUFA Works Since 1992, PDUFA has allowed the FDA to collect user fees from biopharmaceutical companies to supplement the agency’s resources for reviewing new medicines. In exchange, the FDA commits to clear, predictable review timelines. The agency’s standards for safety and efficacy remain unchanged. By providing additional resources and establishing clear performance goals, PDUFA helps ensure patients can access new treatments in a more timely and predictable manner. The result of PDUFA have been significant. Before PDUFA, FDA reviews often took more than two years. Today, the median review time is 10 months for standard applications and 8 months for priority applications. In 2025, nearly 70% of new medicines were approved in the U.S. before any other country. What’s at Stake in 2027 Congress reauthorizes PDUFA every five years. The current agreement, PDUFA VII, expires September 30, 2027. Timely reauthorization is critical to maintaining the FDA’s review capacity, preserving regulatory predictability, and ensuring patients continue to benefit from medical innovation. Georgia stakeholders recently came together to talk through what that means here at home. On October 28, Georgia Life Sciences, the MTS Sickle Cell Foundation, and Georgia First hosted “PDUFA: How Medicines Reach People,” a lunch-and-learn at Brookhaven City Centre. Patient advocates, congressional staff, and business and academic leaders heard from Nick Magallanes of Todd Strategy Group, Natalie Crawford of Georgia First, Maria Thacker-Goethe of Georgia Life Sciences, and Mapillar Dahn of the MTS Sickle Cell Foundation. What We Heard At the event, speakers came at PDUFA from different angles, but the common thread was how the program affects Georgians. Mapillar Dahn of the MTS Sickle Cell Foundation stressed that patients need to remain at the center of conversations. As a mother of three daughters with Sickle Cell Disease, Mapillar stressed that she wants the FDA to have what it needs to carry out a thorough review without unnecessary delays. The confidence families place in a treatment depends in part on confidence in that process. Natalie Crawford with Georgia First and Mended Hearts spoke about the need for a fully resourced FDA so that Georgia patients have access to innovative treatments and also for a healthy Georgia economy. Additionally, Maria Thacker-Goethe spoke to what PDUFA reauthorization means for Georgia’s booming life sciences sector. She warned that without PDUFA reauthorization, research across the board will be stifled – ranging from devastating impacts to small startups to significant delays in investments and research. Part of a National Conversation As Congress prepares for the 2027 reauthorization, conversations like these help bring together patients, advocates, and community leaders to highlight the real-world importance of the program. Decisions made in this reauthorization cycle will shape FDA resources and review timelines nationwide. By reauthorizing PDUFA on time, Congress can make sure the FDA can keep reviewing new medicines efficiently and patients in Georgia and across the country can get the treatments they need. 
October 29, 2026
New Hypepotamus feature explores Georgia’s growing MedTech sector and opportunities to strengthen startup development, commercialization, and long-term industry growth Georgia’s life sciences industry is experiencing significant growth, fueled by major investments, expanding research capabilities, and an increasingly connected innovation ecosystem. From biotechnology and medical devices to diagnostics and digital health, the state continues to demonstrate its potential as a destination for life sciences innovation. As Georgia builds on that momentum, an important opportunity is emerging: ensuring that the startups and technologies developed here have the resources and support to grow, scale, and remain in the state. A new Hypepotamus feature, “Atlanta’s MedTech Momentum Faces a Test: Can Startups Stay and Scale?” , by Maija Ehlinger, explores this next phase of ecosystem development. Featuring perspectives from entrepreneurs, investors, and industry leaders, including Georgia Life Sciences President & CEO Maria Thacker Goethe, the article examines how Georgia can build on its existing strengths while addressing challenges facing emerging companies. A Strong Foundation for Continued Growth Georgia has made substantial progress in establishing itself as a competitive life sciences hub. Recent major investment announcements, including UCB’s planned $2 billion biologics manufacturing facility in Gwinnett County and Shriners Children’s planned investment of more than $153 million in a research institute at Science Square, reflect continued confidence in the state's capabilities and potential. The state also benefits from a strong network of research universities, healthcare systems, entrepreneurial support organizations, and innovative companies developing technologies that have the potential to improve patient care and advance medical discovery. Programs and facilities such as Georgia Tech's ATDC, BioSpark Labs, and other regional innovation resources provide important support for emerging companies, helping entrepreneurs move promising ideas toward commercial application. These assets represent a strong foundation for future growth. Addressing the Needs of a Maturing Ecosystem While Georgia's industry continues to advance, emerging MedTech and biotechnology companies face challenges that extend well beyond the state. A changing investment environment, increasingly complex commercialization pathways, and demand for specialized infrastructure are reshaping how early-stage companies develop and grow. The Hypepotamus article highlights some of these pressures, including the recent closure of Portal Innovations' Atlanta location and the challenges startups encounter in securing affordable laboratory space, early-stage capital, and industry connections. These developments underscore the importance of strengthening the support systems that enable innovation. They also reflect a broader opportunity for Georgia to build on its progress and ensure that companies at every stage of development can access the resources they need. “Our biggest opportunity is to become as good at growing and retaining life sciences companies as we are at attracting major investments,” said Thacker Goethe in the article. A Roadmap for Georgia’s Next Chapter This focus on growing and retaining innovative companies is central to Georgia Life Sciences' 10-year strategic roadmap , which outlines priorities to strengthen the state's life sciences ecosystem and long-term competitiveness. The roadmap recognizes that continued industry growth requires a coordinated approach to commercialization, access to capital, specialized infrastructure, workforce development, and partnerships across academia, industry, healthcare, and government. For early-stage companies, those connections are especially important. Access to research facilities, clinical partners, experienced mentors, investors, and manufacturing resources can make the difference between a promising discovery and a successful commercial enterprise. Through its industry councils, strategic partnerships, and ecosystem initiatives, Georgia Life Sciences is working to help strengthen these connections and support the development of an environment where companies can succeed at every stage of growth. Turning Momentum into Long-Term Opportunity Georgia's life sciences story is one of substantial progress and considerable opportunity. The next chapter will require building on that success with the same intentionality that has helped attract major industry investments and expand the state's research and innovation capabilities. That means continuing to support companies choosing Georgia for major investments while also strengthening the pathways that allow homegrown businesses to develop, commercialize, and scale here. The goal is not simply to attract life sciences innovation to Georgia, but to ensure Georgia is a place where innovation can take root, grow, and thrive. The Hypepotamus feature offers a timely perspective on the opportunities ahead and the importance of continued collaboration across Georgia's life sciences community.  Read the Full Hypepotamus Article
MORE POSTS