One also wonders if the reduced funding correlates with more politically focused labs. Certainly the goal of the administration was to avoid giving money to DEI/politically adjacent research, and while I've definitely seen professors take computer science money and throw it towards social science research, I'm not sure what amount of the 8% decrease in funding that might be.
One positive note is universities have been known to abuse students (particularly international/visa students) by making them work in the lab for 5, 6, or 7 years. By restructuring grants to be 4-5 years, and giving the four years of funding up front, professors will be more incentivized to get students out in four years so they can enter industry.