The National Institutes of Health (NIH) has announced a significant policy change, capping funding for "indirect costs" at 15% of grants, affecting thousands of researchers and institutions across the United States. This decision marks a departure from the traditional funding model used by the agency, which spent over $35 billion in the 2023 fiscal year on nearly 50,000 grants, supporting more than 300,000 researchers. The new policy will apply to both current and future grants and will also have retroactive effects, a move that has drawn widespread criticism from the scientific community.
The NIH funds over 2,500 universities, medical schools, and research institutions nationwide. The cap on indirect costs, which covers essential expenditures such as facilities and administrative expenses, is intended to align NIH funding practices with those of private foundations. However, this policy has raised alarms among researchers who fear it will undermine ongoing and future research projects. Dr. George Daley, the dean of Harvard Medical School, expressed his concern about the potential impact of the change.
"We're all reeling," said Dr. George Daley.
Harvard University and Yale University are particularly vulnerable to this change, as they receive 68% and 67% of their research funding from the NIH, respectively. The new policy is the latest in a series of measures by the Trump administration that have affected scientific research. Previous actions have included restricting communication and travel by federal health agencies and freezing some research grants.
Critics argue that the NIH's decision will have dire consequences for scientific progress in the United States. Matt Owens, president of the Council on Government Relations, strongly condemned the policy.
"This is a surefire way to cripple lifesaving research and innovation," stated Matt Owens.
Additionally, Owens highlighted the importance of covering indirect costs for conducting high-quality research.
"Reimbursement of facilities and administrative expenditures are part and parcel of the total costs of conducting world class research," he added.
The NIH defended its decision by noting that private foundations typically offer lower indirect cost rates, which many universities still accept. Nonetheless, the backlash from the academic community remains strong, with many urging the NIH to reconsider its stance.
"We urge NIH leaders to rescind this dangerous policy before its harms are felt by Americans," Matt Owens urged.
