The Trump administration is reducing billions of dollars in medical research funding for universities, hospitals, and other scientific institutions by lowering the amount they receive in associated costs for such research.
The National Institutes of Health (NIH) announced that it would reduce the amount of “indirect” medical research funding that institutions receive, saving $4 billion per year.
A maximum of 15% of grants awarded to institutions will be allocated to associated costs such as buildings, equipment, and support staff. This represents a significant reduction in what was previously allowed under the NIH grant system.
“The United States should have the best medical research in the world,” the National Institutes of Health said in a statement Friday. “It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead.”
In the fiscal year 2023, $9 billion of the $35 billion in awarded grants went to cover overheads, according to the NIH, and the new rate will be more in line with private foundation requirements.
Supporters of Trump’s efforts to reduce government spending applauded the move. The “department of government efficiency,” led by billionaire Trump supporter Elon Musk, applauded the funding cut, calling it a “amazing job” by the NIH.
However, researchers cautioned that the cut would jeopardize critical medical research. “This is a surefire way to cripple lifesaving research and innovation,” said Matt Owens, president of the Council on Government Relations, an organization that represents universities and academic medical centers. “The cost of conducting world-class research includes reimbursement for facilities and administrative expenses.
“America’s competitors will enjoy the self-inflicted wound. We urge NIH leaders to reverse this dangerous policy before the consequences are felt by Americans.
Democrats also criticized the decision, which comes after the Trump administration imposed a broader freeze on some research grants.
According to Patty Murray, a Democratic senator, the funding cut will “be nothing short of catastrophic for so much of the lifesaving research patients and families are counting on”.
“Sick children may not receive the treatment they require. Clinical trials may be halted abruptly, with serious consequences. Just because Elon Musk does not understand indirect costs does not mean that Americans should be forced to pay the price with their lives.
