The NIH aims to save over $4 billion annually with these cuts
The National Institutes of Health (NIH) is significantly reducing funding for biomedical research and capping indirect funds for universities at 15% starting Monday. The agency aims to save over $4 billion annually with these cuts.
Indirect funds help universities cover costs for lab equipment, infrastructure, data processing, staff, and safety measures for human subjects, according to the Association of American Universities.
The new cap will impact major US medical universities, including Harvard, Yale and Johns Hopkins, which each received over 60% in indirect funding in 2023.
The NIH reported awarding $35 billion in grants in fiscal 2023, with $9 billion allocated to administrative overhead.
Supporters, including Elon Musk and conservative groups, argue that wealthy universities do not need large endowments. The White House claims the change will increase direct research funding.
However, universities, scientists and Democrats warn that the move will lead to job losses and slow medical advancements, particularly in cancer research and chronic diseases like diabetes and heart disease.
In addition, smaller universities conducting life-saving medical research may be disproportionately affected.