The National Institutes of Health (NIH) announced Friday that it will cap indirect funding for research institutions at 15%, down from an average of nearly 30%. This funding covers administrative and overhead costs for universities, which some institutions previously charged at over 60%. The change, effective Monday, is expected to save $4 billion annually.
The NIH stated that funds should prioritize direct scientific research over administrative expenses. However, the Association of Public and Land-Grant Universities warned the decision would hinder medical breakthroughs.
“This is a direct and massive cut to lifesaving medical research,” said the group’s president, Mark Becker, urging the Trump administration to reconsider.
The administration also froze NIH’s grant review process in early January, canceling study sections and advisory council meetings. “I don’t know that there’s a precedent to this,” said Dr. Esther Choo of Oregon Health and Science University.
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