In a significant change to funding regulations, the Trump administration has announced a reduction in indirect cost reimbursements on all grants from the National Institutes of Health (NIH) to 15 percent. This policy shift is expected to have profound implications for numerous universities and research facilities that rely heavily on such funding to sustain their operations. Health institutions have raised concerns about the potential long-term effects on ongoing and future medical research projects. According to the NIH, the indirect cost rate is designed to cover overhead expenses incurred by research institutions but the new cap will make it increasingly challenging for universities to adequately support research initiatives. ‘This is a devastating blow to medical research, particularly as we face numerous health crises,’ said Dr. Susan Jones, a leading researcher at Johns Hopkins University. Critics argue that the cut in indirect funding will force many institutions to reevaluate their research activities and could stall crucial research in areas such as cancer and infectious diseases. The move has also prompted backlash from educational leaders and academic institutions across the country. A statement from the American Council on Education (ACE) highlighted, ‘Slashing research reimbursement will undermine our ability to innovate and discover solutions to complex health challenges.’ As universities brace for the changes, many fear that the cuts could lead to job losses and reduced research outputs. The Trump administration justified the cuts as a measure to maximize efficiency in federal spending. However, stakeholders have criticized the decision, calling it shortsighted and detrimental to the nation’s scientific progress and public health.
Trump Administration Cuts Indirect Costs on NIH Grants to 15 Percent, Impacting Medical Research Funding
