The US agency responsible for overseeing medical research has announced a significant reduction in funding for universities and research centres, a decision met with strong opposition from scientists and academics who warn it could hinder progress in the fight against cancer and other diseases.
The National Institutes of Health (NIH) revealed on Friday that it would impose a 15 per cent cap on the funding allocated to indirect costs, which cover overheads related to research.
This marks a stark decrease from the current indirect cost rates, which in some cases reach as high as 60 per cent.
The NIH stated that this change, expected to save more than $4 billion annually, would take effect immediately.
According to the agency, the decision was made to ensure that more funding is directed towards the direct costs of scientific research.
However, the reduction has raised concerns among researchers, who argue that it could have a damaging impact on vital studies into diseases such as cancer and neurodegenerative conditions like Alzheimer’s and Parkinson’s disease.
Matt Owens, president of the Council on Governmental Relations (COGR), which represents research institutes and medical centres at universities, expressed his disapproval, calling the move a “surefire way to cripple lifesaving research and innovation.”
He warned that America’s global competitors would benefit from what he described as a “self-inflicted wound.”
Owens urged NIH leadership to reverse the policy before its consequences are felt.
Former Harvard University medical faculty dean Jeffrey Flier also criticised the policy, stating that it appeared to be a deliberate attempt to harm research institutions and the biomedical research field.
He expressed concern that the decision would create “chaos” and have severe consequences for researchers.
In defence of the policy, the White House argued that it aligns the indirect cost rates with those used by private sector foundations.
A statement from the White House explained, “NIH announced a new indirect costs policy that is in line with what research institutions receive from private foundations. The indirect cost rate is intended to cover overhead, and the federal government has been paying an excessively high rate.”
However, institutions affected by the funding cuts, such as Johns Hopkins University, warned that the indirect costs support crucial tools and services necessary for research.
A spokesperson for the university explained that these funds cover the facilities, personnel, and resources required to sustain laboratories, including electricity for equipment and security for clinical data.
Scientists have raised further concerns about the lack of transparency in the new administration’s approach to health-related data, especially as large volumes of epidemiological information have been removed from government health websites.
The policy change received support from billionaire Elon Musk, a close advisor to President Donald Trump, who has advocated for significant reductions in federal spending.
Several Republican lawmakers also welcomed the decision, although it is expected to have the most substantial impact on prestigious research universities like Harvard, Yale, and Johns Hopkins.
