The Trump administration has announced significant cuts to medical research funding, slashing billions of dollars from universities, hospitals, and scientific institutions by reducing the amount allocated for associated costs.
The National Institutes of Health (NIH) stated that it will cut $4 billion annually in “indirect” funding, which covers essential expenses such as buildings, equipment, and support staff. Under the new policy, only 15% of awarded grants will be allowed for these costs, a major reduction from previous funding levels.
“The United States should have the best medical research in the world,” the NIH said in a statement on 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 2023 financial year, $9 billion out of $35 billion in NIH grants went toward indirect costs. The agency defended the cuts by stating that the new limits align with the requirements of private foundations.
Supporters of Trump’s cost-cutting policies welcomed the decision. The “Department of Government Efficiency,” led by billionaire Trump supporter Elon Musk, praised the move, tweeting that it was an “amazing job” by the NIH.
However, researchers and academic institutions warned that the cuts could severely impact medical advancements. Matt Owens, president of the Council on Government Relations, criticized the decision, saying, “This is a surefire way to cripple lifesaving research and innovation. Reimbursement of facilities and administrative expenditures are part and parcel of the total costs of conducting world-class research.”
Critics argue that the decision could harm America’s scientific competitiveness. “America’s competitors will relish this self-inflicted wound. We urge NIH leaders to rescind this dangerous policy before its harms are felt by Americans,” Owens added.
