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GAO Finds Trump Administration Broke Law by Withholding $8 Billion in NIH Funds

Congress’s appropriators approved a modest budget increase for NIH’s fiscal 2026 allocation despite ongoing OMB measures that limit the agency’s ability to obligate its appropriations.

James H. Shannon Building/Building 1/NIH campus The historic Building 1 on the NIH campus in Bethesda, MD.
"Biomedical research leads to longer, healthier lives," Senate Appropriations Chair Susan Collins, R-Maine, said.
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Overview

  • A Government Accountability Office report concludes the administration’s cancellation of over 1,800 NIH grants and an $8 billion shortfall in obligations violated the Impoundment Control Act of 1974.
  • Between February and June, NIH committed roughly 62% of the prior year’s funding as executive directives targeting equity-related research paused grant reviews and halted new awards.
  • Senate appropriators rejected President Trump’s proposed 40 percent NIH budget cut and instead proposed $48.7 billion for fiscal 2026, a $400 million increase over 2025.
  • The Office of Management and Budget has required NIH to front-load multi-year grants and delayed releases of unspent funds under OMB review, reducing the agency’s capacity to fund new research.
  • Federal courts have already blocked an indirect‐cost cap and restored some grants, and Congress is leveraging the GAO finding to reinforce legislative control over research funding.