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3mo ago

NIH Slashes Indirect Research Funding, Prompting Concerns Over U.S. Scientific Leadership

The National Institutes of Health has capped indirect funding at 15%, cutting billions from university research budgets and sparking fears of halted projects and diminished global competitiveness.

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04-20-2021 Bethesda, Maryland, USA: Bethesda Campus of the National Institutes of Health with the main historical building (Building 1) at the focus.
The entrance to the NIH campus in Bethesda, Md., on April 2, 2019.
Stock file photo of the National Institutes of Health government webspage

Overview

  • The NIH announced an immediate reduction in indirect funding for research institutions, capping it at 15%, down from rates that often exceeded 50%.
  • The policy change is expected to save $4 billion annually but could disrupt ongoing medical research on cancer, Alzheimer's, and other critical diseases.
  • University leaders warn that the cuts jeopardize infrastructure essential for research, including labs, utilities, and animal care, potentially halting projects and threatening jobs.
  • Critics argue that the move undermines U.S. scientific innovation and global competitiveness, while supporters claim it redirects funds to direct research costs.
  • The abrupt implementation has left universities scrambling to adjust, with some questioning the legality of the change and its long-term impact on American science.