The Trump administration is cutting billions of dollars in medical research funding at universities, hospitals and other scientific institutions by reducing the amounts obtained at the associated costs to support such research.
The National Institutes of Health (NIH) said it would cut down on the amount of “indirect” medical research funding to go to institutions, cutting out $4 billion in annual spending.
A 15% limit on grants awarded to the institution is permitted to the related expenses of buildings, equipment, support staff, and more. This is a significant reduction in what was previously permitted in the NIH grant system.
“The United States should do the best medical research in the world,” the NIH said in a statement Friday. “Therefore, it is important to ensure that as much funding as possible reaches the direct cost of scientific research rather than the administrative overhead.”
In the fiscal year 2023, $9 billion of the $35 billion grant awarded grants will be issued to cover overhead, adding that the new fees will be in line with the requirements of the Private Foundation.
The move has been welcomed by supporters of Trump’s attempts to cut government spending. The Department of Government Efficiency, led by billionaire Trump supporter Elon Musk, welcomed the cuts in funds and tweeted that it was an “amazing job” by the NIH.
However, researchers warned that the cut would be at risk for important medical research. “This is a surefire way to cripple life-saving research and innovation,” said Matt Owens, chairman of the Council on Government Relations, representing universities and academic medical centers. “Refunds for facility and management expenditures are part of the total cost of conducting world-class research, and are parcels.
“American competitors will experience this self-harm. We urge NIH leaders to withdraw this dangerous policy before Americans feel the harm they have.”
Democrats also criticized the decision, which follows a broader freeze on several research grants imposed by the Trump administration.
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Democrat Sen. Patty Murray said the impact of funding cuts is “nothing devastating for many life-saving patients and families.”
“Sick children may not receive the treatment they need. Clinical trials may suddenly be closed with dangerous outcomes. Elon Musk does not understand indirect costs That doesn’t mean that Americans have to pay the price with their lives.”
