The National Institutes of Health announced a new policy Friday to cap a type of funding that supports medical research at universities, a decision that most likely will leave many with a large budget gap. The policy targets $9 billion in so-called indirect funds that the N.I.H. sends along with direct funds to support research into basic science and treatments for diseases ranging from cancer to Alzheimer’s to diabetes.Currently, some universities get 50 percent or more of the amount of a grant in indirect funds, meaning a $1 million research award would come with $500,000 to maintain facilities and equipment and pay support staff. The new policy would cap those indirect funds at 15 percent.“I think it’s going to destroy research universities in the short term, and I don’t know after that,” said Dr. David A. Baltrus, a University of Arizona associate professor whose lab is developing antibiotics for crops. “They rely on the money. They budget for the money. The universities were making decisions expecting the money to be there.”Dr. Baltrus said that his research is focused on efforts such as keeping E. coli bacteria out of crops like sprouts and lettuce. He said the policy change would force his university to make cuts to support staff and overhead.The Trump administration has been sharply critical of what it derides as “woke” policies and cultures at universities, which have been bracing for a hit to their budgets. Project 2025, a set of conservative policy proposals, called for capping these related research funds, saying they were sometimes used to fund diversity, equity and inclusion initiatives. Cutting such costs would “reduce federal taxpayer subsidization of leftist agendas,” Project 2025’s authors said.An N.I.H. social media post said the change could save the federal government as much as $4 billion and sharply cut payments to Harvard, Yale and Johns Hopkins Universities, which have overhead rates above 60 percent of their grant sums.Senator Patty Murray, a Democrat of Washington, said in a statement late Friday that the move could “dismantle the biomedical research system, stifle the development of new cures for disease, and rip treatments away from patients in need.”She said the change could shut down some clinical trials at institutions in her state, such as the Fred Hutchinson Cancer Center and University of Washington.The N.I.H. spent about $35 billion in 2023 on about 50,000 competitive grants to about 300,000 researchers at 2,500 universities, medical schools and other research institutions nationwide, according to the new policy. Of that, about $26 billion directly funded research and $9 billion covered indirect costs. The policy is set to take effect Monday. More
