The National Institutes of Health (NIH) is a multi-billion dollar overhead related to federally funded research grants sent to various agencies as part of a broader move to reduce unnecessary spending by the Trump administration. It has announced that it will reduce the number of
An institutions publishing the directive shows that in 2023, NIH spent about $35 billion on roughly 50,000 grants spent on research institutions such as universities and hospitals. Of that $35 billion, $9 billion is indirect costs, covering improvements to buildings, equipment, capital, interest on debts related to certain buildings, and expenses related to operational and maintenance costs, according to the announcement. I was assigned.
Once grants are awarded, an additional percentage, in addition to the allocated research funds, will go to facilities that house their work to cover these “indirect costs.” According to the announcement, the percentage has historically been around 27-28% for each grant. However, unless otherwise negotiated, the new directive imposes a 15% threshold.
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Medical technicians at the Molecular Diagnostic Lab will extract DNA from milk samples for testing at Cornell University’s Animal Health Centre in Ithaca, New York on December 10, 2024. (Photo by Michael M. Santiago/Getty Images)
“Most private foundations and universities, where foundation research offers significantly lower indirect costs than the federal government, are easily accepted grants from these foundations. For example, a recent study shows that reimbursing indirect rates by foundations. The rate was found to be 0%, according to the NIH announcement released Friday evening. “In addition, many of the nation’s largest research funders are among the countries’ largest research funders, including the Bill and the Melinda Gates Foundation. The maximum indirect rate is 15%. And for the Gates Foundation, the maximum indirect cost rate for an institution is 10%. For higher education.
Some universities have responded to new indirect cost caps with confusion and rebound.
The University of Wisconsin-Madison has issued a statement claiming that the new indirect cost cap “significantly disrupts important research activities and everyday life-saving discoveries.” He added that the move “has an inevitable impact on opportunities for students engaged in research activities.”
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CAP news about indirect costs related to institutional research grants can be found in a memo issued by the Director of the National Institutes of Health.
At the University of Michigan, where a 56% indirect cost rate is currently negotiated with the federal government, the school has issued a statement highlighting “a lot of uncertainty” about how the policy is implemented. The school said it has begun to investigate the implications of this new rule for current grants.
“It seems like a kind of novel philosophy of the current administration,” Dr. Francis P. Wilson, an associate professor of Yale medicine and public health, told Yale Daily News. “It’s indiscriminate and sudden and is carried out with little consideration of potential downstream consequences.”
Elon Musk’s Trump administration’s Office of Government Efficiency praised the move in a social media post. “A great job with the NIH team,” the group said in a social media post. “We saved $4 billion a year on excessive grant management costs.”
The National Institutes of Health under President Donald Trump has capped indirect costs associated with institutional research grants as part of a broader move to reduce wasteful government spending. (Aramie/Getty Images)
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“Can you believe that a university with tens of millions of contributions sucked up the fact that it awarded 60% of its research for “overhead”? “Masks also posted on social media. “What a Lipof!”
“Contrary to hysteria, redirecting billions of allocated NIH spending away from management bloat means more money and resources are available for legitimate scientific research.
Fox News Digital contacted NIH directly for comment but did not receive a response in time for publication.
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