The National Institutes of Health (NIH) announced a significant policy shift by capping the rates grants pay for indirect research costs at 15 percent, down from the current average of 30 percent. This move, effective from Monday, aims to save $4 billion (£3.2 billion) as part of broader cost-saving measures initiated by President Donald Trump's administration. The proposal, part of Project 2025—a conservative "wish list" by the Heritage Foundation think tank—has ignited a heated debate over its implications for scientific research.
The announcement has generated concern among educational and medical research institutions. Indirect research costs, which fund essential infrastructure such as laboratories and advanced technologies, are critical for maintaining cutting-edge facilities. The American Council on Education emphasized that these funds are vital for universities to sustain their research capabilities. The Association of American Medical Colleges echoed this sentiment, stating that government support for indirect costs is crucial for enabling medical research.
Some scientists and academic leaders have voiced strong opposition to the cuts. Anusha Kalbasi, a lead radiation oncologist at Stanford University, described the move as a "disaster beyond belief," warning it could stifle scientific advancements. In contrast, Elon Musk criticized universities' spending on indirect costs, labeling it a "ripoff."
The cap on indirect research costs has already begun to impact research operations. According to Ted Mitchell, president of the American Council on Education, some laboratories started closing over the weekend in anticipation of financial challenges posed by the new cap. This abrupt change has left many researchers scrambling to reassess their funding strategies.
Supporters of the cap argue that it aligns with fiscal responsibility. The Heritage Foundation suggested that Congress should limit the indirect cost rate paid to universities, ensuring it does not surpass the lowest rate accepted from private organizations for similar research efforts.
"Congress should cap the indirect cost rate paid to universities so that it does not exceed the lowest rate a university accepts from a private organization to fund research efforts." – The Heritage Foundation
The NIH firmly believes that the United States should remain at the forefront of global medical research. By implementing these cost-saving measures, they aim to maximize the efficiency and impact of federally funded research initiatives.
"The United States should have the best medical research in the world," – National Institutes of Health (NIH)