The National Institutes of Health announced that they are “making cuts to grants that support research institutions by limiting the amount of indirect funding for research projects to just 15%.”
The NIH’s Office of Policy for Extramural Research Administration, or OPERA, wrote that “$9 billion of the $35 billion total spent on research grants in fiscal year 2023 was allocated from the agency for indirect costs, which cover things like equipment, operations, maintenance, accounting and personnel.”
The memo noted that “the average indirect costs rate for organizations receiving NIH grants was between 27% and 28%, but could sometimes be even higher.” OPERA noted that it arrived at the cap of 15% from looking at “private foundations that fund research grants.”
Why this matters to healthcare professionals: Scientists at various institutions of research, however, are alarmed that this cap will slash funding for “lab space, researchers, and supplies – all considered essential for scientific research.” Michael Eisen, a biologist from the University of California, Berkeley, likens the move to essentially shifting the weight of supporting research to “universities rather than the federal government.”
The Association of American Medical Colleges said that the “government's prior support of indirect facilities and administrative costs ‘allows medical research to happen,’” and they fear the move will “diminish the nation's research capacity, slowing scientific progress and depriving patients, families, and communities across the country of new treatments, diagnostics, and preventative interventions.”
Matt MacKenzie | Associate Editor
Matt is Associate Editor for Healthcare Purchasing News.
