The National Institutes of Health, the nation’s premier funder of biomedical research, announced Friday night that it will immediately slash support for “indirect costs” paid to universities, medical centers, and other research grant recipients, funding that the nation’s science enterprise relies on for basic operating costs.
In an announcement issued by the NIH Office of the Director, the agency noted that it has historically supported indirect costs — administrative, facility, and other expenses not directly linked to the goals of a scientific project — with funds that averaged at around 27% of the cost of a research grant. Going forward, the rate of support will now be 15% for new and existing grants. The cut is a major blow to the nation’s most elite research universities, which often get a rate of more than 50% to cover indirect costs.
A post on X from the agency regarding the change noted that, of the $35 billion NIH spent on research grants during the 2023 fiscal year, $9 billion went to indirect costs. The post noted that the change would save the government $4 billion a year.
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