The move halts a large slice of money for most universities and research institutions virtually overnight, imperiling vital research in everything from cancer to heart disease.
A cancer research lab at the Gunderson Institute in LaCrosse, Wisconsin. Virtually all universities and medical research centers across the country would be affected by the grant cuts.
In a post on social media, NIH said the change would save more than $4 billion a year, effective immediately. The note singled out Harvard University, Yale University and Johns Hopkins University’s multibillion-dollar endowments, implying that many universities do not need the added federal funding. Trump allies hailed NIH’s move. The U.S. DOGE Service, the agency led by billionaire Elon Musk that has focused on slashing government spending, said NIH’s new policy would save billions of dollars in “excessive grant administrative costs.”Republicans in recent years had weighed cutting federal funds for overhead costs at universities, with the first Trump administration abandoning a plan to do so amid pressure from biomedical leaders.
“These are real costs and will cause MIT to decrease the amount of critical life sciences research that the Institute is able to execute,” said Maria Zuber, a geophysicist and MIT’s presidential adviser for science and technology policy, in an email. Jeffrey Flier, the former dean of Harvard Medical School, said that the move came as a shock to him and his colleagues across academia.Several researchers said that NIH’s high rate of funding for indirect costs helped subsidize the infrastructure necessary for their work - everything from a building’s heating and electricity to personnel.
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