The National Institutes of Health (NIH) announced a significant change to how it funds university research, lowering the maximum indirect cost rate that institutions can charge the government from over 25% to 15%. This move, aimed at saving billions of dollars annually, has sparked debate among researchers and policymakers. Some argue that the cuts will harm biomedical research by limiting funding for essential infrastructure and support, while others believe it will streamline operations and promote more strategic research initiatives.
FILE - A research scientist looks at ovarian cancer cells under a microscope at UW Medicine's Cancer Vaccine Institute Thursday, May 25, 2023, in Seattle. in how it pays university researchers for the "indirect costs" they incur, and the agency said the change will save taxpayers billions of dollars a year.
“What they found is undoubtedly there, and getting rid of it is excellent,” Early said. “And what we now need is to get the new leader in there.”The NIH announcement touting billions in annual savings was related to indirect cost rates for government-funded medical research.Government research grants, which usually go to universities, include money for indirect costs to support facilities and administration.
Jeffrey Flier, the former dean of Harvard Medical School, said in his own social media post that cutting these indirect costs on research grants “will cause chaos and harm biomedical research.”, professor emeritus of health policy and management at George Washington University, told The National News Desk on Monday that the 15% cap on indirect costs will throttle vital medical research.
“This is cutting your nose off to spite your face,” he said. “It's going to undermine the ability of the universities to do the research that they have been contracted to do.” The Bill and Melinda Gates Foundation, for example, offers a maximum indirect rate of 15%, or 10% for institutions of higher education.
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