NIH to Cut Billions in Overhead Costs for Research Grants

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NIH to Cut Billions in Overhead Costs for Research Grants
Government & PoliticsNIHResearch Grants
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The National Institutes of Health (NIH) announced plans to reduce billions of dollars in overhead costs associated with federally funded research grants. This move, part of a broader effort by the Trump administration to curb wasteful spending, will cap indirect cost reimbursements at 15% for research grants, down from the historical rate of 27-28%. The NIH estimates this change will save over $4 billion annually.

The National Institutes of Health announced it would be cutting billions in overhead costs associated with federally funded research grants that go to various institutions, as part of a wider move by the Trump administration to slash wasteful spending. The agency's announcement unveiling the directive indicated that in fiscal year 2023, the NIH spent around $35 billion across roughly 50,000 grants that go to research institutions, such as universities and hospitals.

' Some universities responded to the new, indirect cost cap with confusion and backlash. The University of Wisconsin-Madison put out a statement arguing the new indirect cost cap will 'significantly disrupt vital research activity and daily life-saving discoveries.' It added that the move will also 'have an inevitable impact on student opportunities to engage in research activities.

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