The US agency responsible for overseeing medical research has announced a significant reduction in funding for universities and research centers, a decision that has been strongly criticized by scientists and academics who warn it will hinder progress in cancer and other disease research.
The National Institutes of Health (NIH) revealed on 7th Feb that it will impose a 15 percent cap on “indirect” or overhead costs associated with research funding. This move marks a sharp reduction from the current indirect charges of up to 60 percent that some institutions bill, potentially cutting billions of dollars in funding.

The NIH stated that the change will save over $4 billion annually, effective immediately, and emphasized that this is crucial to ensuring that more funds are directed toward the direct costs of scientific research.
The expenses targeted for cuts include lab maintenance, equipment, and administrative costs. Scientists have expressed concerns that the reduction could negatively impact research on critical conditions such as cancer and neuro degenerative diseases like Alzheimer’s and Parkinson’s.
Matt Owens, president of the Council on Governmental Relations (COGR), which represents research institutions and medical centers, called the policy a “surefire way to cripple lifesaving research and innovation.” He added that the move could be exploited by the U.S.’s global competitors and urged NIH leadership to reconsider the policy before its negative effects are felt.
Jeffrey Flier, former dean of the Harvard Medical School, criticized the decision on social media, suggesting that it was not intended to improve the research process but to harm institutions, researchers, and biomedical research. He warned that it would lead to chaos and damage to the research community.
There has also been growing concern among scientists over the lack of transparency, as the current administration has removed large amounts of health-related data from government websites.
The NIH’s announcement was supported by billionaire Elon Musk, who is leading an initiative to significantly reduce federal spending.
Some Republican lawmakers also welcomed the move, which is expected to have the most significant impact on prestigious research institutions such as Harvard, Yale, and Johns Hopkins.
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