On February 7, 2025, the Trump administration announced that it was cutting $4 billion in funding for medical research at universities, hospitals, and other scientific institutions. The National Institutes of Health (NIH) said that the cuts will take the form of a reduction in the amount of “indirect costs” institutions receive. Indirect costs are used to cover overhead and related costs such as to purchase laboratory equipment and technology, pay support staff, and cover the cost of other essential services that make research possible.
Critics warn that the cuts will be catastrophic. According to Matt Owens, president of the Council on Government Relations, “reimbursement of facilities and administrative expenditures are part and parcel of the total costs of conducting world-class research.” The cuts will mean reallocating research funds to address the shortfall.
Update: Two federal judges issued temporary restraining orders blocking the freeze on January 31 and February 3. As of February 11, 2025, the funds had still not been released.
Update: On February 12, 2025, NIH staff were told in an email from NIH Deputy Director for Extramural Research Michael Lauer and NIH Chief Grants Officer Michelle Bulls that the funding freeze was illegal and that they should resume issuing grants.