Trump Administration Faces Backlash Over NIH Research Grant Overhead Cuts

The National Institutes of Health has recently announced a significant reduction in the overhead costs associated with federally funded research grants. This move is part of a broader strategy by the Trump administration to cut what it views as wasteful government spending.

In fiscal year 2023, the NIH allocated approximately $35 billion across around 50,000 grants to various research institutions including universities and hospitals. Of this amount, approximately $9 billion was designated for indirect costs. These indirect costs cover essential expenses such as building and equipment depreciation, capital improvements, interest on loans for specific buildings, and routine operations and maintenance.

Understanding Indirect Costs

Whenever a grant is awarded, a percentage of the allocated funding is directed to the institution to support its indirect costs. Historically, this percentage has hovered around 27 to 28 percent per grant. However, the new directive now imposes a strict limit of 15 percent for indirect costs unless otherwise negotiated.

Reactions from the Research Community

This directive has sparked confusion and criticism from universities and research institutions across the country. For instance, the University of Wisconsin-Madison expressed that the cap on indirect costs will