The National Institutes of Health, the nation’s premier funder of biomedical research, announced Friday night that it will immediately slash support for “indirect costs” paid to universities, medical centers, and other research grant recipients, funding that the nation’s science enterprise relies on for basic operating costs.
In an announcement issued by the NIH Office of the Director, the agency noted that it has historically supported indirect costs — administrative, facility, and other expenses not directly linked to the goals of a scientific project — with a quarter of the agency’s grant expenses going to these costs. Many of the nation’s most elite research universities receive 50% or more in addition to direct research expenses to cover indirect costs. Going forward, the rate of support will now be 15% for new and existing grants.
A post on X from the agency regarding the change noted that, of the $35 billion NIH spent on research grants during the 2023 fiscal year, $9 billion went to indirect costs. The post noted that the change would save the government $4 billion a year.
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