The National Institutes of Health (NIH) on Feb. 9 issued supplemental guidance to a grants policy statement that would cut indirect funding, used for facilities and administrative costs, to a standard indirect cost rate of 15 percent. This is just over half of the average reimbursed indirect cost rate in 2023, 27 to 28 percent. A federal judge in Massachusetts temporarily halted this policy change while reviewing its legality after 22 states sued NIH.
In a Feb. 11 letter to NIH, America’s Essential Hospitals urged the administration to rescind this new policy. The letter highlights how this change would cut tens of millions of dollars in funding for NIH projects that are underway, including clinical trials at essential hospitals. The new policy specifically would cut funding for research infrastructure used to support NIH grants, including research facilities; lab structures, equipment, and maintenance; high-speed data processing; security and data storage; and federal regulatory compliance, including safety.
Contact Director of Policy Rob Nelb at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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