Trump administration to cut billions in medical research funding | Trump administration

The Trump administration is cutting billions of dollars in medical research funding for universities, hospitals and other scientific institutions by reducing the amount they get in associated costs to support such research.

The National Institutes of Health (NIH) said that it was reducing the amount of “indirect” medical research funding going to institutions, which will cut spending by $4bn a year.

A limit of 15% of grants awarded to institutions will be allowed for associated costs such as buildings, equipment and support staff. This is a major reduction on what was previously allowed under the NIH grant system.

“The United States should have the best medical research in the world,” the NIH said in a statement on Friday. “It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead.”

In the financial year of 2023, $9bn out of $35bm in awarded grants went to cover overheads, the NIH said, adding that the new rate will be more in line with requirements of private foundations.

The move has been hailed by supporters of Trump’s attempts to slash government spending. The “department of government efficiency”, headed by billionaire Trump supporter Elon Musk, welcomed the funding cut, tweeting that it was an “amazing job” by the NIH.

However, researchers warned that the cut will imperil vital medical research. “This is a surefire way to cripple lifesaving research and innovation,” said Matt Owens, president of the Council on Government Relations, which represents universities and academic medical centers. “Reimbursement of facilities and administrative expenditures are part and parcel of the total costs of conducting world class research.

“America’s competitors will relish this self-inflicted wound. We urge NIH leaders to rescind this dangerous policy before its harms are felt by Americans.”

Democrats also criticized the decision, which follows a broader freeze on some research grants imposed by the Trump administration.

The impact of the funding cut will “be nothing short of catastrophic for so much of the lifesaving research patients and families are counting on,” said Patty Murray, a Democratic senator.

“Sick kids may not get the treatment they need. Clinical trials may be shut down abruptly with dangerous consequences. Just because Elon Musk doesn’t understand indirect costs doesn’t mean Americans should have to pay the price with their lives.”