Axios - NIH today is due to start cutting billions of dollars in payments for medical research centers' overhead costs after the Trump administration announced a policy shift late Friday that sent shockwaves through academia.
Why it matters: Capping the so-called indirect cost rate was recommended in the Project 2025 conservative blueprint, which said the reimbursements "cross-subsidize leftist agendas" and help pay for DEI efforts.
By the numbers: NIH is limiting indirect payments to 15% of the total cost of new and current grants. Reimbursements have varied by institution and averaged between 27% and 28%, with some receiving more than 50%, according to the agency. NIH noted that Harvard, Yale and Johns Hopkins each received more than 60% and said the caps overall will save the government more than $4 billion.
The payments go toward lab operations, data processing, safety measures for human subjects and paying administrative staff. Some Democratic lawmakers and academic officials say the move violates laws on NIH funding and could immediately stymie research on cures for cancer and chronic diseases. More: NIH chops support for some medical research costs
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