The National Institutes of Health proposal would limit indirect costs for research projects to 15 percent of grants.
DALLAS, Texas — On Friday, the NIH announced a proposal to limit the reimbursement of indirect costs — expenses that support medical research but are not tied to specific grants — to 15 percent of total funding. Indirect costs help cover essential research infrastructure, including equipment, administrative expenses and facility maintenance.
“Indirect costs are, by their very nature, ‘not readily assignable to the cost objectives specifically benefitted’ and are therefore difficult for NIH to oversee,” the NIH stated in a memo explaining the changes. The agency reported that approximately $9 billion of its $35 billion research grant budget in fiscal year 2023 went toward these expenses.
In North Texas, UT Southwestern Medical Center, which is internationally known for its medical research efforts, could suffer a financial blow, its president, Dr. Daniel Podolsky, warned in an email this week. He cautioned that the proposed cap would significantly impact UT Southwestern’s ability to continue groundbreaking research to prevent, diagnose, and treat disease.
“Unquestionably, a blanket reduction in the reimbursement of costs associated with operating and maintaining our research facilities and supporting essential administrative activities will significantly strain our institution,” Podolsky wrote in an email to faculty and staff. “It will also put pressure on our ability to maintain the infrastructure necessary for our research operations.”
While a federal judge has temporarily halted the policy, its potential consequences extend far beyond UT Southwestern, affecting research institutions nationwide and patients who rely on cutting-edge treatments.
Stephanie Wilcox, a mother from Celina, Texas, knows firsthand how crucial medical research funding can be. Her 10-year-old son, Troy, was diagnosed with Duchenne muscular dystrophy at age four and a half. He is currently enrolled in a clinical trial at the University of Arkansas Medical Center receiving an experimental drug that offers hope in the fight against the progressive disease.
“In the Duchenne world, we like to say that time is muscle. Every second counts in trying to find a treatment or, one day, a cure,” Wilcox said.
The average life expectancy for those with Duchenne muscular dystrophy is just 22 years old, making continued research essential. Wilcox emphasized that any disruption in funding could have devastating consequences.
“Any halt in funding that could halt research is vitally critical,” she said. “Health research is not political. Health research and funding for research is bipartisan. It’s devastating to think that a delay or a halt in this funding could have such an impact on truly saving lives.”
The Trump administration introduced the proposed cuts as part of an effort to overhaul research grant allocations. However, the policy has faced bipartisan scrutiny. Newly appointed Health and Human Services Secretary Robert F. Kennedy Jr. has indicated he would re-evaluate the cuts after some Republican lawmakers voiced concerns during his confirmation process.
Podolsky stressed that UT Southwestern is working alongside other academic institutions, national research organizations, and lawmakers to fight the policy change.
“The most significant long-term impact of this policy will be on the patients who depend on the discoveries made in our institution and others, ultimately leading to better treatments and cures,” he said. “Another unwanted long-term impact will be a decline in U.S. competitiveness as a global leader in biotechnology, a sector driven by NIH-fueled discovery and an engine of state and national growth.”
For families like the Wilcoxes, the stakes couldn’t be higher.
“In the race for medical breakthroughs, every second counts,” Wilcox said.
