NIH cuts to indirect funding
Feb 7, 2025
NIH cuts to indirect funding
Feb 7, 2025
On Feb. 7, the National Institutes of Health (NIH) announced a directive limiting the portion of grant funds allocated for indirect costs, which typically cover administrative and operational expenses at universities. The cap, which has been set at 15 percent, is significantly lower than the national average of around 30 percent, although some universities, including Princeton, had a 2024 indirect cost rate of 64 percent.
The directive is set to take effect on Monday and has raised concerns among Princeton scientists.
“Without NIH grants, I cannot pay the salaries of people in my lab or for the experiments that they perform,” Professor Joshua Akey wrote to the ‘Prince.’
Between Oct. 1, 2023 and Sept. 30, 2024, Princeton was awarded over $58 million from the NIH. According to the NIH, the change is expected to cut $4 billion in spending annually.
“The United States should have the best medical research in the world,” the announcement from the Office of the Director of the NIH read. “It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead.”