The National Institutes of Health faces a federal court challenge over its plan to cut over $4 billion from indirect research costs critical for university-funded projects. Higher education institutions warn that these cuts could not only cripple budgets but also halt significant medical research advancements, jeopardizing ongoing clinical trials and leading to a loss of expertise and infrastructure. The NIH defends its decision, suggesting no immediate irreversible effects. These changes stem from an announcement to cap indirect costs at 15 percent, down from an average of 28 percent, severely affecting institutions that rely on these funds for essential research activities.
The consequences—imminent, certain, and irreparable—extend far beyond money, including lost human capital, shuttering research projects, stalling clinical trials, and forgoing advances in medical research.
The NIH's cap on indirect research cost rates at 15 percent dramatically reduces funding crucial for universities, which previously averaged around 28 percent.
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