The Trump administration has made a significant announcement regarding biomedical research funding, revealing plans to cut billions in overhead costs associated with research grants. The National Institutes of Health (NIH) announced on Friday that it will reduce funding for "indirect costs," which typically cover expenses such as utilities and administrative support, aiming to increase the amount directed towards direct scientific research. This initiative is part of broader efforts to curb government spending and is projected to save approximately $4 billion.
Trump Administration Cuts Billions from Biomedical Research Grants

Trump Administration Cuts Billions from Biomedical Research Grants
New cost-saving measures by the Trump administration threaten to impact scientific advancements as it slashes funding for research overheads.
Effective Monday, the NIH will institute a cap of 15 percent on indirect cost rates—a substantial decrease from the current average of 30 percent. The move has garnered attention from figures like Elon Musk, who criticized universities for reportedly appropriating excessive funding for these overhead costs, claiming they exploit the system. However, the scientific community has expressed strong opposition to the cuts, warning that they could severely hinder medical research efforts across the nation.
The Association of American Medical Colleges stated that government support for indirect costs is essential for the sustainability of medical advancements, contending that the reductions could deteriorate the nation’s research capabilities. Experts fear this will slow scientific progress and limit access to vital treatments for many patients.
Dr. Anusha Kalbasi from Stanford University echoed these concerns, labeling the cuts a "disaster beyond belief." The American Council on Education highlighted the importance of funding for maintaining state-of-the-art laboratories, warning that some facilities may already be closing in response to the funding cuts. There are indications that legal action may be forthcoming against these proposed changes, which stem from conservative proposals to overhaul research funding structures outlined by the Heritage Foundation.
The Association of American Medical Colleges stated that government support for indirect costs is essential for the sustainability of medical advancements, contending that the reductions could deteriorate the nation’s research capabilities. Experts fear this will slow scientific progress and limit access to vital treatments for many patients.
Dr. Anusha Kalbasi from Stanford University echoed these concerns, labeling the cuts a "disaster beyond belief." The American Council on Education highlighted the importance of funding for maintaining state-of-the-art laboratories, warning that some facilities may already be closing in response to the funding cuts. There are indications that legal action may be forthcoming against these proposed changes, which stem from conservative proposals to overhaul research funding structures outlined by the Heritage Foundation.