National Health Institutes (NiH) have announced that they will reduce billions of directing costs related to research grants that fund the allies that go to various institutions, as part of a wider move by Trump administration Reduce wasteful consumption.
The announcement of the agency revealed the directive that in the fiscal year in 2023 he spent about $ 35 billion on approximately $ 50,000, which goes to research institutions, such as university and hospitals. Out of those $ 35 billion, according to announcement, $ 9 billion is allocated for “indirect costs” that cover the costs associated with depreciation on buildings, equipment, capital improvements, interest on debt -related buildings, and work and maintenance costs.
When a grant is allocated, an additional percentage, on top of the awarded research funding, Going to the facility placed their work to cover these “indirect costs”. According to the announcement, this percentage was historically about 27 to 28% for each support; However, the new directive now imposes a threshold of 15%unless otherwise negotiated.
Medical technologist in the molecular diagnostic laboratory extracting DNA from milk samples at the diagnostic animal health center at Cornell University of December 10, 2024. In IThaci, New York. (Photo Michael M. Santiago/Getty Images)
“Most of the private foundations funded by research provide significantly lower indirect costs than the Federal Government, and universities are easily accepted by support from these Foundations. For example, a recent study found that the most common rate of indirect ratings by the Foundation was 0%, which means a lot of the Foundation They do not finance indirect expenses, “the announcement of NIH, announced on Friday night. “In addition, many of the largest state -owned research funds – such as the Bill and Melinda Gates Foundation – have a maximum indirect rate of 15%. And in the case of the Gates Foundation, the maximum rate of indirect costs is 10% for institutions for higher education institutions.”
Some universities responded to a new limit of indirect costs with confusion and a return reaction.
The University of Wisconsin-Madison has announced a statement claiming that new constraints of indirect costs “significantly disrupt vital research activities and daily discoveries that save life.” He added that the move would also “have an inevitable impact on student opportunities to engage in research activities.”
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News about the limit of indirect costs associated with agency research scholarships have arrived in the Memorandum issued by the Office of the Director of the National Institute of Health.
At the University of Michigan, which currently has a negotiating rate of indirect costs with a federal government of 56%, the school presented a statement in which she emphasized “great uncertainty” about how politics would be implemented. The school announced that she began to explore the implications of this new rule on his current support.
“It seems to be a work with the type of philosophy of the current administration of hair and burning,” said Dr. Francis P. Wilson, an associate professor of medicine and public health, Yalea, for Yale Daily News. “He feels unsetifying and abruptly, killed with little attention to the potential consequences of downstream.”
Department of Efficiency of the Trump Administration Government, led by Elon Musk, applauded the move in the post on social networks. “The incredible job of a team of nih,” said the group in the social media post. “Save> $ 4B per year in excessive administrative costs.”
National Health Institutes under President Donald Trump have limited indirect costs associated with agency research scholarships, as part of a wider move to reduce waste state consumption. (Alamy/Getty Pictures)
“Can you believe that tens of billions in gifts have chased 60% of the money for the” Directors “award?” Musk also posted on social networks. “What a ripoff!”
“Contrary to hysteria, diverting billions of allocated spending from the administrative snack means that there will be more money and resources for legitimate scientific research, no less,” is added White house Spokesman Kush Desai in a statement to the journalists.
Fox News Digital reached directly into the comment, but did not receive a reply to the time to publish.
