The National Institutes of Health proposal would limit indirect costs for research projects to 15 percent of grants.
DALLAS, Texas — On Friday, the NIH unveiled a proposal to cap the reimbursement of indirect costs — expenses that support medical research but aren’t tied to specific grants — at 15 percent of total funding. Indirect costs contribute to essential research infrastructure, including equipment, administrative expenses, and facility upkeep.
“By their nature, indirect costs are not easily assigned to specific objectives, making them difficult for NIH to oversee,” the agency explained in a memo detailing the proposed changes. The NIH reported that in fiscal year 2023, approximately $9 billion of its $35 billion research grant budget was allocated to indirect costs.
In North Texas, UT Southwestern Medical Center, a globally recognized hub for medical research, could face a financial setback, warned its president, Dr. Daniel Podolsky, in an email this week. He cautioned that the proposed cap would severely impact UT Southwestern’s ability to carry out innovative research aimed at preventing, diagnosing, and treating diseases.
“Undoubtedly, a blanket reduction in the reimbursement of costs associated with operating and maintaining our research facilities and supporting essential administrative functions will put a tremendous strain on our institution,” Podolsky wrote in a message to faculty and staff. “It will also pressure our capacity to maintain the infrastructure critical to our research endeavors.”
While a federal judge has temporarily halted the policy, its potential impact reaches far beyond UT Southwestern, affecting research institutions across the country and the patients who depend on advanced treatments.
Stephanie Wilcox, a mother from Celina, Texas, understands the importance of medical research funding all too well. 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 holds promise in combating the progressive disease.
“In the Duchenne community, we often say that time is muscle. Every second counts in the effort 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, making ongoing research vital. Wilcox stressed that any disruption in funding could have devastating effects.
“Any interruption in funding that halts research is critically important,” she said. “Health research is not political. It’s bipartisan. It’s heartbreaking to think that delays or disruptions in funding could have such a dire impact on efforts to save lives.”
The Trump administration first proposed these cuts as part of an effort to reform research grant allocations. However, the policy has faced bipartisan opposition. Health and Human Services Secretary Robert F. Kennedy Jr., who was recently appointed, has expressed a willingness to reconsider the cuts after some Republican lawmakers raised concerns during his confirmation.
Podolsky emphasized that UT Southwestern is collaborating with other academic institutions, national research organizations, and lawmakers to oppose the proposed policy change.
“The most significant long-term consequence of this policy will be on the patients who rely on the breakthroughs from our institution and others, ultimately leading to improved treatments and cures,” he said. “Additionally, the policy could harm the U.S.’s standing as a global leader in biotechnology — a sector fueled by NIH-driven discovery and a key driver of national and state economic growth.”
For families like the Wilcoxes, the stakes couldn’t be higher.
“In the race for medical breakthroughs, every second counts,” Wilcox said.
