Stanford, Harvard Warn of 'Deep Impacts' as NIH Cuts Indirect Cost Reimbursement
Stanford University and Harvard University, along with other leading research institutions, have expressed grave concerns over potential consequences for healthcare and scientific innovation stemming from the Trump Administration's reduction in federal funding through the National Institutes of Health (NIH).
The changes, effective Monday, will cut the reimbursement rate for indirect costs—expenses such as laboratory facilities, equipment, and staff—from an average of over 50% to 15%. Stanford anticipates a loss of approximately $160 million per year in NIH funding alone.
"This cut could have profound implications for medical care, human health, and America's global leadership in biomedical research," said Stanford's Provost, Jenny Martinez.
The funding reduction is the latest in a series of actions targeting universities, which collectively receive billions in federal grants each year. The White House has recently launched investigations into alleged violations of a law prohibiting sex-based discrimination against transgender athletes, as well as scrutiny of universities' responses to antisemitism, free speech concerns, and diversity initiatives.
Harvard President Alan Garber emphasized the potential impact on scientific progress. "Federal funding for scientific research has fueled talent attraction, innovative ideas, and rapid advancements in healthcare and technology," he said. In the last academic year, Harvard received close to $700 million in federal funding.
The cuts to indirect cost reimbursement pose significant threats to university budgets and could hinder the discovery of new treatments and compromise the nation's scientific competitiveness.