How NIH cuts could stall Pittsburgh's economy
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The Pittsburgh area's economy could lose out on billions of dollars if federal health research cuts proposed by the Trump administration go through, officials say.
Why it matters: Pittsburgh's economy is largely driven by health care, universities and tech — the so-called "Eds and Meds" — and medical research is a huge part of that equation, according to Stefani Pashman, CEO of pro-business coalition Allegheny Conference on Community Development.
Context: The National Institutes of Health announced last month it would cut $4 billion in grant funding it sends to universities and other research institutions.
- The NIH awarded $35 billion nationally in the 2023 fiscal year, and $2.2 billion of that was awarded to Pennsylvania.
Driving the news: U.S. Representatives met Monday in Downtown with state and union officials to discuss how potential NIH cuts on medical research at the University of Pittsburgh and other institutions would hurt the economy.
- "This will impact our entire community. Everyone in Western Pennsylvania has some connection to Pitt," said Tyler Bickford, head of the United Steelworkers union that represents 3,500 faculty members at Pitt.
By the numbers: Pashman told Axios that NIH funding provides $2.5 billion in economic impact for the area.
- If the cuts are finalized, $163 million in direct funding to Western Pennsylvania universities and institutions is at risk, said U.S. Rep. Chris Deluzio (D-Aspinwall).
- NIH funds support 21,000 jobs across Pennsylvania, said U.S. Rep. Summer Lee (D-Swissvale).
What they're saying: "This is an industry that is the backbone of this region," said Lee. "It would be as big as making cuts to U.S. Steel in its heyday."
Zoom out: Pashman said medical research is a cornerstone of Pittsburgh's "Eds and Meds" economy.
- "It is our brand now," she said. "It really would stall our economy if it came through. It would take some significant wind out of the sails of the region."
- One example of medical research attracting economic development is the $120 million BioForge Biomanufacturing Center in Hazelwood, said Pashman.
Zoom in: Pitt is one of the top medical research institutions in the country, and it receives $700 million in NIH funding annually.
- It froze Ph.D. admissions two weeks ago in the face of an NIH funding pause, and then reinstated them again a week later.
The other side: The cut proposals are being led by Elon Musk's DOGE. Musk said in February that some universities were disproportionately using the federal funds on overhead costs instead of directly on research.
What we're watching: A federal judge in Massachusetts is still considering whether the proposed funding cut is unlawful.
The bottom line: Pitt graduate student and researcher Alisa Omelchenko said the NIH funding pause is already stopping work at labs in her Computational Biology department.
- She said the uncertainty will lead medical researchers to choose other institutions outside of Pittsburgh, and possibly outside of America, to conduct their work.
Editor's note: This story has been corrected to say the United Steelworkers union represents 3,500 Pitt faculty members (not 35).