NIH cuts could cost Virginia research universities millions in funding
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Virginia research universities are poised to lose millions in federal funding under a new National Institutes of Health policy that would cap the agency's reimbursement rate for these schools' administrative costs.
Why it matters: The cap could not only stall critical biomedical research, it could also mean lost jobs and shuttered labs, according to a lawsuit filed by 22 state attorneys general.
The big picture: Earlier this month, the NIH said it would dramatically cut the rate it pays for universities' administration, overhead and other indirect costs, Axios' Adriel Bettelheim reported.
- The change would cap the NIH's current and future indirect cost rate at 15%, down from its current 27% to 28% average, though some schools (including Virginia Commonwealth University) receive more than 50%.
- Indirect costs — which come in addition to the direct payments for research — include expenses like paying for facility maintenance, administration costs and support staff pay.
- So far, the changes have been temporarily stopped by a U.S. District Court judge after the attorneys general lawsuit, which was expanded to cover the entire country.
By the numbers: In total, Virginia universities could lose around $78 million in funding if the 15% cap goes into effect.
- VCU, whose current indirect cost rate is 55.25%, could lose $26 million on current and future grants, the university said Friday.
- Virginia Tech would lose $13 million a year, Tech president Tim Sands wrote in a blog post this month.
- UVA could be out $39 million, the Richmond Times-Dispatch reported.
- And JMU, UR and VSU could also see notable losses, the RTD added.
Stunning stat: NIH federal grants employ more than 7,500 people in Virginia, Radio IQ reported.
What they're saying: "The NIH decision ... would have a debilitating effect on the ability of research universities to carry out their mission," Tech's Sands wrote. "Lives will be lost due to the corresponding reduction in the pace of biomedical research."
The other side: The U.S. should have the best medical research in the world, the NIH said in a memo about the change, which would save the federal government more than $4 billion.
- It is therefore "vital to ensure that as many funds as possible go towards direct scientific research costs" rather than administrative overhead costs, the memo continued.
What's next: A federal judge in Massachusetts is set to hear arguments on the NIH changes on Friday.