The us agency overseeing medical .

The National Institutes of Health (Nih) said late Friday it was setting a 15 percent limit on its funding of “indirect,” or overhead, costs linked to research.

That represents a dramatic drop, Amouning to billions of dollars, from the indirect billings of up to 60 percent now charged by some organizations, the agency said.

“This change will save more than $ 4b a year effective immediatily,” The official nih account said on x.

It said it was “vital to ensure that as many funds as possible go towed direct scientific research costs.”

The expenses being targeted include Maintenance, Equipment and Administrative Costs at Research Laboratories.

The cut should affect research on diseases like cancer and neurodegenerative conditions like alzheimer’s and parkinson’s days, scientists, scientists said.

“This is a surefire way to cripple lifesaving research and innovation,” Matt Owens, President of Cogr, Which Represts Research Institutes and University Medical Centers, Said in a statement in afp.

“America’s competitors will relieve this self-inflicted wound,” He said. “We Urge Nih Leaders to Rescind this Dangerous Policy Before Its Harms are felt by Americans.”

Jeffrey Flier, Former Dean of the Harvard University Medical Faculty, said on x that the approach by President Donald Trump’s Administration ” Iomed research. “

He said it would “cause chaos and harm biomedical research and researchers.”

The White House on Saturday Defended The Move, Saying it was bringing its indirect cost rates in line with metrics used by private sector foundations.

“Nih announced a new indirect costs policy that is in line with what research institutions Receive from Private Foundations,” said a statement.

“The indirect cost rate is intended to cover overhead and the federal government has been paying an exorbitantly high rate.”

Institutions potentially affected by the cuts said the indirect costs pay for “essential” tools that enable research.

“The Targeted Funds pay for the essential tools, facilitations, and support personnel that make research poses Ect Clinical Data Behind Life-Saving Medical Treatments, “said a spokesperson for Johns Hopkins University.

Scientists have expressed concern in recent weeks at the lac of transparency as the new administration removs reams of epitemiological data from health-revenue from health-health websites.

The Nih Announcement was Saluted by Elon Musk, The Billionaire Trump Advisor Leading an Effort to Drastically Trim Federal Spending.

Some republican lawmakers also welcomed the measure, which is likely to have its greenst impact on prestigious research universities like Harvard, Yale and Johns Hospitals.

© 2025 AFP