The National Institutes of Health has made a landmark decision that could irreparably damage the backbone of American scientific innovation: a dramatic reduction in the indirect cost rate for research grants. This sweeping policy change sets the indirect rate to 15%, a stark contrast with the 60% or more that many institutions currently rely on for essential administrative and operational costs.
As we contemplate this new era of science funding, it’s essential to understand the role that indirect costs play in research. These funds are not a luxury — they are vital for supporting the infrastructure that makes groundbreaking discoveries possible. Indirect costs cover expenses like research administration, the maintenance of lab facilities, and the overall operations that enable research to thrive. Without them, universities and research institutions simply cannot function at their full capacity.
The NIH’s move to cut these rates represents an unfortunate attempt to reduce federal spending. While there are ways to improve operational efficiencies, slashing funding for the infrastructure of American research is an error that will lead to damaging consequences. Research is not just about the work done in laboratories; it’s about the ecosystem that supports those efforts, the professionals who keep the system running, and the environment that nurtures discovery. These foundational elements have made the U.S. the global leader in scientific innovation.
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