The National Institutes of Health (NIH) announced cuts to the funding of indirect costs at universities and research centers, as a move aimed at reallocating more resources towards direct research costs. This policy would limit indirect funding to 15%, sharply down from higher rates. A lawsuit from 22 states, including Massachusetts, led to a temporary court ruling halting these cuts, which are seen as critical for maintaining essential operational funding for affected institutions. Critics argue that such cuts could negatively impact vital research initiatives.
Having funding to cover those indirect costs is essential for institutions around the country, as many of them rely heavily on that support for their operational needs.
This change will save more than $4B, but it is vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead.
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