One of the first signs of what would become an ongoing attack on scientific research came when the Trump administration ordered the National Institutes of Health (NIH) to radically reduce research funding for universities. These funds, termed indirect costs, are awarded when researchers at an institution receive a grant. They cover costs that aren’t directly associated with the research project, such as utilities, facilities for research animals, and building maintenance.
Previously, these costs had been the subject of negotiations and audits, with indirect cost rates for universities in more expensive locations exceeding half the value of the grants awarded. The Trump administration wanted to cut this to a flat rate of 15 percent for everyone, which would be crippling for many universities.
A number of states, later joined by organizations representing a broad array of universities and medical schools, immediately sued to block the policy change. A district court temporarily blocked the new policy from being implemented and later issued a permanent injunction. The government appealed that decision, but on Monday, an appeals court rejected the effort because the first Trump administration had attempted the same move before—and Congress passed a rule to block it. Indirect research funding will remain intact unless the Supreme Court intervenes.
Don’t try that again
Universities rely on indirect costs to cover everything from building and maintaining dedicated lab space to paying the staff who pick up trash and dispose of hazardous waste. Their costs vary from location to location; universities in dense urban areas, for example, have to pay more for buildings and pay their staff higher salaries. So the NIH has created a formula for universities to estimate their research costs, which serves as the starting point for negotiations. Once the rate is set, audits can be conducted at any time to ensure that the actual costs are consistent with the rate and that funds are spent appropriately.