1. United States
  2. Mo.
  3. Letter

NIH Policy Notice NOT-OD-25-068

To: Gov. Kehoe

From: A constituent in Saint Louis, MO

February 10

I am writing to express my deep concern regarding the recent National Institutes of Health (NIH) policy change outlined in Notice NOT-OD-25-068, which standardizes the indirect cost reimbursement rate at 15% for all NIH-funded research grants. This policy shift threatens the financial stability of research institutions across the country, including major universities like Washington University in St. Louis, where my husband is employed. As you know, indirect costs cover essential infrastructure and administrative support that make groundbreaking medical and scientific research possible. Many institutions rely on negotiated rates higher than 15% to maintain research facilities, ensure compliance with federal regulations, and provide support for early-career researchers. Washington University currently has a federally negotiated indirect cost rate of 55.5% for NIH grants. In fiscal year 2024, Washington University received $683 million in NIH funding, with approximately $243 million allocated for indirect costs. Under the new policy, indirect cost recovery would be reduced to approximately $102 million, creating a devastating shortfall of around $141 million. This funding cut will have severe consequences, including: Job Losses and Hiring Freezes: Reduced funding could force Washington University and other institutions to cut research staff and administrative positions, potentially affecting thousands of researchers, technicians, and support personnel. Delays in Medical and Scientific Progress: With less funding available for infrastructure, critical research—including life-saving medical studies—could be delayed or abandoned. Widening Health Disparities: Smaller institutions and those serving underrepresented communities may struggle to sustain research programs, exacerbating disparities in healthcare access and innovation. Increased Reliance on Private Industry Funding: Reduced federal support could push researchers to seek funding from pharmaceutical and private industry sources, potentially shifting priorities away from public health needs toward commercially profitable research. I urge you to take action to prevent this policy from being implemented. Protecting NIH funding structures is vital to maintaining our country’s leadership in scientific and medical innovation. Please advocate for a reversal of this policy and support legislative measures to safeguard full research funding for our institutions. I appreciate your time and consideration on this critical issue. Please let me know how I can assist in advocating for a solution that ensures the continued strength of federally funded research. I look forward to your response.

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