The National Institutes of Health (NIH) on Friday made a significant reduction in grants reserved for research institutions, a decision that may significantly impact American higher education.
The NIH said it provided over $35 billion in grants to more than 2,500 institutions in 2023, announcing that it will now limit the amount granted for “indirect funding” to 15 percent. This funding helps cover universities’ overhead and administrative expenses and previously averaged nearly 30 percent, with some universities charging over 60 percent.
The change will take effect on Monday, and will save roughly $4 billion annually, per the NIH.