The Trump administration has announced a major cost-cutting measure, slashing $4 billion in indirect costs from biomedical research grants. The National Institutes of Health (NIH) will cap overhead expenses—covering utilities, equipment, and administrative support—at 15%, down from the current 30% average.
Elon Musk, heading the unofficial Department of Government Efficiency (Doge), defended the move, alleging universities were diverting excessive funds. “Can you believe some took 60% for overhead?” he wrote on X.
However, scientists and medical institutions warn of severe consequences. The Association of American Medical Colleges cautioned that cutting infrastructure support would “diminish the nation’s research capacity,” while Stanford oncologist Anusha Kalbasi called it a “disaster beyond belief.”
With the changes taking effect Monday, universities fear reduced funding could hamper vital medical breakthroughs, hindering the U.S.’s ability to maintain global leadership in scientific innovation.
