Included in the overall NIH cuts was a proposal for a 15 percent reimbursement cap for indirect research costs, which currently average about 28 percent.2 Indirect costs include lab space, utilities, and administrative support. While the policy could save more than $4 billion annually, research institutions say it would dramatically disrupt scientific progress and limit access to clinical trials, which are already a challenge for the relatively small O&P population. A federal judge issued a permanent injunction to block the policy, saying the cuts would cause irreparable harm and violate federal law, but an appeal could leave the NIH without clear direction while it is decided.
To model the projected financial losses, researchers with The Science & Community Impacts Mapping Project applied a multiplier effect based on a recent finding that each dollar invested by the NIH generated $2.56 in new economic activity in 2024. Job loss estimates are tied to the average number of positions supported per dollar of NIH research spending in 2024.2
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