National Institutes of Health said the $4bn loss will affect ‘indirect’ funding of buildings, equipment and staff

Summary

The Trump administration is slashing $4 billion annually from medical research funding by capping indirect costs, such as buildings and support staff, at 15% of NIH grants.

Previously, $9 billion of NIH’s $35 billion budget covered overhead expenses. Supporters, including Elon Musk, praise the cuts as reducing waste.

However, researchers warn the policy will cripple lifesaving research, halt clinical trials, and weaken U.S. innovation.

Critics urge NIH to reverse the decision, calling it a threat to public health and scientific progress.