National Institutes of Health cuts could mean big changes for UNMC

Many in research were alarmed by the National Institutes of Health’s recent announcement limiting the amount of money universities can receive in grants.

The NIH would change the amount given for indirect costs to a flat 15%.

Within Nebraska, the University of Nebraska Medical Center is the largest recipient of NIH grant funds, receiving over $89 million in 2024, which accounted for 79% of total NIH grant dollars given to the NU System. $47 million, or 53%, was used for indirect costs.

These costs cover things like the water and electricity bills, building maintenance or even regulatory compliance offices that make sure the experiments being done comply with federal law. With the new changes UNMC would only receive $15 of indirect funds per $100, instead of $53 per $100.

Dr. Ken Bayles, the vice chancellor of research at UNMC, said the change will be a major cut to the science conducted at the medical center.

“These are real costs, and we're talking at UNMC alone, a hit to our budget of somewhere in the neighborhood of $22 million on an annual basis,” said Bayles. “We don't have that kind of cash laying around to make up that difference. We would have to make extremely difficult choices that would impact our ability to continue conducting research at UNMC the way we are now.”

The 53% is a number that is negotiated with the federal government every two to three years to come up with the costs of maintaining the research infrastructure. According to Bayles, this does not cover all the costs, and the universities have to use their own funds to pay for the rest. He said this change would have massive effects across Nebraska, as well as the nation.

“Research institutions across the country will have to scale back their research enterprises,” Bayles said. “What that means is greatly reduce progress in understanding disease, the development of new drugs and vaccines and cures and treatment strategies for a variety of diseases that afflict our nation's citizens.”

A federal judge has temporarily halted the order from the Trump Administration to shrink NIH funding, but the funds are frozen as well, meaning the flow of funds may be interrupted according to Bayles.

“We try to insulate our researchers from this as much as we can, and it is in legal limbo right now,” Bayles said. “We're hoping that…we'll be able to go about our business as usual, but in the interim, I'm very concerned about the funds flow.”

UNMC, as well as the entire University of Nebraska System, has began reaching out to the governor, the legislature in the state, as well as those representing Nebraska in Washington D.C.

Bayles remains optimistic, saying he believes cooler heads will prevail, and UNMC will get through this without a large reduction.