Congressman Dan Goldman Demands National Institutes of Health Reverse Harmful Grant Cuts for Lifesaving Medical Research

 

 

Washington, D.C. – Congressman Dan Goldman (NY-10) today led a bipartisan and bicameral letter alongside Representatives Joe Morelle (NY-25), Paul Tonko (NY-20), and Nydia Velázquez (NY-7) demanding National Institutes of Health (NIH) Acting Director, Matthew Memoli, immediately rescind his decision to cap NIH funding for “indirect costs,” which would slash funding for lifesaving medical research in New York and across the country. 

 

On Friday, February 7th, NIH announced they would restrict funding for “indirect costs” to 15 percent of grants. Indirect costs are designed to help compensate institutions for maintaining buildings and equipment, paying support staff, and managing other overhead expenses—funding necessary for conducting vital research. New York State is the second leading recipient of NIH funding, receiving $3.6 billion in 2024. The medical schools collectively employ more than 62,000 people and contribute $3.4 billion to the New York State economy. 

 

“Indirect costs are a necessary component of federally funded research, ensuring that institutions can provide the necessary support for high-quality research without placing an undue financial burden on the researchers themselves.  We strongly urge you to rescind this decision and work with Members of Congress to ensure that any proposed changes lead to more jobs for the American people and more cutting-edge research that allows the United States to remain at the forefront of scientific progress and advancement,” the members wrote. 

 

Kenneth E. Raske, President of the Greater New York Hospital Association, said: “Very simply, the ‘indirect’ costs being slashed are essential to the research enterprise. In New York alone, a 15% indirect cost cap will cut NIH grant funding to entities such as academic medical centers and cancer centers by a staggering $850 million. That will cripple their ability to conduct cutting-edge, lifesaving research for future generations.  New York’s entire hospital community thanks Rep. Morelle, Rep. Goldman, Rep. Tonko, and Rep. Velázquez for standing up to this reckless attack on scientific research and medical innovation.” 

  

Jonathan Teyan, President and CEO of the Associated Medical Schools of New York, said: “The cuts to NIH facilities and administration costs would immediately and immeasurably harm academic medicine in New York State. Research at our medical schools supports 17,000 jobs and contributes more than $3.4 billion annually to the state’s economy. Moreover, the breakthroughs achieved by our scientists in understanding and treating disease improve lives. The Associated Medical Schools of New York (AMSNY) is pleased to see our representatives take action to reverse these cuts and protect biomedical research in New York.” 

   

Other members joining the letter are: Senators Chuck Schumer (D, NY) and Kirsten Gillibrand (D, NY); Representatives Yvette Clark (NY-9), Adriano Espaillat (NY-13), Andrew Garbarino (NY-2), Laura Gillen (NY-4), Tim Kennedy (NY-26), George Latimer (NY-16), Mike Lawler (NY-17), John Mannion (NY-22), Greg Meeks (NY-5), Grace Meng (NY-6), Jerry Nadler (NY-12), Alexandria Ocasio-Cortez (NY-14), Josh Riley (NY-19), Pat Ryan (NY-18), Tom Suozzi (NY-3), and Ritchie Torres (NY-15). 

 

 

 

 

Dear Acting Director Memoli, 

 

As members of the New York Congressional Delegation, we write to express our deep concern with the recently released supplemental guidance to the National Institutes of Health Grants Policy Statement stating that “indirect costs,” defined as “facilities and administrative” (F&A) costs will now be set at a standard rate of 15%for all NIH grantee institutions. 

 

Indirect costs, also referred to as Facilities and Administrative costs, are expenses incurred by an institution that support the overall research but are not directly attributable to a specific research project. Indirect costs cover essential infrastructure and administrative functions necessary for conducting vital research. 

 

Indirect costs are a necessary component of federally funded research, ensuring that institutions can provide the necessary support for high-quality research without placing an undue financial burden on the researchers themselves. 

 

This cap on indirect costs will decimate jobs and the ability of our New York institutions to continue life-saving research. According to the NIH’s RePORTER database of NIH-funded research projects, New York State has $5 billion in current NIH grants across 250 entities, with the highest amounts concentrated in academic medical centers and research entities such as cancer centers. New York State is the second leading recipient of NIH funding, and the Greater New York Hospital Association estimates that New York will lose a staggering $850 million due to the cap on indirect costs. 

 

F&A costs should be seen as a critical investment that helps ensure that the United States remains the world leader in scientific advancement. At a time when our adversaries are making substantial investments in biomedical research and education, now is not the time to make harmful and counterproductive decisions that would only harm the American people and slow the pace of scientific progress. 

 

As you know, Fiscal Year 2024 Appropriations law includes language that prohibits the use of funds to modify NIH indirect costs. Additionally, this cap may be in violation of the Administrative Procedure Act. 

 

We strongly urge you to rescind this decision and work with Members of Congress to ensure that any proposed changes lead to more jobs for the American people and more cutting-edge research that allows the United States to remain at the forefront of scientific progress and advancement. 

 

We thank you for your attention to this important matter and look forward to your reply.