In response to the recent decision by the National Institutes of Health (NIH), under Acting Director Dr. Matthew Memoli, to reduce the reimbursement rate for facilities & administrative (F&A) costs, AAI issued the following statement:
AAI Strongly Opposes NIH Cuts to Research Funding
The American Association of Immunologists (AAI) is strongly opposed to the recent decision by the National Institutes of Health (NIH), under Acting Director Dr. Matthew Memoli, to reduce the reimbursement rate for facilities & administrative (F&A) costs (also referred to as indirect costs) to 15% for all research institutions. This decision will likely cause irreparable harm to the biomedical research enterprise, cost lives, and damage the economy.
The term “indirect costs” hides the true impact and importance of this funding, which is provided to academic and other institutions to maintain the essential infrastructure that supports groundbreaking biomedical research. F&A costs include such critical expenses as laboratory maintenance, shared research equipment, hazardous waste disposal, utilities, and administrative support staff, all of which are necessary components of research programs. Cutting these funds abruptly and as significantly as this order does jeopardizes the very foundation upon which scientific discoveries are made.
The consequences of losing this funding would be severe and immediate, with a large impact on the economic prosperity of local communities, states, and the entire country. NIH funding is a significant contributor to the U.S. economy, supporting over 412,000 jobs and generating nearly $93 billion in economic activity in FY 2023. Cuts to F&A costs threaten thousands of jobs, not only within research institutions but also in the broader communities that benefit from the economic activity generated by research funding.
Longer term, reduced funding for essential research infrastructure will inevitably slow the pace of scientific discovery in the U.S., delaying the development of new treatments and cures for diseases that affect millions of our citizens. The disruption to discovery will have lasting effects on our country’s enviable position as the leader in biomedical research.
Yesterday (February 10, 2025), a federal district court judge temporarily blocked the 15% cap from taking effect nationwide in response to two lawsuits against the Administration. These temporary rulings are welcome news but do not solve the broader problem at hand.
We urge the Administration to rescind this decision and to recognize the indispensable role that F&A funding plays in sustaining the United States’ position as a global leader in biomedical research. The health and well-being of our nation depend on a robust and well-supported research infrastructure.
