Budget Cuts May Pinch NIH

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Congress missed the March 1, 2013, deadline for replacing the $1.2 trillion in federal budget cuts (sequestration) mandated by the Budget Control Act of 2011. As a consequence, federal defense and domestic programs, including the National Institutes of Health (NIH), are facing an across-the-board cut—or “sequester”—of $85 billion in Fiscal Year (FY) 2013. This translates to an approximately 9 percent budget cut for the NIH and other “nonexempt nondefense programs” (nonexempt defense programs will see a cut of approximately 13 percent). Congress deemed a few agencies “exempt,” including Medicare (with cuts capped at 2 percent) and the Department of Veterans