Cuts Proposed for NIH Funding for Facilities and Operating Costs

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In addition to the “proposed” sweeping reduction to the National Institutes of Health (NIH) budget, which is not expected to be supported by Congress, President Trump’s fiscal year 2018 budget includes significant reductions to NIH support for costs associated with conducting federally supported research, causing concern within the medical research community.

The total cost of federally sponsored research includes both direct and facilities and administrative (F&A) expenses (previously referred to as “indirect costs”). Direct costs are used to cover portions of researcher salaries and necessary equipment and supplies, while F&A costs refer to necessary research infrastructure and operating expenses that