Protect NIH Research Funding – Reject the Indirect Cost Cap 

On Feb. 7, the National Institutes of Health (NIH) announced a new policy capping funding of indirect costs at 15%. This policy took effect on Feb. 10 and applies to all current and future grants. 

NIH research grants cover both direct costs (funding for experiments, materials, and personnel) and indirect costs (ICs), which support essential infrastructure, such as lab maintenance, equipment, administrative support, and compliance. These are critical to keeping research institutions running. 

Previously, NIH grants followed a negotiated IC rate, typically between 27 - 28%, though some institutions had rates exceeding 50%. In FY 2023, NIH allocated: 

• $35 billion for nearly 50,000 grants, supporting over 300,000 researchers at 2,500+ institutions nationwide. 

• $26 billion for direct research costs. 

• $9 billion for overhead (i.e., ICs). 

NIH claims this action will save over $4 billion annually, arguing that private foundations fund research with lower IC rates or none. However, universities often absorb those costs or rely on federal funding to sustain their research infrastructure. This policy shifts the burden to institutions. 

By imposing a 15% IC cap, NIH is cutting essential funding for research institutions that could lead to minimal or a lack of operational support, staff layoffs, lab closures, delays or cancellations of crucial biomedical research projects. The policy threatens lifesaving medical innovations and undermines the infrastructure that supports scientific breakthroughs. 

ARVO is working diligently to oppose this harmful decision by developing coordinated advocacy efforts and applying pressure on Congress to overturn these harmful policies. We are calling on you to use your voice and act now by contacting Congress. This is the most effective measure with many ways to engage with your representatives:  

• Request an in-person meeting at your congressional office. 

• Call your representatives using 5calls.org, a nonprofit that makes it easy to reach members of Congress. Visit 5calls to take action. 

• Email a personal message — use our form letter and customize it with your concerns. 

• Submit a letter — send our pre-drafted message to Congress and urge them to intervene. Submit here.  

You can also help spread the word via social media and garner support within eye and vision research and biomedical communities. Find your elected officials information such as address, phone number, websites and social media handles here.  

Use this sample social media post:  

The NIH's proposal to cap indirect rates at 15% on research projects will drastically impact our work. I urge you to make a statement asking the Administration to rescind this order immediately to protect medical science and ensure medical progress continues. #SaveNIHResearch

Don’t forget to tag ARVO in your social media posts! If you take part in other advocacy activities, we’d love to hear about them. Feel free to share your experiences with us at outreach@arvo.org.

Stay informed about this policy and ARVO's ongoing efforts to oppose it — updates will be posted here regularly. You can also subscribe to Insight and set up alerts from the ARVOConnect Open Forum to receive the latest news from ARVO and the eye/vision community.