Congressman Auchincloss' Statement on NIH Indirect Cost Rate Cap
Newton, MA – Congressman Jake Auchincloss (D-MA-04) issued the following statement on the Trump Administration's decision to cap the NIH indirect cost recovery rate at 15%, a move that threatens vital research funding Massachusetts institutions of higher learning (eds), and medical facilities (meds).
“Massachusetts’ economy depends upon a vibrant Eds and Meds enterprise. The reduction of the NIH’s indirect cost recovery rate to 15% of a grant total would disrupt Massachusetts’ biomedical success without increasing R&D nationally,” said Congressman Jake Auchincloss. “Research at scores of institutions like the Broad Institute, Boston Medical Center, and the University of Massachusetts launches world-changing innovation, creates good jobs, and puts Massachusetts on the map.
“Overhead is well more than 15% of the cost of that research: facilities, IT, and support personnel are essential and expensive. Some universities and hospitals may be able to cover some of their higher share of these indirect costs to other staff and programming or through more generous unrestricted philanthropy.
“But the net result of a 15% indirect cap would be that NIH grants become much more expensive to accept, because of the unfunded overhead associated with them. This NIH policy is a tax on Massachusetts’ Eds and Meds enterprise to the tune of ~$2 billion. Just when diseases like Alzheimer's, heart disease, and cancer could be made treatable, America could see its young scientists discouraged, its discoveries withering on the vine, and its global leadership in science and technology receding.
“Instead of this gratuitous—and almost certainly illegal—approach, the NIH should work collaboratively on research efficiency goals and Congress must radically increase NIH funding so that the tension between direct and indirect costs is not a zero-sum equation.”
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