Proposed federal budget cuts to research programs have left universities across the nation scrambling to preserve critical funding streams, with institutions like Florida International University and the University of Maryland, Baltimore now considering alternative paths to sustain scientific innovation.
The Trump administration’s move to cap indirect cost reimbursements at 15% for National Institutes of Health grants has drawn sharp criticism from higher education leaders. These overhead expenses — essential for maintaining research infrastructure and covering facility costs as well as supporting staff — are typically reimbursed at significantly higher rates.
According to the Association of American Medical Colleges, NIH funding accounts for nearly 60% of all academic research spending nationwide. For institutions like FIU, the proposed cap could mean a loss of more than $8.3 million in NIH funding next year alone.
However, implementation of the cap was recently halted by a federal court after several universities, including the University of Maryland, joined a lawsuit challenging the policy. The ruling temporarily blocks the policy while legal proceedings unfold, offering some relief but little certainty for researchers depending on long-term grants.
Dr. Matthew Brown, a medical researcher affiliated with the NIH, warned the implications of such freezes could be dire.
“The funding freezes will have a direct effect on healthcare for Americans in the future,” he said. “Things like finding cures for cancer, finding cures for Alzheimer’s — those efforts will be put on hold indefinitely or potentially cancelled.”
Academic medical centers are among the institutions most affected. At a recent panel hosted by the University of Maryland Baltimore, the dean of the School of Medicine, Dr. Mark Gladwin, emphasized the national role these centers play.
“Only 5% of hospitals in America are academic medical centers,” Gladwin noted. “But those 5% take care of 30% of the underserved. We train 70% of all health professionals … We’re the pipeline for the future of health and science.”
Gladwin also highlighted the economic importance of these research hubs, noting that in many cities, academic medical centers are among the largest local employers.
In South Florida, FIU is also bracing for the impact.
Dr. Shahin Vassigh, a researcher at FIU’s Robotics and Digital Fabrication Lab, said that while her current projects remain untouched, future efforts in coastal resilience research could be jeopardized.
“If any funding level gets touched at the lab, the students are not going to have any jobs for sure,” said Vassigh. “Some of the students get paid from the grants as full tuition. Some of them are hourly. My lab will not have any students. I can’t do any more research basically. Done.”
Alongside NIH reductions, universities may face shrinking support from other federal agencies as well, including the Department of Energy, the National Science Foundation, the National Oceanic and Atmospheric Administration and the Environmental Protection Agency.
To offset these losses, some institutions may increasingly rely on private sector partnerships. But, researchers like Vassigh stress the value of federal independence.
”The nice thing about federal government [grants]? There are no strings attached. We are responding to the needs of society, not a specific company.”
