Axios reports:
The National Institutes of Health sent shockwaves through academic research circles late Friday, saying it will dramatically cut the rate it pays for universities’ administration and overhead costs to save the government more than $4 billion. The reductions will particularly hit elite institutions including Harvard, Yale and Johns Hopkins and fulfill a long-sought conservative goal that was included in the Project 2025 blueprint.
The reimbursements can be used to cover the cost of lab space, data processing, safety measures for human subjects and to pay support staff. Academic research interests predicted the cuts will slow medical breakthroughs, including treatments for cancer and chronic diseases like diabetes and heart disease. Sen. Patty Murray (D-Wash.), said the move was illegal because annual spending bills prohibit modifications to NIH’s indirect costs.
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