Milwaukee area institutions are facing a number of concerns and uncertainty as they could lose millions in
National Institutes of Health funding toward medical research under a new Trump administration policy.
The NIH issued a guidance late on Friday that capped the indirect cost reimbursement rate for all current and new NIH awards to 15% of grants effective Feb. 10. The NIH guidance will undergo judicial review after a federal judge issued a temporary restraining order on Monday blocking the NIH indirect rate change. A hearing has been set for Feb. 21, according to a
NPR report. On Monday, Wisconsin joined 21 other states in a federal lawsuit aiming to block the change.
In a post on ‘X,’ the NIH said the 15% rate cap would save the federal government over $4 billion per year. The NIH guidance said that many private foundations funding research provide less financial support for indirect costs than the federal government. The guidance also listed nine foundations with indirect cost caps ranging from 10 to 15%.
Indirect costs that awarded institutions can get reimbursed for generally include those incurred to cover administrative support, facility maintenance, utilities and more. Institutions generally have significantly higher indirect cost reimbursement rates that they have negotiated with the federal government.
At the
University of Wisconsin-Milwaukee, for example, the on-campus research indirect rate is 54% for NIH and other federal grants. The university estimates that about $2.4 million toward campus research is at risk each year if the NIH indirect cost reimbursement rate is capped at 15%.
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UW-Milwaukee chancellor Mark Mone.[/caption]
“In the last three weeks, we’ve witnessed a whirlwind of federal actions, and that speed has come with little clarity,” UW-Milwaukee chancellor
Mark Mone, provost and vice chancellor for academic affairs
Andrew Daire and interim vice provost for research and graduate school dean
Kristian O’Connor said in a Monday email to UW-Milwaukee students and employees that has since been published online. “We, too, feel the anxiety of this uncertainty and want you to know that we are monitoring all federal updates to learn and act on as much as we can as quickly as we can.”
Altogether, UW-Milwaukee, the
Medical College of Wisconsin and
Marquette University currently have tens of millions of dollars in active NIH grants supporting medical research. Marquette currently has $13.8 million in active NIH awards, while UW-Milwaukee has about $7.9 million in active NIH awards. In fiscal year 2023, the MCW had $48 million in NIH funding, according to the MCW's website.
‘Immediate and long-term consequences’ on health care
The possible loss in funding could have severe consequences for the life-saving research of these institutions, leaders say.
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Dr. John Raymond Sr.[/caption]
MCW president and chief executive officer
John Raymond Sr., MD, said in a statement on Monday that the MCW is “deeply concerned” by the 15% rate cap. The NIH guidance “raised questions and concerns about their potential impact on cures for the future, our patients, families, students, team members, future health workers and the community,” Raymond said.
“Delays and reductions in support for life-saving bio-medical research will have immediate and long-term consequences, directly impacting the timeline for developing treatments and cures for cancer, heart disease, stroke, Alzheimer’s disease, and much more,” Raymond said in the statement. “Even brief disruptions can halt clinical trials, prevent patient recruitment, and delay the publication of critical findings, affecting the number of patients who could benefit from new treatments. These delays not only hinder scientific progress but also have real-world implications for patients waiting for breakthroughs, highlighting the urgent need for timely support and funding.”
Raymond said the MCW will focus on “the positive impact of our work as we gain clarity on those changes from the federal government as they go through the judicial review process.”
The NIH’s rate cap would create a budget impact “significant to the university’s research enterprise,” Mone, Daire and O’Connor said.
NIH grants at UW-Milwaukee support “vital research that enhances quality of life by improving physical and mental health interventions, disease prevention strategies and public health policies,” the UW-Milwaukee leaders said. They listed studies on “genetic mutations linked to birth defects in children, the neuroscience of aging and the effects of wheelchair use on shoulder pain” as examples of current NIH-supported research projects.
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Marquette University campus. Image from Marquette University.[/caption]
In a Monday statement, Marquette University said it is working with U.S. Sen. Tammy Baldwin’s office to convey the impact that the 15% indirect rate cap would likely have. Marquette also said there may be upcoming changes to the NIH’s “No Cost Extension Policy” because the university was unable to submit no cost extensions through the eRA Commons site. The “No Cost Extension Policy” allows grantees to extend the final budget period of an approved research project for one to 12 months.
After Wisconsin joined the 22-state lawsuit on Monday, Gov.
Tony Evers issued a statement criticizing the Trump Administration’s attempt to cut NIH funding, which often supports the University of Wisconsin System’s research efforts to find cures and treatments for cancer, Alzheimer’s and diabetes. The
University of Wisconsin-Madison’s negotiated indirect rate with NIH is 55%, according to a Universities of Wisconsin memo.
“The University of Wisconsin System is a national and global leader in helping solve real problems for people here in Wisconsin and the world over, and ensuring UW System’s success is a critical part of ensuring Wisconsin’s future economic success,” Evers said. “The Trump Administration’s reckless federal funding cuts will be devastating for Wisconsin and a setback for millions of people who hope and pray every day for a cure or treatments that might save their life or the life of someone they love.”