Leaders at the University of Florida are preparing for potential funding cuts to their medical research program. These cuts could amount to tens of millions of dollars due to new policies from the Trump administration.
On February 7, the National Institutes of Health (NIH) announced a cap on indirect costs for research grants at 15%. Indirect costs include expenses for laboratory maintenance, utilities, and administrative support.
According to the New York Times, the University of Florida received $254 million in NIH grants in 2024. If the cap is enforced, the university could lose about $45 million in grant funding that year.
Following the NIH announcement, UF issued a memo to staff highlighting the serious impact these changes could have. However, just a day later, David Norton, the university’s vice president for research, reported that the NIH policy change was temporarily put on hold.
A judge has since issued a restraining order that stops the NIH from implementing these new rules on medical grants while a lawsuit filed by 22 states is addressed.
“A Temporary Restraining Order (TRO) has been granted. This order prevents any steps to apply or enforce the new indirect cost guidelines until further notice from the court,” said a representative from UF. “All proposals from the University will be submitted at the usual rates.”
Officials from the Trump administration believe that lowering indirect costs will free up more funding for direct research expenses, such as salaries and materials. They point out that many major nonprofits cap indirect costs similarly, at between 10% and 15%.
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