The University of Pennsylvania may lose $ 250 million of federal financing under the Trump Administrative Directive, which reduces the National Institutes of Health expenditure on general costs related to research at universities and medical institutions who rely on government financing for scientific research in which looking for care In the case of cancer, heart disease and other health problems.
Academic medical schools and research institutions of the Philadelphia region receive hundreds of millions of dollars in NIH financing. Although it is tough to indicate the exact amount of federal money from research arriving in the region every year, Penn receives by far the largest share, from about $ 980 million in federal subsidies in a tax year 2025.
Implications were caused by shock waves at public and private universities of the region, including those who receive much lower NIH financing.
New Jersey and Delaware belong to the coalition of 22 states that sued in the federal court to stop the proposed cuts that were to apply on Monday, and the federal judge at the end of the day temporarily blocked Trump administration, the implementation of cuts in the states suffered.
Democratic general prosecutors who sue, together with national research leaders, claim that an unprecedented cut of NIH can bring years of research on critical medical development.
Pennsylvania is not part of the process. But Penn “discovers all legal options” in response to the limitation of financing, said the spokesman.
NAH financing supported Penna’s work on Car-T therapy, considered a cure for some types of blood cancer; MRNA technology, scientific science with Nobel teaching underlying the Covid-19 vaccines; Rare treatment of the disease; and cancer therapies.
“The list is long and powerful in terms of influence. The reduction of funds announced by the Federal Government becomes this critical, life -saving work, “said Penn spokesman.
A lot still remains unknown about the consequences of Nih from the delayed Friday, part of Trump’s concentration on the elimination of what his administration perceives as prodigal expenses-by limiting the so-called so-called “indirect “research financingwhich pays for construction and administrative costs related to conducting clinical research and research.
For example, Rutgers University may lose $ 22 million in the current tax year, administrators said in a note to lecturers and employees of the institution based in New Jersey, which, he claims, can affect the salary of staff.
Delaware State University may lose $ 1.4 million, which can immediately affect its ability to collect funds used to cover expenses, such as research support employees, doctoral scholarships and maintenance of buildings, in accordance with the claim process.
The second federal process fighting for a change in financing was submitted to Massachusetts by the American Medical Colleges Association and several other educational groups and spokesman hospitals.
In the lawsuit of the State Prosecutor, generals note that in 2017 the first Trump administration proposed a reduction in indirect costs of 10%. The following year, Congress adopted a law prohibiting Nih deviation from the negotiated rates. In accordance with the claim, this law remains in force.
Scientists have confirmed that the “intermediate” financing system can be complicated, with founders from the Charity Foundation, Federal Authorities and the scientific industry to determine various rates.
Ari Friedman, assistant to a professor of emergency medicine in Penn, conducts tests of geriatric pain of abdominal pain and cognitive disorders, which are supported by two federal subsidies. Speaking as an individual, not on behalf of the institution, he said that Congress may discuss system reforms or federal officials can boost performance without cuts.
“Instead, we see billions of dollars of cuts in health research in this country. It seems that the goal here is not performance – he said. “The goal is to attack universities and reduce the amount of learning that we finance in this country.”
“Indirect” targeted research costs
Quades the calculations that Nih uses to return recipients of survey subsidies for auxiliary costs related to conducting research.
“The United States should have the best medical examinations in the world. Therefore, it is critical that as many funds as possible spend on direct costs of scientific research, and not to general general costs, “Nih wrote in the Friday advertisement.
Each institution negotiates with the federal government the rate of reimbursement of “indirect costs” based on a review of the financial statements and expenditure on launching research programs.
The change of Nih reduces the rate of return of 15% – which means for each dollar in financing research, the institution can get an additional 15 cents for covering “indirect costs”.
This is far below the reimbursement indicators negotiated by institutions in Philadelphia.
Rutgers has a reimbursement of 57%. The loss of $ 22 million this year as part of the new policy may have a “destabilizing financial impact”, in accordance with the joint note of J. Michael Gower, vice president and financial director of Rutgers, and Michael E. Zwick, senior vice president for research.
Rutgers received a total of $ 250 million for the support of 1200 subsidies for research on heart, cancer, brain health and infectious diseases in a tax year 2025.
“This action will have a significant and disturbing impact on the biomedical and other Rutgers scientific research projects and the university’s ability to support them,” wrote Gower and Zwick.
Prosecutor General New Jersey Matthew J. Platkin called the Trump Administration Directive “Recomplici and illegal” and “direct attack on our condition.”
“Trump has a republican majority in the Chamber and the Senate, if he wants to change the rules, including laws setting the levels of financing,” said US representative Dwight Evans, a democrat who represents a part of Philadelphia.
FINANCIAL AND University BUDGETS
In a post on social media, Nih wrote that the policy would “save more than USD 4 [billion] Year effects immediately. ” The claim was accompanied by graphic referring to multi -billion dollars at Harvard University, Yale University and Johns Hopkins University, in the apparent suggestions that this equipment can make up for cuts.
Penna research was lucrative in themselves. The University earned $ 1.6 billion with a tant from the Pfizer-Biontech Covid-19 vaccine, made of MRNA technology developed by PENN scientists.
But research institutes have long relied on NIH to help pay the infrastructure needed to conduct research, such as building maintenance, data security, regulatory compliance, documents and administrative needs.
Temple’s leadership wrote in a note to lecturers and employees that “financing of granting, alone, is insufficient to finance university research enterprises.”
Temple has a reimbursement of “indirect” costs of 58%. The reduction of payments to 15% would have a “significant financial impact”, wrote John Fry, president of the temple; Gregory Mandel, senior vice president and provost; and Josh Gladden, vice president of research.
In the Nora Newcombe laboratory in the “indirect” temperature, funds cover the salary for employees who serve as connectors between the research team and the federal government, conduct financial accounting and supervise ethical research considerations. “Indirect costs” also include rent for laboratory space, media and technical support.
Newcombe, a professor of psychology and researcher in Temple, spoke personally, not on behalf of her university.
She compared research funds to the football team.
“Direct budget costs are like a salary for players. And “indirect costs” are like trainers’ salary, money for transporting people to New Orleans and buying equipment, “she said. “You can’t have one without another. If you had players without trainers, uniforms, pads, tickets to the plane – you wouldn’t win. “
Inquirer Lizzie Mulvey, Fallon Roth and Wendy Ruderman staff writers have reported.
Editor’s attention: This story has been updated with additional details and comments.
