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Federal cap on health grants could cost University of Iowa $33M
(Iowa City, Iowa) – With uncertainty abounding when it comes to National Institutes of Health grant funding and possible changes to its policies, the University of Iowa could potentially see a loss of more than $33.5 million in its research projects. The Iowa Capital Dispatch reports the potential loss is according to a dataset made from 2024 NIH funding data by James Murphy, deputy director of higher education policy at the think tank Education Reform Now. UI researchers with essential federal dollars potentially on the line were informed by university administration this week to move ahead with their grant applications as normal, the latest notice in an ever-changing federal situation.
The UI, alongside universities across the country, is grappling with possible changes to National Institutes of Health grant funding policies that would take away millions of dollars from research in many areas. Interim Vice President for Research Lois Geist has informed the campus community through a series of updates, starting Jan. 23 when NIH and other federal organizations began pausing certain practices, detailing federal moves and the university’s response.
NIH announced Feb. 7 it would cap “Facilities and Administrative” costs, also known as “indirect costs,” at 15%, for both new and existing grants. Geist said in a Feb. 10 update this cap would impact many areas of research, including hiring support personnel and maintenance staff, ensuring radiation safety measures and hazardous waste disposal practices are in place, maintaining safety protocols for human subjects in research, data processing, national security practices and maintaining labs. In the update, Geist said “Simply put, the federal government provides reimbursement for real costs that are incurred in the process of safely and securely conducting high-impact research. This research has tangible benefits for the lives of Iowans.”
In her latest update on Feb. 11, Geist notified campus that a previous directive to halt NIH grant application submissions has been rescinded as a result of a temporary restraining order on the new indirect rate proposed by the NIH, with a hearing set for Feb. 21. According to the NIH-funded project database, the University of Iowa currently has 459 active, NIH-funded projects in the state, with more than $223 million in funding. Iowa State University has 63 active projects worth more than $20 million in funding, according to the database, and both Des Moines University and Palmer College of Chiropractic in Davenport have projects listed as well.
The UI also froze hiring of new graduate research assistants unless they qualify as “direct cost on a funded project” and are already included in the budget, or if those hiring teaching assistants have non-federal funding, and cautioned departments against starting new projects until the situation is more clear. Continued work on already-started federal projects is allowed unless they receive a “stop work order” or other notice to halt from a federal organization. According to a Jan. 31 update, the university has received “a few” stop work orders, which have been shared with relevant researchers. University leadership echoed the institution’s commitment to staying aware of the latest news and disseminating information to those who need it in a letter to campus from UI President Barbara Wilson, Executive Vice President and Provost Kevin Kregel, Faculty Senate President Caroline Sheerin, and Staff Council President James Jorris.
Acknowledging the impact federal decisions could have on the UI’s financials, operations and academics, the letter stated a team of UI leaders is “working closely with our congressional delegation, relevant state and federal government agencies, legal experts, and associations such as the Association of American Universities (AAU), Association of Public and Land-grant Universities (APLU), and the Association of American Medical Colleges (AAMC)” with the goal of mitigating effects of these changes felt on campus while complying with them.
