On February 10, 2025, the National Institutes of Health (NIH) proposed a policy to cap indirect costs at 15% for new and existing research grants. This change would replace the current rates that were previously negotiated with universities and research institutions, including Versiti Blood Research Institute (VBRI). If this policy is implemented, it stands to significantly reduce the funding available for vital research infrastructure that supports our mission. Although a federal judge has issued a temporary restraining order, there is deep concern that the proposed budget cuts will eventually be implemented.

Indirect costs, also known as facilities and administration (F&A) costs, support the infrastructure that allows us to conduct transformative scientific research. From maintaining laboratories to ensuring compliance with vital regulations, these expenses are unavoidable and essential for the continuity and success of our work.

The proposed 15% cap on F&A costs presents a serious challenge. It will directly impact the resources we rely on to push the boundaries of science and medical advancement. At VBRI, our researchers work tirelessly to improve patient outcomes, particularly in blood disorders, cancer, and diseases of the immune system. We are committed to the pursuit of groundbreaking research, and this change threatens to slow our progress, affecting everything from the development of new treatments to the discovery of new life-saving therapies.

This policy change has sparked uncertainty within the global scientific community. VBRI, alongside our partners and colleagues across the research landscape, is engaging with federal agencies to understand the full implications that this change would have. We are committed to exploring all avenues to address this policy shift and ensure that we continue to have the resources necessary to drive meaningful scientific advancements.

For decades, VBRI has been at the forefront of innovative biomedical research, largely fueled by NIH funding. These partnerships have enabled us to lead the way in blood cancer therapies and rare blood disorder treatments, and they have positioned the United States as a global leader in medical research. The NIH has been an essential partner in this journey, and we remain hopeful that collaboration and investment will continue.

We recognize the importance of this issue for our research community and the broader field of biomedical science. It is essential that we work together to ensure funding models continue to support the critical infrastructure needed to sustain groundbreaking research. With this support, we can ensure the uninterrupted progress of scientific discovery and continue our mission to improve patient care and health outcomes.

We are optimistic that, with the ongoing partnership and commitment of all our stakeholders, we will navigate these challenges effectively. Together, we will continue to advance innovative therapies that have the potential to transform lives.

Thank you for your continued support as we remain focused on advancing science and improving the well-being of our communities.

Sincerely,

Dr. Michael Deininger
President and Director
Versiti Blood Research Institute