Houston’s health care and academic institutions could lose millions of dollars towards research if the National Institutes of Health moves forward with reducing indirect costs.

How we got here

President Donald Trump’s administration ordered the NIH—the agency that awards a large number of grants towards research—to reduce “indirect costs” on Feb. 7. Indirect costs are overhead costs associated with research, such as supporting research staff and their salaries, as well as the costs to maintain facilities and laboratories, according to the NIH website.

Many research organizations charge over 50% in indirect costs, according to the NIH website. For example, Rice University has a federally negotiated indirect cost rate of 56%.

Michael King, Associate Vice President of Research and Chair of Bioengineering at Rice University, said that if the NIH goes through with these cuts, the university could lose tens of millions of dollars.


“It really makes me sad and a little bit angry, he said. “I try to advocate when I can, but these are dark times.”
The impact

According to the Science & Community Impacts Mapping Project, a project created by a team of researchers across the United States to show the impacts these cuts could make nationwide, Harris County could stand to lose 1,241 health care-related jobs if funding is cut.

“Harris County is home to the largest medical center in the world, and these cuts pose a direct threat to public health and our economy,” Harris County Attorney Christian Menefee said in a written statement. “It’s not just about numbers on a budget sheet—it’s about jobs, patients and families who rely on medical advancements.”

Stay tuned


The potential cuts are on pause indefinitely as a federal judge issued a temporary halt after 22 state attorney generals requested a block on the policy. Texas was not a part of the request.•