Research Update Regarding National Institutes of Health Funding Cap

Please visit our dedicated page on Federal Executive Orders, which includes FAQs Related to the NIH Funding Cap.

2/11/25 — First and foremost, we would like to acknowledge the importance of research to Drexel University’s mission and strategic goals. Thank you all for your hard work and dedication to keeping a steady hand at the helm of our research efforts as we navigate the effects of executive orders from the new administration. On Friday evening, the National Institutes of Health (NIH) announced its intention to adjust how it supports the research conducted at universities across the country, by imposing a cap on the amount of funding allocated within research grants to reimburse universities for the costs of maintaining research facilities and administration. For each institution, these reimbursement rates are individually negotiated with the federal government and can range from 8-70% of the total NIH award. Starting yesterday February 10th, the NIH will limit this amount to 15% for all awards, which is a significant reduction that will negatively impact this important work at so many universities, including Drexel.  

This reimbursement is a critical part of all research agreements. It enables universities to maintain the infrastructure — from labs, to equipment, to personnel — that make the lifesaving research supported by the NIH possible. At Drexel, the NIH has previously agreed to reimburse our research enterprise for the cost of maintaining lab spaces, maintaining equipment specific to their research goals and employing staff that ensure operations and compliance with the NIH’s standards for conducting safe and high-quality research. 

We understand that this change raises significant questions and concerns and there have already been legal challenges to the new policy. As this is a rapidly evolving situation, we advise the research community to continue budgeting Drexel’s full negotiated rate as appropriate in NIH proposals until further guidance is issued. Please include this caveat in your budget justification: Drexel University requests our current federally negotiated rate, but we will accept the NIH approved rate at the time of award.  

For the current NIH awards, we will determine how to proceed (reducing F&A rates) in the coming days as the situation evolves. Please reach out to the Office of Research & Innovation (ori@drexel.edu) if you have any questions. 

We are closely monitoring this situation and will be providing updates as additional information becomes available. At the same time, we have reached out to our partners in the research community, including the Association of American Medical Colleges and the Council on Governmental Relations and the other R1 universities across Pennsylvania, to ascertain how we can best support one another and advocate to restore this critical source of funding. 

Drexel’s leadership is also communicating the University’s institutional position on this matter. This effort is most effective when we speak with one voice through coordinated communications. Drexel has in-house and external lobbyists to represent the University and to ensure our compliance with federal, state and local lobbying laws, which we can only achieve if we are well coordinated. You may also be asked through your professional network, such as the national associations to which you belong, to support advocacy efforts. As a private citizen, you should feel free to engage in these efforts and share your story.   

The NIH’s support of research has enabled some of the world’s most important medical breakthroughs, from understanding and treating diseases to developing revolutionary medical procedures. Everyone has been touched by the work of NIH researchers at some point in their life. It is critical that support for this research be sustained so that this lifesaving work can continue.     

Sincerely, 

Paul Jensen
Executive Vice President 
Nina Henderson Provost 

Denis P. O’Brien 
Interim President 

Aleister Saunders 
Executive Vice Provost for Research & Innovation