Bio Nebraska, a non-profit trade association dedicated to supporting, promoting and growing Nebraska’s bioscience ecosystem, expresses deep concern over the recent National Institutes of Health (NIH) guidance to limit funding for medical and life sciences research at universities.
This move will be a catastrophic blow to scientific discovery and innovation in Nebraska and across the United States.
The Administration announced last Friday that it is drastically reducing so-called “indirect payments” by NIH to universities, clinical centers, and research institutes. University-based research is at the very core of our country’s innovation and economic growth, let alone the enhancement of public health. NIH funding of facilities and administrative expenditures (indirect payments) are part and parcel of the total costs of conducting world-class research – they are real costs. This funding provides the necessary critical infrastructure for cutting-edge research and has long been recognized by NIH as key to maintaining the United States’ preeminence in innovation.
NIH awarded over $137 million to Nebraska entities in Fiscal Year 2024, including $113 million to the University of Nebraska, a Bio Nebraska member:
- University of Nebraska Medical Center – $89 million
- University of Nebraska-Lincoln – $19 million
- University of Nebraska at Omaha – $4.7 million
- University of Nebraska at Kearney – $394,857
In a recent memo to University of Nebraska staff, faculty and students, University of Nebraska President Jeffrey Gold stated that the new NIH guidance could cost the University system $27 million. In an environment where budgets are tight, NIH’s new guidance is another hit to universities across the country. Let us not forget the positive impact universities have on states’ economies. In a report announced this past December, it was shown the University of Nebraska had an annual economic impact on the state of $6.4 billion, a $600 million increase over the past three years.
Universities are an essential component to our bioscience ecosystem. Without university research and innovation, the ecosystem will not thrive. In a recently released report, data shows there are more than 1,400 establishments statewide directly related to the biosciences, employing roughly 19,000 Nebraskans with an average salary of $89,000. Nebraska’s bioscience sector is creating high-quality and high wage jobs. We should be doing all we can to invest in and grow this sector, not constrain and hinder.
Bio Nebraska urges the Administration to reconsider its guidance and acknowledge the crucial role that NIH funding plays in advancing research, fostering economic growth, and enhancing public health along with our universities. In addition, Bio Nebraska asks the Nebraska Congressional delegation to ensure that NIH funding remains intact.