Trump proposes 37% NIH cut, Congress rejects and adds $415 million

Trump's 2026 budget proposal called for a 37% cut to NIH funding, reducing the agency's budget from roughly $48.5 billion to about $30 billion.

The proposal would consolidate NIH's current 27 institutes and centers into eight new institutes focused on body systems, neuroscience, general medical sciences, disability research, and behavioral health.

By June 2025, NIH had terminated approximately 2,100 grants worth $9.5 billion. In early May alone, 777 grants were cancelled representing $1.9 billion in lost research funding.

The administration proposed capping indirect cost payments at 15%, down from an average of 50% and as high as 69% at some institutions. Universities use these funds for lab maintenance, utilities, and research infrastructure.

Federal JAJudge Angel Kelley in Boston issued a nationwide preliminary injunction blocking the indirect cost cap on March 5, 2025, finding universities were likely to win their lawsuit.

🌴California researchers lost $273 million in NIH grants due to terminations, according to Grant Watch and EdSource.

At the National Cancer Institute, the odds of winning a grant fell from one in 10 applicants to one in 25.

Congress rejected Trump's cuts in January 2026, passing a budget that increased NIH funding by $415 million to $48.7 billion. Both Republican and Democratic appropriators opposed the cuts.