DURHAM, N.C. - Duke University and research institutions across the United States are bracing for significant funding cuts as the Trump administration moves to cap National Institutes of Health (NIH) indirect cost reimbursements at 15%, down from current rates that average around 61% [1].

Duke, which received $580 million in NIH grants last fiscal year, ranking 11th among U.S. research institutions, would be particularly impacted by the changes. While a court challenge has temporarily delayed implementation, universities nationwide are already implementing contingency measures [1][2].

The immediate effects are already visible at Duke's School of Medicine, where NIH grant awards have dropped from 166 in early 2024 to just 64 in early 2025. The institution has frozen hiring, reduced PhD student admissions from 130 to 100, and halted construction plans for a new research facility [1].

The administration's policy change would affect how universities receive compensation for research-related overhead costs. Currently, Duke receives about 61% above direct grant amounts to cover facilities, utilities and maintenance. The proposed 15% cap would significantly reduce this support [3].

'The Trump administration is committed to slashing the cottage industry built off of the waste, fraud, and abuse within our mammoth government,' stated White House spokesperson Kush Desai, claiming the cuts would save $4 billion annually [1].

However, researchers argue these indirect costs are essential for maintaining research infrastructure. Professor Donald McDonnell, whose lab developed an FDA-approved breast cancer drug in 2023, warns that basic equipment maintenance would become difficult under the new structure [1].

The funding uncertainty extends beyond infrastructure to affect ongoing research and education. Nearly all second-year and higher PhD students at Duke's medical school rely on federal funding support. Additionally, diversity initiatives face particular challenges as related NIH programs are being eliminated [1].