Petition to Oppose the Blanket 15% F&A Cap on NIH Grants

To Our Esteemed Leaders in Congress and the Administration:

We, the undersigned—researchers, entrepreneurs, healthcare professionals, business owners, students, families, and citizens—write to express our strong opposition to the recently proposed blanket 15% cap on Facilities & Administrative (F&A) cost reimbursement for NIH grants (referenced in NOT-OD-25-068, February 7, 2025). This rigid, one-size-fits-all policy undercuts American innovation, threatens local economies, and jeopardizes our nation’s global leadership in biomedical research and healthcare.

 
1. Preserving American Competitiveness and Economic Growth

Fueling Job Creation and Economic Activity:

Academic medical centers and research institutions generate billions of dollars in economic activity and create high-quality jobs in communities nationwide. NIH estimates indicate that each dollar of NIH funding yields roughly 2.46 times that amount in broader economic output. A cap at 15% will disrupt this engine of economic prosperity, weakening the core research infrastructure that both small businesses and major industries rely on for innovation.

Driving Innovation and Entrepreneurship:

Every $100 million of NIH funding generates approximately 76 unique patents, which in turn yield about $598 million in additional R&D. By limiting F&A cost recovery, we discourage the public–private partnerships and pioneering research that lead to new businesses, cutting-edge products, and expanded economic opportunities.
 
2. Protecting Local Autonomy and Community Investment

Respecting Institutional Diversity:

F&A rates are typically negotiated based on each institution’s actual costs—factoring in essential needs such as facilities, IT, compliance, and laboratory support. A uniform 15% limit disregards regional cost differences, from rural universities to major urban medical centers, and imposes disproportionate burdens where resources are already stretched thin.

Supporting Local Economies and Healthcare Services:

Many academic medical centers anchor their regional economies and sustain critical services—from specialized trauma care to rare disease research. Slashing these indirect cost reimbursements forces institutions to scale back or close vital programs, undermining both economic stability and patient care in the communities that rely on them.
 
3. Ensuring America’s Health Security and Future Readiness

Accelerating Breakthrough Therapies:

NIH-funded research underpins critical medical advancements, from responding to emerging global disease threats to developing life-saving treatments. F&A support ensures the existence of cutting-edge labs, expert staff, and regulatory compliance structures that make high-caliber research possible. Reductions in F&A funding hamper America’s capacity to respond to pandemics, biological warfare, or new pathogens that threaten public health.

Supporting Veterans and Military Services:

Many NIH grants support research in Veterans Administration (VA) hospitals and military institutions, delivering innovative treatments to those who have served our country. Limiting F&A reimbursements deprives these programs of the financial foundation needed to continue developing therapies that benefit our veterans and active-duty personnel.
 
4. Retaining a Specialized Workforce and Fostering Innovation

Attracting and Keeping Top Talent:
Our academic centers train tomorrow’s doctors, scientists, and entrepreneurs—the human capital critical for continued leadership in global innovation. A 15% cap will prompt highly skilled experts to seek opportunities overseas or in industries not bound by these constraints, draining our nation’s competitive edge.

Maintaining Specialized Care for Vulnerable Populations:
Rare disease programs, advanced surgical interventions, and cutting-edge clinical trials often take place at large research institutions that rely on F&A funds for infrastructure. Reducing support jeopardizes these specialized services, leaving countless Americans—children, pregnant women, individuals with rare diseases, veterans, and others—without access to advanced medical care.
 
5. Upholding American Principles of Innovation and Prosperity

A blanket 15% F&A cap goes against core American values of local autonomy, free-market principles, and strategic investment in innovation. Rather than imposing a top-down edict that undermines negotiated rates and regional strengths, we urge you to:

Maintain or Update Existing Negotiated Rates
Preserve or modernize current F&A rate agreements, which reflect real costs and ensure research institutions can support both groundbreaking discovery and high-quality patient care.

Continue Fueling Economic Growth
Recognize the far-reaching economic benefits of biomedical research, from job creation to local economic development, and defend these foundational investments.

Empower Institutions to Protect Public Health
Allow academic and research institutions to retain the operational flexibility needed to respond effectively to health emergencies and emerging threats.

Champion American Leadership in Science and Technology
By supporting robust F&A funding, you safeguard our nation’s position as a global hub for transformative scientific research and healthcare innovation.
 

We Urge Congress and the Administration to Act

In closing, we respectfully ask you to oppose the implementation of the 15% F&A cap as proposed in NOT-OD-25-068. Instead, we call on you to promote policies that:

• Strengthen local and national economies through sustained support for cutting-edge research.
• Empower communities to tackle public health crises and provide top-tier patient care.
• Preserve America’s leadership in science, technology, and innovation, ensuring that our country remains the global standard-bearer for groundbreaking discovery.

Together, we can protect the economic vitality of our communities, the health of our nation, and the future of American ingenuity. Thank you for your leadership and commitment to preserving our status as the world’s preeminent powerhouse in biomedical research and innovation.