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Morning Briefing

Summaries of health policy coverage from major news organizations

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Monday, Feb 10 2025

Full Issue

Medical Researchers Face Drastic Cuts After NIH Issues New Funding Policy

The policy change, effective today, limits institutions' payments to 15% for indirect costs such as support staff, equipment, and overhead expenses. In other news, as the legality of Elon Musk's role in the U.S. government is challenged in court, his team starts searching for evidence of fraud in Medicaid and Medicare logs.

The National Institutes of Health is capping an important kind of funding for medical research at universities, medical schools, research hospitals and other scientific institutions. In the latest step by the Trump administration affecting scientific research, the NIH says the agency is limiting funding for "indirect costs" to 15% of grants. That's far below what many institutions have been getting to maintain buildings and equipment and pay support staff and other overhead expenses. For example, Harvard receives 68% and Yale gets 67%, according to the NIH. (Stein, 2/8)

Biomedical researchers in Massachusetts braced this weekend for drastic and sudden federal funding cuts, which local officials say will upend scientific endeavors at universities and medical centers synonymous with the state鈥檚 reputation and economy. The change 鈥 announced by Republican President Trump鈥檚 administration on Friday and set to take effect Monday 鈥 caps reimbursement rates from the National Institutes of Health at 15 percent for expenses that support research operations but aren鈥檛 directly tied to performing science. (Crimaldi, 2/9)

Dr. Carl Bergstrom, a biologist at the University of Washington, noted on social media that the new policy 鈥渕eans cutting one of the most important sources of university funding nationwide by 75% or more.鈥 鈥淔or a large university, this creates a sudden and catastrophic shortfall of hundreds of millions of dollars against already budgeted funds,鈥 he said in a post on Bluesky. Dr. Theodore Iwashyna, a professor of pulmonary and critical care medicine and of health policy and management at Johns Hopkins University, said the move was 鈥渁 disastrously bad idea.鈥 鈥淭his would be devastating for research,鈥 he wrote in an email to CNN. (Dillinger, 2/8)

Science is complicated, and so are the rules that govern how it鈥檚 paid for by the federal government. An abrupt Friday afternoon announcement from the National Institutes of Health that it would slash support for indirect research costs paid to universities, medical centers, and other grant recipients left academics bewildered and deeply concerned that the policy change would grind scientific progress to a halt. Many universities get an extra 50% or more on each grant to cover overhead; starting Monday, that rate will drop to 15% for new and existing grants across all institutions. (Wosen and Chen, 2/8)

On Medicare and Medicaid costs 鈥

The Trump administration has tasked two top political appointees with monitoring the Department of Government Efficiency鈥檚 access to key systems inside the health agency responsible for managing Medicare and Medicaid, according to internal emails obtained by POLITICO. The appointees, Kim Brandt and John Brooks, are leading the Centers for Medicare and Medicaid Services鈥 鈥渃ollaboration鈥 with the unofficial cost-cutting group led by Elon Musk, including 鈥渆nsuring appropriate access to CMS systems and technology.鈥 (Cancryn, 2/7)

A new lawsuit is yielding quicker success in challenging the legality of Elon Musk鈥檚 Department of Government Efficiency (DOGE) takeover of the Treasury payment systems, which has opened up new, wide-reaching privacy concerns not limited to Americans鈥 healthcare records. (Tong, 2/8)

Improper payments made through programs of the Health and Human Services Department, which ballooned during the COVID-19 pandemic, are on the decline but still amounted to more than 5% of outlays by the agency last year 鈥 or about $88.5 billion. Elon Musk's team at the Department of Government Efficiency has reportedly been combing through systems at federal agencies, including the Centers for Medicare and Medicaid Services, looking for fraud. (Broderick, 2/7)

On cuts at Veterans Affairs, USAID, and USDA 鈥

Most nurses, doctors and other staff caring for military veterans through the Department of Veterans Affairs are not eligible for the Trump administration鈥檚 deferred resignation offer, according to an email sent Friday by VA leadership to staff. ... The new email, which was reviewed by The Associated Press, included an attached letter from VA鈥檚 human resources department and a spreadsheet with a list of more than 130 occupations labeled 鈥淰A EXEMPTION REQUESTS.鈥 (Johnson, 2/8)

It was the week President Donald Trump had signed a sweeping executive order shutting off the funding for foreign aid programs. Inside the U.S. Agency for International Development, his political appointees gathered shell-shocked senior staffers for private meetings to discuss the storied agency鈥檚 new reality. Those staffers immediately raised objections. USAID鈥檚 programs were funded by Congress, and there were rules to follow before halting the payments, they said. Instead of reassuring them, the agency鈥檚 then-chief of staff, Matt Hopson, told staff that the White House did not plan on restarting most of the aid projects, according to two officials familiar with his comments. (Barry-Jester and Murphy, 2/9)

Farmers report missing millions of dollars of funding they were promised by the U.S. Agriculture Department, despite promises from the Trump administration that a federal funding freeze would not apply to projects directly benefiting individuals. (Wu, Gupta and Kaur, 2/10)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
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