Judge Blocks NIH Funding Freeze, Protecting Maintenance Money
The White House freeze would strip research universities of hundreds of millions of dollars used to cover maintenance and repairs of their buildings. February 27, 2025
By Dan Hounsell, Senior Editor
Funding for the maintenance and repair of institutional and commercial facilities is a precious resource, and any disruption — or potential disruption — to the flow of dollars for such projects is a cause for concern among maintenance and engineering managers. The issue is playing out on a national stage as research universities and medical centers fight to retain critical federal funding now in the crosshairs of the White House.
These institutions received at least a temporary reprieve after a U.S. judge recently extended an order blocking a sweeping freeze on trillions of dollars in federal spending by pausing grants, loans and other financial support, according to Reuters. U.S. District Judge Loren AliKhan in Washington extended an earlier order she issued that had temporarily blocked the funding freeze while she considered whether to issue a longer-term injunction.
The new National Institutes of Health (NIH) policy would strip research groups of hundreds of millions of dollars to cover so-called indirect expenses of their research efforts. Universities and medical centers use these expenses in part to pay for maintenance and repairs of their research facilities. The White House wants to cut what the NIH covers in indirect costs for its grants from 53 percent to 15 percent. Here is a sample of the impact the funding freeze would have on facilities:
- Oregon. Oregon Health & Science University (OHSU) stands to lose tens of millions in federal funding under the directive to cap NIH payments, according to Oregon Live. If allowed to proceed, the change would deal a major blow to OHSU, which received $277 million from the NIH in fiscal year 2024 — $73.6 million of it for indirect costs.
- Pennsylvania. At the University of Pittsburgh, the change would mean about $183 million less in NIH grants — a cut of more than 25 percent from the $661.2 million that the university received from the NIH overall in 2024, according to the Pittsburgh Post-Gazette.
- New Hampshire. Dartmouth College receives nearly $100 million annually in federal research grants from the NIH, according to The Dartmouth. Approximately 33 percent is allocated to indirect costs. With the proposed cuts, Dartmouth and Dartmouth Health would lose $24 million and $8 million, respectively.
Dan Hounsell is senior editor for the facilities market. He has more than 30 years of experience writing about facilities maintenance, engineering and management.?
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