The recent announcement of National Institutes of Health funding cuts pertaining to grants and "indirect" research costs has left the UNC research community dealing with a sense of shock and anxiety. The NIH’s proposed 15 percent cap on indirects, a decrease from the previous 55 percent cap, could cause damage to UNC’s status as a cutting edge research institution.
“This change will save more than $4B a year effective immediately,” the NIH wrote in a Feb. 7 X post.
The proposed cuts come after an onslaught of executive orders from President Donald Trump. Following the NIH announcement , a Massachusetts federal judge blocked the policy. The temporary order remains in place today.
“I don't like calling it indirect costs, because I don't think anybody understands what that word means — that it sounds unimportant. The real name for that is facilities and administration,” UNC Biology professor Mark Peifer said.
At UNC, Peifer’s research creates a foundation for the betterment of disease treatments, and he has approximately 100 undergraduate students working in his lab, in addition to doctoral candidates and post-baccalaureates. There are 300 other biomedical researchers running labs of a similar caliber at the University, together bringing in $800 million in federal funding to the University.
Peifer said his lab has a $375,000 direct budget, money that comes directly to his lab for research expenses. He also receives 55 percent of that amount on top of the direct budget for facilities and administration, or indirect costs. However, new executive orders and NIH funding cuts would cut that percentage to 15 percent.
“A scientist like me is running a small business, and our product is new knowledge,” Peifer said. “We hire employees and we buy supplies, but we need to rent a building.”

Peifer said indirect costs are also paying for the care that people are receiving in the new cancer hospital, or in clinical trials, including things like rooms for patients to stay in and heating costs. Indirects pay the salaries of the electricians who keep the lights on.