Dear Colleagues,
As many of you know, the Office of Research experienced budget-related staffing changes last week that may impact service to our research community. I will speak about this action and how we are adjusting in more detail in this month’s Research Resource newsletter. The Office of Research staff are some of the most committed and service-oriented people I know; please show them grace and kindness in this difficult moment of transition.
Today, I'd like to share an important, encouraging update regarding Congress’s FY26 budget proposal.
On September 2, the House Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies (L-HHS) advanced its draft Fiscal Year 2026 (FY26) bill. Like the Senate action a few weeks prior, the House proposed no meaningful change to the top-line NIH budget:
- $46.9 billion for NIH (FY25 = $47.1 billion)
- $945 million for ARPA-H (a $555 million cut)
- 30% cap on facilities and administrative (F&A) costs (i.e., 30% of the total award) for institutions subject to the endowment tax
This is wonderful news for the top-line budget at NIH, and this demonstrates continued strong support for biomedical science in Congress. Other federal funding agencies face a less clear reconciliation path. It also remains unclear how Congress will resolve the debate over F&A costs, with the House proposing an F&A ceiling for some institutions and the Senate proposing no change to the current process.
Congress has until September 30 to come to a bipartisan agreement on the FY26 budget. A temporary extension, known as a Continuing Resolution (CR), is likely and will provide Congress with additional time to strike a compromise. If Congress cannot agree and does not approve a CR, a federal government shutdown may occur in October.
I will be sure to keep you updated on the FY26 federal research budget process. As always, you can reach me with questions or concerns at [email protected].
Yours,
Hal
Harold R. Collard, MD, MS
Vice Chancellor for Research
Professor of Medicine and Health Policy