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How Trump’s “indirect costs” cap at the NIH would hurt undergrads too

Summary

The Trump administration's decision to cap indirect costs on National Institutes of Health (NIH) research grants at 15% threatens funding for universities, which rely on these subsidies to offset tuition costs and support lower-income students. While the administration claims the cuts target administrative inefficiencies, critics argue they are politically motivated, aiming to curb diversity, equity, and inclusion (DEI) programs. The change, currently halted by a court order, could result in major tuition hikes, especially at public universities with fewer financial reserves. Institutions like Harvard and Johns Hopkins can absorb losses, but mid-tier public universities, such as the University of Utah, face severe financial shortfalls. The policy shift highlights a broader move away from direct federal funding of higher education, potentially jeopardizing college affordability and access for many students.

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