NIH rate cuts may cost $13 million to VT annual research budget
BLACKSBURG, Va. (WFXR) – Virginia Tech says a recent decision to reduce grant reimbursements covering overhead costs for research may have a $13 million impact on the University.
On Friday, February 7, the National Institutes of Health (NIH) decided to reduce reimbursements for research grant recipients covering facilities and administrative (F&A) research costs.
In a statement released to the university community, Virginia Tech President, Tim Sands said these costs are 'very real' and the impacts of the NIH decision may cost the university $13 million to its annual research budget meaning a 'debilitating effect on the ability of research universities to carry out their mission.'
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'The NIH decision could have a $13 million impact on Virginia Tech's annual research budget and would have a debilitating effect on the ability of research universities to carry out their mission. Lives will be lost due to the corresponding reduction in the pace of biomedical research,' said Sands. 'It will degrade the nation's ability to compete in a global technology environment, threaten our national security, and impact the economies of the states and localities that host these institutions. If this F&A reimbursement reduction is extended to all federal agencies, the negative impact on our university would be over $55 million annually.'
Sands explained the reimbursements cover costs for federal regulatory compliance, safeguarding human subjects, building and operating costs, maintaining research facilities, as well as the administrative costs required to manage the grants and contracts.
'As I shared in last week's State of the University Address, Virginia Tech's research centers, interdisciplinary institutes, and innovation sites have positioned us at the forefront of academic and technical advancement. Our health science and technology research bring great value to the commonwealth that can be measured in lives saved, improved health, and economic growth in the communities we serve and beyond.' – Virginia Tech President, Tim Sands
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The university said they will continue to monitor and express their 'deep concern' to congressional representatives in Washington regarding the potential long-term effect on Virginia Tech and the nation's long-term viability as a science and technology leader.
'We will continue to advocate for the value and importance of our research mission and make the strongest possible case for reconsideration or revision of this decision,' said Sands. 'Additional information for principal investigators and others involved in our research enterprise will be forthcoming. Please continue to visit our Federal Agency Update page for the latest information.'
Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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