New IBO Survey Reveals Major Cuts to Lab Budgets Amid NIH Grant Terminations

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ARLINGTON, Va., June 10, 2025 /PRNewswire/ -- A new survey conducted by Instrument Business Outlook (IBO) has uncovered significant reductions in laboratory budgets across the U.S. academic and government research landscape, with lab product spending sharply impacted by recent NIH grant terminations. The findings, based on an exclusive IBO survey, shed light on the growing financial uncertainty facing scientific research labs in 2025.
The results follow widespread disruptions in NIH funding, with more than 1,500 grants totaling $7.5 billion terminated as of May 20, according to data from Grant Watch. While the exact numbers remain fluid due to inconsistent reporting by federal agencies, the toll is undeniable: R01 research grants—a cornerstone of basic research—have been particularly hard-hit, with 322 grants worth nearly $790 million terminated.
"The fallout from NIH funding changes is cascading through the research ecosystem," said Tanya Samazan, Editor-In-Chief. "Our survey shows just how deeply this uncertainty is affecting labs—from basic research to clinical trial infrastructure."
Survey Highlights: Budget Cuts Across the Board
Conducted by the Science Advisory Board (SAB) between mid- and late May, the survey collected 117 responses from U.S.-based labs, with 88 indicating their labs were impacted by NIH-related funding disruptions. Key findings include:
59% of labs report direct impacts from NIH-related grant or contract terminations, delays, or reductions.
47% report indirect impacts.
Among affected labs, nearly 60% have reduced 2025 operating budgets by more than 10%.
51% report capital budget reductions exceeding 10%.
When excluding labs that were uncertain or unaffected, the scale becomes even more dramatic:
71% of labs report operating budget cuts of over 10%.
71% report similar reductions in capital budgets.
Lab Tools and Consumables Hit Hardest
Every category of lab spending has been affected, according to survey data:
80% of labs have reduced their 2025 consumables budgets, making it the most impacted category.
63% have cut software/informatics budgets.
70% have reduced spending on devices under $50,000.
Even high-end instrumentation (>$150,000) hasn't been spared, with 62% of labs trimming these budgets.
Institutes Most Affected
The survey findings align with NIH grant termination data indicating the hardest-hit institutions include:
National Institute of Mental Health, with over $400 million in losses.
National Institute of General Medical Sciences, which lost the highest number of grants (134).
Institutes heavily reliant on lab instruments, including the National Institute of Biomedical Imaging and Bioengineering and the National Human Genome Research Institute.
Medical schools and hospitals have borne a significant share of the burden, accounting for 50% of terminated grants and 55% of total terminated NIH dollars.
A Shifting Landscape with No Clear Path Forward
The rapidly evolving nature of NIH decisions—including ongoing terminations and reinstatements—has created a volatile funding environment. Labs are being forced to make difficult decisions with limited visibility into future funding.
About Instrument Business Outlook (IBO)IBO is a leading newsletter providing market intelligence for the analytical instrument industry. Published by Strategic Directions International (SDi), a division of Science and Medicine Group, IBO offers in-depth coverage of technology, business, and market trends affecting the life sciences and lab tools sectors.
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SOURCE Instrument Business Outlook