Trump Administration Temporarily Blocks, Then Reinstates NIH Grant Awards

WASHINGTON, DC - July 30, 2025 The Office of Management and Budget (OMB) unexpectedly inserted a footnote into its funding apportionment that effectively halted the distribution of NIH research grants—including new awards and possibly some ongoing grants—to universities and medical centers for the final two months of the fiscal year. The maneuver threatened roughly $15 billion in critical health‑research funding, triggering alarm across the scientific and academic communities.

The directive limited NIH spending to salaries, administrative, and internal Clinical Center costs, effectively suspending external research grants during a peak funding period. NIH informed applicants that, for some institutes such as the National Cancer Institute, the share of grant funding awarded could drop from 9% to as low as 4%—a significant long‑term contraction unless Congress intervenes.

Following swift backlash from lawmakers—including a bipartisan cohort of 14 Republican senators—and institutional leaders, senior White House officials reversed the freeze later the same day, confirming that the pause was actually a “programmatic review” and rescinding the restriction. However, the episode heightened ongoing tensions surrounding the administration’s broader NIH policy, including earlier efforts to terminate or delay billions in grants tied to diversity, equity, and inclusion programs, and systemic cuts in administrative overhead funding.

In the longer term, critics warn this incident adds to a pattern of politicizing scientific funding, raising concerns about executive overreach and long‑term disruption to U.S. biomedical research infrastructure.

*Sources: *https://www.statnews.com/2025/07/29/trump-administration-omb-blocks-nih-grant-awards/