A rate cut at the National Institutes of Health could cost the University of Alabama at Birmingham about $70 million a year, officials said today.
“Drastically lowering NIH indirect cost recovery jeopardizes life-saving research, and it would also result in job and economic loss in Birmingham and Alabama,” the university told AL.com in a statement.
A federal judge on Monday afternoon temporarily blocked the Trump administration’s cut to the NIH’s indirect cost rate, a move that went into effect earlier in the day. The ruling, however, only applies to institutions in the states that joined the lawsuit. So the cut to 15% still holds in Alabama, where it hits especially hard at UAB, the largest employer in Alabama.
Birmingham Mayor Randall Woodfin, in a statement posted on Social media Monday evening, said: “As NIH funding is flippantly cut, it should also be clear that this negatively impacts the pillars of economic development in our city and cities like ours across America. And, while the U.S. takes our foot off the gas in the global race for technology and research advancement, foreign adversaries like China and Russia are making up ground.
“So, what is the result of the NIH cuts? Research is stopped, lives are lost, American jobs are destroyed, communities are threatened, and our country loses the edge we need to win the future.”
Read more: What do NIH funding cuts mean for Alabama? 5 things to know.
UAB indirect cost rate is 48.5%, well above the 26% average the NIH says it pays on the billions of grants it disburses annually.
“If the reduction remains in place, advancements in virtually all areas of research would slow,” the statement read, “including those addressing the leading causes of death in the United States, from cancer to Alzheimer’s, stroke, Parkinson’s, heart disease and diabetes, among other diseases and disorders that devastate lives and families.
In 2023, UAB received $413 million in grant funding from the NIH, the university said today. Last year, NIH grants to the university totaled $407 million.
“To be clear, these cuts are to real costs for equipment, facilities, digital security, and other infrastructure necessary to conducting critical research,” the official said.
In 2023 NIH grants in Alabama supported 4,769 jobs for an economic impact of $909 million,” according to United for Health. They impact almost 13,000 jobs at more than 1,200 businesses, it was noted.
The attorneys argue that the cut violates the Administrative Procedure Act, which governs how federal agencies create and implement regulations.
U.S. District Judge Angel Kelley granted their request for a temporary restraining order.
In a statement, Massachusetts AG Kim Campbell said: “We will not allow the Trump Administration to unlawfully undermine our economy, hamstring our competitiveness, or play politics with our public health.”
Alabama did not join the lawsuit.
Alabama Attorney General Steve Marshall’s office did not respond to a request for comment.
Over the weekend, Sen. Katie Britt said she will work with Health Secretary nominee Robert F. Kennedy, Jr. “to not hinder life-saving, groundbreaking research at high-achieving institutions like those in Alabama.”
Sen. Tommy Tuberville said he supports the cuts.
“UAB will continue to closely monitor and assess rapidly evolving developments,” the university said.
Robbie Fletcher, left, chats with Kentucky state Sen. Gerald Neal after Fletcher spoke to a Senate committee in Frankfort, Ky. (AP File Photo) In a bold move t
By Adam Pagnucco. Last May, the county council unanimously approved a $20 million special appropriation from reserves intended
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