NIH funding cuts could cost millions at Ohio State, Nationwide Children's

NIH funding cuts could cost millions at Ohio State, Nationwide Children’s

Posted by author February 11, 2025 Jobs

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Ohio’s top medical research hospitals and universities are in danger of losing tens of millions of dollars in funding following possible jarring spending cuts by the National Institutes of Health, putting thousands of jobs and cutting edge research in jeopardy.

Ohio State University, Nationwide Children’s Hospital and more industry giants around the state would be hit by the NIH’s Friday announcement, which laid out cuts to what’s known as the “indirect expense rate.” This rate determines what amount of a grant can be spent on indirect costs for facilities and administration, including support staff, utilities, building maintenance, data storage safety compliance and more.

A federal judge temporarily halted the cuts across the country after 22 states sued President Donald Trump’s administration, claiming the cuts are illegal. A hearing is scheduled for Feb. 21. Ohio was not one of the 22 states that sued.

The Friday announcement prompted a dire warning from national industry groups, who say the funding slash would cause research labs to “literally go dark” and hinder scientific progress nationwide.

“This decision will have far-reaching and detrimental consequences for Ohio’s innovation economy, workforce, and its ability to remain a cutting-edge leader in research and development,” said Ohio Life Sciences in a statement. The organization represents 4,900 research, development and manufacturing entities across Ohio, including those producing medicine and medical technology, managing clinical trials among other important products and programs.

“Reduced NIH funding will lead to fewer research projects, fewer opportunities for collaboration with industry partners, and ultimately, job losses in both academia and the private sector,” according to Ohio Life Sciences’ statement.

Ohio State, Nationwide Children’s respond

As a state, Ohio received over $1 billion in 2024 in NIH grants, according to JobsOhio. That $1 billion supports 13,000 Ohio jobs, according to a spring 2024 analysis by advocacy organization United for Medical Research. Ohio State University and Nationwide Children’s are some of the top receivers of research grants in Ohio.

The university received roughly $260 million in grants during fiscal year 2024, with $75.2 of that being indirect costs.

University spokesperson Ben Johnson said in a statement that the NIH announcement is being “reviewed by leadership, but lifesaving medical and health research and clinical trials continue in labs and clinics across our campus and medical center.”

The NIH provided $69.1 million in funding to Nationwide Children’s Hospital in the 2024 fiscal year, of which $21.5 million was for indirect research costs, and “only partially covered these expenses,” a spokesperson for Nationwide Children’s said in a statement.

“These cuts would undermine critical progress in cutting-edge research focused on serving and saving children in our region and across the country,” the spokesperson said in the statement.

Central Ohio organizations received $365.5 million in total from the NIH.

Samantha Hendrickson is The Dispatch’s medical business and health care reporter. She can be reached at shendrickson@dispatch.com