At a U.S. Senate Appropriations Committee hearing chaired by Senator Susan Collins, the potential impacts of a proposed National Institutes of Health (NIH) cap on indirect research costs were debated.
The hearing focused on how an NIH cap could affect facilities such as the Mount Desert Island Biological Laboratory (MDI Lab). Senator Collins addressed Dr. Hermann Haller, MDI Lab’s President, concerning the proposal’s implications on biomedical research in Maine and nationwide. “America’s edge in biomedical innovation is also of immense economic value to the nation, generating, for example, two and a half dollars for each dollar invested through NIH,” Collins stated, noting the local and national economic benefits.
During a question and answer session, Senator Collins referenced the proposal for an across-the-board 15 percent cap on indirect costs, usually negotiated between NIH and institutions. She asked Dr. Haller how this could impact MDI Lab. Dr. Haller responded by explaining the cap’s potential threat. He noted that independent research institutions, which rely heavily on current indirect cost structures, could face setbacks. “The proposed 15 percent cap endangers our work and the work of all the other independent research institutions,” he warned.
The hearing is part of a two-part series titled “Biomedical Research: Keeping America’s Edge in Innovation.” It included discussions with researchers, stakeholder groups, and patient advocates focused on the contributions of U.S. biomedical research to health and economic growth. The second hearing will feature testimony from government officials about federal investments in biomedical innovation.
