The National Institutes of Health (NIH) has been facing challenges in disbursing grant funding, leading to a significant funding gap of at least $4.7 billion by mid-June. This shortfall, which has grown over the past two months, is hindering the progress of ongoing projects and forcing some universities to halt studies and lay off lab workers.
One of the major issues contributing to the funding deficit is the delay in non-competitive renewals, which are crucial for sustaining research projects over multiple years. Researchers rely on these renewals to continue their work, but the delays have left many in limbo, unsure if they will receive the necessary funding to carry on their research.
To address the slow disbursement of funds, the NIH has instructed grants management employees to consider providing multi-year funding for projects coming to completion. This strategy aims to expedite the release of funds and prevent further disruptions to ongoing research efforts. However, this shift to multi-year awards poses challenges, especially in light of proposed budget cuts that could impact the number of new grants awarded in the future.
The Trump administration’s 2026 budget proposal includes a plan to award up to half of all NIH research grants as multi-year awards, allowing researchers to receive all funding upfront rather than annually. While this approach offers benefits in terms of project planning and flexibility, the proposed budget cuts could undermine its effectiveness by limiting the number of new grants issued each year.
Critics argue that transitioning to a multi-year funding model without sufficient funding from Congress could lead to a de facto cut in research grants and reduce government oversight and accountability. Despite the potential drawbacks, the administration defends the shift to multi-year awards as a way to improve the evaluation process and focus on research priorities.
As Congress considers the “One Big Beautiful Bill Act,” which includes provisions for NIH funding changes, the future of biomedical research funding hangs in the balance. Researchers and institutions are left waiting and hoping for a resolution that will ensure the continuity of vital research projects and support the advancement of scientific knowledge.
