Buck CEO Eric Verdin’s Statement on Proposed Changes to NIH Funding

Dear Buck Community,

As you have probably heard, the Trump administration has issued new guidance from the National Institutes of Health (NIH) that will have a major and potentially devastating impact on universities, hospitals and research institutes across the country. As President and CEO of the Buck Institute, which would be extremely hard hit should this guidance stand, I want to take the opportunity to fill you on the situation. 

The guidance issued by the NIH on February 7 lowered the standard indirect rate to 15% for all NIH grants. Indirect costs, also known as Facilities and Administration or F&A costs, are critical to a research enterprise; indeed they make the research possible. These costs cover everything from shared lab equipment, cloud computing, hazardous waste disposal, and maintenance of high tech equipment to hiring, grants administration and janitorial services, as well as essentials like electricity, air conditioning and heat. Indeed, I would argue that the term “indirect costs” is a misnomer as science would be impossible without these elements. As of now, the policy change is on hold since a federal judge has issued a temporary restraining order. A hearing is set for February 21.

This past week I had the opportunity to testify before the Senate Select Committee on Aging at a hearing on “Optimizing Longevity: From Research to Action.” I was pleased to have the chance to speak about how the NIH is the crown jewel of scientific research worldwide, and how essential is to maintaining America’s leadership position in scientific and medical discovery. Below is an exchange I had with Maryland Senator Angela Alsobrooks. 

We have met with our government officials and will continue to relentlessly advocate for our ability to continue to do groundbreaking science. Any reduction in the NIH indirect cost rate would be the end of business as usual at the Buck. There would be program reductions, layoffs and, inevitably, just as research on aging is translating discoveries into therapeutics, a dramatic slowdown in getting potentially lifesaving drugs to patients.
 
We appreciate your continued support and will keep you apprised of this most unfortunate situation. Please know that we are doing everything possible to continue and advance the Buck’s important work.
 


Eric Verdin, MD
President and CEO