NABR Update – NIH Fiscal Policies Due to Sequestration

NIH Details Impact of 2013 Sequester Cuts


The National Institutes of Health (NIH) has a $29.5 billion budget for FY 2013, which is a decrease of approximately 5.5 percent over last year. While the overall impact of sequestration was known, now the biomedical research community has more details. Last week NIH announced its fiscal operation policies for the remainder of FY 2013 (NOT-OD-13-064). These policies implement the continuing resolution signed by President Obama on March 26, and incorporate the provisions of the sequester (formally known as the 2011 Balanced Budget and Emergency Deficit Control Act).


As a result of this budget reduction of $1.71 billion, NIH expects to fund 8,283 new and competing research grants this year, a drop of 703 grants. Including ongoing (already awarded) grants that are ending, the total number of research grants will drop by 1,357 to 34,902 awards. NIH will try to keep the size of the average award consistent with 2012; it will not award inflationary increases for future years. The agency also expects to trim continuing grants. Grants that were cut up to 10% earlier this year because of budget uncertainty "may be partially restored," but probably not to the original commitment level, NIH's notice says.



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