Community Voices: How scientific research works in the US

Written by Michael Guy, an associate professor of chemistry and director of the Pre-Medical Pathways Program at Northern Kentucky University.

Perhaps you’ve heard the NIH or the NSF mentioned in the news recently – talks of budgets, layoffs and maybe even indirect costs. 

What are these agencies, why do they exist, and what effect do they have on your life?   

What are the NIH and the NSF?

NIH stands for the National Institutes of Health, and NSF stands for the National Science Foundation. 

Both of these agencies have been around in their current forms since shortly after World War II, when the U.S. government saw the value in scientific advancement on a national level because technology was so important during the war. 

The goal of the NIH is to figure out how living systems work and then use that knowledge to make people healthier and live longer.  The goal of the NSF is to promote scientific progress, advance health and prosperity, and secure national defense. 

Most of the scientific discoveries that have led to modern medical treatments, as well as the discoveries that led to many of the life-changing technologies that we take for granted today, came about as a result of funding given to scientists by these agencies.

What do these agencies actually do?

They fund basic scientific research on a national scale. 

U.S. leaders decided early on that instead of putting funding into a few large, centralized government research facilities, they would give most of the money to universities all over the country who have the people, expertise, and facilities to more effectively collaborate and drive discoveries. 

Funding universities has the added benefit that college students, graduate students, and others learning how to be scientists have the resources to be properly trained to provide a continual pipeline of qualified scientists to fill jobs in industry, academia, and government.

What are the budgets of these agencies?

Scientific research on a national scale requires a lot of money. 

The NIH budget for 2024 was approximately $47.35 billion, and the NSF budget was approximately $9.06 billion. 

This may seem like a lot of money (it is), but to put it into perspective, the top three pharmaceutical companies in the U.S. (Johnson & Johnson, Merck, and Pfizer) EACH had more revenue ($50+ billion) than the total NIH budget.  Another way to look at it is that the U.S. Department of Defense budget was $841.4 billion, or that Walmart ($648.1 billion) and Amazon ($638 billion) had revenues more than 10 times the entire NIH budget. 

So is it worth it to spend this type of money? 

It is estimated that every dollar in NIH funding generates approximately $2.46 in economic activity.  Traditionally, both Republicans and Democrats have been supportive of funding these agencies, and since around 2000 the NIH budget has remained about the same each year when adjusted for inflation. 

The Trump administration has proposed budgeting $27 billion to the NIH this next fiscal year (a 40% reduction) and $3.9 billion to the NSF (a 56% reduction).  Cuts this big have never happened before, with the largest in recent memory being a 5% reduction to the NIH budget in 2013.

What is the money used for? 

Most of the money is used to buy supplies and scientific instruments and to pay the people doing the work. This money is referred to as direct costs. 

A small amount is also used to publish the research in scientific journals so that other scientists and the public can read about it, as well as to send scientists to conferences where they can share ideas and learn about the latest scientific developments. 

There are strict rules on how funds can be used, and violations can result in fines, civil penalties, and even jail time.

I’ve heard about indirect costs: What are those?

Besides the money described above, the NIH and NSF give money to universities to fund other costs associated with doing research including buildings, maintenance and grant administrators who ensure that the research is done ethically and safely. 

This money is known as indirect costs, and is given as a percentage of the direct costs.  The average given by the NIH is 27-28% of direct costs, but varies depending on the university. 

For example, NKU receives 40% in indirect costs.  There are rules to ensure that these funds support or further scientific research.  According to Dr. Bethany Bowling, dean of NKU’s College of Arts & Sciences, the college uses this money to maintain, repair, and purchase research equipment, update and renovate research spaces, and help pay people working on the projects. 

The Trump administration has proposed capping indirect costs at 15%, which would fundamentally change the model of how research is supported and performed at most universities.

How do scientists get funded by the NIH and NSF?

Receiving NIH and NSF funds is extremely competitive. 

Scientists must first apply for a grant, which is then independently reviewed by a panel of experts from other universities.  These applications have several parts, but most of a professor’s time is usually spent preparing the research strategy.  For an R15, the research strategy is a 12 page, single-spaced, fully referenced document explaining the proposed research and why it is important. 

Other key parts include an abstract describing the research and a public health statement, both of which can be found for all funded NIH grants at this website: https://report.nih.gov/.  Traditionally, only 20 -30% of grant applications are funded by the NIH based on different factors, the most relevant being how much NIH funding is available.  

Which universities are eligible to receive funding?

For many years, in general, only large, research-focused universities (such as the University of Cincinnati) received funding through the NIH. 

Since the 1980s, programs such as the Academic Research Enhancement Award (AREA) for Undergraduate-Focused Institutions (R15 awards) were established especially for primarily undergraduate institutions (PUIs) like NKU.  As college students earn degrees in the sciences, actually being in the laboratory and doing research is critical for their training and development.  Programs like the R15 help ensure that students attending PUIs receive hands-on research training, which makes them competitive for additional schooling (think medical school or PhD programs) and job opportunities, all while contributing to our basic understanding of science. 

For example, since 2018 my research lab been funded by an R15 award to study how cells make proteins to better understand the diseases that occur when this process goes wrong.  Over 50 NKU students, most of them from the northern Kentucky region, have participated in this research prior to pursuing PhDs, going to medical, dental, or pharmacy school, or joining the local biotechnology workforce.

Why is all of this in the news right now? 

Everyone agrees that there are issues and problems with our current model of funding. 

Whether drastically cutting the NIH and NSF budgets and fundamentally changing how science is funded in the U.S. will result in a better system remains to be seen. 

Regardless, if these changes are put into place, the effects on science in our country will be felt for generations to come.

If you have an idea for a Community Voices column, email Meghan Goth at mgoth@linknky.com.

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