Statement on cuts to National Institutes of Health funding
Disruptions or reductions in funding may irreparably harm biomedical research efforts at J. Craig Venter Institute and in the broader research ecosystem
La Jolla, California—February 20, 2025—For more than 30 years, the J. Craig Venter Institute (JCVI) has been at the forefront of biotechnological innovation and discovery. Our research relies on consistent grant funding from the National Institutes of Health (NIH) and other federal agencies. This funding is crucial for the United States to keep its global scientific leadership position, and the consequences of disruptions or reductions would be catastrophic.
Funding interruptions can devastate biomedical research, leading to lost data, dismantled teams, and delayed discoveries. The NIH’s recent cap on indirect cost (IDC) rates at 15% threatens ongoing studies and limits our ability to find cures, treatments, diagnostics, and learn more about the underlying biology of human health and disease. Such disruptions would waste significant investments already made.
Reducing the IDC rate to 15% would harm JCVI, other research institutes, and universities, likely leading to the closure of institutions like JCVI. Indirect costs cover essential expenses including administrative support and facility maintenance, without which our science could not be done. Federal agencies negotiate rates through an audited process with each grant-receiving organization based on actual costs, which vary widely. The type of organization, its location, and specialized labs or equipment all contribute to the variance.
Research institutes like JCVI are vital to the broader research ecosystem, fostering innovation and collaboration. JCVI brings unique perspective and expertise to human health, infectious diseases, vaccine development, and synthetic biology. We work with universities, government agencies, and private partners to advance biomedical discovery. Funding reductions would weaken this ecosystem and hinder scientific progress. Independent institutes bring specialized capabilities to the research ecosystem and are nimbler because of their size. Their structure also results in different cost models from universities. Each partner in the research value chain plays a vital role.
Biotechnology drives economic growth in regions like San Diego, California and Maryland's biotech corridor, centered in Rockville. In San Diego, the life science industry employed over 75,000 workers and contributed $56.6 billion in economic output in 2023. Maryland's biotech corridor employs over 20,000 people (excluding government facilities like the NIH) and significantly contributes to the state’s economy. Sustained investment in biomedical research fuels job creation, attracts talent, and spurs additional economic activity. According to the NIH, in the fiscal year 2023, every $1 of NIH funding generated approximately $2.46 of economic activity.
Consistent grant funding from the NIH and other federal agencies is essential for biomedical research. Disruptions and IDC rate reductions would harm research institutes, universities, the broader ecosystem, and thus public health. The economic impact of biotechnology in regions like San Diego and Rockville underscores the importance of continued investment.
JCVI urges policymakers to recognize the critical role independent research institutes and universities do in advancing scientific discoveries and improving public health through sustained, robust biomedical funding from NIH and other science-focused agencies.
About J. Craig Venter Institute
The J. Craig Venter Institute (JCVI) is a not-for-profit research institute in Rockville, Maryland and La Jolla, California dedicated to the advancement of the science of genomics; the understanding of its implications for society; and communication of those results to the scientific community, the public, and policymakers. Founded by J. Craig Venter, Ph.D., JCVI is home to approximately 120 scientists and staff with expertise in human and evolutionary biology, genetics, bioinformatics/informatics, information technology, high-throughput DNA sequencing, genomic and environmental policy research, and public education in science and science policy. JCVI is a 501(c)(3) organization. For additional information, please visit www.jcvi.org.
Media Contact
Matthew LaPointe, mlapointe@jcvi.org, 301-795-7918