Bay Area researchers brace for Pres. Trump's $4 billion cut to medical funding

SAN FRANCISCO (KGO) -- The Bay Area's medical researchers are bracing, but not backing down as they stare down devastating funding cuts set to go into effect Monday.

On Friday, the Trump administration announced the National Institutes of Health will start limiting the amount of money it doles out for what are called "indirect costs," payments that cover the costs of things like research labs, equipment and staff.

"You're cutting universities at the knees. You're not letting research continue. This is not how you conduct science," said Dr. Monica Gandhi, the Director of the UCSF Center for AIDS Research.

UCSF is among top NIH-funded institutions in the country. In 2023, it received more than $789 million in grants from the agency. Johns Hopkins, the only other university to receive more.

"The two senators of every state are going to be called continuously this weekend by university presidents," said Dr. Gandhi.

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In a social media post, the NIH notes that $9 billion out of the $35 billion it granted for research last year, was used to cover "indirect costs."

And by lowering the maximum rate, universities can receive 15% for these indirect costs, the government will save more $4 billion a year.

It also means the nation's top research universities, which typically see a payment rate above 60%, stand to be crippled.

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The University of California providing ABC7 with a statement, writing in part:

"Life-saving treatments for cancer, diabetes, heart attacks, and strokes, including in children, and new technologies and industries that translate into hundreds of thousands of well-paying jobs are all at risk," wrote University of California Office of the President.

The statement also warns:

"For decades, the National Institutes of Health (NIH) has provided essential funding that has empowered America's world-leading research institutions . . . New administration guidance would imperil this vital support and jeopardize America's research preeminence."

"I hope we'll get a change with all the advocacy that I think universities will immediately put in place with Congress people," said Dr. Gandhi.