Federal News
Congress Questions NIH Clinical Trial Funding
March 24, 2026
The U.S. Congress, led by Senator Edward J. Markey and the Massachusetts delegation, has formally challenged NIH Director Dr. Jayanta Bhattacharya's testimony regarding the extent of clinical trial disruptions caused by NIH grant terminations during the previous administration. The delegation disputes NIH's claim of minimal disruption, citing a peer-reviewed study indicating significantly more affected trials, and has requested detailed information from NIH by March 31, 2026. Concurrently, the University of South Florida Research office reports ongoing federal funding updates, including NIH and NSF policy changes, litigation outcomes preserving indirect cost rate negotiations, and new research security mandates impacting grant management and compliance. These developments highlight critical considerations for procurement professionals managing federally funded research contracts and grants, especially regarding funding continuity, compliance with evolving security requirements, and indirect cost recovery.
- Why this matters: Procurement officers should anticipate increased scrutiny and potential adjustments in NIH grant funding and management practices following congressional inquiries.
- Agencies and contractors must ensure compliance with updated NIH and NSF proposal and data-sharing requirements, as well as new research security mandates.
- The preservation of negotiated indirect cost rates following litigation provides stability for budgeting and cost recovery in research contracts.
- Organizations managing NIH-funded clinical trials should prepare for possible operational impacts due to funding reviews and congressional oversight, with a key deadline for NIH response on March 31, 2026.
When NIH unilaterally terminates an active, competitively awarded grant before its period of performance is complete, the agency is leaving trial participants without continuity of care and researchers without the resources to conclude their work.
— Senator Edward J. Markey
The Office of Management and Budget has released funding for NIH and other federal agencies. This 9apportionment is crucial to ensuring NIH can catch up from a very slow start to grantmaking in FY26.
— Dr. Jay Bhattacharya, NIH Director
Federal courts have blocked agency efforts to impose a 15 percent cap on indirect cost (F&A) reimbursement rates, preserving the current negotiated rate system in the near term.
— USF Research Update
Agencies
National Institutes of Health, United States Senate, United States House of Representatives, National Science Foundation, Department of Justice
Locations
Sources
- Federal funding updates for USF researchers · University of South Florida · Mar 24
- Markey, Massachusetts Delegation Raise Alarm over NIH Directorโs Congressional Testimony, Dispute Scale of NIH Clinical Trial Disruptions Under Trump · Markey Senate · Mar 18