Federal News
Senator Welch Urges GAO Research Funding Review
March 25, 2026
Senator Peter Welch has formally requested the U.S. Government Accountability Office (GAO) to investigate the consequences of the Trump Administration's substantial cuts to federal research funding at higher education institutions. These funding reductions, including a proposed 15% cap on indirect cost rates for NIH grants, have resulted in layoffs and halted research projects, raising concerns about impacts on public health, scientific leadership, and national security. The GAO review could influence future appropriations and contracting strategies related to federally funded research programs.
- Procurement professionals should anticipate potential shifts in federal research grant policies and indirect cost rate negotiations, especially concerning NIH and NSF funding.
- Contractors and research institutions may face tighter budget constraints and increased scrutiny on indirect costs, affecting proposal pricing and contract management.
- Agencies like NIH, NSF, and Department of Energy could adjust funding mechanisms or compliance requirements based on GAO findings.
- Organizations involved in research infrastructure and support services should evaluate risks related to funding volatility and prepare for possible changes in federal research contracting landscapes.
The Administration has sought to impose a 15% cap on indirect rates 6 costs associated with the infrastructure that supports research 6for National Institutes of Health (NIH) grants to research institutions. Capping indirect costs at this level would cut $5 billion annually from university-based research nationwide.
— Peter Welch, U.S. Senator
Agencies
U.S. Government Accountability Office, National Institutes of Health, National Science Foundation, Department of Energy