Congressional Justification Letter Outlines Planned Cuts, Consolidations at NIH

A congressional justification letter released last week by National Institutes of Health (NIH) Director Jay Bhattacharya, MD, PhD, offers the most detailed insight to date into how the Trump administration’s proposed $18.1 billion reduction in NIH funding could affect the agency’s structure and operations in fiscal year (FY) 2026.  

The justification letter advances the administration’s plan to eliminate or consolidate the agency’s 27 institutes and centers into eight. This would include reorganizing the National Heart, Lung, and Blood Institute; the National Institute of Arthritis and Musculoskeletal and Skin Diseases; and the National Institute of Diabetes and Digestive and Kidney Diseases into a new National Institute on Body Systems (NIBS). The new NIBS would see a 39.3% decrease in funding compared with FY 2025. NIH released individual budget justifications for NIBS and the other institutes.

Bhattacharya also outlined a planned $11.6 billion reduction (43.4%) in funding for research project grants in FY 2026, including a $1.95 billion reduction in funding for research project grants for NIBS. According to NIH, this would result in 8,148 fewer new grants awarded compared with FY 2025. The plan also includes a $359.3 million cut (35.4%) to researcher training programs, which would reduce the number of full-time trainee positions by an estimated 6,669 in FY 2026.

The budget proposal reflects NIH’s proposal to implement a policy that would cap indirect costs on research grants at no more than 15% of direct costs. If adopted, this policy would significantly restrict the funds universities, hospitals and research institutions use to support equipment, facilities and personnel.

Take Action to Support NIH Research

The Trump administration’s planned budget cannot take effect without congressional approval. In response to the proposed cuts, AABB launched an action alert last month urging policymakers to support strong, sustained NIH funding.

NIH-supported research has driven critical advancements in transfusion medicine and biotherapies — including the development of chimeric antigen receptor (CAR) T-cell therapy and improvements in blood safety — and contributes significantly to public health and the U.S. economy.

AABB encourages members to join the campaign and voice their support for robust NIH funding in the FY 2026 budget.