U.S. Senate Releases Proposed NIH Funding Levels for FY 2026

This article was updated Aug. 12 to provide additional details about U.S. Senate-proposed NIH funding, and highlight a new Trump administration executive order regarding facilities and administration (F&A) costs.

The Senate Committee on Appropriations advanced its fiscal year (FY) 2026 Labor, Health and Human Services, Education and Related Agencies (LHHS) appropriations bill July 31. The bill would provide $48.7 billion in funding for National Institutes of Health (NIH), representing a $400 million increase compared to FY 2025 appropriations. The proposal includes $7.4 billion for the National Cancer Institute, including $28 million for the Childhood Cancer STAR (Survivorship, Treatment, Access, Research) Act. It also proposes $3.9 billion for Alzheimer’s and dementia research. Additionally, the bill would maintain funding for the Advanced Research Projects Agency for Health (ARPA-H) at the FY 2025 level of $1.5 billion.

Senate seeks to oversee changes to F&A costs

In addition to increasing NIH funding, the Senate bill would prohibit the Trump administration from making changes to the F&A cost structure in NIH grants or restructuring NIH’s 27 institutes and centers without collaborating with the Senate Appropriations Committee. In the bill’s accompanying report, the committee acknowledges — and indicates it will review — a proposal from the Joint Association Group to develop a new F&A cost structure.

The LHHS appropriations bill shows the success of the medical research advocacy community’s efforts to support NIH and biomedical research. In response to the bill, the Ad Hoc Group for Medical Research, which ACR® belongs to, released a statement expressing gratitude for the committee’s bipartisan efforts to strengthen funding for medical research, and urging Congress to exercise its oversight authority of NIH. The research community will monitor development of the House’s LHHS appropriations bill in September, when Congress returns from recess. 

White House intends increased oversight of F&A spending

The White House released an executive order (EO) aimed at increasing oversight of federal grants on Aug. 7. The order instructs the director of the White House Office of Management and Budget to update guidance to “appropriately limit the use of discretionary grant funds for costs related to facilities and administration.” The EO could have implications for existing and future grant terms.

FY 2025 NIH funding continues following White House pause

The Trump administration released FY 2025 NIH funding following a temporary pause initiated when the White House issued a budget document to NIH that included a footnote limiting what the agency could fund, including research grants, research and development contracts and training awards. This action follows a letter sent last month to OMB Director Russell Vought, led by Sen. Katie Britt (R-Ala.) and 13 other Republican senators, that called for full implementation of FY 2025 NIH funding.

ACR® continues its advocacy urging Congress to fund NIH at the highest possible levels in FY 2026.

For more information, contact Katie Grady, ACR Government Affairs Director.