Statement on Changes to NIH Indirect Costs Rates From ASGCT

Cell and gene therapies are providing patients with treatments for diseases that until recently had few or no therapeutic options. They have revolutionized how we treat certain blood cancers, are curing genetic diseases such as sickle cell anemia and spinal muscular atrophy, and are forging pathways for new therapies in other serious diseases. 

The United States is the clear world leader in cell and gene therapies. In 2024, the pipeline of gene, cell, and RNA therapies had 4,238 therapies in development. They are also a significant component of the biotech economy of the United States. Consistent funding over many years from the National Institutes of Health (NIH) has been critical for these advances, providing one of the most efficient returns on investment of federal dollars. ASGCT views changes that would significantly reduce NIH funding with great concern, including reducing indirect costs to a rate of 15%.   

There are many examples of how NIH funding has supported breakthroughs in cell and gene therapies. The first time a child was cured of leukemia using CAR T cells was in a clinical trial funded by multiple NIH grants, and subsequent breakthroughs, also supported by NIH funding, have saved the lives of patients with other cancers, such as lymphoma and myeloma. Research that led to gene therapy treatments for sickle cell disease included NIH funding to both internal NIH scientists and external institutions. The breakthrough discovery of CRISPR, which has led to multiple innovations in medicine and beyond, was based on foundational research funded by NIH to understand how bacteria fight off viruses. The list is extensive and growing.

A critical component of NIH funding is the indirect costs of research, which are nonspecific funds provided to an institution when a scientist receives a grant. They are not supplemental or insignificant. Instead, they reflect that the direct costs of a grant to the scientist only cover a fraction of the actual cost of doing that research. For example, direct costs cover specific reagents that must be purchased to perform a research project but do not cover the infrastructure necessary to allow that work to happen. This infrastructure includes, but is not limited to, the buildings that house research laboratories and clinical trial units; sophisticated equipment and services needed to support that research; and the personnel at an institution who ensure compliance with budget expenditures, lab safety, and human clinical trials. The total cost of funding needed to support scientific research is an iceberg; a grant’s direct costs reflect only the part visible above the water.

Cuts to NIH-covered indirect costs would devastate the infrastructure and support that is critical for research at universities and institutions across the United States. We urge Congress to reaffirm their prior commitment to continue the current indirect costs arrangement and for the administration to abide by those Congressional actions. In this way, the United States will continue to ensure the development of safe and effective new medicines for everyone.

About ASCGT

The American Society of Gene and Cell Therapy is a nonprofit professional membership organization comprised of more than 6,400 scientists, physicians, patient advocates, and other professionals working in cell and gene therapy (CGT) in settings such as universities, hospitals, and biotechnology companies. The mission of ASGCT is to advance knowledge, awareness, and education leading to the discovery and clinical application of genetic and cellular therapies to alleviate human disease. Many of our members have spent their careers in this field performing the underlying research that has led to today’s robust pipeline of transformative therapies.

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