The National Institutes of Health maintains a $47.5 billion budget, with more than 80% distributed as grants to research institutions nationwide. These grants have historically supported major scientific advances including genome decoding, polio elimination, and AIDS treatment development. However, experts contend that aggregate budget figures obscure substantial operational disruptions affecting the research community.
The Trump administration proposed cutting the NIH budget by approximately $19.6 billion and restructuring its 27 institutes into eight entities. Congress rejected these proposals, maintaining both the existing institute structure and budget levels comparable to previous years. Despite this preservation at the aggregate level, the mechanism through which funds are obligated to specific projects has experienced significant slowdowns since the president’s inauguration in 2025.
Data tracked by the Association of American Medical Colleges demonstrates that the NIH obligated roughly half its budget by July, approximately three-quarters through the fiscal year. The agency ran 42 days behind its historical pace as of early July 2026, compared to the 44-day lag recorded in 2025. This delay occurs during the obligation stage, when appropriated funds are committed to specific grants through a peer-review and approval process.
Staff reductions and additional bureaucratic review layers have contributed to these delays. Jennifer Troyer, former director of extramural operations at the National Human Genome Research Institute, described newly implemented review procedures that she termed a “black hole,” where previously expedited grants now encounter extended holds from multiple agencies. Her institute reduced grants-management specialists from 11 to three, eliminating the personnel capacity to process awards efficiently.
Grant renewal delays have particularly affected multi-year projects. Grants renewed 90 or more days late occurred at rates four to six times higher than historical norms, affecting approximately 3.9% of 2025 fiscal year renewals and 2.7% in 2026. Researchers report having to plan staff reductions and seek bridge funding from institutions to maintain operations during renewal gaps, a practice limited to 90-day windows.
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