March 2025 Life Sciences Update

NIH Funding Slowed in 2024 and Is Expected To Drop Further with Budget Cuts

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CONTENTS

Total Annual US Funding Over Time

• National Institutes of Health (NIH) awards fell to $35.1 billion in 2024, an 8% YOY decline, primarily due to a flat YOY budget that constrained agency resources. • For 2025, the NIH has proposed a $50.1 billion budget, nearly unchanged from 2024’s budget of $49.9 billion. However, recent agency announcements on reducing overhead funding will affect award levels in 2025.

$40

$38

$36

• On Feb. 7, the NIH announced that future awards will cap ”indirect funding” at 15%, a

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move expected to save the agency approximately $4 billion in 2025.

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• Indirect funding is usually used by research institutions for expenses such as rent, utilities, equipment and administrative salaries. While cuts to university and hospital funding may not directly impact the private sector, the interconnected nature of the sector suggests potential effects on innovation. • Uncertainty around cuts remains, however, the administration’s cost -cutting goals are clear that future budgets will likely be slimmer.

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$28 Billions USD

$26

$24

$22

$20

2010 2011

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

2022 2023 2024

Source: U.S. National Institutes of Health, Cushman & Wakefield Research

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Cushman & Wakefield