On March 15, President Trump signed the Full-Year Continuing Appropriations and Extensions Act, 2025 into law, keeping the government funded through the end of the fiscal year, September 30, 2025. The continuing resolution (CR) prevented an immediate shutdown, and holds funding at prior-year levels, delaying necessary increases for research and education programs.
Lawmakers expressed mixed reactions to the CR. Supporters argued that the funds are legally appropriated and must be properly utilized, providing stability through leveled funding and preventing a government shutdown. Meanwhile, critics emphasized the negative consequences of prolonged flat funding and specific cuts to research programs. The bill reduces the Congressionally Directed Medical Research Program (CDMRP) funding to $650 million for FY25, representing a 57 percent cut, prompting concerns from lawmakers about the broader implications for public health, medical research funding, and innovation.
The CR includes language that protects Facilities & Administrative (F&A) reimbursement rates, which the Trump administration had directed the National Institute of Health (NIH) to cap at 15 percent in February. (See FABBS article here.) F&A costs, often referred to as indirect costs, cover essential infrastructure, including large instruments, buildings and utilities that support and enable federally funded research. High research costs can be a barrier, and indirect cost reimbursement helps mitigate this challenge. Reducing reimbursement rates would strain institutions’ ability to maintain research operations, impacting lab maintenance, compliance with federal regulations, and other critical functions.
