By Bill Thomas | February 27th
It wasn’t long ago that this blog reported on a new United States Congress-approved spending bill that made devastating cuts to pediatric cancer research funding. This despite the fact that the resources available to childhood cancer researchers are already severely limited, with less than 4% of all federal funds for cancer research going to those studying pediatric cancers.
Now, a proposed policy change by the National Institute of Health (NIH) threatens to shrink those resources even further.
In early February of this year, NIH announced via social media a proposal to impose a cap on how much grant funding may be used to reimburse universities for “indirect costs” (i.e. costs associated with research facilities, equipment, maintenance, staffing, and administration). Previously, individual institutions negotiated with the federal government to determine how much of their total NIH awards could be allocated for such costs.
According to the NIH Office of Budget, the average reimbursement rate in recent years has been around 27-28%, although in some cases that rate can reach as high as 70%. The new proposed change would cap the reimbursement rate at a mere 15%.
In its announcement of the proposal, the NIH estimated that the change could save the federal government as much $4 billion annually. However, those savings come at a steep cost for the pediatric cancer research community. Many universities rely on NIH reimbursements to maintain the kind of high-tech facilities and highly trained staff that are necessary to conduct clinical trials and other forms of medical research. Pediatric cancer research, in particular, is often expensive due to the relative rarity of many childhood cancers, the smaller number of patients able to participate in trials, and the need for specialized equipment capable of accommodating the physiology of small children.
“The proposed NIH funding cuts pose a significant threat to the future of pediatric cancer research and could severely impact the progress of life-saving treatments,” Danielle Fragalla, the Chief Executive Officer of Pediatric Cancer Research Foundation, said. “With research institutions facing multi-billion-dollar losses, the ability to fund new and ongoing studies–including those focused on childhood cancer, survivorship, and equitable care–could be drastically reduced.”
The fact that the 15% cap is intended to go into effect immediately and will impact not just future grant awards but also currently existing ones has left many institutions feeling blindsided. Consequently, a coalition of 22 states filed a lawsuit charging that the policy violates federal law. Additional lawsuits were filed by a coalition of medical schools and hospitals and by the state of Massachusetts.
In response, a federal judge issued a temporary restraining order to block the cap nationwide. It has not yet been decided if a preliminary injunction will also be issued to maintain the block while the lawsuits go to trial. Whatever happens, it seems clear that, for the foreseeable future, the financial burden of supporting life-saving childhood cancer research will continue to fall on the shoulders of private donors and nonprofits like Pediatric Cancer Research Foundation.
“These cuts highlight the urgent need for private philanthropy and sustainable funding,” Fragalla opined. “As federal funding becomes more uncertain, PCRF’s role in bridging the gap becomes even more critical to ensuring that promising research continues without interruption. By strengthening our $25 million campaign efforts, securing multi-year pledges, and expanding partnerships, we can continue to fuel groundbreaking research and support families affected by pediatric cancer.”
If you share Pediatric Cancer Research Foundation’s vision of a world where children affected by cancers are able beat their disease and achieve their full potential so they can enjoy full, productive lives, please consider becoming a donor. Additionally, if you’re concerned about the uncertain future of federal funding for childhood cancer research, we urge you to take action. Contact your state representatives and let them know how crucial federal funding is for fueling innovation in pediatric cancer research. Make your voice heard.
To stay up-to-date with all the latest news shaping the future of pediatric cancer treatment, don’t forget to follow the Pediatric Cancer Research Foundation Profectus blog.
