Proposed changes to federal health institutions “represent an existential threat” to biomedical research, medical schools and academic health systems, the Association of American Medical Colleges said June 11.
Halfway through 2025, the U.S. has terminated 1,183 NIH grants at hospitals and medical schools, affecting at least 160 clinical trials focused on HIV/AIDS, mental and behavioral health conditions, cancer, substance use disorders and chronic diseases, according to the AAMC.
In total, 2,282 grants worth $3.8 billion have been terminated.
“As devastating as the cuts to NIH-funded grants in 2025 have been, they represent just one of many threats to academic medicine and the health of millions of patients who receive care at our nation’s academic health systems,” the AAMC said.
Proposed cuts to Medicaid will strain the academic health system industry, which represents 5% of all hospitals but provide 32% of uncompensated care, according to the member organization.
Other concerns include the potential elimination of federal student aid programs, which would affect about half of all medical students; the NIH limiting indirect administrative and facility costs for research grants to 15%, or $6.5 billion; and Congress reducing site-neutral payments.
If these proposed actions are enacted, the AAMC said six critical services will be at risk: burn centers, trauma centers, transplant centers, birthing rooms, psychiatric services and substance use disorder care.
Ongoing instability with the 340B drug pricing program and lower Medicare reimbursements are contributing to the storm, the AAMC said.
“The NIH cuts have already caused immense devastation — and now, these additional actions compound that harm on an even greater scale,” Jonathan Jaffery, MD, AAMC chief health care officer, said in a statement. “We’re talking hundreds of millions of dollars in cuts that would lead to the discontinuation of some clinical services and require deep layoffs — thousands or even tens of thousands of health care workers could be impacted.”
Read more about what federal funding cuts mean for healthcare pipelines, here.
