Capitol Hill Report: Sweeping changes proposed for research funding process
June 8, 2026
We’ve got your back on Capitol Hill—and we’re in overdrive advocating for you and your patients. Capitol Hill Report is your source for all things neurology advocacy, including this summary of a sweeping new proposal on federal grants. Let us know if your practice, research, or patients are affected by recent policy changes.
Issue in focus
The Office of Management and Budget (OMB) issued a proposed rule late last month that would reshape the federal government’s approach to how agencies award grants, cooperative agreements, and other forms of federal financial assistance. According to OMB, the proposed revisions are intended to improve transparency, accountability, and oversight for awards across the federal government, while also reducing the burden on recipients. This regulation is broadly consistent with the Trump administration’s previous efforts to exert increased control over research funding, but it would establish a standard framework for the whole government rather than allowing each agency to establish and implement its own policies.
Notably, the proposal would treat peer reviews by program officers or scientists as advisory, and it would make political appointees complete a "pre-issuance review" to ensure discretionary grants advance the president's policy priorities. Further, the proposed rule would allow grants to be terminated if the work "no longer effectuates program goals, federal agency priorities, or the national interest.” The proposed rule also includes a number of restrictions regarding research topic areas, including “unlawful DEI,” “gender ideology,” issue advocacy, and theories of disparate impact liability. Research awards would also move to a domestic-first model, limiting direct awards to foreign entities outside of express statutory authority or senior appointee determination. Further, international elements in otherwise domestic projects would have to be affirmatively justified on a case-by-case basis. The proposed rule also includes restrictions on how funds can be utilized, including requirements of prior approval for conference attendance and professional membership, as well as disallowing the use of research funds for publication costs, open access fees, and public relations costs.
The Âé¶¹´«Ã½Ó³» has serious concerns about the proposed rule, which could damage neuroscience research and set back countless researchers’ crucial work. We’re reviewing it thoroughly and will submit formal comments ahead of the July 13 deadline.
We also continue to strongly advocate for increased funding for neuroscience research at the NIH. Specifically, we have been advocating for:
- 468 million in base funding for the BRAIN Initiative to offset the loss of mandatory funding and ensure continued progress
- An 8.7% increase for NINDS, bringing total funding to $3.04 billion, to maintain the pace of discovery and support the full pipeline of basic, translational, and clinical research
- Protection of NIH research funding policies, including rejecting proposals that would cap indirect costs and otherwise restrict the number and scope of grants awarded by funding upfront
The House Appropriations Labor, Health, Human Services, and related agencies subcommittee marked up their proposal for NIH funding this past Friday. It includes:
- $48 billion for NIH, a $100 million increase over FY 2026 levels
- $2.866 billion for NINDS, a $62 million increase over FY 2026 levels
- Language that limits indirect cost reimbursement at 30% for certain institutions
Full funding for neuroscience research is a necessity—and if we’re going to achieve it in Financial Year 2027, we need your help. Join your colleagues today and to support neuroscience research!
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