NIH Has Obligated Just 15% of Its $38 Billion Research Budget at Midyear
March 26, 2026 · 2 min read
David Almeida
The National Institutes of Health has distributed just 15 percent of its estimated $38 billion in grants and contracts halfway through fiscal year 2026, according to a new analysis by the Association of American Medical Colleges published March 25.
The $5.8 billion obligated so far is a sharp departure from the agency's pace in FY2025, when nearly $9 billion had been distributed by the same point in the fiscal calendar.
A Government Shutdown and OMB Hold Compounded Delays
The funding slowdown traces to two disruptions. A government shutdown from October 1 through November 12 froze all NIH obligations for the first seven weeks of the fiscal year. Then the Office of Management and Budget restricted NIH's FY2026 spending to salaries and essential expenses, releasing funds only for congressionally mandated programs.
OMB finally approved NIH's full spending authority on the eve of a House Appropriations hearing—a timeline that drew criticism from lawmakers who accused the administration of dragging its feet on funds Congress had already authorized.
Since October, NIH has awarded just 1,187 new competitive grants—63 percent fewer than the five-year average for this period.
Director Pledges Full Spending by September 30
NIH Director Jay Bhattacharya told House appropriators that the agency would spend its full $48.7 billion budget before the fiscal year ends on September 30. "The grants are already going out the door," he said during testimony, while acknowledging that 16 of the agency's 27 institutes and centers still lack permanent directors.
Congress rejected the White House's proposed 40 percent cut to NIH, instead approving a $415 million increase. But the AAMC warned that if the agency repeats last year's pattern—obligating more than half its budget in the final quarter through controversial multiyear grants—the result could be fewer new awards overall.
What Grant Seekers Should Do Now
Researchers with pending NIH applications should expect accelerated review timelines in the coming months. The compressed distribution schedule may create a narrow window for new awards between April and September. Grant seekers tracking NIH funding opportunities can monitor award activity through grantedai.com and the NIH RePORTER database.
For institutions dependent on NIH funding, the AAMC's message was direct: "Predictable, sustainable funding of biomedical research is critical for driving scientific progress."