NIH Has Obligated Just 15 Percent of Research Budget at Fiscal Year Midpoint
April 4, 2026 · 2 min read
Arthur Griffin
An Association of American Medical Colleges analysis released in late March reveals that the National Institutes of Health has obligated approximately $5.8 billion of an estimated $38 billion research budget — roughly 15 percent — at the halfway mark of fiscal year 2026. In the same period last year, NIH had obligated nearly $9 billion.
The numbers confirm what researchers across the country have feared: the nation's biomedical research engine is running at a fraction of its historical pace.
A 74 Percent Drop in New Grant Awards
Separate data compiled by the Association of American Universities paint an even starker picture. NIH has issued 66 percent fewer grant awards through the end of February compared to the FY2021–2024 average. The monetary value of those awards has fallen 54 percent. Only 1,187 new competitive grants have been awarded since October — 63 percent below historical norms.
The agency has published just 14 Notices of Funding Opportunities by March 15, compared with 756 during the same window in 2024. A new political approval requirement for NOFOs has created severe backlogs.
Why the Pipeline Has Stalled
Three factors are driving the slowdown. First, the White House Office of Management and Budget placed a hold on releasing congressionally appropriated funds until March 16, freezing grant-making for months. Second, NIH has lost over 4,000 employees — nearly 20 percent of its workforce — in the past year, gutting the administrative capacity needed to review and process awards. Third, the 43-day government shutdown last October and November created a backlog that the depleted staff has been unable to clear.
Success rates had already dropped to 17 percent in FY2025 — the lowest in nearly 30 years. Early-stage investigators saw their success rate crater from 29.8 percent in FY2023 to 18.5 percent in FY2025.
What Biomedical Researchers Should Prepare For
The AAMC warns of a likely end-of-year spending rush, similar to FY2025 when over half of research funds were obligated between July and September. Researchers with pending applications should maintain readiness for rapid-turnaround award notifications. Those planning new submissions should monitor the NIH funding opportunities page closely, as the trickle of new NOFOs could accelerate sharply.
For a full breakdown of agency-by-agency funding trends and strategies for navigating the current environment, visit the Granted blog.