As described in IBO’s March 15 and April 15 issues, fiscal 2013 (FY13) nondefense spending for US science agencies was cut by 5.7% as part of the sequestration bill approved in March. The NIH has released its final FY13 operating budget, which totals 5.5% less than FY12 at $29,151 million. Funding for the NIH’s 27 institutes and centers is reduced by 5.7%. The exception is the Office of the Director, which secured a 6.7% increase in “other” funding, offsetting its sequestration cuts. Funding reductions for programs within the institutes and centers are at the institutes and centers’ discretion. The cuts apply retroactively to funds that have been spent since the beginning of FY13 on October 1, 2012.

NIH research grants consist of research project grants, grants for research centers and “other research” grants. The total number of research grants for FY13 is 42,680, which is 3.5% fewer than last year. The dollar amount of these grants is 6.2% less than FY12 at $20,077 million. According to the NIH, the success rate of grants could reach a record low of 16% in FY13. Ongoing research grants for FY13 will be funded at up to 90% of the committed amount.

Funding for research project grants, which comprise 82% of FY13 NIH research grants, is 6.1% less than FY12 at $15.5 billion. The NIH plans to issue 7.8% fewer competing research project grants this year. Continuing noncompeting research project grants are subject to an average cut of 4.7%. “Other research” grants constitute 15% of total research grants and are reduced by 6.1%. The remaining 3% of grants are designated for research centers. Funding for such grants is cut 9.6%.

The NIH’s budget for R&D contracts, which consist of partnerships for specific projects, is cut 6.3% to $2,753 million. The NIH’s Buildings and Facilities fund is designated 5.7% less than FY12 at $125.6 million.