This bill matters because it addresses concerns about the stability of funding for critical scientific and medical research. If passed, it would prevent the National Institutes of Health from abruptly cutting off funds for ongoing studies or canceling projects due to shifting agency priorities. This means researchers could focus more on their work without the constant worry of losing funding mid-project, which can waste resources already invested and delay discoveries.
Without this bill, the NIH would retain more flexibility to terminate grants, potentially leaving researchers scrambling for funds or forcing them to abandon promising lines of inquiry. By ensuring more predictable funding and clearer termination rules, the bill aims to foster an environment where long-term research can thrive, potentially accelerating breakthroughs in health and medicine that benefit everyone.
KEY PROVISIONS
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PROVISION 01
Requires the National Institutes of Health (NIH) to immediately release and spend all owed funding for existing grant agreements and pay pending reimbursement requests.
This ensures that current research projects receive their allocated funds promptly, preventing delays or disruptions due to delayed payments.
PROVISION 02
Prohibits the NIH from canceling any existing grant or cooperative agreement under which active and ongoing research is being performed.
This provides stability for current research, protecting ongoing scientific work from being halted prematurely.
PROVISION 03
Mandates that all new NIH grant agreements include a termination clause specifying that agreements can only be ended due to a serious breach, change in circumstances, or mutual agreement, with a 90-day notice and an attempt to amend.
This establishes clear and limited grounds for terminating new research projects, adding transparency and protection for grant recipients.
PROVISION 04
Forbids the NIH from terminating new grant agreements based on the research no longer aligning with program goals or agency priorities.
This prevents projects from being canceled simply because political or administrative priorities shift, supporting long-term research consistency.
This bill matters because it addresses concerns about the stability of funding for critical scientific and medical research. If passed, it would prevent the National Institutes of Health from abruptly cutting off funds for ongoing studies or canceling projects due to shifting agency priorities. This means researchers could focus more on their work without the constant worry of losing funding mid-project, which can waste resources already invested and delay discoveries.
Without this bill, the NIH would retain more flexibility to terminate grants, potentially leaving researchers scrambling for funds or forcing them to abandon promising lines of inquiry. By ensuring more predictable funding and clearer termination rules, the bill aims to foster an environment where long-term research can thrive, potentially accelerating breakthroughs in health and medicine that benefit everyone.
KEY PROVISIONS
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high
Requires the National Institutes of Health (NIH) to immediately release and spend all owed funding for existing grant agreements and pay pending reimbursement requests.
This ensures that current research projects receive their allocated funds promptly, preventing delays or disruptions due to delayed payments.
high
Prohibits the NIH from canceling any existing grant or cooperative agreement under which active and ongoing research is being performed.
This provides stability for current research, protecting ongoing scientific work from being halted prematurely.
med
Mandates that all new NIH grant agreements include a termination clause specifying that agreements can only be ended due to a serious breach, change in circumstances, or mutual agreement, with a 90-day notice and an attempt to amend.
This establishes clear and limited grounds for terminating new research projects, adding transparency and protection for grant recipients.
high
Forbids the NIH from terminating new grant agreements based on the research no longer aligning with program goals or agency priorities.
This prevents projects from being canceled simply because political or administrative priorities shift, supporting long-term research consistency.
Immediately after the date of the enactment of this Act
Secretary of Health and Human Services, through NIH Director, shall immediately release and expend all required funding and fully implement existing grant agreements.
As rapidly as possible after the date of the enactment of this Act
Secretary of Health and Human Services, through NIH Director, shall pay all pending reimbursement requests for existing grant agreements.
After the date of the enactment of this Act
All new grant agreements and cooperative agreements from the National Institutes of Health must include a termination clause.
After the date of the enactment of this Act
The National Institutes of Health may not terminate new grant agreements based on changing program goals or agency priorities.
To comply with subsection (a) of Section 4 (after the date of enactment)
The Secretary of Health and Human Services shall revise section 200.340(a) of title 2, Code of Federal Regulations.
GLOSSARY
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National Institutes of Health (NIH)
A part of the U.S. Department of Health and Human Services and the primary agency responsible for biomedical and public health research in the United States.
Grant agreement
A legal document through which a federal agency, like the NIH, provides financial assistance to a recipient (like a university or researcher) to carry out a public purpose of support or stimulation authorized by law.
Cooperative agreement
Similar to a grant, but a federal agency expects to have substantial involvement in the activity during the performance of the award.
Material breach
A serious violation of the terms or conditions of a contract or agreement that is so fundamental it defeats the essential purpose of the agreement.
Termination clause
A section within a contract or agreement that outlines the conditions and procedures under which the agreement can be ended before its originally scheduled completion.
Secretary of Health and Human Services
The head of the U.S. Department of Health and Human Services, a cabinet-level position responsible for all health and welfare programs of the federal government.
2 CFR 200.340(a)
ACTION TIMELINE
2 EVENTS
JUN 12, 25
Introduced in House
INTROREFERRAL
JUN 12, 25
Referred to the House Committee on Energy and Commerce.
