The Trump Administration has proposed a cap of 15 percent on reimbursements for facilities and administrative costs related to National Institutes of Health biomedical research grants. Congressman Steve Cohen (TN-9) stated that this change could result in a $250 million annual loss for Tennessee institutions. According to the Office of the Congressman, Tennessee received approximately $770 million in National Institutes of Health funding in 2023.

Congressman Cohen stated, "NIH funding is critical to the economic health of Memphis and the Mid-South region." He referenced institutions such as University of Tennessee Health Science Center, St. Jude, and the University of Memphis, which receive over $100 million in funding for medical research. He expressed concern about potential financial difficulties affecting researchers and staff and said, "I join a chorus of medical research professionals in demanding that this short-sighted and dangerous policy be reversed immediately," as stated by the Office of the Congressman.

The proposed National Institutes of Health funding reductions are facing backlash from the medical and academic communities, particularly in Tennessee, due to concerns about their impact on research institutions, medical innovation, and job creation. These cuts have sparked debate among stakeholders, with some calling for a reversal of the policy. Congressman Cohen stated, "This is not the kind of cost-saving Americans want because it is sure to cause unnecessary harm." The full effects of the funding cap are not yet known, but it could affect medical research and healthcare advancements, as reported by the Office of the Congressman.