If you’re working in biotechnology or a similar research field, you’ve likely heard about the freeze on federal funding or cuts to indirect costs covered by grants. However, keeping up with all the changes in the news can be tricky, especially when there’s breaking news every few hours! At Leyton, we’ve dedicated considerable time to researching the current state of grants for scientific research, and we’d like to share our insights with you.
Federal Funding: Should You Keep Applying?
The majority of the opportunities we find for our biotechnology clients come from the National Institutes of Health (NIH), and for good reason. Last year alone, the NIH allocated $35 billion to fund nearly 50,000 competitive grants for over 300,000 researchers across the U.S. While a federal judge blocked President Trump’s executive order to freeze federal funding, uncertainty still looms around the status of ongoing grants and applications. We’ve compiled insights from federal agencies, clients, and biotech leaders to clarify the situation.
In early March, the NIH took a significant step forward by announcing study sections in the Federal Register, marking the first public sign that grants are still being reviewed. Our experience supports this, as we’ve received feedback on grants submitted in January. However, grants submitted before the Executive Order may be reviewed differently than those with deadlines after late January. The NIH has advised us to continue submitting applications for new opportunities. Despite the general silence surrounding the NIH, many universities and research institutions are proceeding with their applications, some even at a larger scale. During MassBio’s Rare Disease Day on February 28th, Congresswoman Lori Trahan highlighted that many NIH-supported topics are bipartisan issues, offering hope that grant applications will continue.
That said, if you’re preparing for an upcoming grant submission, we have noticed changes across other agencies to keep in mind, specifically with regard to intentional word selection.
These changes suggest that while many grants may be modified, they are unlikely to be canceled entirely. For example, we recently helped a client navigate the Department of Transportation’s (DOT) Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant. Just before the deadline, this opportunity was renamed to Better Utilizing Investments to Leverage Development (BUILD). While the overall mission remained unchanged, key terms like “minority” and “diversity” were removed from the new Notice of Funding Opportunity (NOFO). We also reached out to the DOT regarding expired grants being reissued, and they confirmed that several grants have funding through FY2026. We’re keeping an eye out for new NOFOs, although we know that the DOT has also faced layoffs.
An unexpected freeze also occurred at the U.S. Department of Agriculture (USDA), affecting critical funding for communities. The USDA cut $1 billion in local food funding for schools and food banks, and universities like Cornell and the University of Maine, which rely on USDA grants, have also been impacted. Additionally, the Rural Energy for America Program has paused funding for businesses outside of farming due to a freeze in the Inflation Reduction Act.
Private Funding Opportunities
Given the uncertainty surrounding federal grants, many research institutions are turning to private funding sources. However, it’s worth noting that foundations like the Bill & Melinda Gates Foundation typically support non-profits and institutions of higher education. Additionally, private foundations often cover less indirect funding (see here for more information), which is critical for sustaining research. If you’re a for-profit business conducting biomedical research, consider subscribing to email lists or reaching out directly to foundations that align with your research focus. You might also explore partnerships with universities, where you can act as a sub-awardee or subcontractor on grants you wouldn’t otherwise be eligible for.
How to Stay Afloat
Staying informed is the key to securing funding in these turbulent times. Join the email lists of agencies or foundations that have funded your area of research in the past, and keep up with the latest federal funding updates. At Leyton, we continue to apply for federal funding as usual, while staying educated on the latest changes in the field and keeping our clients informed.
In addition to grant writing, it’s also important to advocate for your cause by reaching out to your elected officials. Writing to them is one of the most effective ways to advocate for biomedical research funding. You can find your elected officials here, and we’ve provided a guide on how to write them.
Leyton’s Approach to Grants
Despite these challenges, Leyton continues to submit high-quality grant applications across every funding avenue. Our grants team is working closely with our State and Local Tax (SALT) team to maximize financial benefits for our clients. We’re also in constant communication with government agencies at all levels, staying up-to-date with the latest developments in federal funding. While the current climate presents challenges for the science and healthcare sectors, our commitment to providing top-notch service remains unchanged.
How Leyton Can Help
At Leyton, our Grants and Incentives service offers a Phase I and Phase II Study to guide you through the entire grant application process. In Phase I, we identify grants tailored to your specific needs, as well as state and local incentives. In Phase II, we help you navigate the application for the grant of your choice, offering services like research strategy development, budget proofreading, and more. Given the competitiveness of securing research funding, having the strongest application possible is more critical than ever. Our team at Leyton is here to support you in this endeavor.
Beyond grants, Leyton also specializes in R&D Tax Credits, which can be particularly beneficial for our biotech clients. If you qualify, we can also help with the Orphan Drug Tax Credit. These are just a few ways to ensure your company remains financially sound. If you’re interested in working with us, feel free to schedule a meeting with our team of Scientists, Grant Writers, Engineers, and Technical Experts.
