AICUP to Congress: NIH/NSF Research Fuels Pennsylvania's Economy

"AICUP TO CONGRESS: NIH/NSF RESEARCH FUELS PENNSYLVANIA'S ECONOMY"
Letter to Pennsylvania Congressional Delegation on Behalf of 85 Independent Nonprofit Colleges and Universities Spotlights the Crucial Role of Research Funding in Modern Life, American Prosperity

For Immediate Release
March 10, 2025

Media Contact: Tony Gilbert
Phone: (717) 232-8649 x232
Email: Gilbert@AICUP.org

PDF link to News Release:
https://aicup.org/wp-content/uploads/2025/03/Release-_-AICUP-Letter-to-Congress-_-March-2025.pdf

(Harrisburg, PA) - Confronting proposed drastic cuts in research funding to the National Institutes of Health (NIH) and National Science Foundation (NSF), the Association of Independent Colleges and Universities of Pennsylvania (AICUP) - which represents 85 member institutions of higher learning - petitioned the 19 members of Pennsylvania's delegation to Congress to consider the propound economic impact of federal research funding, and its pivotal role in Pennsylvania's economy, modern life, and America's prosperity.

"If you have ever used the internet or chatted on an iPhone, then you have benefited from the products born of federal research funding," said AICUP President Thomas P. Foley. "This is not a party issue. Every American can recognize the profound value of health and science research."

The letter is being delivered via mail and email to: Rep. Brendan Boyle, Rep. Brian Fitzpatrick, Rep. Chris Deluzio, Rep. Chrissy Houlahan, Rep. Dan Meuser, Rep. Dwight Evans, Rep. Glenn "GT" Thompson, Rep. Guy Reschenthaler, Rep. John Joyce, Rep. Lloyd Smucker, Rep. Madeleine Dean, Rep. Mary Scanlon, Rep. Mike Kelly, Rep. Rob Bresnahan, Rep. Ryan Mackenzie, Rep. Scott Perry, Rep. Summer Lee, Sen. John Fetterman, Sen. Dave McCormick.

READ THE FULL LETTER included on the following pages and also linked here:

https://aicup.org/wp-content/uploads/2025/03/AICUP-Letter-to-Congress-Regarding-Proposed-Cuts-to-NIH-NSF-_-March-2025.pdf


Dear Representative,

Thank you for your service to our state and our country.

I'm writing today about a topic that affects Pennsylvania's colleges and universities, Pennsylvania's economy, and the health of Pennsylvania's citizens. I write on behalf of the 85 member institutions of the Association of Independent Colleges and Universities of Pennsylvania (AICUP), for whom I have the honor to serve as President.

Current NIH and NSF proposals would

1) Cut funding to the National Science Foundation (NSF) by 66%, from its current budget of $9B down to $3B, and

2) Reduce indirect cost rates for land and equipment to 15% for all existing and new research grants of the National Institutes of Health (NIH), which would cut $4B in NIH funding.

I write today to let you know that these proposed cuts will do severe damage to Pennsylvania's economy and jeopardize America's role as the world leader in science and research, potentially for generations. The bottom line is that this national research funding is an investment that pays dividends across Pennsylvania. Let me offer four reasons for that conclusion.

First, NIH/NSF funding recruits and grows talent in PA. These grants directly enable PA to win "the talent wars" by
• attracting more college graduates (51% increase in 2023) and out-of-state students (PA is the 2nd top destination in the USA)
• winning new capital investment, and
• helping to change the "Rust Belt" narrative into a story of success and innovation.

Education and research are what makes this all possible. Higher education is the 5th largest industry in Pennsylvania (according to the PA Chamber of Business and Industry). The independent nonprofit part of this sector (the AICUP schools) alone sustains nearly 200,000 jobs and adds $29B to the state economy each year. Simply put, PA higher education is a key player in the sciences and research prominence of the US, along with significant PA partners in both the non-profit and for-profit sectors.

Second, NIH/NSF funding grows jobs in PA. The inventions and innovations made by academic research in PA have a multiplier effect, a figurative "rising tide" that literally creates new wealth in this state. Today, someone at your office will utilize a federally-funded innovation born in PA, like WiFi and Java code (both pioneered at one of our member schools). The private sector benefits from academic research. In fact, it is estimated that, "every major technological transformation in the US, from electric cars to Google to the iPhone, can trace its roots back to basic science research once funded by the federal government." Simply put, slashing NIH and NSF funding dismantles a foundation for American prosperity.

Third, NIH/NSF funding is a major economic driver for PA. Pennsylvania-based researchers won $1.8B in NIH funds last year alone, with $915M awarded to the AICUP members. Just one year of NIH funding in Pennsylvania generates $5.2B in economic activity and supports 21,787 jobs. NSF funding amounted to another $332M for Pennsylvania in fiscal year 2024, $186M of which was won by the AICUP member colleges and universities.

Fourth, it is simply inaccurate to characterize indirect costs as "administrative overhead" or "bureaucratic bloat." Unlike other kinds of academic and corporate research, the kind of research these grants support involves the creation of unique laboratories, the invention/purchase of expensive equipment and the capacity to run experiments in time frames that require 24-hour supervision. These costs are not waste but in fact processes that are essential to the results which produce cancer defying medications, heart saving therapies, and so much more. What happens if you reduce so called overhead to 15%? In PA, that is $425M in NIH funds alone to for-profit and non-profit organizations that would disappear overnight.

Finally, multiple sources warn that these proposed cuts are a "self-inflicted wound" that "would kill American science and boost China." Foreign countries are already talking about seizing this opportunity to poach American talent, create their own patented solutions and penalize American manufacturers and markets. We're already seeing the shrinking of graduate school programs, while some see signs of an impending "'mass exodus' of researchers seeking to leave the United States."

This issue transcends party politics, because academic research benefits all Americans. When the USSR sent Sputnik into space, President Eisenhower responded to what was called the "Sputnik moment," with increased and new funding for STEM and higher education --investments from which we still benefit today. We are on the cusp of many more Sputnik moments coming fast and furious (like when a trillion dollars of market value is wiped away in an instant by a single stealthy innovation). We need to be able to recognize the next Sputnik moments and be able to rise to that challenge. These kinds of cuts will handicap our scientists and put us behind in the science race that is central to continued American progress in healthcare, leadership in the world of innovation, and economic prosperity.

Thank you so much for all your work, and for your attention to this critical issue.

Sincerely,
Thomas P. Foley, J.D.
President
Association of Independent Colleges and Universities in Pennsylvania (AICUP)

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AICUP
101 N Front St, Harrisburg, PA 17111

Media Contact: Tony Gilbert
Phone: (717) 232-8649 x232
Email: Gilbert@AICUP.org

The Association of Independent Colleges and Universities of Pennsylvania (AICUP) advocates for more than 85 independent nonprofit institutions of higher education. Learn more about AICUP online at www.AICUP.org.

This release was published on openPR.