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Confusion at NIH as administration halts, then releases, billions of dollars for scientific research

1:11
Federal judge rules Trump directives canceling NIH grants are 'void,' 'illegal'
STOCK IMAGE/Getty Images
ByWill McDuffie and Cheyenne Haslett
July 30, 2025, 8:06 PM

Billions of dollars of National Institutes of Health research were stuck in limbo for hours, causing confusion after a memo from the Office of Management and Budget appeared to direct a halt to its funding.

The funding halt at NIH came after an OMB memo's footnote was interpreted to mean the release of money for research grants was prohibited, according to an email sent to NIH staff Tuesday afternoon by its associate director for budget, Neil Shapiro.

"We are working to make this limitation short-term and temporary," Shapiro wrote in the email.

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This back-and-forth comes after a string of large-scale cuts at the Health and Human Services Department, led by Secretary Robert F. Kennedy Jr., that has cast agencies such as NIH, the Food and Drug Administration and the Centers for Disease Control and Prevention into confusion as they execute directives from the top.

Following reporting by several outlets, OMB reversed the decision publicly, with a spokesperson saying on Tuesday evening the money was "undergoing a programmatic review" but "is being released."

PHOTO: In this undated file photo, a scientist looks through a microscope.
STOCK IMAGE/Getty Images

Confusion remained at NIH, however. At almost the same time OMB publicly said the funding halt wasn't happening, NIH leadership emailed staff that it was still "only authorized to obligate funds" for limited purposes such as salaries and clinical expenses, but that "NIH leadership is diligently working to resolve this issue and hopes to provide further updates soon."

And on Wednesday morning, regular processes were gummed up briefly by the confusion, including credit card purchase approvals. An email sent to a group of agency employees who approve credit card purchases indicated the halt was still in effect, saying "a pause on the obligation of funds pertaining to the conduct of research and development," with a promise to keep the group updated with any changes to the new requirements.

Two hours later, those same employees were informed the halt had been lifted.

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The funding freeze would've impacted approximately $15 billion in funding that would be given to research institutions around the country between now and Sept. 30, according to an estimate from Democratic Sen. Patty Murray of Washington, a high-ranking official on the Senate Appropriations Committee.

"What is stunning to me is that OMB is saying that these funds are being released, while HHS is saying exactly the opposite—the chaos and dysfunction of the Trump administration is staggering. These people should not be managing a lemonade stand, much less all federal cancer research," Murray said in a statement.

Since taking office in February, Kennedy has overseen massive overhauls of the health system. Beginning in April, nearly 10,000 people were estimated to be laid off, including entire offices at the Food and Drug Administration, Centers for Disease Control and Prevention and NIH.

Hundreds of employees were later hired back after public outcry or internal agency discussions over the impact, leaving the full scope of the layoffs unclear.

Research cuts have also been a consistent tenet of Kennedy's HHS. Despite the secretary's repeated claims that scientific research was not hit by the cuts, the NIH had released $1.6 billion less in funding by April of this year compared to last year -- a reduction of one-fifth -- according to a New York Times analysis. Other grants have been cut completely because the administration has deemed them ideologically at odds with the president's agenda.

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