MIT Alumni for Science

Background

Funding Cuts

Current and pending cuts and freezes in funding for federal research agencies threaten U.S. leadership in science and technology—and are already doing damage to the strength of institutions like MIT and its peers. In early 2025, the U.S. federal government cut research funding for institutions like MIT by capping the National Institutes of Health, Department of Energy, and National Science Foundation reimbursement rates for indirect costs at 15%, relative to previously negotiated average rates of 27-28%. Not only do these actions drastically affect scientific and medical progress, they also impact student research opportunities at MIT.

Endowment Tax

The U.S. Congress is also considering a dramatic increase in taxation on endowment income of the Institute and other schools, with taxation proposals currently between 8-21%. If approved, this tax would strip critical funding for student aid and for research and innovation that leads to national security, health, and prosperity. Congress is also reviewing a U.S. federal budget proposal for fiscal year 2026 with dramatic reductions for science funding, which MIT labs and research centers rely on for advancing the basic and applied science that power innovations in health, security, and countless other fields.