The Tuesday night news quickly sowed alarm among researchers: Media outlets reported that the Trump administration had stopped the National Institutes of Health from funding any new grants. The Wall Street Journal wrote that “certain grants that are up for renewal” were also cut off, and STAT, along with other outlets, later confirmed that reporting.

The newspaper reported that the Office of Management and Budget was blocking these billions of dollars in research funding for the rest of the fiscal year, which ends Sept. 30. After that, the dollars would return, unspent, to the Treasury. This nationwide halt to grants stemmed from an OMB footnote in a budget document, the Journal reported, adding that “the fourth quarter of the fiscal year is typically the busiest for grant-giving institutes at the NIH.”

Inside Higher Ed reviewed screenshots of an email from an NIH employee saying, “Research grant, R&D contract, or training awards cannot be issued during this pause.” The funding halt would’ve meant an end to new research to help find and improve cures and treatments for diseases as well as stanched the flow of federal dollars to already financially beleaguered universities and labs nationwide.

“This is undeniably an unforced error, since this will not only harm current and future American patients, but the disruptive and chilling effect of this sudden holding back of promised funds will further jeopardize the future of the American medical research enterprise,” Association of American Universities president Barbara R. Snyder said a statement Tuesday.

But before the night was over, the Trump administration appeared to reverse course. In an updated article citing unnamed sources, the Journal reported that unnamed “senior White House officials intervened.” (OMB is part of the executive branch.) The Journal said officials at the Health and Human Services Department, which includes NIH, fought the pause for days, but OMB only relented after the newspaper published its initial story Tuesday.

In response to Inside Higher Ed’s written questions and interview requests about the situation Wednesday, the White House and HHS both sent the same statement from an HHS spokesperson: “The programmatic review is over. The funds are out.”

One OMB spokesperson posted on X that OMB had been “waiting for more information from NIH” before releasing the funds.

The NIH is one of the largest sources of funding for research at colleges and universities, and it touts itself as the “largest single public funder of biomedical and behavioral research in the world.” Tuesday night’s controversy wasn’t the first—and likely won’t be the last—upheaval that this crucial agency has faced under the Trump administration.

From grant cancellations to the White House proposal to slash the agency’s budget by 40 percent for the next fiscal year, institutions and researchers have seen the flow of NIH grant money stymied. Atop all this, the reportedly now-abandoned move by OMB to stop grant awards highlights continuing concerns about the fate of the grant dollars that the NIH still hasn’t given out this current fiscal year.

Since Trump took office, the NIH has awarded fewer grants compared to previous years, multiple analyses have found. A former NIH official estimated to Science that at least $6 billion of the agency’s $48 billion budget could be sent back. In a higher estimate, Sen. Patty Murray, the top Democrat on the Senate Appropriations Committee, said in a statement that what OMB reportedly tried to do before reversing course Tuesday “would choke off approximately $15 billion in funding that would otherwise go to institutions across the country.”

A nongovernment official familiar with the NIH appropriations process told Inside Higher Ed that, within a sample of major universities surveyed, institutions are down 20 to 48 percent in NIH award and renewal funds compared to the same time last year.

The official, who requested anonymity to maintain relationships with people within the administration, said Wednesday that there’s been “a very, very slow spend at NIH, even prior to last night’s fire drill.” The official said they don’t think NIH has ever had to push out so much remaining money in such a short time, and there’s “a very small amount of NIH staff left to allocate those funds.”

Heather Pierce, senior director for science policy at the Association of American Medical Colleges, told Inside Higher Ed that Tuesday’s news “caused a real concern across the research enterprise very quickly. This is a community that has seen not just threats but actual damaging changes to the typically stable federally funded research grants take place overnight, or even faster.

“By any measure, the pace of grant funding is a fraction of what it has been in any other year, and that includes grant renewals, that includes new funding opportunities,“ Pierce added. “And the pace with which grant applications are reviewed and awarded is far below what we’ve seen in the past, and that includes applications that were submitted a long time ago that have already been scored and gotten very competitive scores that would be expected to be funded.”

Joanne Padrón Carney, chief government relations officer for the American Association for the Advancement of Science, said the reported freeze “just reinforced the current mood among researchers that the future of scientific research at NIH is still in question and could change at a moment’s notice, but also that this isn’t just about NIH. This cloud of uncertainty hovers over other agencies as well, such as the National Science Foundation.”

Carney added that “the head of the Office of Management and Budget has made public his interest in reducing spending and reducing the size of government and using what tools that he is able to use to do that.”

Russell Vought, head of OMB, hasn’t sworn off using rescission legislation, which can be passed with a simple majority in both chambers of Congress, to take back already appropriated funds during a fiscal year. NPR also reported that he’s called Congress’s spending bills “a ceiling … not a floor.”

Murray, who represents Washington State, previously warned that the Trump administration’s use of such legislation to claw back funds already appropriated for this fiscal year—like it recently did for public broadcasting money—could scuttle consensus on the budget for next fiscal year.

Carney attributed the slowdown in NIH grants to multiple factors, including the regular change in presidential administrations, Congress adopting a continuing resolution instead of a budget for this fiscal year and the Trump administration’s executive orders and other actions.

“It’s like throwing sand into the machine,” Carney said. She said her association is pleased “that the funding will continue to flow, but it’s still unknown whether that flow of funds will be in drips or will be full stream, and we only have two months left until the end of the fiscal year.”

Some Senate Republicans recently called on NIH and OMB to send more money out the door, as directed in the continuing resolution Congress passed in March.

“We are concerned by the slow disbursement rate of [fiscal year 2025] NIH funds, as it risks undermining critical research and the thousands of American jobs it supports,” the senators wrote in a letter to OMB. “Suspension of these appropriated funds—whether formally withheld or functionally delayed—could threaten Americans’ ability to access better treatments and limit our nation’s leadership in biomedical science. It also risks inadvertently severing ongoing NIH-funded research prior to actionable results.”

Tuesday night’s controversy came as some Republican members of Congress have joined Democrats in opposing the president’s proposal to gut the NIH’s funding for fiscal 2026. The Senate Appropriations Committee is meeting today, and it’s set to unveil how much it plans to send NIH next fiscal year.

Carney said, “The U.S. is considered a global leader in biomedical research and medical discoveries, and we can’t afford to lose opportunities for advancing new discoveries and therapies and treatments for diseases that affect millions all over the world.

“So when it comes to Alzheimer’s or cancer or infectious diseases, this is about hope,” she said. “It shouldn’t be about politics.”