NIH cuts could have 'negative consequences' for Long Island economy, says business groups' letter to New York congressional delegation

The Trump administration's proposed cuts to federally funded medical research could pull back close to $850 million from New York, with "long-lasting negative consequences" for employment and scientific innovation, according to a coalition of state and local business advocacy groups.

In a letter sent to New York's delegation in Congress on Thursday, the group urged members to take "immediate action" and oppose efforts to slash funding by the National Institutes of Health, which, they added, could mean cuts to research programs at Cold Spring Harbor Laboratory and Stony Brook University studies of 9/11 first responders. Stony Brook and other SUNY universities could lose up to $79 million combined, according to the letter, signed by the Long Island Association, the Business Council of New York State, along with and 16 other business advocacy organizations.

Local economies depend on these grant recipients, the letter said, "to build a qualified workforce and to conduct critical research that drives industry innovation."

"Companies rely on the medical advancements fostered by these institutions to provide affordable, effective health care solutions, improving employee wellness and reducing healthcare-related expenses," the letter reads. "Any setbacks in research could also lead to increased costs, delays in medical breakthroughs, and a decline in the availability of lifesaving therapies."

A new NIH policy announced last month said research institutions can only seek federal reimbursement of 15% of their indirect costs,  which can include scientific computing, heating and cooling bills, lab maintenance and medical waste management, Newsday previously reported.

The indirect cost rate reported to NIH averaged between 27% and 28% during the fiscal years between 2013 and 2023, according to the most recently available NIH data. 

More than 250 entities across the state receive a total of about $3.5 billion in NIH funding, according to the letter.

Brookhaven National Laboratory, Cold Spring Harbor Laboratory and the Feinstein Institutes for Medical Research are just some of the entities that could lose funds, Long Island Association president and CEO Matt Cohen said in a telephone interview Thursday.

"Some of these institution have hundreds of millions of dollars of economic impact on Long Island," Cohen said. "When you start pulling away funding from them ... that's going to impact other sources of funding that they can get for this various research, public and private. It's a snowball effect."

The business groups' letter warned if the proposed cuts proceed, they "will have long-lasting negative consequences for workforce health, economic growth, and the future of medical research."

The proposed cuts are “a terrible idea” that would be “devastating to Long Island” and “hamstring” one of the nation’s “strongest assets,” Rep. Tom Suozzi (D-Glen Cove) said in an interview with Newsday Thursday evening.

“One of the things we’re best at” in America “is research and new discoveries,” Suozzi added. “I don’t understand why we would want to stop that from succeeding.”

In separate statements, New York's senate delegation, Democrats Kirsten Gillibrand and Chuck Schumer, as well as Rep. Laura Gillen (D-Rockville Centre) all said they opposed the new proposed NIH policy, citing potential cuts to scientific research on Long Island.

Rep. Andrew Garbarino (R-Bayport) cited in a statement his signature on a "bipartisan letter" that raised concerns about cuts to NIH grants and was and sent to acting NIH Director Matthew J. Memoli.

Rep. Nick LaLota (R-Amityville) did not immediately respond to request for comment.

Last month, New York State Attorney General Letitia James and 21 other state attorneys general filed a suit against the Trump administration over the reimbursement cap, prompting Judge Angel Kelley of the U.S. District Court of Massachusetts to temporarily pause the new NIH policy, Newsday reported at the time. On Wednesday, Kelley filed a preliminary injunction to continue the pause while litigation continues, according to The Associated Press.

In a statement released Wednesday, James said: "The president may want to play politics with public health, but we refuse to risk the resources Americans rely on. Without this lawsuit, New York could have lost $850 million in funding and researchers would have been forced to abandon vital research projects on cancer and Alzheimer’s disease. We will always fight back against these harmful, illegal cuts that slow down lifesaving medical research, hurt our economy, and take away jobs."

The Greater New York Hospital Association, which advocates for hospital and health systems,  called the estimated loss in research funds statewide "a blow that would undermine New York’s economic growth, its medical innovations, and its capacity to support a healthy workforce," according to the council’s letter.