Research Universities Face Credit Risk from NIH Funding Cut

  • Policy change would reduce research funding for universities
  • Federal judge temporarily blocked the Trump-directed cuts

Most of the universities threatened by efforts to pare back government spending currently have high-grade credit ratings.

Photographer: Christopher Occhicone/Bloomberg
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Proposed cuts by the Trump administration to a type of federal funding from the National Institutes of Health would pose a credit challenge to universities that receive the funds, analysts at JPMorgan Chase & Co. said.

The NIH has been ordered to slash funding for research at universities and hospitals, though on Monday a federal judge temporarily paused the change. A hearing date is scheduled for Feb. 21.