House Passes NIH Reauthorization Bill; Senate’s Plans Unclear

September 27, 2006 – In one of its final acts before it adjourns to campaign for the November elections, the House of Representatives passed legislation yesterday intended to restructure the National Institutes of Health (NIH), increase its authorization levels, and encourage multidisciplinary research.

The bill (HR 6164), introduced by Energy and Commerce Chairman Joe Barton (R-TX), would reauthorize the NIH for the first time since 1993. It would authorize a 5 percent increase annually from the agency’s $28 billion budget and create a “common fund” to pay for research involving more than one of NIH’s 27 centers.

Major components of the bill include:

1. The creation of a common fund to support collaborative, trans-NIH research. The Division of Program, Coordination, Planning, and Strategic Initiatives within the Office of the Director will “identify research that represents important areas of emerging scientific opportunity, rising health challenges, or knowledge gaps that deserve special emphasis.” The common fund will grow to a maximum level of 5 percent by including one-half of any additional money allocated by appropriators over the previous fiscal year (FY) appropriation. The fund would initially include money supporting the NIH Roadmap Initiative (currently 1 percent of the budget). Once the fund reaches five percent, the NIH Director must submit recommendations to Congress with regard to any changes to the overall budgetary level of the common fund.
   
   
2. The bill includes funding ceilings for FY 2007, FY 2008, and FY 2009 set at 5 percent growth. Many members of the House Committee on Energy and Commerce were concerned about the low recommendation, arguing that with the set aside of common fund dollars, budgets for Institutes and Centers will not keep up with biomedical inflation. While a number of amendments to address these concerns were introduced in committee markup, they were all rejected. Representative Barton argued that higher funding recommendations would limit the committee’s influence with appropriators by setting an unrealistic goal for the NIH budget.
   
   
3. While restricted to a ceiling of 27 Institutes and Centers at NIH, the Director is authorized to create, restructure, or disband any Institutes and Centers that impact the effectiveness of the NIH mission. The Director must obtain approval from the Secretary of Health and Human Services, open a public process to obtain insight from interested parties, and notify Congress of the changes. A Scientific Management Review Board — including representatives from institutions of higher education that receive NIH funding — will submit a report to Congress at least once every seven years that review the organization and effectiveness of NIH programs. Some stakeholders have expressed concern about the requirements to chair the board; to ensure the board’s independence; many feel that the NIH Director should not be able to serve as chair.
   
   
4. The legislation encourages the NIH Director, in conjunction with Institute and Center directors, to “preserve an emphasis on investigator-initiated research project grants” including for trans-NIH research.
   
   
5. The bill includes provision for the implementation of an electronic coding system for research grants and activities. Meant to increase transparency, the system will be based on type of research grant, the research institution or organization managing the grants, and the public health area of interest.
   

The bill passed the House overwhelmingly (414-2), but its fate is uncertain in the Senate where Senators have not begun consideration of similar legislation. Senator Michael Enzi (R-WY), the Chair of the Senate Health, Education, Labor, and Pensions Committee, which has jurisdiction over NIH, indicated that Senators are expected to want significant time to review the issues.

While lawmakers and many in the scientific and medical community broadly supported the House bill, ASH did not endorse it. One concern was that the legislation should authorize even bigger increases in the agency’s budget. The proposed 5 percent increase includes a 50 percent tap to create the “common fund” and there are concerns about the impact on investigator initiated grants.

ASH will continue to work with the Senate as it takes up this legislation and will keep members apprised of developments.