Happy New Year 2025

Tag: cap

Medical experts explain why Trump’s cap on NIH research funding is a good idea

The Trump administration’s decision to slash overhead costs linked to federally funded research has sparked an immense backlash. But some doctors are praising the move, suggesting it will help “optimize” how taxpayer dollars are used when it comes to scientific research.

A new rule from the Trump administration that went into effect Monday, capped facilities and administrative costs, also known as “indirect costs,” at 15% for federally funded research grants provided by the National Institutes of Health (NIH). When a grant is awarded to a scientist by the NIH, an additional percentage, on top of the allocated research funding, goes to the facility housing their work to cover these “indirect costs.”

According to an announcement about the new funding cap from the Trump administration, that percentage has historically been around 27% to 28% for each grant. But in some cases, negotiated rates can be as high as 70 to 90%, according to doctors who spoke with Fox News Digital.

UNIVERSITY PROFESSOR HAILS THAT SCIENCE ‘THRIVED’ UNDER HITLER IN ATTACK ON TRUMP’S NIH CUTS

“If that money is cut to 15%, what that means is there’s actually going to be more grants given out to do science. You get more money back to the NIH to give out more science,” said Dr. Vinay Prasad, a hematologist-oncologist and professor in the Department of Epidemiology and Biostatistics at the University of California, San Francisco.

“It’s about time,” said Dr. Erika Schwartz, the founder of Evolved Science, which is a concierge medical practice in New York City with more than 1,500 active patients.

“While infrastructure support is necessary, there’s room for more efficient cost management. A reformed funding model could redirect more resources to direct research activities while maintaining essential support services. This could potentially increase the number of funded research projects and accelerate medical breakthroughs, ultimately benefiting patients more directly.”

HHS WILL REEVALUATE PROGRAMS, REGULATIONS TO ENSURE TAXPAYER FUNDS ARE NOT PAYING FOR ELECTIVE ABORTIONS

Dr. Erika Schwartz is the founder of a New York City-based practice, Evolved Science, which utilizes new therapies to improve patient results.

Prasad posited that universities and research institutions have negotiated “sweetheart deals” that allow them to rake in funds that sometimes aren’t even necessary to the research at hand. To demonstrate his point, he explained the numbers for a research institution that has negotiated a 57% rate for indirect costs:

“Let’s say I get $100,000 [for a research project] and I need a laboratory… I get $100,000, and then they still get the $57,000 to the university that goes to the administrators, and presumably the fact that I have a lab bench, and the lights, etc. But now let’s say I do the same $100,000 project, but my project is we’re going to analyze genomic sequences from an online repository. So, I just have a laptop… but they still get the $57,000 even though there’s literally no space being given to this person. There’s no bench, there’s no desk, there’s nothing.”

Prasad added that another “fundamental problem” with these negotiated rates is that the money is not formally budgeted, so “the American people don’t know where that money is going.”

DOGE CANCELS FUNDING FOR FAUCI MUSEUM EXHIBIT

“A famous researcher once said to me, an NIH dollar is more valuable than any other dollar because they can use it for whatever purpose they want. Although, nominally, they’re supposed to use it to keep the lights on and, you know, make the buildings run, but that’s not always the case,” he said.

Dr. Vinay Prasad is a hematologist-oncologist and professor in the Department of Epidemiology and Biostatistics at the University of California, San Francisco.

David Whelan, a former healthcare writer for Forbes who has spent time working in hospitals and now works in the healthcare consulting space, echoed this concern in a post on X that claimed universities have used indirect research grant payments “to pocket money.”

“Indirects are just ways for wealthy academic hospitals to pocket money that their investigators won and then create slush for those who are incapable of getting funded on their own,” Whelan wrote. “It’s a huge grift and great place for cuts.”

‘LOST ALL CRTEDIBILITY’: NONPROFIT CEO DELIVERS DEMAND TO TRUMP HHS AMID ‘FAILED’ HUMAN TRAFFICKING HOTLINE

The Trump administration’s cap on indirect funding associated with NIH research grants was immediately challenged in court with lawsuits from 22 Democratic state attorneys general and a cohort of universities, which argued the move will “devastate critical public health research at universities and research institutions in the United States.”

The National Institutes of Health (NIH) announced a $9 billion spending cut in response to a new mandate from the Trump administration. (Alamy/Getty Images)

“Once again, President Trump and Elon Musk are acting in direct violation of the law. In this case, they are causing irreparable damage to ongoing research to develop cures and treatments for cancer, Alzheimer’s disease and related dementias, ALS, Diabetes, Mental Health disorders, opioid abuse, genetic diseases, rare diseases, and other diseases and conditions affecting American families,” said Rep. Rosa DeLauro, D-Conn., ranking member on the House Appropriations Committee. “The Trump Administration is attempting to steal critical funds promised to scientific research institutions funded by the NIH, despite an explicit legal prohibition against this action.”

In response to the lawsuit from Democratic state attorneys general, a federal judge imposed a temporary restraining order prohibiting NIH agencies from taking any steps to implement, apply or enforce the new rule.

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The judge’s order also required Trump administration agencies that are impacted by the new rule to file reports within 24 hours to confirm the steps they are taking to comply with the ruling. Meanwhile, an in-person hearing date on the matter has been scheduled for Feb. 21.

February 11, 2025
What would be the impact of a credit card interest rate cap?

A ‘Mornings with Maria’ panel provides their reactions to the December jobs report, detailing the impact it may have on the U.S. economy.

New legislation in Congress that was introduced by an unlikely duo of senators seeks to impose a credit card interest rate cap, with the potential for such a bill becoming law aided by President Donald Trump’s campaign pledge on the subject.

Sens. Bernie Sanders, I-Vt., and Josh Hawley, R-Mo., introduced legislation that would cap credit card interest rates at 10% for five years after the bill’s enactment. The two populist senators touted the measure as a means of fulfilling a campaign pledge made by Trump’s campaign last year.

The bill’s introduction coupled with White House support for the proposal could allow for the idea to gain traction, although there would be consequences to the policy and it still faces a long road to enactment.

“Credit card rate caps have always been the longest of long shots because there’s so many people lined up against it for various reasons, but it shouldn’t surprise anybody that a rate cap is enormously popular,” Matt Schulz, chief credit analyst at LendingTree, told FOX Business.

JOSH HAWLEY, BERNIE SANDERS PROPOSE CAPPING CREDIT CARD INTEREST RATES AT 10%

Credit card interest rates could be capped at 10% under a bill offered by Sanders and Hawley. (iStock)

Schulz said that LendingTree conducted a poll that showed respondents continued to support the idea of a credit card interest rate cap even if it means restricted access to credit and diminished credit card rewards.

“It’s still a long shot, but there’s no question that the idea politically kind of has some wind at its back right now, and if it’s ever going to happen, this may be as likely a time as ever for it to happen,” he said.

Schulz added that credit cards offered by federally chartered credit unions are capped at 18%, which do still offer rewards but aren’t as lucrative as those offered by larger banks. He went on to say that a cap at that level or 20% would be significant for consumers dealing with credit card debt while potentially having a better chance at becoming reality.

US CREDIT CARD DEFAULTS SOAR TO HIGHEST LEVEL IN 14 YEARS

Several leading trade groups representing the financial services industry sent a letter to Hawley and Sanders outlining their opposition to the duo’s proposed 10% credit card interest rate cap. Signatories to the letter included the Consumer Bankers Association, America’s Credit Unions, American Financial Services Association, Bank Policy Institute, Independent Community Bankers of America, American Bankers Association and the National Bankers Association.

The letter cited economic research showing that government price setting on APR caps hurts consumers, in part because it “would eliminate access to credit cards for millions of consumers and drive them to sources of credit which are far more costly and less regulated.”

Sen. Bernie Sanders, I-Vt., accused financial institutions of “extortion” and “loan sharking” for having credit card interest rates over 25%. (Kevin Dietsch/Getty Images / Getty Images)

The groups noted the state of Illinois imposed a rate cap, which the Federal Reserve researched and found was responsible for reducing the number of loans to subprime borrowers by 38 percent. They also referenced a study by researchers at Dartmouth who found Oregon’s 36% all-in APR cap was responsible for “harming, not helping, consumers on average” and “restricting access caused deterioration in the overall financial condition of Oregon households.”

“As responsible and well-regulated financial institutions, we share the goals of reducing the cost of consumer credit and increasing financial inclusion. Unfortunately, the 10 percent rate cap proposed in this legislation would stifle our shared financial inclusion goals, reduce access to credit and push consumers to far more costly and less regulated lenders,” the groups wrote.

CONSUMER WATCHDOG WARNS COMPANIES AGAINST DEVALUING CREDIT CARD REWARDS, LAUNCHES TOOL TO AVOID SCAMS

Sen. Josh Hawley, R-Mo., said high credit card interest rates are “exploitative” and capping them would provide “meaningful relief.” (Tom Williams-Pool/Getty Images / Getty Images)

While it’s unclear whether Congress will consider legislation capping credit card interest rates, Schulz noted that there are still steps consumers can take to ease their financial burden.

“The good news is that there are plenty of things you can do yourself to lower your interest rates without waiting for Congress to come in as the cavalry in lowering rates. You can get a 0% balance transfer credit card if you have good credit. You could look at a low interest personal loan, that’s a good option if you can’t get a 0% balance transfer card,” he said.

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“You can even call your credit card issuer and ask for a lower rate. LendingTree did a survey last year where we found that 76% of people who asked for a lower interest rate on one of their credit cards got one, and the average reduction was about 6 percentage points which is really significant,” Schulz said. “So it’s absolutely worth the call, because that sort of success rate shows that it’s not just people with 800 credit scores and long track records who are getting their way – it’s regular folks too who really need the help.”

February 11, 2025
Trader Joe’s puts cap on how many eggs shoppers can buy

National Restaurant Association president Michelle Korsmo unpacks the cost of eggs on ‘The Claman Countdown.’

Trader Joe’s is putting a cap on how many eggs its shoppers can purchase each day.

The company told FOX Business on Monday that it is “currently limiting egg purchases to one dozen per customer, per day.”

That cap applies to eggs at every Trader Joe’s grocery store in the U.S., according to the company. It operates hundreds of stores nationwide.

Trader Joe’s cited “ongoing issues with the supply of eggs” as the reason for the daily limit.

The Trader Joe’s in Shoreview, Minnesota. (Michael Siluk/UCG/Universal Images Group via / Getty Images)

WAFFLE HOUSE, OTHER COMPANIES ADD EGG SURCHARGE AMID SHORTAGE

Eggs have been in short supply in the U.S. due to outbreaks of highly pathogenic avian influenza (HPAI), known as bird flu.

“We hope these limits will help to ensure that as many of our customers who need eggs are able to purchase them when they visit Trader Joe’s,” the grocer said.

Eggs have been in short supply in the U.S. due to outbreaks of bird flu. (Joe Raedle / Getty Images)

A report published by the Agriculture Department late last week said shell egg availability “remains limited and inconsistent in many retail markets with many affected grocers employing steps to limit consumer purchasing to stretch their existing supplies.” Actions grocers have been taking include curbing promotional activities on eggs, implementing caps on the number of eggs consumers can buy at a time, and “holding prices at record or near-record highs to dampen demand,” according to the report.

EGG SHORTAGES FORCE SOME GROCERY STORES TO IMPOSE LIMITS

Bird flu has contributed to high egg prices in grocery stores in addition to shortages.

In the U.S., a dozen large Grade A eggs averaged $4.15 in December, data from the Bureau of Labor Statistics showed. That marked a 13.7 % jump from the previous month.

More than two-thirds of surveyed shoppers said they pick up eggs from retailers on a weekly basis. ( / iStock)

A Numerator survey released in late January found 71% of U.S. egg shoppers thought eggs were “somewhat or very” pricey. More than half have recently experienced their grocery stores having a shortage of eggs or being completely out of stock, it showed.

EGG PRICES AREN’T COMING DOWN ANYTIME SOON, EXPERTS SAY

More than one-third of surveyed egg shoppers said they pick up eggs from retailers on a weekly basis. The same percentage – 34% – reported buying them “every couple of weeks,” according to Numerator.

February 10, 2025