NIH expands grant eligibility to include for-profit companies and local agencies

The National Institutes of Health revealed a major revision to its grant rules, opening eligibility to for-profit companies, local governments, federal agencies and community-based organizations. Previously, only higher-education institutions and nonprofits could receive these facility-focused awards. Director Jay Bhattacharya argued that the prior system favored already well-funded labs, creating a feedback loop that limited broader participation.

By allowing a wider range of entities to apply, the NIH hopes to spur innovation outside traditional academia. The move aligns with similar efforts at the National Science Foundation, which has launched the X-Labs program and a hybrid Ph.D. pathway to bridge academia and industry. Critics note the shift could reshape how scientific research is funded and conducted across the United States.