An update on federal funding for science & healthcare
February 5, 2026
Dear Colleagues,
Over the course of this past year, many of our learners, staff, faculty, and leaders have lent their time to advocacy efforts to tell the story of how Penn Medicine turns federal investment into powerful new discoveries, treatments, and cures. Your conversations with elected officials, patients, and members of the communities we serve have made an important difference in ensuring that our organization, and academic health systems across the nation, can continue to make life-saving advances.
I am happy to share that this week, Congress passed, and the President signed, an appropriations bill that will ensure continued funding and stability to much of the government through September 30, 2026.
Following significant worries about proposed budget reductions, the bill is encouraging news for continued federal support for biomedical and translational research.
Key highlights of the bill that affect our research and clinical missions include:
- Providing over $47 billion for the National Institutes of Health (NIH), which represents a $415 million increase for the agency compared to last year.
- Continued funding for the Clinical and Translational Sciences Awards (CSTA) and the Advanced Research Projects Agency for Health (ARPA-H).
- Maintenance of Facilities & Administration (F&A, or “indirect”) funding at current rates, which is critical to supporting research infrastructure.
- Creation of a new policy that limits multiyear funding for grants to current levels through the end of September. This restriction is intended to help ensure that NIH can continue to fund a broader number of research projects each year rather than concentrating resources into fewer, fully obligated awards.
- Extensions of key COVID-related telehealth flexibilities for Medicare beneficiaries through Dec. 31, 2027, and reauthorization of the Acute Hospital Care at Home Program through Sept. 30, 2030.
Given the temporary nature of some of these measures and other proposed health care and research policy changes, we must continue to advocate for the critical funding and support that sustains our work to serve people near and far. At the same time, I have never been prouder to be part of this community. Our work has enormous impact, as recently highlighted by the tremendous honor of four Penn Medicine studies being named among the nation’s top 10 clinical research advances during the past year. The teams powering these remarkable advances represent our entire organization. Thank you for your inspiring commitment amidst challenging times.
Jonathan A. Epstein, MD
Dean, Perelman School of Medicine
Executive Vice President, University of Pennsylvania for the Health System