Vaccine-related contracts at Boston Children’s Hospital ‘stopped’ amid funding uncertainty

A top official at Boston Children’s Hospital said vaccine-related contracts between the medical facility and multiple federal agencies have “stopped” amid President Donald Trump’s efforts to slash federal funding that does not align with his policy views.

The hospital is the leading recipient of pediatric research funding from the National Institutes of Health with more than $200 million flowing into the institution each year. But an effort to slash funding to the medical research agency could cut annual funding for Boston Children’s in half.

The financial impact of the halted contracts was not immediately clear.

Boston Children’s Hospital CEO Dr. Kevin Churchwell said there has been a “significant” halt to the hospital’s work around vaccines, including contracts the medical facility holds with the Centers for Disease Control and Prevention and U.S. Food and Drug Administration.

“Every Friday we hear something, and it’s causing not just the cut that happens, but also the anxiety that (Gov. Maura Healey) talked about, of our research staff, our research enterprise,” he said Monday. “This is where sickle cell is being solved. This is where cystic fibrosis was solved. It’s where polio was solved and the issues that we’re confronting are issues we’re very much concerned about.”

Churchwell said the halted contracts with the CDC and FDA include work to monitor the flu, though the hospital executive said there have not been staff reductions at Boston Children’s.

As Trump barnstormed into Washington and started slashing federal spending, he also targeted medical research through a NIH policy that would ultimately strip funding for programs across the country, including for the indirect costs tied to the study of various diseases and illnesses.

Officials at the White House argued the indirect costs were “overhead” expenses that could be trimmed.

The new policy caps the additional grant money institutions receive for indirect costs associated with a project at 15% instead of the previous rule that allowed the government to negotiate the rates directly with hospitals or universities.

But medical facilities and institutions of higher education who benefit from the money have countered that the extra cash is crucial to operate complicated machinery or employ staff who make sure researchers follow safety rules.

A group of state prosecutors, including Massachusetts Attorney General Andrea Campbell, sued the Trump administration, arguing the cuts to medical research funding would cause “irreparable harm.”

A federal judge in Boston issued a preliminary injunction earlier this month to halt the funding cuts as a lawsuit plays out.

Healey, who toured Boston Children’s Hospital’s neonatal intensive care unit and cardiac intensive care unit Friday afternoon, said the “attacks” from Trump on medical research funding “are directly aimed” at children in Boston.

“That’s what’s on the line,” she said. “The NIH cuts are already disrupting medical research and clinical trials. Children’s receives, for example, $230 million from NIH funding every year, and they could lose more than half of that funding because of these cuts. That means halting research into diseases that harm children, ripping away hope from families.”

Federal prosecutors at the U.S. Department of Justice have argued the policy capping the indirect cost rate at 15% “will not change NIH’s total grant spending; rather, it simply reallocates that grant spending away from indirect costs and toward the direct funding of research.”

In a court filing from last month, the federal prosecutors said the policy would ensure that NIH grants fund the research at “the core of its mission” by minimizing payments for “overhead” costs that are difficult for the agency to oversee.

The policy would also bring NIH indirect cost rates “into line with the lower (and thus less expense) indirect cost rates provided by private grantors and accepted by grantees,” the lawyers said in court documents.

“Still, plaintiffs invite this court to upend NIH’s effort to administer its grants in a way that it has concluded best furthers public health — all so that they and the incumbent grantees they represent may receive larger indirect cost payments they claim are owed to them under the original indirect-cost terms of their grants,” federal prosecutors said.

In filing the lawsuit alongside 21 other state prosecutors, Campbell said the Trump administration was attempting to “unlawfully undermine our economy, hamstring our competitiveness, (and) play politics with our public health.”

“Massachusetts is the medical research capital of the country. We are the proud home of nation-leading universities and research institutions that save lives, create jobs, and help secure a better future,” Campbell said in a statement.

Materials from the Associated Press were used in this report.

Gov. Maura Healey (Nancy Lane/Boston Herald, File)

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