The latest battle in the indirect costs war
In a recent development, the NIH made headlines with its controversial plan to reduce funding to academic institutions for overhead “indirect” research costs. This move has sparked a legal battle involving almost two dozen states, universities, and academic groups who argue that the policy is “arbitrary and capricious” and violates federal law. The lower court has blocked the policy, but the Trump administration contends that the court did not have jurisdiction in the case. However, during an appeals court hearing, federal judges expressed skepticism towards the government’s reasoning.
The ongoing legal feud represents just one facet of the efforts by the administration, academic groups, and legislators to influence indirect cost policy. The questions raised by the judges during the hearing, the potential next steps, and other reform proposals are explored in detail in a comprehensive report by STAT’s Jonathan Wosen.
Where SNAP stands, six days into November
The situation surrounding SNAP benefits remains uncertain, with President Trump initially threatening to withhold emergency funding for the program until the end of the government shutdown, a statement that was later retracted by the White House press secretary. Despite this, many recipients are still unsure about the amount of aid they will receive and when it will be disbursed.
States like Nevada have reported partial benefits being delivered, while others like Oregon and Texas are facing delays in payments. In response to the crisis, restaurants across the country are stepping up to offer discounted or free meals to individuals impacted by the SNAP cuts. The community’s support during these challenging times is evident, with various establishments extending a helping hand to those in need.
Today: An FDA committee on chatbots and regulation
The FDA is set to convene an advisory committee meeting to discuss the regulation of therapy chatbots and other mental health devices utilizing generative AI. Developers of these technologies have expressed confusion regarding the FDA review process and the evidence required for approval. Currently, the agency has cleared fewer than 20 digital mental health devices, none of which incorporate generative AI technology.
The meeting comes at a time of heightened concerns surrounding general-purpose tools like ChatGPT, with reports suggesting their potential role in adverse outcomes, including cases of suicide. STAT’s Mario Aguilar delves into what to expect from the meeting, the differing approaches of the Trump and Biden administrations, and the challenges of distinguishing between supportive tools and therapeutic interventions.
Boom times for hair loss treatments
In a surprising turn of events, biotech investors are showing a keen interest in hair loss treatments, a sector typically overlooked by the industry. Two startups recently secured a combined $270 million in funding to develop solutions for common hair loss conditions like androgenetic alopecia. Notably, even renowned biotech figure George Church is venturing into the realm of hair restoration projects.
The shift in investor focus towards hair loss treatments can be attributed to the evolving consumer-centric nature of healthcare. Industry experts, including venture partner Cathy Friedman, shed light on the factors driving this trend and the prospects for the emerging companies in this space. STAT’s Allison DeAngelis provides a comprehensive analysis of the market dynamics and the potential longevity of these new ventures.
Poll: Most Americans support enhanced ACA tax credits
The fate of the Affordable Care Act’s enhanced tax subsidies, implemented during the Covid pandemic, is a pivotal issue fueling the ongoing political standoff that has led to the longest government shutdown in U.S. history. The potential expiration of these subsidies could result in significant premium hikes for ACA insurance enrollees next year. Recent polling data from KFF reveals that a majority of Americans believe Congress should extend the expiring tax credits, with strong support across party lines.
The survey, conducted online and via phone, indicates widespread backing for the continued provision of enhanced subsidies, with nuances in support among different political affiliations. The findings underscore the importance of the ACA tax credits in ensuring affordable healthcare for millions of Americans and the implications of their potential discontinuation.

