In a statement on Friday, the USA’s National Institutes of Health (NIH) said it would cut grants for "indirect costs" related to research - such as buildings, utilities and equipment.
Some scientists believe the move will stifle scientific advancements, according to media reports, including for UK broadcaster the BBC.
"The United States should have the best medical research in the world," NIH said in its announcement, adding: "It is accordingly vital to ensure that as many funds as possible go towards direct scientific research costs rather than administrative overhead."
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