On March 14, halfway into fiscal year (FY) 2025, the Senate by a vote of 54-46, passed a full year spending bill/continuing resolution (CR), the Full-Year Continuing Appropriations and Extensions Act, 2025opens in new window, providing funding for agencies through September 30, 2025.
While the measure mostly keeps funding flat at FY 2024 levels, it reduces spending for some agencies and programs, including the National Institutes of Health (NIH), which received a $280 million cut (mandatory funding which expired as part of the 21st Century Cures Actopens in new window) below the FY 2024 funding level. It also cuts the Department of Defense’s Congressionally Directed Medical Research Programs by 57%, a long-supported program by APA Services that funds research on several health-related issues including traumatic brain injury and post-traumatic stress disorder.
The bill extends the NIH Facilities and Administrative (indirect costs) statutory language prohibiting the administration from changing the indirect formula. The administration’s proposal to impose a 15% cap was blocked by a federal court; a decision the administration is challenging. The CR also gives the administration significant power to make decisions on how individual programs are funded. This could lead to some programs receiving less funds than they had in FY 2024, even while the bill itself ostensibly keeps funding flat. This could especially be the case within agencies the administration is looking to curtail or substantially pare back such as the Department of Education or the Centers for Disease Control and Prevention. Over 40,000 messages were sent by psychologists to Congress expressing concerns with the arbitrary 15% cap on indirect costs and science funding.
As Congress quickly turns its attention to FY 2026 appropriations, many of these same issues will once again be debated. Despite the challenging fiscal climate, APA Services will continue to advocate for the highest levels of support for programs of importance to psychology.


