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Funding by NICHD
NICHD FY 2004 Funding Guidelines

The National Institute of Child Health and Human Development (NICHD) distributes its resources among many diverse programs and mechanisms. The institute is committed to funding the largest number of meritorious projects possible, while allowing the flexibility needed to support selected program priorities and respond to emerging scientific opportunities.

When the President signs the NIH Appropriation, the funds for new and competing renewal research grant applications are allocated for the fiscal year. The institute establishes general guidelines for funding based on the allocation, allowing for necessary adjustments throughout the year to reflect directives from Congress and the NIH, as well as emerging program priorities.

For FY 2004, the following guidance applies to research project grant funds:

Adjustments to Requested Budget Levels

The NICHD does not make "across-the-board" budget cuts to grants it intends to fund. However, some adjustments are necessary, in part due to the following factors:

  • An increase in the number of applications submitted
  • A significant increase in the size of budget requests
  • A large and growing commitment base for ongoing grants

New and Competing (Type 1) Research Project (R01) Grants

For R01 awards up to $250,000 in direct costs, consideration is given to adjusting the level by an amount up to approximately 10% of the direct costs recommended; for awards over $250,000, consideration is given to adjusting the level by an amount up to approximately 15% of the direct costs recommended.

Program Project (P01) Grants

For program project grants, the NICHD sets a baseline for new competing applications (Type 1) at approximately 20% below the recommended level of support. This baseline serves as a benchmark for negotiations regarding the level of support. Competing continuation (Type 2) applications are funded at a level not to exceed 10% above the last non-competing (Type 5) award.

Non-competing Renewal Grants (Type 5)

The non-competing FY 2004 level of support is reflected on the FY 2003 award notice and generally reflects a 3% yearly increase. The NICHD may adjust the level whenever it is necessary and appropriate. For example, a reduction would be made when duplicative support is identified.

Other NICHD Funding Considerations

  • The legislated salary limitation for grants applies to both competing and non-competing grants. No additional NICHD funds are provided for the increase. Grantees may re-budget within the funds awarded to accommodate the new salary cap.

  • Future year commitments on FY 2004 new and competing renewal awards that are over $250,000 will reflect a 3% escalation factor. Modular grants do not receive a 3% escalation factor in future years. Additional information on modular applications and awards is posted at: .

New Investigators

Applications submitted by new investigators, with scores just beyond the funding range, are examined by NICHD for potential special funding consideration. Special consideration may include full funding of small grants or partial funding of larger grants to allow preparation and submission of revised applications for review.


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