The Association of American Medical Colleges warned last Tuesday that the National Institutes of Health has accelerated its use of multiyear funded grants in 2026, reducing the pool of dollars available for new research this fiscal year. By May 15, 2026, the NIH had obligated 402 million dollars across 601 multiyear grants—more than five times the 79 million dollars committed by the same date in 2025. The AAMC’s report highlights how this shift, intended to increase budget flexibility, is tightening competition for annual funding at a time when the NIH’s 47 billion dollar budget supports nearly 37 billion dollars in extramural grants to universities and research institutes. The NIH’s 2027 budget request seeks to remove a congressional cap that currently limits multiyear grants to 2025 funding levels, proposing instead to forward fund all competing research project grants. The agency argues this would free up annual appropriations by reducing obligations tied to ongoing projects. However, the AAMC and other stakeholders caution that a rapid transition could stifle innovation. Heather Pierce, the AAMC’s senior director of science policy, compared the approach to allocating a 400,000 dollar budget to a single forward funded project instead of four separate 100,000 dollar grants, warning of a “precipitous” decline in new ideas funded. The AAMC’s analysis shows that in fiscal year 2025, multiyear grants accounted for 6 percent of all extramural obligations—2.2 billion dollars across more than 2,000 awards—with most allocated in the final months to avoid returning unspent funds to the U.S. Treasury. Universities are already adjusting to the funding squeeze. Lizbet Boroughs, senior associate vice president of government relations at the Association of American Universities, reported that AAU institutions have reduced Ph.D. admissions in response to the contraction. Smaller universities, in particular, may struggle to provide bridge funding for researchers caught in the transition. The AAMC’s report calls for a more measured approach, emphasizing the need for stability in graduate programs and long term research trajectories. The debate centers on transparency and timing. While the NIH frames forward funding as an efficiency tool, stakeholders argue the agency has not adequately communicated its implementation strategy. As Congress reviews the NIH’s 2027 budget request, the outcome will determine whether the multiyear funding model becomes permanent or prompts a course correction. Stakeholders have until September 30, 2026—the end of the fiscal year—to press the NIH for a phased transition plan.