The National Institutes of Health has opened a federal construction grant program for shared research facilities to for-profit companies, small businesses, state and local governments, tribal governments, and community organizations. Until now, only colleges, universities, and other nonprofit organizations could apply.
The change was made in NIH notice NOT-OD-26-089, dated September 11, according to the revised funding announcement for the research facilities program. It applies to application due dates on or after January 25, 2027, so the newly eligible groups cannot compete until the next funding cycle.
The shift matters beyond research circles because these grants use public money to build laboratories, core facilities, and biorepositories that must be used for biomedical research for at least a decade. Where those facilities are built, and who owns them, can shape which communities gain research capacity and which studies can be done close to patients.
Groups Newly Eligible for NIH Facility Funding
The revised announcement for PAR-26-106, a research facilities construction grant, now lists small businesses and other for-profit organizations as eligible. It also adds state, county, city, township, and special district governments; federally recognized and other tribal governments; eligible federal agencies; U.S. territories; independent school districts; public and Indian housing authorities; Native American tribal organizations; faith-based or community-based organizations; and regional organizations.
The program itself is not new. It supports two existing NIH construction programs, one for biomedical research facilities and one for HIV/AIDS research facilities, both run by the NIH Office of Research Infrastructure Programs.
Foreign organizations remain ineligible, and only one application per institution is allowed. Applicants must complete several federal registrations before applying, and NIH warns that registration can take six weeks or more.
The change is part of a broader administration push to reduce academia's central role in federally funded science, STAT reported. At a May Senate hearing, NIH Director Jay Bhattacharya said the current system requires institutions to have top-notch equipment to attract talent that can then win grants. "This catch-22 guarantees that our investments in institutions will be concentrated," he said.
Award Sizes and the Strings Attached
The program has two tracks. The Biomedical Research Facilities track allows requests of $2 million to $8 million, and the HIV/AIDS Research Facilities track allows $2 million to $4 million. The federal opportunity listing shows $88 million in program funding and 14 expected awards, although the announcement says the number of awards depends on NIH appropriations and the number of strong applications.
NIH intends to set aside at least 25% of the biomedical track's appropriated funds for Institutions of Emerging Excellence. These are applicants that have shown emerging excellence in a research field and are located in areas facing significant public health challenges, such as limited access to health care or inadequate research infrastructure. Every project must serve a broad research community rather than a single laboratory or research group.
Recipients must use the facility for biomedical research for at least 10 years after occupancy and certify that use every year for 20 years. Grantees must file a Notice of Federal Interest on the property, and all award money except architectural and engineering design fees stays restricted until NIH approves the design documents. Allowable costs include design, construction, fixed equipment such as ventilation systems and biosafety cabinets, and contingency fees capped at 15% before bids are received. Indirect costs, scientific instruments, and parking lot construction are not allowed, and projects for billable medical care, office space, or classrooms are not appropriate.
Open Questions About Public Money and Private Labs
The revised announcement lists who may apply, but it does not explain how reviewers will weigh a for-profit applicant against a university or nonprofit, or how intellectual property and conflicts of interest would be handled for company-owned facilities.
The safeguards already built into the program, including the long-term use requirement, annual certification, and NIH design review, apply to every recipient. Whether those protections are sufficient for privately owned buildings is a question the announcement does not address. It does say that funded activities must align with applicable law and NIH priorities.
For taxpayers, the practical issue is accountability. Readers who want to track where the money goes can follow future award announcements through federal grant databases once the first expanded cycle is funded.
Effects Patients and Communities Could See
For patients, any impact will be gradual. Construction awards can run up to five years, and NIH says most recipients need about 16 months just to complete the technical design phase. With about 14 awards expected, the change will not quickly reshape research in any single city or state.
The program's stated goal is more shared research space across the country, including at Institutions of Emerging Excellence in areas with limited health care access. Facilities in the HIV/AIDS track must support research that aligns with NIH Office of AIDS Research priorities, including research on the long-term health consequences of HIV infection.
Organizations interested in applying can contact the Office of Research Infrastructure Programs and review its C06 program frequently asked questions. Under the announcement, applications due January 25, 2027, would undergo scientific review in June 2027 and advisory council review in October 2027, with the earliest possible start in December 2027. The first facilities built under the expanded rules are still years away.
The pool of eligible applicants has grown substantially, while the amount of money and the number of awards remain small. The key unanswered question is how NIH will balance private-sector applicants against the universities and nonprofits that have traditionally received these grants.
Key Questions Answered
What changed? NIH expanded eligibility for its research facility construction grant program, PAR-26-106, to include for-profit companies, small businesses, state and local governments, tribal governments, school districts, and community organizations.
When does the change take effect? It applies to application due dates on or after January 25, 2027.
How much money is available? Biomedical facility requests can range from $2 million to $8 million, and HIV/AIDS facility requests from $2 million to $4 million. The federal listing shows $88 million in program funding and 14 expected awards.
Who was eligible before? Public and private colleges and universities, along with other nonprofit organizations.
What rules do recipients have to follow? Facilities must be used for biomedical research for at least 10 years; recipients must certify that use annually for 20 years, and most funds stay restricted until NIH approves the design.
Will this affect patients soon? Unlikely. The first projects under the new rules could not start before December 2027, and design and construction can take years.
