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Government Affairs Home > Labor-HHS Approrpriations > NIH

AAMC Letter on NIH Salary Cap Sent to Full Senate and House Labor-HHS Subcommittee

September 20, 1999

The Honorable Arlen Specter
Chairman
Subcommittee on Labor, Health and Human Services, Education and Related Agencies
Committee on Appropriations
711 Hart Senate Office Building
Washington, D.C. 20510

Dear Mr. Chairman:

The Association of American Medical Colleges respectfully urges the subcommittee to raise the level of the salary cap imposed in the annual appropriations bill on extramural scientists supported by the National Institutes of Health.

The salary cap was first imposed as part of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act for FY 1990 [Public Law 101-166], which stated:

None of the funds appropriated in this title for the National Institutes of Health and the Alcohol, Drug Abuse, and Mental Health Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of $120,000 per year.

Similar language has been included in each subsequent Labor-HHS-Education appropriation with two modifications. The limit was increased in the FY 1992 appropriation to $125,000. Last year's Omnibus Consolidated and Emergency Supplemental Appropriations Act [P.L. 105-277] linked the maximum salary to the Executive Level III salary rate, which is currently $125,900.

This cap on extramural salaries is just one of a number of steps by the federal government during the last decade to increase its requirement for cost-sharing on federally financed projects. This progressive shift of research costs to medical schools comes at the same time that discretionary funds from clinical revenue available to cover these costs have been shrinking. Institutions are beginning to report difficulties adding the financial support necessary to recruit and retain top quality researchers. The situation is particularly critical with regard to physician scientists.

Ironically, this is a situation that the NIH intramural community faced a decade ago. One of the solutions Congress developed to permit the NIH to recruit and retain high-quality scientific investigators was the Senior Biomedical Research Service (SBRS), which was established in November 1990 [P.L. 101-509; 42 U.S.C. 237]. Under the SBRS, the NIH can support up to 500 "individuals outstanding in the field of biomedical research or clinical research evaluation." [42 U.S.C. 237(b)] The salary for members of the service cannot exceed Executive Schedule I, which is currently set at $151,800.

The AAMC recommends that the subcommittee modify the NIH salary cap language in the Labor-HHS-Education appropriations bill as follows:

Sec. None of the funds appropriated in this Act for the National Institutes of Health and the Substance Abuse and Mental Health Services Administration shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of the maximum allowable under the Senior Biomedical Research Service.

Thank you for your attention to this important issue.

Sincerely,

Jordan J.Cohen, M.D.

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