Recent policy changes from the National Institutes of Health (NIH) to forward fund an increasing number of competitive grants has led to questions from the research community. This page provides the latest information and insight on this funding mechanism.
Frequently Asked Questions
What is forward funding?
Forward funding, or multiyear funding (NIH definition), describes a mechanism through which the NIH makes available to grantees the entire budget for a grant upon the initial award, as opposed to an annual basis. For an award that has been forward funded, the project period and budget period are the same, allowing forward-funded grants to be identified in publicly available NIH RePORTER data. Historically, the NIH has not used this mechanism for funding Research Project Grants (RPGs) and instead has utilized it for grant types including special awards from the Office of the Director, AREA grants, and research infrastructure and cooperative agreement programs.
How is the NIH changing its use of the forward funding mechanism for grants?
In a budget overview (PDF) released in June 2025, the NIH stated the following:
“In [fiscal year] FY 2026, the Budget will continue the FY 2025 policy of reserving half of the NIH budget allocation for competing research project grants (RPGs) for awards that fully fund their outyear commitments as part of the initial grant obligation, to facilitate efficient management of resources across multiple years. Traditionally, most NIH research grants have been awarded for more than one year and funded incrementally; each year’s commitment is obligated from that year’s appropriation. Under this incremental funding approach, grants are classified as competing in the first year of award or renewal, and noncompeting in the remaining years of each award. Providing the grantee with funding for every year of the RPG from the start will increase NIH budget flexibility by no longer encumbering large portions of each year’s appropriation for the continuation of research projects that were initiated in previous years.”
The NIH has not released any additional policy document or guidance on forward funding outside of the budget overview.
What are the impacts of transitioning to a forward funding model?
As the NIH transitions to forward funding a greater proportion of RPGs, the agency will be able to fund fewer competitive awards in a fiscal year. The National Cancer Institute Funding Policy, updated July 2025, estimates that the institute will fund 4% of R01 and R21 grant applications in the upcoming fiscal year, down from 9%. The policy states that funding will “prioritize meritorious investigators who have fewer than three active NIH awards.”
Paylines will also be determined by the final FY 2026 NIH budget, which is still in development through the congressional budget process. Funding information from other NIH institutes and centers will be posted here as it is available.
What should institutions consider in their management of forward-funded awards?
Recipients of forward-funded awards must still submit yearly progress reports to the NIH, as is always required for research project grants. However, while multiyear funding may provide increased stability and flexibility for grantees, institutions should examine or update processes to ensure that funds are budgeted for the full duration of the grant and be aware of any labs whose operations may be particularly at risk under a reduced RPG success rate.
Engagement Opportunities
The AAMC will host a webinar series in the fall for you to learn more about managing forward-funded awards and share best practices for institutions. Please email researchpolicy@aamc.org with any questions you’d like addressed.