The impact of federal actions on academic medicine and the U.S. health care system
The AAMC is warning that a combination of federal budget cuts and policy changes pose an existential threat to America's medical schools, academic health systems, and biomedical research institutions. Already in 2025, over 1,100 NIH grants have been terminated, including at least 160 clinical trials covering cancer, HIV/AIDS, mental health, and other conditions. On top of that, proposed Medicaid cuts could leave nearly 11 million people without health insurance, changes to student loan programs could harm nearly half of all medical students, and reductions in Medicare reimbursements, hospital payments, and drug pricing programs are squeezing safety-net hospitals that serve the most vulnerable patients. The AAMC emphasizes that academic health systems are not just research hubs — they train the next generation of physicians, provide specialized care unavailable at other hospitals, and contribute over $728 billion annually to the U.S. economy. Leaders at the organization argue that if these proposed actions move forward collectively, the damage to research, medical education, and patient care would be severe and far-reaching.