July 21, 2025

Medical research in the U.S. is on the chopping block. What’s at stake for Canadians?

As U.S. slashes medical research funding, tough questions emerge about Canada's own investment in science.
Snyder trainees working in their labs

The landscape of medical research in the United States has recently taken a hit with a significant $5.5 billion CAD cut to public funding from the Department of Government Efficiency (DOGE). These cuts have affected the National Institutes of Health (NIH), a crucial source of medical research funding in the U.S. The repercussions are already being felt—universities are warning of possible lab closures and staff layoffs, with local economies set to bear the brunt of these changes.

The concerns with this are not limited to job losses—there’s a real risk that critical health monitoring systems will be dismantled, leaving the U.S. less prepared to tackle emerging health crises like pandemics or new diseases. Not just that, vital research into treatments for major diseases could be stunted. Why should we as Canadians be concerned about this situation? How does medical research funding differ in Canada?  Is it better or worse, and do we get more bang for our buck?

Understanding Canada's Medical Research Funding

The Canadian Institutes of Health Research (CIHR) is the primary agency responsible for allocating public funding for health research in Canada, managing an annual budget of approximately $1 billion CAD. This funding drives health-care innovation across the country. But, like in the United States, competition for these funds is intense.

The bulk of CIHR’s discretionary funding—about 83 per cent—is awarded through its Investigator-Initiated Research Project and Foundation Grants. These programs provide a platform for Canadian researchers to propose ideas that could reshape the health-care system. Scientists often spend months developing proposals that meet rigorous standards for scientific quality, ethical integrity and principles of diversity, equity and inclusion.

Unlike in the U.S., where researchers often rely on grant funding for their salaries, Canadian researchers are typically salaried through their universities. CIHR grants instead support research operations, including funding for technical staff, students and project expenses. This structure ensures that a greater portion of grant funding is directed toward research activities and training. Nevertheless, with roughly 2,000 applications submitted during each of CIHR’s two annual funding cycles, only a small percentage of proposals are ultimately approved.

The Snyder Institute: A Canadian Bright Spot

Amid this competitive environment, the University of Calgary’s  Snyder Institute for Chronic Diseases stands out as a success story. In a recent CIHR competition, 40 per cent of the applications from the Snyder Institute received funding—far exceeding the national average. This outstanding achievement is a testament to the caliber of research being conducted at the Institute and to the dedication of its scientists. The successful applicants include Drs. Khrisendath Chadee, Gilaad Kaplan, Katharina Lahl, Shan Liao, Kathy McCoy, Braedon McDonald, Christina Thornton, Yasmin Nasser, Bryan Yipp, Mark Gillrie, Ranjani Somayaji, Bas Surewaard, Raynell Lang and Timothy Shutt.  Their projects have the potential to bring about major breakthroughs in chronic disease treatment and understanding, with benefits that will extend beyond Canada’s borders.
 

Successful applicants of the CIHR competition

Successful applicants of the CIHR competition

“CIHR-funded discovery and translational research is essential to advance health-care outcomes. We are very proud of the sustained CIHR-grant success of Snyder Institute members over the years. These grants and additional support from our engaged philanthropic community keep the institute at the forefront of biomedical research,” says Dr. Derek McKay, PhD, director of the Snyder Institute at the Cumming School of Medicine (CSM).

Why Public Funding Matters

Public investment in medical research is essential. Many life-saving discoveries have been made possible by taxpayer dollars. For instance, it was public funding that led to the discovery of immune checkpoint inhibitors, which have revolutionized cancer treatment. Likewise, it was research supported by public funds that led to the creation of Ozempic, a groundbreaking diabetes treatment developed from studies of the Gila monster, a venomous lizard.

These examples show just how vital public funding is for advancing medical research and improving public health. Without such investments, many health-care innovations we now rely on would not have been possible.

Looking to the Future

Despite the challenges and fierce competition, Canada’s funding process for medical research remains an exceptional avenue for addressing tomorrow’s health issues. The recent success of the Snyder Institute members demonstrates just how impactful Canadian research can be on a global scale. Even in the face of financial constraints, the work being done across the country offers hope for the future of health care.

Dr. Katharina Lahl, PhD, recently joined the CSM as an associate professor, and the Snyder Institute as a member, marking a significant step forward in her research career. Her current position is fully funded by the University of Calgary, with the Snyder Institute providing both financial support and laboratory space for her research. "This level of institutional support has given me the freedom to pursue bigger questions aimed at the prevention of chronic and infectious diseases," says Lahl. "With CIHR funding in place, I can now direct all my energy towards medical research to find those answers that move the needle."

As we continue to support and invest in Canadian research, we can look forward to a future where groundbreaking discoveries lead to better treatments and improved health outcomes for people everywhere. 

Dr. Chris Mody is a clinician scientist and professor in the Department of Medicine at the Cumming School of Medicine, University of Calgary. He is a member of the CSM’s Snyder Institute for Chronic Diseases.