Major news out of NIH tonight, which I’m told will have a dramatic impact on all academic medical centers and research universities generally. Anyone familiar with the sciences knows that scientists bring in grant money for various research projects and the grant money is split between the grantee, who might be a researcher or a lab, etc., and the host institution. So the hospital or the university, etc. The new directive limits what goes to the institution for “indirect costs” to 15%. I don’t know this area well enough to get into the precise rationales for which rates make the most sense in the abstract. But that’s not really the point. From what I can tell this directive slashes the kind of government research funding available to these institution by as much as 60% or 70%. (I want to keep those percentages vague because this isn’t my area but I think that captures at least the general scale.) So these sound like huge budget shortfalls for academic research institutions, academic medical centers and so forth. And this is above and beyond the “freezes” that are still mostly in effect, albeit in many cases unofficially.

One of the continuing mysteries about the DOGE intrusion into the super sensitive payments computer system housed at the Treasury Department is just what Treasury Secretary Scott Bessent as well as other administration officials and lawyers mean by “read-only” access. For starters, it’s not clear that “read-only” is actually a privilege level on the systems in question. But that’s kind of a technical detail. More importantly, both Wired and TPM have independently reported that now-defenestrated DOGE operative Marko Elez in fact had administrator-level privileges on the same system. In other words, not “read only,” but full access to do pretty much anything if they chose to. And that’s not what people are thinking when they hear “read-only.” So what is it? Are the Treasury Secretary or the DOJ lawyers who went into court lying? Is there some technicality we’re not thinking of?

I’ve made this point a few times in passing in other posts. But as events develop I wanted to explain it succinctly and with emphasis. Democrats are out of power and have very few actual levers to impact what’s happening. Yelling is important. Driving opposition in what is ultimately a battle for public opinion is important. Contesting everything through the courts is important. But there is only one hard lever of power currently available: that’s the help the White House needs from Democrats on a budget and the debt ceiling. This morning explainer from Punchbowl makes clear why that help is essential. It’s not just helpful. It’s essential. The GOP majorities are simply too small, especially in the House. The GOP is simply too fractious.

A new episode of The Josh Marshall Podcast is live! This week, Kate and Josh discuss Elon Musk’s running roughshod over the federal government, along with some signs of life from the Democrats.

The Times this morning has an apparent explanation for why DOGE operatives were so eager to take control of the unified government payment system at the Treasury: they wanted to be able to shut off payments to USAID projects without going through USAID personnel. They say this is based on emails between Elon-backed Trump appointees now at Treasury. I assume this is accurate in itself but I wouldn’t be sure this is the only reason and perhaps not even the main reason. But it’s the only non-speculative explanation we have so far.

David Kurtz notes this morning that the judge overseeing a lawsuit aimed at halting the actions at Treasury is almost certainly being given false information about what’s actually happening, though as David notes we can’t say for certain the Justice Department lawyers representing the administration are affirmatively lying. (They may use weasel words; they may not themselves know; many possibilities.) Those lawyers continue to insist that the Musk operatives at Treasury only have “read-only” access to the computers. As Wired and I have independently reported, that’s not true. They have full administrator privileges and, as I have reported, they’ve already altered the code.