A message from the Chamber’s President and Chief Executive Officer, Chellie Cameron, to our regional business community as we work together to achieve our Chamber 2028 vision.

Dear Chamber Community,

As we navigate this ongoing season of change in Greater Philadelphia, we recognize that many of our member organizations face significant economic and other challenges due to federal policy changes. These changes have the potential to affect a wide range of our members, creating uncertainty and concern.

The Chamber of Commerce for Greater Philadelphia (the Chamber) is committed to advocating for policies that will grow our economy and create opportunities for upward mobility at the local, state, and federal levels. We will continue to support the growth of our member companies and demonstrate our commitment to their success.

One significant example of these challenges is the recent implementation of a 15% cap on Facility & Administrative (or “F&A”) costs for all new and existing National Institutes of Health (NIH) grants. This policy change has significant implications for our region.

With this cap, the NIH is forcing universities, hospitals, and research institutions to make impossible choices that will have immediate and severe consequences for our region’s economy. Pennsylvania could see annual losses of more than $367 million. While Greater Philadelphia has a density of these institutions, communities across the Commonwealth – like Scranton, Williamsport, and Altoona – all rely on these types of institutions to provide medical advancements, conduct research, and employ workers of all ages, training, and specialties.

In Greater Philadelphia, where, in 2019, anchor institutions directly and indirectly supported nearly 496,000 jobs, contributed over $51 billion to regional GDP, and generated $24 billion in employment income, we’re guaranteed to feel an impact. In addition to a loss of the sector-specific roles in these institutions, we’ll see fewer jobs in manufacturing, research, waste management, IT, accounting, auditing, building construction, and more. As our regional economy grapples with this loss, our member businesses will undoubtedly feel the effects.

Advancements in medicine, from cancer treatments and clinical trials to robotic interventions and genetic research, will stagnate. Institutions already at their funding limits may shift away from costly and complex fields like genetics.

Many universities and research institutions simply cannot afford to absorb the loss, leading to tuition hikes, program closures, and diminished workforce training pipelines. This will shrink the pipeline for specialty doctors, exacerbating a shortage that health legislation leaders have raised as a concern.

In addition to established anchor institutions, support for startups, spinouts, and small businesses will decline significantly, putting at risk the $181 million in grants that Pennsylvania received in 2023 to support Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

These cuts will create substantial challenges for the life sciences sector, which regionally supports more than 85,000 direct jobs. In the cell and gene therapy sector alone, 7,000 jobs are supported at 60+ companies and institutions, creating over $1 billion in wages for workers across our region.  As this sector struggles, the pipeline for new treatments and medical technologies will also slow, not only jeopardizing life-changing job opportunities for residents throughout our region but also lifesaving cures for people across the globe.

While judicial challenges, including a temporary restraining order, are ongoing, organizations across Pennsylvania and beyond are bracing for the economic fallout. The Chamber urges policymakers to reconsider this cap and ensure sustained investment in research that drives economic growth, global leadership, and community well-being.

If we fall behind, we won’t just lose funding—we’ll lose the talent, technology, and advancements that define us as global leaders in medicine, engineering, and life sciences, as well as opportunities to grow our regional economy and increase economic mobility.

Thank you for your continued support as we advocate for a more competitive business climate – for all.

In Service,

Chellie

Chellie Cameron
President and Chief Executive Officer,
The Chamber of Commerce for Greater Philadelphia