This is likely a temporary move, intended to be used for rhetoric. Eventually the faculty will complain, because they rely on large pyramids of postdocs and grad students for almost all labor. There’s simply no way to continue the work of university research without a strong supply of grad students. Once this is realized, and the NIH doesn’t bend, then grad admissions will increase again, and admin cuts will start, as they should.
> this is likely a temporary move, intended to be used for rhetoric
It's a rational move given the U.S. governments word on payments and commitments is no longer credible. If your employer started bouncing paycheques, your cutting back on expenses wouldn't be "intended to be used for rhetoric." It's simple self preservation.
Amazing commenters here -- for them people are like cattle. "Temporary move". Graduate students without an offered position -- it's nothing, they'll just wait a bit. Cut one funding one day, maybe release later.
Didn't the NIH freeze the review meetings in this year's proposal review process, putting all grant funding that would start next fiscal year in question? This is separate from the change to the overhead rate.