NIH Executive Fired Amid Contract Probe Involving Spouse

The National Institutes of Health (NIH) has terminated the employment of its chief operating officer, Eric Schnabel, following allegations of potential misconduct related to a $3.3 million contract award. The dismissal comes amid an ongoing investigation into whether Schnabel's wife could have benefited from the agreement, according to a report by The Washington Post.

Contract Details and Allegations

The contract in question, awarded to Argo Chasing at the beginning of July, was valued at $3.3 million for a one-year term. It covered "project coordination and subject matter expert support for high-level strategic research security, counterintelligence, autism and execution services." This agreement marked a significant increase from Argo's previous NIH contract, which was a short-term, $25,000 arrangement secured in May.

Anonymous officials cited by The Washington Post revealed that Schnabel's wife, Trish Duffy Schnabel, was named on Argo's list of staff. Mrs. Schnabel, a licensed professional counselor with extensive experience working with individuals on the autism spectrum, was allegedly one of the individuals supported by the NIH contract. However, it was noted that she would not have received the entire contract amount.

Schnabel's Role and Dismissal

Eric Schnabel assumed the position of chief operating officer of senior executive service at the NIH in April 2025, during a period marked by significant layoffs and contract cuts under the Trump administration. His responsibilities included upgrading security measures, enhancing operational efficiency, and improving employee communication.

On Monday, July 14, 2025, Schnabel was reportedly escorted out of the NIH building. The agency is currently investigating whether he attempted to steer the contract to benefit his spouse, constituting a potential conflict of interest.

Background and Industry Impact

Prior to his role at the NIH, Schnabel's career spanned positions in the Army and the Department of Defense. He later established a security company and held roles in various businesses, including Millennium Health & Fitness.

This incident occurs against a backdrop of broader challenges within the NIH, including recent demands from over 300 NIH staffers for the director to reverse funding and workforce cuts. The situation highlights ongoing concerns about contract oversight and potential conflicts of interest within federal health agencies, which could have far-reaching implications for the pharmaceutical and biotech industries that rely on NIH funding and partnerships.

As the investigation continues, the pharmaceutical sector will likely be watching closely for any potential changes in NIH contracting processes or leadership that could affect future collaborations and funding opportunities.