I never cease to be amazed about how short sighted the NIH can be.
Great, so because of the quality standards being lowered for determining R01's funding in order to spend the all the stimulus money within two years(Not to mention, there just is not enough time to properly review everything), it's going to be super hard for graduating grad students and others with less research experience who have quality ideas to get funding once the stimulus money dries up. This is because:
A) There will be a glut of research programs (Which would normally not get funding because of quality concerns) that will be applying for renewals (ARRA is going to allow rollovers of stimulus programs) just as the stimulus money goes bye bye.
B)The NIH usually gives preference to projects that have already recieved funding.
Yay for turning a field that needs stable funding for in many cases, years at a time to get anything done, into a boom-bust business!