The Department of Health and Human Services, through the National Institutes of Health (NIH), has issued a Notice of Funding Opportunity (NOFO), PAR-24-036, targeting Clinical Observational (CO) Studies in musculoskeletal, rheumatic, and skin diseases. The primary aim of this initiative is to secure applications for Research Project Grants (R01) that will collect data to design future clinical trials and observational studies. The emphasis is on non-interventional studies that gather information on disease symptoms, progression stages, and patient outcomes vital for future clinical research. Eligible applicants include higher education institutions, nonprofits, and various levels of government. Funding is capped at $475,000 over a maximum four-year project period, with stringent adherence to submission requirements highlighted. Key deadlines include submission openings on February 4, 2024, with multiple application cycles running through late 2026. The review process emphasizes the significance, innovation, and overall impact of proposed studies, requiring emphasis on diversity among participant demographics. The NOFO encourages the incorporation of telehealth, digital outcomes, and wearable devices in observational studies, ultimately striving to enhance clinical research around chronic diseases impacting largely diverse populations.