02/10/2025

NIH Caps Indirect Costs at Flat Rate

Higher education institutions should consider this advice

New supplemental guidance issued Feb. 7 by the National Institutes of Health (NIH) eliminates negotiated indirect cost rates and establishes a new standard indirect cost rate of 15 percent, dramatically lowering the reimbursement of the facilities and administrative costs of conducting federal research.

The policy hews closely to a recommendation from Project 2025 to cap indirect costs at universities.

The new policy goes into effect Feb. 10.

Please select this link to read the complete perspective from NACUBO.