Action: Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates What it does: On February 7, 2025, the National Institutes of Health (NIH) announced a policy change that will cap at 15% the “indirect costs” that could be included in its research grants to higher education institutions. Previously, indirect cost rates were negotiated with each grant recipient, averaging about 27-28%, though exceeding 50% in some cases. NIH noted that in the last fiscal year, it made more than 50,000 grants valued at $35 billion, of which $9 billion was allocated to indirect costs. NIH claims the policy change will save $4 billion. It also cited several major philanthropic foundations that set indirect cost maximums at or below 15%.Key Insights
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