NIH Cuts Indirect Cost Rate for Research Grants

NIH Cuts Indirect Cost Rate for Research Grants

The National Institutes of Health (NIH) announced on Feb. 7 that it will reduce the indirect cost rate for new and existing grants to 15% for all institutions. These rates, which typically range from 50% to 70% and are negotiated on a university-by-university basis, fund essential research infrastructure. According to NIH data, the historical average has been 27% to 28%, though this includes grants with no overhead costs, such as training and graduate student stipends.

This change will effectively cut billions of dollars from the biomedical research enterprise, impacting researchers, their institutions, and state and local economies. Indirect costs support the basic operational expenses of research, including laboratory space, utilities, and compliance with federal regulations governing animal welfare, research security and biosafety.

The American Physiological Society (APS) is working alongside partners in the scientific and academic communities to develop a coordinated response to this significant funding shift. In the coming days, APS will provide resources to help researchers contact their members of Congress and state officials to advocate for sustained research funding.

APS urges the scientific community to take action in support of the critical research that drives innovation and improves health. Contact your member of Congress, ensuring they understand the importance of biomedical research.