Dear AADOCR Members:
On Friday, February 7, 2025, the NIH Office of the Director issued a supplemental guidance (NOT-OD-25-068) that drastically reduces the Facilities and Administrative (F&A) cost rate to 15% for all new and existing grants. This 15% rate is far below what universities have previously negotiated with the NIH and would cripple the research enterprise in this country and endanger America’s global leadership in innovation.
The response from the research community was immediate and sharply critical. Here is a partial list:
- AAMC Statement on Drastic Cuts to NIH-Funded Research
- Research!America Issues Statement in Response to Destructive Cuts to NIH-Funded Research
- Statement of AAU President on Cuts to NIH F&A Research Costs
- APLU Statement on Cuts to Reimbursement of NIH F&A Costs
- AADOCR Statement Calling on the NIH to Withdraw New Indirect Costs Guidance
In addition, STAT News just broke the story that 22 states are suing the Administration to block these cuts.
AADOCR will be working with the broader medical, dental, and scientific advocacy communities to reverse this new guidance. There is a lack of understanding of why indirect costs (Facilities and Administrative) are an integral part of a research award. Please see a recent F&A Costs of Research Fact Sheet put out by AAMC, AAU, AIRI, COGR, and APLU.
In the meantime, your elected officials need to hear from you! In addition to slowing medical progress, these drastic cuts mean job losses and real economic pain at the state and local levels. Make sure your Senators and Members of Congress are aware of the impact this F&A cut will do to your research and to the local economy. There needs to be a flood of calls to Congress with stories from the grassroots scientific community and patient advocates urging them to oppose these harmful cuts. Your voice will make a difference!
