The U.S. research community, our institutions, and the general public were informed of the NIH notice posted late Friday (NOT-OD-25-068: Supplemental Guidance to the 2024 NIH Grants Policy Statement: Indirect Cost Rates) setting a standard indirect rate of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant.
We have been working across the weekend internally, with UT System, with our government relations group, and also with other institutions and academic organizations nationally to firstly understand the potential impact of this announcement and then to chart out an appropriate response to NIH. The situation is fluid and under consideration nationally.
It is important to note that at this time, the notice only applies to NIH supported projects and only to indirect costs. The notice as written does not apply to direct costs. Accordingly, at this point, researchers should continue work on their projects consistent with the previous executive orders and the terms of the award and continue to apply for posted funding opportunities.