Last Update: May 14, 2025
This page will be updated as new information is made available.

At this time, please adhere to the guidance listed below.

Ongoing litigation and further communications from the federal government may result in changes to these instructions. Updates with any new information will be disseminated as soon as it becomes available.

Please use the RA Teams Network to ask additional questions or seek further clarification.

Proposal Submissions

Indirect Cost Reimbursement Cap Policies and Litigation

Guidance from the federal government is complex and rapidly changing.

The National Institutes of Health (NIH), Department of Energy (DOE), and the National Science Foundation (NSF) have implemented policies to cap indirect cost reimbursements for research grants to 15%:

These policies have prompted multiple lawsuits:

Awards

  • The terms and conditions of an executed award remain enforceable so long as an award is active. This includes the ability to invoice and receive reimbursement.  Please continue with business as usual.
    • OMB memorandum M-25-13 has been rescinded. Federal agencies are not currently ordered to “temporarily pause all activities related to obligations or disbursement of all federal financial assistance.” – 1/29/2025
  • Changes are expected in requirements for research compliance and award reporting. These changes may come directly from the federal agency, or on a project-by-project basis. You may receive instructions from your Program Officer, and they should be promptly and strictly followed to ensure compliance and avoid jeopardizing funding. Any information the university receives regarding changes will be communicated broadly.
  • Exercise caution when considering project activation requests as they are at the risk of the department.
  • Guidance for Avoiding Misrepresentation in Grant Applications and RPPRs – 4/29/2025

No-Cost Extensions (NCEs)

New Awards

  • If we receive new awards or flow-through awards with the 15% rate:
    • They will be placed on hold until the indirect cost rate is resolved.
    • PIs must not charge existing awards for costs associated with a project that is on hold pending resolution of the indirect costs (IDC) rate.
  • Project activations for new NIH awards will not be processed by Sponsored Projects Accounting (SPA) until the notice of award (NoA) is received at the negotiated IDC rate. This does not apply to NIH funding mechanisms with IDC rates normally below our negotiated rate such as training grants.
  • For existing NIH awards, spending on continuations will not be allowed on awards with foreign subawards until the NoA is received for the next increment of funding.

Stop-Work Orders and Terminations

Reimbursement

  • Sponsored Projects Accounting will draw down funds from the NIH at the negotiated IDC rate.
  • SPA will not draw down funds from the NIH at the 15% rate. 

Rebudgeting Existing Awards

  • Do not re-budget costs from indirect to direct categories.

Invoicing

  • We have seen an increase in requests from departments to send invoices on agreements that are not fully executed. SPA can NOT send invoices for awards that are not fully negotiated and signed.