Published May 2, 2025, via Research News
On May 2, 2025, the National Science Foundation (NSF) posted the Policy Notice NSF 25-034: Implementation of Standard 15% Indirect Cost Rate.
Effective May 5, 2025, NSF will cap indirect cost reimbursements for research grants to 15%. The 15% rate maximum applies only to new awards made to Institutions of Higher Education (IHEs) on or after May 5, 2025. Institutions are not required to amend budgets for awards issued before this effective date, nor will they be required to return previously reimbursed indirect costs.
This policy does not apply retroactively to existing awards or award supplements.
At this time, please adhere to the following guidance.
- Proposal Submissions:
- Proposal submission practices have not changed. We will continue to submit proposals at the negotiated indirect cost rate. Do not submit proposals using the 15% rate.
- 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.
- If we receive new awards or flow-through awards with the 15% rate:
Please note that ongoing/new litigation and further communications from the NSF may result in changes to these instructions. You may have also seen the article in Nature stating NSF funding has been put on hold. We will continue to monitor and provide updates with any new information as soon as it becomes available.
Sincerely,
Mark E. Lowe, MD, PhD
Vice Chancellor for Research
Associate Dean for Research, School of Medicine
Harvey R. Colten Professor of Pediatric Science