NIH indirect cost reimbursement capped at 15 percent
Enacted5/10
⚖ Permanently enjoined; affirmed on appeal Jan 2026
Federal · NIH Notice NOT-OD-25-068 · Signed Feb 7, 2025
Impact 5/10
On February 7, 2025, NIH issued guidance imposing a standard 15 percent indirect cost rate on all grants in place of separately negotiated rates that had averaged 27 to 28 percent, applying it to existing university grants within days. Universities and research hospitals said the change would cut billions of dollars annually from research infrastructure. A federal court permanently enjoined the cap in April 2025, and the First Circuit affirmed that ruling in January 2026, so the cap never took effect.
HealthcareEducationGovernment & civil serviceStudents
Sources
✓ Verified against primary sources 2026-08-16