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by contemporary343 489 days ago
The worst part is that it is immediate and retroactive to ongoing grants. This will immediately cause every single academic and medical research center to have an unsustainable deficit. It will simply cost too much to actually have researchers do the grants. They might return money to NIH and lay off faculty annd grad students.

I anm almost certain this will get a TRO from a federal judge while it’s litigated given how insane this is.

1 comments

This is not true, you might have misread the guidance- it's retroactive to the date of the decision (7 February) and not retroactive to other existing grants (https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-0...)

Last paragraph:

For any new grant issued, and for all existing grants to IHEs retroactive to the date of issuance of this Supplemental Guidance, award recipients are subject to a 15 percent indirect cost rate. This rate will allow grant recipients a reasonable and realistic recovery of indirect costs while helping NIH ensure that grant funds are, to the maximum extent possible, spent on furthering its mission. This policy shall be applied to all current grants for go forward expenses from February 10, 2025 forward as well as for all new grants issued. We will not be applying this cap retroactively back to the initial date of issuance of current grants to IHEs, although we believe we would have the authority to do so under 45 CFR 75.414(c).

Are you familiar with how organizations have annual budgets? Doing it with zero notice in the middle of a fiscal year will be chaos. This is purely an attack.

Notice how no one is going after the F&A (indirect) rates for DOD R&D contractors…