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by syndicatedjelly 498 days ago
https://grants.nih.gov/grants/guide/notice-files/NOT-OD-25-0...

The original grant notice is a good thing to read. They properly justify the cuts, and I think it's something that a lot of people would agree with - why is up to 70% of grant money being sent to "administration and overhead" at giant private universities? My small LLC is currently applying for an SBIR grant, and we were capped to 40% unless we provided a big justification - which we can't, because we're too small to justify anything like that. Meanwhile, big organizations and universities can throw their weight around and bully the government into handing them more money to do who-knows-what with. Maybe build a nice shiny new sports center with.

This is a good reform - even though it will cost my LLC about $75k in indirect costs that we might have been able to bill (40% -> 15%). I'm more confident in my ability to reduce our indirect costs and compete on a level-playing field with everyone else.

1 comments

Just so everyone reading this is clear, it’s not 70% of grant money, it’s an extra 70% on top of the direct costs (41% of the total awarded). A more typical number for a large state university would be somewhere around 55%, or around 35% of the total awarded funds.

Also, indirect costs are not going to building sports centers. Funding agencies and the government audit universities in detail to make sure that the money is being spent only on research activities, down to calculating the amount of square footage per building that is being used exclusively for research, as opposed to instruction or clinical work. They have absolutely come after people and institutions, and successfully obtained multimillion dollar settlements, for using federal money to cover unrelated expenses. If NIH indirects were found to be going towards something like building a rec center or a facility for college athletes, it would be actual fraud and a national scandal, potentially on the “congressional inquiry” level.