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MORE EDUCATION SABOTAGE [1]
['This Content Is Not Subject To Review Daily Kos Staff Prior To Publication.']
Date: 2025-02-07
slashing overhead rates to 15%. I want to provide some context on what that means and why it matters. 1. Today the NIH director issued a new directive. I want to provide some context on what that means and why it matters. grants.nih.gov/grants/guide…
..[NSF & NIH] support the institutions where grantees work by paying facilities and administration (F&A) costs to research institutions such as universities. These costs above and beyond the direct amount of the grant are essential to fund university infrastructure and personnel.
..4. These F&A costs, colloquially known as "overhead", are typically north of 50%. At the UW, for example, the overhead rate is 55%. That means that if I get federal grant for $1,000,000 of direct research funding, the university receives an additional $550,000 to cover operating expenses and such.
5. Other schools may have even higher overhead rates. Harvard's is around 69%. This new order slashes that percentage to a maximum of 15%. This means cutting one of the most important sources of university funding nationwide by 75% or more. Universities cannot function with this scale of cut.
6. The policy does not just affect funding going forward. All existing NIH grants will have their indirect rates cut to 15% as of today, the date of issuance. For a large university, this creates a sudden and catastrophic shortfall of hundreds of millions of dollars against already budgeted funds.
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