Background
On February 7, 2025, the National Institutes of Health (NIH) issued a notice calling for a 15 percent indirect cost rate on all new and existing awards. Federal judges have since issued two separate temporary restraining orders in response to separate lawsuits, meaning the new rate has not gone into effect at this time.
This proposed change, a substantial reduction from our current negotiated rate of 54 percent, would profoundly affect Minnesotans’ access to the University’s cutting-edge research and its related benefits. It would directly impact our ability to fulfill our mission as a research university, likely impacting everything from graduate tuition to facilities to student work opportunities. At the local level, it would affect the University’s ability to maintain cutting-edge facilities and specialized systems and to hire staff who make our research enterprise run. More broadly, the proposed change at NIH alone would cost the University between $100–$130 million annually, a cut that would threaten the scope and the depth of the life-changing research that happens at the University every day. The University is continuing to advocate for these resources on behalf of our faculty, staff, students, and our research enterprise.
University Messages
February 27, 2025: Federal Developments Related to Research Projects | Research and Innovation Office
February 18, 2025: NIH 15% Indirect Cost Rate Cap | Research and Innovation Office
February 11, 2025: Temporary Restraining Order (TRO) on NIH Indirect Cost Rate Change | Research and Innovation Office
February 10, 2025: In support of our research enterprise | Office of the President
February 8, 2025: Important Update, NIH Guide Notice | Research and Innovation Office
Frequently Asked Questions
What are the implications of an NIH indirect cost reimbursement cap of 15 percent?
Such a rate change would mean between $100–130 million cut annually to University of Minnesota research.
Where should students doing grant-funded work go for the latest information?
If you work on grant-funded projects, connect with your grant supervisor for the latest information.
How will the University respond and support researchers if the NIH indirect cost reimbursement cap goes into effect?
In her February 10 message, President Cunningham outlined steps the University is taking, including:
- actively partnering with higher education associations and peer institutions across the country to identify ways in which we can effectively address this rapidly evolving situation head on,
- implementing a broad outreach strategy to ensure that members of our federal and state delegation fully appreciate the profound implications of this notice,
- supporting national efforts led by higher education associations to address the legality of this directive, and
- scenario planning for how we can support our community through these changes.
In addition, a February 18 memo from RIO leadership addresses financial implications.
For questions or concerns regarding the latest announcement from NIH, contact our Research and Innovation Office at [email protected], or connect with a research administrator in your school, college, or unit.
Is it possible for the University’s facilities and administration rate agreement to go down in the near future?
The University reached a five-year agreement with the federal government that will remain in effect until 2028. For more information, visit RIO’s Sponsored Projects Administration webpage.
Who will be notified if the indirect cost reimbursement cap goes into effect?
The University’s Sponsored Projects Administration is notified, who will then ensure the project’s PI has been notified.
Are multi-year funding awards affected?
View RIO’s Sponsored Projects Administration webpage or reach out to [email protected].
Has the University received Just in Time (JIT) requests in 2025 for pending awards?
View RIO’s Sponsored Projects Administration webpage or reach out to [email protected].
What can staff and faculty do to advocate for state and federal research funding?
The University's Government Relations team leads advocacy efforts, and welcomes participation from students, faculty, and staff. Check out opportunities to participate, including joining UMN Advocates.
You can help the University tell its story internally and advocate externally by sharing stories of impact you're seeing in your units, colleges, and campuses. We would like to collect stories to use in a few ways, including posting to a new section on the Rapid Response website and sharing in conversations with elected officials. Please use the U-MarComm story sharing form, which has been updated for this purpose. Specifically, we're looking for stories that show how the lives of students, researchers, staff, and Minnesotans have or will change as a result of changing federal guidelines.
Resources
Vice President for Research and Innovation–Federal Impacts (regularly updated based on changing guidelines)
Understanding facilities and administrative costs infographic
Indirect cost recovery presentation to the Board of Regents September 13