Advisory Board February 12, 2025
Last week, NIH announced a new policy capping the indirect cost payment rate for new and existing grants at 15% — a change that could threaten billions of dollars in funding for universities and health systems.
How federalism will shape health policy in 2025
NIH caps indirect cost payment rate
Last Friday, NIH Acting Director Matthew Memoli announced that the agency would cap the indirect cost payment rate for all new and existing grants at 15%. Previously, organizations had negotiated indirect cost rates with the federal government, with rates generally averaging between 27% and 28%.
“The United States should have the best medical research in the world,” NIH said in an announcement about the change. “It is accordingly vital...
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