A version of this message was sent to members of UW research administration on Friday, Feb. 7.
Dear Colleagues,
We want to make you aware of an important change announced by the NIH today. The NIH has implemented a standardized indirect cost (IDC) rate of 15% across all NIH grants, replacing individually negotiated rates. This applies to both new grants and existing grants retroactively to the date of issuance of this guidance.
From the NIH’s Guide Notice (NOT-OD-25-068):
“Pursuant to this Supplemental Guidance, there will be a standard indirect rate of 15% across all NIH grants for indirect costs in lieu of a separately negotiated rate for indirect costs in every grant…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.”
We recognize that this is a significant change with broad implications, and we are actively assessing the next steps. We will provide additional information and guidance early next week. In the meantime, you can review the full NIH announcement here: NIH Guide Notice NOT-OD-25-068. We will also be in communication with campus leadership and federal relations to determine how best to respond.
If you have immediate concerns or questions, please don’t hesitate to reach out. Please also feel free to share this email as needed.
We know this is not welcome news on a Friday evening, but we wanted to ensure you were informed as soon as possible. Please know that we’re aware, we’re assessing, and we will be in touch. There’s a lot coming at us quickly, but we appreciate your patience, support, and collaboration. We’ll get through this together!
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Kurt McMillen
Interim Assoc. Vice Chancellor for Research Administration,
Interim Director, Research and Sponsored Programs
University of Wisconsin – Madison