On Monday, January 5, a panel of appellate judges unanimously upheld a lower court ruling blocking the National Institutes of Health from implementing a standard 15% facilities and administrative (F&A) rate across all NIH grants for indirect costs. The decision maintains current reimbursement rates, ensuring continued access to essential funding for annual expenses.
Federal appellate Judge Kermit Lipez noted in the ruling that NIH-funded research has led to many major medical breakthroughs from lowered death rates from conditions such as heart attacks and strokes to improved diagnosis of ovarian cancer and Alzheimer’s disease
“In short, the public-health [sic] benefits of NIH-funded research are enormous,” Lipez wrote.
The so-called ‘indirect costs’ covered through F&A reimbursement in NIH grants support many aspects of the educational and research work of the university that lead to lifesaving discovery. Indirect costs contribute to everything from utilities and maintenance for safe, clean facilities, to supporting clinical trials for new medicines and treatments. The funding is vital to lifesaving research activity.
The Office of Federal Relations continues to monitor these and other developments and the potential impact on UW–Madison operations. If you receive any direct communications from federal agencies or have questions regarding these matters, please send them to rspinfo@rsp.wisc.edu.