Changes to Indirect Cost Rate Percentage
Published February 13, 2025
The National Institutes of Health (NIH) has issued a grants policy statement regarding a change in indirect cost rates due to a recent executive order. The NIH is implementing a standardized 15% indirect cost rate across all NIH grants, replacing the previous system of separately negotiated rates.
The National Institutes of Health (NIH) provides substantial research funding through grants that include payments for both direct research costs and "indirect costs" (facilities and administration expenses). Typically, NIH uses institution-specific negotiated indirect cost rates established by cognizant federal agencies.
This new standardized 15% indirect cost rate applies immediately to new and existing grant awards.
This represents a significant shift from institution-specific negotiated rates to a uniform 15% indirect cost rate across all NIH grants.
Stay Informed
Visit the VP for Research and Economic Development website, which tracks federal executive orders pertaining to federal grants and programs.