February 21st, 2025
Dear Colleagues,
After a two hour hearing on February 21st, a Federal Judge extended the Temporary Restraining Order blocking the recent push to cap indirect cost recovery at 15% for NIH grants. The current TRO is held in place until the Judge makes a final decision on whether or not an injunction will be granted. As we mentioned last week, RGS is closely monitoring any directives that would require a reduction in F&A and are prepared to respond quickly and update billing as required by law. Our website on Facilities and Administration costs provides a helpful overview of F&A at PSU.
The Federal administration’s recent push to cap indirect cost recovery at 15% for NIH grants has reignited concerns across the research community. While this might seem like a minor accounting adjustment, such a cap would result in a 70% reduction in the amount PSU receives from NIH grants to cover essential research infrastructure and administrative costs. F&A reimbursements are critical to sustaining federally funded research—they support laboratory space, research equipment, IT and data security, regulatory compliance, and the administrative staff needed for grant management and reporting. Without full reimbursement, universities must absorb these costs, diverting resources from faculty support, graduate education, and institutional research investments.
Recognizing the harm this would cause, multiple states and research institutions—including Oregon—challenged the policy in court. An earlier TRO initially blocked its implementation for but the uncertainty has already disrupted research planning.
At this time, Sponsored Projects and Administration continues to bill at the allowable F&A rate.